Best 3-Year CD Rates for February 2023

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Interest rates have been all over the map lately, so it’s hard to keep up. But certificates of deposit are a good way to take advantage of rising rates. 3-year CDs are popular because they’re short enough to give you some liquidity but long enough to earn some solid interest. Here’s what you need to know about the best 3-year CD rates for February 2023.

The Best 3-Year CD Rates

Here is a look at some of the best rates for 3-year CDs.

  • Alliant Credit Union: APY
  • Popular Direct: APY
  • BMO Harris: APY
  • Bread Financial: APY
  • Randolph-Brooks Federal Credit Union: APY to APY
  • First Internet Bank of Indiana: APY
  • Sallie Mae Bank: APY
  • Synchrony Bank: APY

Details on the Best 3-Year CD Rates

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. Here are the details on the best 3-year CD rates.

Alliant Credit Union

Alliant Credit Union pays APY for a 3-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.

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Popular Direct

Popular Direct pays APY on their 3-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 Harris

BMO Harris offers a 35-month CD which pays APY. You’ll need to deposit at least $5,000 and you’ll give up 270 days’ worth of interest for an early withdrawal.

Bread Financial

Bread Financial requires a $1,500 minimum deposit for its 3-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 APY and APY 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 their 3-year CD, with a $1,000 minimum deposit. They charge 360 days’ worth of interest as an early withdrawal penalty.

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Sallie Mae Bank

Sallie Mae Bank offers a 3-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 3-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 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 3-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.

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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

A 3-year CD can be an important component of your savings and investing strategy. The key is to determine what features are most important to you and find the best CD that offers what you are looking for.


Here are the answers to some of the most frequently asked questions about CD rates.
  • What is the average 3-year CD rate?
    • The average rate for 3-year CDs is around 4.40%.
  • Who has the highest 3-year CD rates?
    • Some of the highest 3-year CD rates can be found at Alliant Credit Union, Popular Direct and Randolph-Brooks Federal Credit Union.
  • Who has the highest CD rates right now?
    • Popular Direct offers some of the highest CD rates for a variety of terms. Other financial institutions to consider would be First Internet Bank and Alliant Credit Union. Keep in mind that the rates will vary depending on the term length.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Feb. 8, 2023. 

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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About the Author

Karen Doyle is a personal finance writer with over 20 years’ experience writing about investments, money management and financial planning. Her work has appeared on numerous news and finance websites including GOBankingRates, Yahoo! Finance, MSN, USA Today, CNBC,, and more.
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