Right now, you can open a 3-year CD with much higher rates than average CD rate, which is 1.35% annual percentage yield. You can find the best 3-year CD rates from online financial institutions.
Lafayette Federal Credit Union currently offers the highest CD rate for a 3-year CD, at 4.28% APY.
We check rates daily to find the best rates for 3-year terms. Here are our top picks for 3-year CDs. If you're also interested in other CD term lengths, check out our overall best CD rates guide.
The best 3-year CDs pay high interest rates — but you should also keep an eye out for minimum opening deposits, early withdrawal penalties, and a strong mobile banking app.
Featured Nationally Available Deposit Rates
| Account Name | APYs (Annual Percentage Yields) are accurate as of 11/14/2025 | Minimum Account Opening Balance |
| Western Alliance Bank 3 Month CD, powered by Raisin | 4.40% | $1 |
| Barclays 6 Month Online CD | 3.80% | $0 |
| LendingClub 14 Month CD | 4.25% | $500 |
| USALLIANCE Financial 11 Month No Early Withdrawal Penalty Certificate | 4.20% | $500 |
| Discover 18 Month CD | 3.80% | $0 |
| Bread Savings 2 Year High-Yield CD | 3.75% | $1,500 |
| Varo Savings Account | 5.00% APY with qualifying deposits on balances up to $5,000 and 2.50% APY on the rest* | $0 |
Compare 3-Year CDs
Our top 3-year CDs list the best banks for 3-year CDs, as well as the best credit unions. Most of our picks are online banks and credit unions because brick-and-mortar banks generally pay lower interest rates for CDs.
The best 3-year CDs may also have other standout features. For example, if you don't have much money to deposit upfront, we have CDs with low minimum opening deposit requirements. If you're worried about 3-year CD early withdrawal penalties, we have options with lenient penalties. Compare 3-year CD rates below.
Best 3-Year CD Rates
- Lafayette Federal Credit Union 3 Year Certificate: 4.28% APY
- America First Credit Union 3 Year Certificate: 4.15% APY
- Popular Direct 3 Year CD: 4.15% APY
- Synchrony 3 Year CD: 4.00% APY
- TotalBank 3 Year CD: 4.00% APY
- USALLIANCE Financial 3 Year Certificate: 4.00% APY
- Bread Savings 3 Year High-Yield CD: 3.85% APY
- First Internet Bank of Indiana 3 Year CD: 3.97% APY
3-Year CD Reviews
These are our picks for the best 3-year CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. Money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
Lafayette Federal Credit Union 3 Year Certificate
Lafayette Federal Credit Union has strong rates on several of its long-term CDs, including its 3-year CD. If you're hoping to open multiple long-term CDs with the same institution, Lafayette Federal Credit Union might be a good choice.
You can join Lafayette Federal Credit Union through the Home Ownership Financial Literacy Council, no matter where you live. You'll need to pay a $10 fee to join the council. You can also join if you live, work, or worship in parts of Maryland or Washington, D.C., if you're a member of the American Consumer Council and live in Maryland, Virginia, and Washington, D.C., if your employer is part of one of Lafayette's Select Employer Groups, or if you have a family member who's part of the credit union already.
APY for 3-year CD: 4.28% APY
3-year CD early withdrawal penalty: 360 days of interest
America First Credit Union 3 Year Certificate
America First Credit Union has a variety of terms with high interest rates, including 3-year CDs, 4-year CDs, and 5-year CDs. If you're planning on opening multiple long-term CDs with the same financial institution, America First Credit Union might be a good choice for you.
Credit unions usually limit who can join them, and America First is no different. You can join America First Credit Union if you live, work, worship, or volunteer in specific Arizona, Idaho, Nevada, New Mexico, Oregon, or Utah counties. You can also join if you have a family member or spouse who's a current member.
APY for a 3-year term: 4.15% APY
3-year early withdrawal penalty: 180 days of interest, with a minimum penalty of $5
America First Credit Union Review
Popular Direct 3 Year CD
Popular Direct CDs pay competitive rates on 3-year CDs, so if you're planning on opening multiple CDs at the same bank, Popular Direct might be a good choice. This CD also compounds interest daily, which could add up depending on how much you put in the CD.
You'll need at least $10,000 to open a Popular Direct CD, though. The bank also charges high early withdrawal penalties.
APY for 3-year CD: 4.15% APY
3-year CD early withdrawal penalty: 365 days of simple interest
Synchrony 3 Year CD
Synchrony Bank CD rates are competitive for 3-year terms. You also might like Synchrony if you want to open a CD with easy opening requirements. The account has a $0 minimum opening deposit. Typically, banks require a minimum of $1,000 to open a CD.
You'll want to consider whether you have a preference on how you'll withdraw money from a CD. When you're ready to cash out your CD, you must call Synchrony. Some other banks will let you cash out your CD through online banking.
APY for a 3-year term: 4.00% APY
APY for a 3-year term: 180 days of simple interest
TotalBank 3 Year CD
TotalBank offers strong interest rates on several of its CDs, including its 3-year CD. If you're hoping to build a CD ladder out of CDs from the same financial institution, then this could be a good choice for you.
That being said, you'll need a sizable amount of money to do so. TotalBank CDs have a high minimum opening deposit of $25,000. You'll be able to open a CD for less at most financial institutions.
APY for 3-year CD: 4.00% APY
3-year CD early withdrawal penalty: 180 days of interest earned
USALLIANCE Financial 3 Year Certificate
USALLIANCE Financial offers a strong rate on its 3-year and 5-year CDs with a low minimum opening deposit. It also offers a good no-penalty CD.
To open a bank account at the credit union, you must become a member. You may join USALLIANCE Financial if you live in a select area in Massachusetts, Connecticut, New Jersey, or New York; work for a select employment group; or become a member of the American Consumer Council, Arco of Westchester, Tread Lightly!, or Council of Community Services.
APY for a 3-year CD: 4.00% APY
3-year CD early withdrawal penalty: 360 days of interest
Bread Savings 3 Year High-Yield CD
Bread Savings offers a strong interest rate for both its 6-month and 3-year CDs. If you were hoping to open both short-term CDs and long-term CDs at the same bank, this could be a good option for you.
This CD comes with a higher-than usual minimum opening deposit of $1,500, which isn't ideal if you're planning on opening a CD with a more standard amount of money.
APY for a 3-year CD: 3.85% APY
3-year CD early withdrawal penalty: 180 days of simple interest
First Internet Bank of Indiana 3 Year CD
A 3-year First Internet Bank of Indiana CD pays a higher interest rate than most brick-and-mortar and online banks. First Internet Bank of Indiana also has one of the best money market accounts.
First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference. You can also find a bank that charges less for an early withdrawal from a 3-year CD.
APY for 3-year CD: 3.97% APY
3-year CD early withdrawal penalty: 360 days of interest
First Internet Bank of Indiana Review
Bank Trustworthiness and BBB Ratings
We've compared each company's Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices.
Here is each company's score:
| Institution | BBB rating |
| Lafayette Federal Credit Union | A+ |
| America First Credit Union | A+ |
| Synchrony | NR |
| Popular Direct | A+ (rating for its parent bank, Popular) |
| TotalBank | A- |
| USALLIANCE Financial | D- |
| Bread Financial | A+ |
| First Internet Bank of Indiana | A+ |
The Better Business Bureau gives Synchrony an NR (No Rating) grade because it is in the process of responding to previously closed complaints.
TotalBank has an A- rating from the BBB because it hasn't responded to a few complaints filed against the business.
USALLIANCE Financial has a D- rating from the BBB because it hasn't responded to several complaints filed against the business.
In 2023, the Federal Reserve Board fined Popular Direct's parent bank, Popular Bank, $2.3 million. The Federal Reserve Board said the fine was because Popular Bank processed six Paycheck Protection Program loans that had significant signs of potential fraud.
What Influences 3-Year CD Rates
Market Interest Rate Trends
Ultimately, banks and credit unions have to respond to market fluctuations when setting their rates. For example, if banks in general raise their CD rates, your financial institution will also have to raise its rates if it wants to stay competitive. And if banks lower their rates, then your financial institution doesn't have to keep rates as high to get customers.
Federal Reserve Outlook
If you're wondering what the Federal Reserve is, also known as the Fed, it's the central banking system of the U.S. It has a committee that meets at least eight times a year to decide whether rates will rise, lower, or stay the same. When it announces rate changes, banks and credit unions usually follow suit.
Differences Between Institutions
The rate you can get on 3-year CDs will change depending on the individual institution you go to. There are several possible reasons for this, such as branch locations, internal market predictions, and overall business costs. Sometimes, banks will increase rates on a specific product to get more customers; for example, a bank with middle-of-the-road CD rates might offer a great rate on a 6-month CD to get more customers to open that specific product.
Should You Lock In a 3-Year CD?
Whether you decide to open a 3-year CD will depend on your individual needs. Short-term CD rates are higher than long-term CD rates right now, so getting a better rate might be more important to you. However, a 3-year CD might be interesting to you if you find a good rate that you want to lock in for several years.
Your savings goals might also help you pick what term CD to open; if you plan to buy a house in three years, for example, a 3-year CD might be the best choice for building a down payment.
If you're comparing 3-year CD rates versus treasury yields from treasury bonds, you'll want to consider what amount of risk you're willing to take on. Your CD rate isn't going to change until the end of the term, while treasury yields are subject to change based on market fluctuations.
When you're selecting a bank to open a 5-year CD, make sure to review various financial institutions in order to truly get the best CD rates. Factoring in your overall banking experience and whether you plan to open any bank accounts in the future may also help with your decision.
If you're worried you won't qualify for a CD because you don't meet the requirements at one bank, know that all banks aren't the same. Some banks let you open CDs with low minimum opening deposit requirements. You can also find banks that let you open bank accounts without a U.S. ID. The top banks for immigrants and non-U.S. Citizens allow you to provide a foreign passport or Matricula Consular to open a bank account.
3-Year CD FAQs
Who has the highest-paying 3-year CD right now?
The highest 3-year CD rate is 4.28% APY from Lafayette Federal Credit Union.
Do 3-year CD rates offer a significant increase over shorter terms?
Right now, 3-year CD rates actually tend to be lower than shorter CD terms because people expect the Fed to lower its rates in 2025.
Do the best 3-year CD rates always stay the best throughout the term?
Not necessarily. Unless you get a bump-up CD or a step-up CD, your interest rate is locked in once you open a CD; you won't be able to change it. But banks can still raise their rates for people who haven't opened a CD yet, and there's always a chance another bank will raise its rates.
Are 3-year CDs too risky if I might need the money?
If there's a chance you'll need your money before the end of a term length, you'll generally want to go with either a high-yield savings account or a no-penalty CD. If you need to open a standard CD, a short-term CD would be a better choice than a long-term CD like a 3-year CD, especially since they currently offer higher rates anyway.
Is a 3-year CD a good idea?
A 3-year CD could be a good idea if you want to lock in a long-term CD before rates drop or if you are working out how to budget for a savings goal you want to hit in 3 years. Just keep in mind that short-term CDs are currently offering better rates than long-term CDs right now.
Why You Should Trust Us: Expert Advice on Choosing the Best 3-Year CD
To learn more about what makes a good CD and how to choose the best fit, Business Insider consulted four experts:
- Tania Brown, CFP® professional and vice president of coaching strategy at OfColor
- Sophia Acevedo, banking editor, Business Insider
- Roger Ma, CFP® professional and author of "Work Your Money, Not Your Life"
- Mykail James, MBA, certified financial education instructor, BoujieBudgets.com
In choosing a CD, ask yourself the following questions, informed by our experts' advice:
- Is the bank FDIC-insured, or is the credit union NCUA-insured?
- What is important to me in a bank account? In-person customer service? A mobile app? Checks? Interest rate? Monthly maintenance fees?
- When do I need the money (and what do I plan to use it for)?
- How much access do I need to this money, and when?
Our Methodology: How We Chose the Best 3-Year CDs
Business Insider's personal finance team researched over 160 banks and credit unions to find out which banks offered the highest 3-year CD rates. For each account, we compared the minimum opening deposits, early withdrawal penalties, miscellaneous features, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, security and ethics.
See our bank account rating methodology to learn more about how we rate bank accounts.
We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
*Varo Savings Account: To earn the highest APY each month (5.00%) on up to $5,000, you must receive at least $1,000 in direct deposits each month and keep your Varo Bank Account balances above $0. Earn 2.50% APY on your remaining balance. Rates are subject to change at any time.
**LendingClub LevelUp Savings Account: Earn 4.40% APY when you deposit at least $250 per month, earn 3.40% standard APY if minimum isn't met.
***Barclays Tiered Savings Account: Accounts with $250,000 or less will earn 3.65% APY, accounts with over $250,000 will earn 3.75% APY. Rate are determined by balance tiers and amount deposited.
1Platinum Savings is a tiered interest rate account. Interest is paid on the entire account balance based on the interest rate and APY in effect that day for the balance tier associated with the end-of-day account balance. *APYs — Annual Percentage Yields are accurate as of September 23, 2025: 0.25% APY on balances of $0.01 to $4,999.99; 3.85% APY on balances of $5,000.00 or more. Interest Rates for the Platinum Savings account are variable and may change at any time without notice. The minimum to open a Platinum Savings account is $100.
2Based on comparison to the national average Annual Percentage Yield (APY) on savings accounts as published in the FDIC National Rates and Rate Caps, accurate as of September 15, 2025.
1 APY — Annual Percentage Yield is accurate as of September 23, 2025. Interest Rates for the Savings Connect Account are variable and may change at any time without notice. The minimum to open a Savings Connect account is $100. Fees could reduce earnings on the account.
2Based on comparison to the national average Annual Percentage Yield (APY) on savings accounts as published in the FDIC National Rates and Rate Caps, accurate as of September 15, 2025.
