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Best 3-year CD rates

If you're looking for a term in the middle of the range, a 3-year CD might be right for you. /Getty Images

With the interest on a regular savings account barely keeping pace with inflation, it's a wise move to consider other places to keep your money. One of these is in a certificate of deposit (CD). CDs are a relatively low-risk investment that can help you secure an interest rate up to 10 times the average of regular savings accounts (if not more). This can help you grow your savings and reach your financial goals faster.

CDs come in different terms, typically ranging from a few months to several years. To secure a high interest rate, you agree to keep your money in the account for the entirety of the term. If you withdraw it early, you may incur a penalty equal to several months' interest.

If you're looking for a term in the middle of the range, a 3-year CD might be right for you. And there are plenty that offer attractive interest rates and terms.

Check out current savings rate here.

Best 3-year CD rates

As of December 26, 2023, the top 3-year CDs include:

Popular Direct: 4.85% APY

Popular Direct's 3-year CD offers 4.85% APY, but its minimum deposit is high: $10,000. Its early withdrawal penalty is also high at 270 days' interest.

That said, if you have a large amount to deposit and are worried you'll be tempted to dip into your funds before you need them, this hefty penalty could be the impetus you need to stay the course.

First Internet Bank: 4.65% APY

First Internet Bank of Indiana's 3-year CD currently offers a rate of 4.65% APY. It requires a minimum deposit of $1,000 and has an early withdrawal penalty of 360 days' interest. And, if you like having your financial accounts with the same institution, First Internet Bank also offers checking accounts, health savings accounts and personal loans.

Bread Savings: 4.40% APY

Bread Savings' 3-year CD pays a 4.40% APY, but it has a slightly higher minimum deposit of $1,500. Its early withdrawal penalty is also 180 days' interest. Bread Savings only offers CDs and high-yield savings accounts, so if you prefer to keep your savings separate from your everyday checking account, this could be a good option for you.

Bread Savings is an online bank and a part of fintech company Bread Financial (formerly Comenity Capital Bank).

Barclays Bank: 4.50% APY

Barclays Bank's 3-year CD pays a still-competitive 4.50% and has no minimum deposit requirement, which can make it a great fit for savers without a ton to deposit. As with many CDs on this list, its early withdrawal penalty is 180 days' interest.

Begin comparing CDs online now.

BMO Alto: 4.30% APY

BMO Alto's 3-year CD also pays 4.30% APY and has no minimum deposit requirement and an early withdrawal penalty worth 180 days' of interest. It also offers a high-yield savings account with a 5.10% APY, no fees or minimum deposit or balance requirements and unlimited withdrawals and transfers.

BMO Alto is an online bank and a part of BMO Financial Group.

Alliant Credit Union: 4.45% APY

With the 3-year CD from Alliant Credit Union, you'll earn a rate that's the middle of the range on this list: 4.45% APY. You'll need to deposit at least $1,000, and if you withdraw funds before the term is up, you'll pay a penalty equal to the number of days the account is open (up to 180 days).

However, the somewhat lower rate could be worth it because this CD offers a unique feature: a dividend withdrawal option. You can opt to receive interest payments each month rather than earning compound interest, which can provide you with a little extra cash throughout the CD's term. There is no fee for choosing this option, but you will be foregoing the benefits of compounding.

Quontic Bank: 4.40% APY

Quontic Bank's 3-year CD pays 4.40% APY. It requires a low $500 minimum deposit and comes with an early withdrawal penalty of two years' interest. Quontic also provides checking accounts, savings accounts and a wide variety of mortgages.

Synchrony Bank: 4.30% APY

Another CD with no minimum deposit requirement, Synchrony Bank's 3-year CD has an APY of 4.30%.

Its early withdrawal penalty is one of the highest on this list at 365 days' interest, but if you want some discipline to avoid tapping your CD before the term is up and you only have a small amount to deposit, it could be a good alternative to Popular Direct's CD.

Synchrony Bank is an online-only bank and a division of Synchrony Financial.

See some of today's best CD offers here.

The bottom line

While these are some of the best 3-year CD rates out there, it's important to do your research and find the right fit for your budget and savings goals. When choosing a CD, consider not only the interest rate but also any fees and penalties that could eat into your earnings. Also, take the time to read customer reviews from others who've done business with the bank or credit union.

With a little due diligence, you can find the right account for you and start growing your money faster today.

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