Here Are the 8 Best 3-Year CD Rates for September 2024

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Interest rates can fluctuate wildly depending on market factors, the economy and the type of account. There are a lot of ways to collect interest on your money, even when you let it sit in a bank. However, certificates of deposit often have a better savings rate than high-yield savings accounts or money market accounts. Three-year CDs are popular because they’re short enough to give you some liquidity but long enough to earn some solid interest.

The Best 3-Year CD Rates

When you put your money in a deposit account, you want to make sure you are maximizing your earning potential. Here is a look at some of the best rates for three-year CDs currently available.

• Alliant Credit Union: APY
• Popular Direct: APY
• BMO: APY for a 35-month CD
• Bread Savings: APY
• Randolph-Brooks Federal Credit Union: to APY
• First Internet Bank of Indiana: APY
• Sallie Mae Bank: APY
• Synchrony Bank: APY

How GOBankingRates Chose the Best 3-Year CDs

Several factors were analyzed to determine the picks for the best three-year CD rates. Here are the key features GOBankingRates used for comparison:

• The minimum deposit amount needed to open a CD
• Annual percentage yield
• Which CD terms have higher interest rates compared to the national average
• How three-year CD rates compare to other banking products offered

Alliant Credit Union

Alliant Credit Union pays APY for a three-year CD with a $1,000 minimum deposit. You’ll pay up to 180 days’ interest as a penalty for early withdrawal, but no more than the number of days the CD has been open, so you will at least get your initial deposit back if you have to cash in early. Note that you must be a member of Alliant Credit Union to open an account.

Popular Direct

Popular Direct pays APY on its three-year CD, but you need to have a $10,000 minimum deposit. If you need to withdraw your money early, you’ll pay a penalty of 365 days’ worth of interest.

BMO

BMO offers a 35-month CD that pays APY. You’ll need to deposit at least $1,000, and you’ll give up 270 days’ worth of interest for an early withdrawal.

Bread Savings

Bread Savings requires a $1,500 minimum deposit for its three-year CD that pays APY. Need your money before the term is up? It’ll cost you 180 days’ worth of interest.

Randolph-Brooks Federal Credit Union

Randolph-Brooks Federal Credit Union pays between  and , depending on the amount you deposit. For a minimum of $1,000 to $4,999.99, you’ll earn  APY. To earn the most on your money, you will need to deposit $75,000 or more to unlock the  APY rate. You’ll pay 180 days’ interest as an early withdrawal penalty if you take your money out before the three years is up.

First Internet Bank of Indiana

First Internet Bank of Indiana pays APY on its three-year CD, with a $1,000 minimum deposit. It charges 360 days’ worth of interest as an early withdrawal penalty.

Sallie Mae Bank

Sallie Mae Bank offers a three-year CD that pays APY. You’ll need a $2,500 minimum deposit, and if you take the money out early, you’ll pay 180 days’ worth of interest.

Synchrony Bank

Synchrony Bank’s three-year CD pays APY. There is no minimum balance required, so you can put in as much or as little as you want. If you withdraw some or all of your principal early, you’ll pay 180 days’ worth of simple interest as a penalty, but there’s no penalty for withdrawing interest.

Good To Know

A CD will usually pay a higher rate of interest than a traditional savings account or checking account because when you buy a CD, you are agreeing to leave your money for a fixed period of time. In exchange, the bank will give you a higher rate of interest that won’t change over the term of the CD.

If you take your money out before the term is over, you will be penalized. The penalty is typically a fixed amount of the interest you earn on the CD. In most cases, if you open a three-year CD and then take the money out within the first six months, you’ll lose money. The penalty will be greater than the amount of interest you’ve earned, so you’ll get back less than the amount you deposited.

Other CD Options

As CDs have grown in popularity, some banks and credit unions have begun offering different kinds of accounts that address some of the common concerns about CDs, like the ability to add more money, the interest rate and early withdrawal penalty fees.

Here are some specialty CDs that address these concerns:

• Add-on CD: Some CD accounts let you add funds to an existing CD account instead of having to open a new account. This type of account is helpful if you have a good rate or you’ve met the minimum deposit requirement, and you want to sock away a little more money.
• Bump-rate CD: The bane of a CD owner’s existence is rising interest rates. Buying a long-term CD only to have the interest rates go up is frustrating, so some banks and credit unions offer a bump-rate CD, which gives you the option — usually just once during the term — of bumping up your interest rate to the new, higher rate.
• No-penalty CD: The penalty for early withdrawal makes a lot of people hesitate to invest in CDs, and for good reason. Life happens, and you may need that money sooner than you thought. The no-penalty CD allows you to take your money out before the term is up, and you won’t pay a penalty to do so.

Final Take To GO

A three-year CD can be an important component of your savings and investing strategy. The three most important factors when choosing a CD are the interest rate, the minimum deposit amount to get that rate and the early withdrawal penalty. The key is to determine what features are most important to you and find the best CD to fit your financial needs.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Sept. 12, 2024. 

GOBankingRates is a personal finance and consumer interest rate website and an online marketing company serving top-tier banks, credit unions and other financial services organizations. Some companies mentioned in this article might be clients of GOBankingRates, which serves more than 100 national, local and online financial institutions. Rankings and roundups are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by the companies included in the article. All fees and rates are subject to change at the issuers’ discretion. Some interest rates might be short-term or promotional offers only, and it is possible additional terms and conditions must be met to obtain the interest rates listed. Rates and availability might vary by region. Verify terms and conditions before opening an account.

GOBankingRates bases its assessment of “best” and “top” products on the above-stated parameters to create a baseline for comparison. This assessment is an approximation of “best” and “top” designed to help consumers find products that might be appropriate for them. There could be other options available as well. Consumers should consider various options appropriate for their circumstances.

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