Best 3-year CD rates of November 2023

In a weird twist, the best three-year certificates of deposit (CDs) currently offer lower yields than short-term options. (You can thank the Fed and inflation for that.) How long that dynamic will remain, though, is anyone’s guess.

That’s the benefit of opting for a great three-year CD: You lock in an outstanding rate for a longer-time period. It’s especially valuable if you are holding the cash for a specific purpose, such as college tuition or a down payment.

To determine the best three-year CDs, we researched more than 350 CDs, looking at over 45 data points for each.

Annual percentage yields (APYs) and account details are accurate as of November 20, 2023.

Best 3-year CD rates
Ally High Yield Certificate of Deposit
Quorum Federal Credit Union Term Share Certificate
Fidelity Certificates of Deposit
First Internet Bank Certificates of Deposit
Synchrony Bank Certificates of Deposit
Comparing the best three-year CDs
Methodology
Choosing the best 3-year CD rate
How to open a 3-year CD
Who is a 3-year CD term best for?
Are 3-year CD rates rising?
Other CD terms to consider
Frequently asked questions (FAQs)

Why trust our banking experts

Our team of experts evaluates hundreds of banking products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.

140 CDs from 84+ financial institutions reviewed.
4 levels of fact checking.
50+ data points analyzed.

Best 3-year CD rates

Blueprint Rating

What you should know

Known for its competitive rates, Ally’s three-year CD has no minimum deposit and features a strong 4.25% APY, which can improve in one of two ways. The first is if you qualify for the 0.05% loyalty reward, which applies when you renew any CD with Ally.

The second is via its Ten Day Best Rate Guarantee. If you open an Ally CD and the rate goes up within 10 days, you automatically get the higher yield. This can be especially useful if you open a CD right before a Federal Reserve meeting.

If you’re interested in other CD terms as well, Ally offers seven options ranging from three months to five years. Plus, there’s no minimum deposit, which is a boon for young savers just starting out on their journey.

Like most banks, Ally has early withdrawal penalties on all of its CDs: 60 days’ interest on CDs of 24 months or fewer; 90 days’ interest on CDs with a maturity date between 25 and 36 months; 120 days’ on CD terms from 37 to 48 months; and 150 days’ on CDs longer than 48 months.

Pros and cons

Pros

Strong rates.
24/7 customer service.
No minimum deposit.

Cons

No physical locations.
Poor Trustpilot rating (1.5 stars).

Blueprint Rating

What you should know

Quorum’s 36-month term certificate offers a competitive 3.75% APY. Overall, you can choose between certificates ranging from 11 to 60 months.

If you’re interested, don’t sweat about membership requirements. Anyone can join the credit union for free by agreeing to also be a member of the American Consumer Council or the Select Savers Club. (The credit union will cover the membership fee for these organizations).

In the case that you need to access your certificate funds before the maturity date, the early withdrawal fee is only 3% of the amount withdrawn for certificates of 25 months and more; 2% for terms of 12 to 24 months; and 1% on terms of 11 months and fewer.

These charges are on the low end and, perhaps, even better, unlike some other banks, the penalty will never affect your principal balance.

Pros and cons

Pros

Very competitive APY.
Highly-rated mobile app (4.8 stars in the Apple App Store; 4.6 in the Google Play Store).
“A+” rating from the Better Business Bureau.

Cons

Non-automated customer service only available during business hours.
Requires membership.

Blueprint Rating

What you should know

As a brokerage, Fidelity acts as the middleman for stocks, bonds and… CDs.

Fidelity’s three-year CD offers 4.90% APY and, because the CDs are originally issued by banks, you don’t lose out on the $250,000 of deposit insurance offered by the Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA).

There isn’t an early withdrawal penalty if you want to cash out a brokered CD early. Instead, you must resell it on the secondary market. Depending on the financial environment, it could lose value. For example, if rates rise, your CD has a lower-APY compared to newer CDs and you may take a hit. But the reverse scenario could happen as well.

New CDs have a minimum deposit of $1,000 but secondary CDs can be sold as fractions and have a minimum deposit of $100.

Pros and cons

Pros

Competitive rates.
Only $100 minimum deposit required for secondary market CDs.
Deposit insurance.

Cons

CDs may lose value on the secondary market.
Trading fees may apply.

Blueprint Rating

What you should know

Like its name sounds, First Internet Bank is completely online. Its 36-month CD offers a competitive 4.75% APY, but be absolutely sure that you can ride out the whole term because the early withdrawal penalty is 365 days’ interest rather than the 90 days’ interest penalty you can find on other three-year CDs.

Its other CDs have similar severe early withdrawal charges, but, also, similarly good yields. Among the eight terms, its 12-month option is its highest, offering 5.35% APY. Interest on all CD terms compounds and is credited monthly, giving you the opportunity to reinvest it back into the CD or take it as a dividend payment.

As long as the CD is open, it has no monthly maintenance fees to drag down your earnings. When it matures, you have ten calendar days to make any changes or it automatically renews.

Pros and cons

Pros

Competitive yield.
Manageable minimum deposit.
Well-rated mobile app (4.8 on the Apple App Store; 4.5 on the Google Play Store).

Cons

Interest compounds monthly, not daily.
Heavy early withdrawal penalties.

Blueprint Rating

What you should know

While Synchrony doesn’t have the highest rate among our winners, it’s still competitive, especially given that there’s no minimum deposit.

The 36-month CD offers 4.30% APY, which, again, is decent, but you’ll find even heartier yields at Synchrony on shorter terms. The bank offers 5.25% APY on a six-month CD and 5.50% APY on a nine-month CD. It offers 5.25% APY on 13-, 14- and 15-month CD terms. Overall there’s a huge number of CDs, which includes an 11-month no-penalty CD for 4.50% APY and a 24-month bump-up CD at 4.00% APY.

The early withdrawal charge for each depends on its term: 90 days’ simple interest for terms of 12 months or fewer; 180 days’ for 13 to 48 months; and 365 days’ for terms greater than 48 months.

Pros and cons

Pros

No minimum deposit requirement.
Large amount of CD term options.
No-penalty and bump-up CD options.

Cons

Not the highest rate available.
No physical branches.

Comparing the best three-year CDs

Institution	Star rating	3-year APY	Min. deposit
Ally Bank	5	4.25%	$0
Quorum	4.81	3.15%	$1,000
Fidelity	4.98	4.90%	$100 to $1,000
First Interest Bank	4.88	4.75%	$1,000
Synchrony	4.82	4.30%	$0

Methodology

APY: 60%

You likely wouldn’t be looking at CDs if you weren’t interested in getting a great CD rate.

While high-yield savings accounts currently offer amazing yields, those can change at any time, up or down. CDs lock in your rate. You deserve to get the most for your money and it’s important that you do.

Interest rates were the single most important factor in our calculations to determine the best three-year CDs.

Customer service and digital experience: 20%

When you’re entrusting your money, potentially thousands of dollars, to an organization, you want to know that your interactions will be smooth. Customer service hours should be plentiful, reviews should be positive and industry ratings should be high.

We gave higher scores to financial institutions that had 24/7 customer service lines and high grades from experts and consumers on platforms such as the Better Business Bureau, Trustpilot, the Google Play Store and the Apple App Store.

Minimum deposit requirement: 10%

Earning a high yield on your savings shouldn’t be reserved for the richest Americans. We think CDs should have deposit requirements low enough that most people could open one. In the vein of democratizing finance, we rewarded banks, credit unions and brokers with lower minimum deposit requirements.

Compound interest schedule: 6%

The faster your interest compounds, the more interest you’ll earn. While the monetary difference on a $1,000 deposit between a rate that compounds daily versus monthly isn’t impressive, it still makes a difference; even more so when you deposit more for a longer period of time.

Availability and terms: 4%

Financial institutions that served the whole nation earned more points than ones that served a limited area. For example, it doesn’t help you to know about a high APY that’s only available in a different state.

Besides geographic availability, we also considered how many CDs were available at each organization. Many depositors want more than one CD term and it’s always nice to have options.

Why some banks weren’t chosen

Not all banks have great CD yields. While CD rates generally ride the tide of the national Fed rate, each financial institution can choose just how competitive it wants to be.

You’ll notice that some of the most popular banks didn’t make our list. Many of the biggest banks and credit unions don’t want or need to have competitive rates. As they’re already top-of-mind for millions of Americans, they have plenty of customers and deposits already.

Smaller organizations, however, often aim to make a splash by having high yields. Online banks in particular tend to feature competitive interest rates. As we heavily weigh our ratings based on APY, these are the ones that typically made our list.

Choosing the best 3-year CD rate

If you want to open a 3-year CD, locking in a high rate is often a priority. Here’s how to do that:

Shop around: If you sign up for the first CD you come across, it’s likely you could have found a better rate somewhere else. Instead of jumping in right away, take the time to shop around for the best rate. The list above is a great starting point.
Consider different financial institutions: You may want to work with the same bank that you use for checking and savings. But sticking with the place could mean you stick with sub-par rates. Try to keep an open mind as you look for a three-year CD. To lock in the best rate, you might need to work with a different bank or credit union.
Work with insured institutions: Without deposit insurance from the FDIC or NCUA, the best CD interest rate in the world comes with unnecessary risk. Deposit insurance means that your funds are covered for up to $250,000 per depositor, per insured institution, per ownership category.
Get familiar with the details: Like all banking products, CDs come with plenty of fine print attached. Don’t sign up without confirming that you are comfortable with the details attached to the CD. Pay special attention to any fees involved.

If there are multiple great rates on varying terms, consider getting a CD ladder.

CD laddering is a deposit strategy in which you pick multiple CD terms. As each matures, you reinvest it into a longer term. For example, imagine you got a one-year, two-year and three-year CD. When the one-year and two-year deposit terms are up, you put each into a three-year CD. This way, all of your funds are in a three-year term, but you’re never more than 12 months away from having access to some of your funds.

How to open a 3-year CD

The first step to opening a three-year CD is to find one that suits your needs. As you shop for the right option, consider the following parameters:

APY: A higher yield means your deposit earns more money. If you’re looking to make the most of your funds, locking in a high APY is important.
FDIC-insured: If you work with a CD that’s not FDIC-insured, you are taking an unnecessary risk. Many financial institutions offer FDIC-insured CDs with great rates.
Deposit requirements: Many CDs come with minimum deposit requirements. Work with a CD that you can comfortably fund. Remember, until the term is over, you won’t be able to access the money without paying a penalty.
Fees: Some CDs come with monthly service fees. Many have an early withdrawal penalty. Both could reduce a significant portion of your interest earnings. Make sure you understand and are comfortable with the fee structure before committing your funds.

After finding the right CD, apply for the account. Most financial institutions will ask for basic information about you, including your name, address and Social Security number. For a streamlined process, don’t forget to have your funding account information ready.

If you’re curious about some of the most popular CD providers, here are reviews on them:

Who is a 3-year CD term best for?

Certificates of deposit (CDs) come with a wide range of terms running from a single month to ten years. A three-year CD counts as a middle-term.

“In general, a three-year CD is beneficial when rates are elevated and you want to keep your money in a safe place and earn interest with no volatility,” said Katie Catlender, chief customer officer at Cambridge Savings Bank.

For example, if you know that in about three-and-a-half years you’ll retire or buy a house, a three-year CD may be perfect. With deposit insurance, your funds will face almost no risk and still earn a guaranteed interest rate.

But be confident that you won’t encounter any need for the funds within the term.

“It is important to understand whether you feel comfortable that you can put your money away for that length of time and not need it, since there are penalties if you try to take it out earlier than the three years,” Catlender said.

If you aren’t reasonably confident you won’t need access to the funds, there are other options to consider. For example, high-yield savings accounts and no-penalty CDs allow you to easily access your cash, while still offering attractive rates.

Are 3-year CD rates rising?

CD rates rise and fall with the national rate set by the Federal Reserve, which has been on a campaign of rate hikes for over a year to combat decades-high inflation. You can see this in data reported by the FDIC. The average national deposit rate for a three-year CD is 1.38% APY (as of October 16, 2023).

While the Fed may continue raising the interest rate for a little longer into 2023, the increases won’t last forever. Recent rate hikes have been comparably small.

Other CD terms to consider

A traditional CD requires that your funds remain untouched for a (possibly extensive) period of time. In general, the longer the term, the higher the rate, but this isn’t always true. In the current market, some shorter terms carry the highest yields.

Here are some other CD terms to consider:

Six-month CDs: If you’re saving for a short-term goal, having access to your funds in six months might be ideal for your situation.
One-year CDs: A one-year CD comes with a long enough term to bring relatively attractive interest rates without parting with your funds for too long. Savers with big purchases on the horizon might find what they are looking for in this term length.
Five-year CDs: If you are looking for an opportunity to lock in an attractive rate over the long term, a five-year CD might be the solution. You’ll need to part with your funds for a relatively long period of time. But, if you don’t have short-term plans for the money, you can sit back and enjoy earning interest without worry.

Before choosing a CD term, be honest with yourself about your financial goals and current situation. If you don’t have access to dedicated emergency savings, locking up your savings in a CD of any term length might not be the right move.

If you do have emergency savings to fall back on, consider your savings goals. Think about when you want to use the funds. Don’t choose a CD term that’s too long to make your goals a reality.

Frequently asked questions (FAQs)

CDs come in all shapes and sizes. You can find several CD types including traditional, bump-up, step-up, no-penalty, zero-coupon, callable, brokered, high-yield, jumbo and add-on CDs.

Of course, you’ll also find terms lengths ranging from a few months to several years. The right CD for you varies based on your unique situation. Savers with short-term goals might opt for a maturity date that falls within a few months, while savers with long-term savings goals might choose one that matures after several years.

The choice between a CD or a high-yield savings account boils down to access. Most CDs require that you lock up your funds for a predetermined period of time. Early withdrawal penalties, if you need your funds sooner, can negate any higher interest rate it may offer.

In contrast, a high-yield savings account comes with relatively unfettered access. You can tap into these funds at any time without incurring a fee, although it may have a lower yield.

Ideally, you would have both. A high-yield savings account is optimal for emergency savings, as you have access to all of it at any time and, until you need it, it’s earning an attractive interest rate. Once you have three to six months of your living expenses saved up, you can start putting funds aside for a CD.

CD rates are offered with the understanding that you are willing to give up access to your funds in exchange for a top-notch interest rate. But life happens. If you need to withdraw your money early, that’s an option. However, you will likely face an early withdrawal penalty.

In most cases, the early withdrawal penalty is equal to a portion of your interest payments. Before funding a CD, confirm you are comfortable with the early withdrawal penalty.