The Fortune RecommendsTM editorial team ranked more than 40 certificates of deposit (CD) with three-year terms and came up with a list of our top 10 picks. We considered the minimum deposit required to open an account, annual percentage yields (APYs), compounding frequency, and customer service options. (Read our full methodology here.)
Current 3 year CD rates for our top picks*
- CFG Bank: 4.30% APY
- Ally Bank: 4.25% APY
- Quontic Bank: 4.40% APY
- Bread Savings: 4.75% APY
- Barclays Bank: 4.30% APY
- Synchrony Bank: 4.30% APY
- Marcus by Goldman Sachs: 4.30% APY
- PenFed Credit Union: 4.30% APY
- BMO Harris: 4.50% APY
- Quorum Federal Credit Union: 4.85% APY
*Numbers in the above list were last updated July 25, 2023
The 10 best three-year CD rates
Here is our list of the best three-year CDs. Note: Minimum deposit requirements, APYs, and other numbers in our list below are up to date as of June 6, 2023, and they are subject to change.
1. CFG Bank: For savers who prefer instant gratification and want access to their interest now
Key numbers
Minimum opening deposit: $500
3-year APY: 4.60%
Penalty: There is an early withdrawal penalty equal to 180 days’ simple interest.
Why we picked it
CFG Bank, based in Maryland but open to customers nationwide, gives account holders the opportunity to earn a high APY for a relatively low deposit. The three-year CD currently stands well over 4%, and interest on these accounts compounds daily. Customers can choose to have interest added to the account to compound for a higher yield and then be withdrawn when needed. An interest check can be mailed monthly, or interest can be transferred to a separate account. CFG’s customer service team is available to field any questions about your account via email or by calling them Monday through Friday between 8:30 a.m. and 5 p.m. EST.
2. Ally Bank: For savers who hate maintenance fees
Key numbers
Minimum opening deposit: $0
3-year APY: 4.25%
Penalty: There is an early withdrawal penalty equal to 90 days’ of interest.
Why we picked it
Ally Bank is an online-only bank that offers all of the benefits of a traditional big bank. Its three-year CD offers a high APY for no minimum deposit and zero monthly maintenance fees. Interest on these CDs compounds daily, and customer service reps are available 24/7 via phone, chat, or email. Beware: Ally customers sometimes face lengthy wait times depending on when they call, but you can check the site for current wait times.
3. Quontic Bank: For the saver who wants big-bank perks with fintech tools
Key numbers
Minimum opening deposit: $500
3-year APY: 4.40%
Penalty: There is an early withdrawal penalty equal to two years’ interest.
Why we picked it
Quontic is a New York City–based digital bank that began as a community bank more than a decade ago. Quontic’s 3-year CD boasts a 4.40% APY—over three times the national average. The drawback: This account does have one of the steeper withdrawal penalties on our list. Quontic customer service representatives can be reached via phone Monday through Friday from 9:00 a.m. until 6:00 p.m. ET. Customers can also reach a representative via email.
4. Bread Savings: For the saver who already has some bread saved up
Key numbers
Minimum opening deposit: $1,500
3-year APY: 4.50%
Penalty: For three-year terms, the penalty is 180 days’ simple interest.
Why we picked it
Bread Savings, a product of Comenity Capital Bank, is an online-only bank that offers CDs and high-yield savings accounts. Its 3-year CD made our list for its high APY, but this account is likely a better fit for the saver who already has a bit of a cushion saved up being that their minimum opening deposit is $1,500. Interest on these accounts is compounded daily and monthly maintenance is free. Because there are no brick-and-mortar locations, customers will have to do all of their banking via Bread’s mobile app or online, although they can get some human assistance by calling their customer service line on weekdays between 7 a.m. and 9 p.m. CST, and weekends and most holidays from 9 a.m. to 5 p.m. CST.
5. Barclays Bank: For savers who aren’t sold on CDs just yet
Key numbers
Minimum opening deposit: $0
3-year APY: 4.30%
Penalty: For three-year CDs, a penalty equaling 180 days’ simple interest on the dollar amount withdrawn subject to penalty will be imposed.
Why we picked it
The three-year CD is one of three accounts on our list that doesn’t require a minimum opening deposit, which can be a great option for savers who want to test-drive a CD. Just keep in mind that Barclays is a U.K.-based bank, so U.S. customers have to be okay with strictly online and mobile banking. Interest on these accounts compounds daily, which could help those savings grow even faster. And for any questions or account assistance, customers can call between 8:00 a.m. and 8:00 p.m. ET, seven days a week.
6. Synchrony Bank: For the saver who is just getting started and wants to avoid fees
Key numbers
Minimum opening deposit: $0
3-year APY: 4.30%
Penalty: There is an early withdrawal penalty equal to 180 days’ simple interest at the current rate.
Why we picked it
Synchrony Bank is an online-only bank that ditches the traditional brick-and-mortar model for online services as a way to reduce costs and pass on those savings to their customers. Its 3-year CD is proof of this, boasting a competitive APY and $0 minimum deposit. Interest on these CDs compounds daily and customers can choose to withdraw interest from their account at any point throughout their CD’s term. For assistance, Synchrony customers can contact the bank via chat or automated phone service 24/7. To speak with a real person, representatives are available Monday through Friday from 8:00 a.m. to 10:00 p.m. ET, or weekends from 8:00 a.m. to 5:00 p.m. ET.
7. Marcus by Goldman Sachs: For savers who want to make sure they lock in the highest possible APY
Key numbers
Minimum opening deposit: $500
3-year APY: 4.30%
Penalty: The penalty is equal to 180 days’ simple interest on the principal amount.
Why we picked it
Marcus’ three-year CD scored a spot on our list for its 4.30% APY and relatively low minimum opening deposit. Bonus: Interest on your CD balance compounds daily, and Marcus has a 10-day CD guarantee that customers will be granted a higher APY if rates increase within the first 10 days of opening an account that has at least $500 in it. Marcus also offers a mobile banking app, and for those who may need extra support, customer service representatives are available 24/7 via telephone or online chat.
8. PenFed Credit Union: For savers who like to have all of the customer service options
Key numbers
Minimum opening deposit: $1,000
3-year APY: 4.10%
Penalty: For three-year CDs, the penalty is equal to 30% of what would have been earned if the certificate had been held to maturity, not to exceed total dividends earned.
Why we picked it
Pentagon Federal Credit Union (PenFed) is a Virginia-based credit union that offers online banking options in addition to a few brick-and-mortar locations across the U.S. and a mobile app. Its three-year CD offers a high APY and daily compounding. What’s more, PenFed offers a number of customer service options. Representatives can be reached by email, chat, or phone Monday to Friday, 7:00 a.m. to 11:00 p.m. ET, 8:00 a.m. to 11:00 p.m. ET on Saturday, and 9:00 a.m. to 5:30 p.m. ET on Sunday. PenFed also offers a mobile app.
9. BMO Harris: For savers who have a decent lump sum saved
Key numbers
Minimum opening deposit: $1,000
3-year APY: 4.30%
Penalty: For three-year terms, the penalty is 365 days’ interest.
Why we picked it
BMO Harris’ three-year CD made our list for its competitive APY: At 4.30%, this account is over three times the national average. Interest on this account compounds daily, and BMO offers a wide range of other CD terms, from three months to 60 months. BMO Harris representatives are available to assist you via telephone from 7:00 a.m. to 10:00 p.m. CT on weekdays and 8 a.m. to 8 p.m. on Saturdays and Sundays. The bank also offers a contact form for email support on its website.
10. Quorum Federal Credit Union: For savers who prefer a credit union and don’t mind a membership fee
Key numbers
Minimum opening deposit: $1,000
3-year APY: 4.85%
Penalty: 3% of amount withdrawn, never to exceed original principal balance.
Why we picked it
Quorum Federal Credit Union is headquartered in Purchase, N.Y., but serves members across the U.S. Consumers who are interested in joining this credit union can do so by applying online and joining one of the two associations that Quorum has partnered with: the American Consumer Council (ACC) or the Select Savers Club (SCC). Both organizations charge a fee for lifetime membership between $5 and $15. Quorum’s three-year CD had the highest APY on our list at 4.85%, which is almost four times the national average. But there’s one important thing to note: Quorum representatives are available to answer the phone only on weekdays. While their business hours do extend into the evening, past 5:00 p.m., they are not available on weekends.
What is a three-year CD?
CDs are typically offered by most financial institutions and come in all shapes and sizes. Some CD terms are as short as a few days or as long as 10 years. A three-year CD is exactly what it sounds like: a CD that offers a term of three years at a set APY.
As a customer, you’ll agree to the same basic premise: You will deposit your funds and not touch them until your CD matures, which happens at the end of your term. Once your CD matures, you can choose to withdraw your principal amount, plus interest, or you can roll over those funds into a new CD.
For savers who are looking to cash in on a high APY without committing to the longest CD term possible, a three-year CD can be a good way to boost your savings. Say you want to save up for a specific goal like purchasing a home or covering the cost of a wedding: Setting up a savings account with a strict timeline in mind can help ensure that you’re not dipping into the account anytime you want. Bonus: CDs with longer terms tend to offer higher APYs, so the longer you can go without touching your funds, the more money you should have in your account come your maturity date.
Why some savers stand to benefit more from a CD
The key difference between a CD and other savings vehicles like a high-yield savings account is that you’re trading liquidity for higher interest. This can be especially helpful if you find that you’re the kind of saver who has trouble keeping their hands off the savings. The rate on your CD is also a guaranteed rate, meaning that once you open your CD and lock in that rate, your potential interest earnings won’t be compromised as a result of market volatility or rapidly changing interest rates.
Best CD rates for other terms
Our methodology
The Fortune RecommendsTM team compared three-year certificates of deposit (CDs) from more than 40 major banks, credit unions, and online-only banks. Our top picks are available across the U.S., so you can sign up for an account no matter where you’re located.
We ranked the best three-year CDs on the following categories:
- 3-year term (50%): This number represents the real rate of return on your balance; the higher the APY, the better.
- Minimum deposit requirement (30%): In order to open a CD at any financial institution, it will require that you deposit a minimum dollar amount.
- Compound frequency (15%): Interest on deposit accounts like CDs can compound daily or monthly. The more frequency interest compounds on your CD, the better.
- Customer service (5%): Top picks offer customers three ways to get in contact: chat support, by phone, and even email. Among the three options, we gave phone support the most weight.
The best CDs offer APYs twice the national average. We didn’t include brokered CDs on our list, which are sold on the secondary market through brokerages instead of banks and can be riskier because of this.
The rates, fees, and minimum deposit requirements for CDs are available for limited time periods, and APYs are subject to fluctuation, which could impact how much interest you earn. All the bank and credit unions on this list are insured by the FDIC and NCUA respectively. Should you choose to terminate your CD before it matures, you may likely be subject to a penalty, which varies by bank.
| Find the best banking products available to you | |
| If you… | We recommend… |
| Want to earn the best APY you can on your money | High-yield savings accounts |
| Don't mind locking away your money for a set period to earn better interest | Certificates of deposit |
| Want to save money and earn interest but want easy access to it | Money market accounts |
| Are interested in a new checking account but don't want to pay fees | Free checking accounts |
| Need help choosing an online bank or credit union | Online banks and credit unions |
| Own your own business and need an account to manage your income and expenses | Business checking accounts |
| Are looking for a bank that offers a nice cash bonus with a new account | Checking account bonuses |
EDITORIAL DISCLOSURE: The advice, opinions, or rankings contained in this article are solely those of the Fortune Recommends™ editorial team. This content has not been reviewed or endorsed by any of our affiliate partners or other third parties.