Best 3-year CD rates of 2024

By John V

January 12, 2024   •   Fact checked by Dumb Little Man

If you want to increase your funds while securing it, a certificate of deposit (CD) could be your choice. This is a method to generate interest on your money that you won’t keep for a long.

Three-year CDs often give better returns than mutual funds. However, the downside is that it must remain invested in the CD until it expires to avoid charges.

Three-year periods strike a decent compromise between a good rate and a relatively short period of time. However, the greatest CDs are the ones that are most closely aligned with your savings objectives.

On this list, you’ll discover the top credit unions and banks, whether conventional or online for overall CD rates. The finest of them by minimum deposit, 3yr APY, and its full features are shown below.

Overview: Best 3-year CD rates

Financial Institution3-year APYMinimum DepositBest For
Quontic Bank1.00%$500Low-earning Individuals
Bank5 Connect0.85%$500Seekers of Competitive Yields
Pentagon Federal Credit Union1.00%$1,000Seekers of a Credit Union
VyStar Credit Union0.80%$500Floridians and Georgians
Comenity Direct0.80%$1500Seekers of High Average Rates
First Internet Bank of Indiana0.80%$1000Best for Online Users
Capital One0.75%$0Seekers of a Complete Bank
Synchrony Bank0.75%$0Shop Owners
Delta Community Credit Union0.75%$1,000Individuals who reside in Atlanta
Salem Five Direct0.75%$10,000Online Users in Massachusets
SchoolsFirst Federal Credit Union0.75%$20,000Academic Institutions
Golden 1 Credit Union0.70%$500Californians
Bethpage Federal Credit Union0.70%$50Long-island Residents
Suncoast Credit Union0.70%$500Trusted Credit Union in Florida
Navy Federal Credit Union0.70%$1000Military Families
Limelight Bank0.70%$1000Seekers of Short-term CDs
TIAA Bank0.70%$1000Long-term Consumers
Sallie Mae Bank0.70%$2500Home Earners
Live Oak Bank0.70%$2,500Personal Savers

Detailed Insight: Top Banks and Credit Union Offering 3-year CD

Quontic Bank: Best for Low-Earning Individuals

Minimum DepositTermAPYMore Details
3 years1.00%Click Here

Quontic Bank is a digital bank that offers competitive rates and other benefits on its offered accounts. Among the list, Quontic bank ranks highest for the best 3-year cd rates with an affordable minimum deposit.

Quontic began as a local community bank in New York City and has now extended its offerings to include online and national services. It is well-known for innovating and offering attractive rates on deposit products.

If you ever need to withdraw soon, Quontic’s early withdrawal penalties may be steep with 1-2 years of interest. When an interest received on a CD is less than the penalties amount, the initial balance may be lowered.

↳ Best Feature?

Quontic’s CDs shine with high rates throughout maturities ranging from 6 months to 5 years, and the $500 initial minimum deposit requirement is inexpensive in comparison to other online banks.

Furthermore, Quontic also boasts an excellent credit score.

↳ Who is it Best For?

Its status as a Community Development Financial Institution, or CDFI is best for low-income people and communities, as well as seasonal workers and small company owners who want to loan.

Click Here to Know More About Quontic Bank 3-years CD.


Bank5 Connect: Best for Seekers of Competitive Yields

Minimum DepositTermAPYMore Details
3 years0.85%Click Here

Bank5 Connect provides reasonable account rates and the choice of a high-yield checking account. This gives this institution an appealing option for your checking and saving account needs as well as a certificate of deposit.

It was founded in 2013 and focuses on immediate society. Currently, Bank5 Connect is now a national bank that serves consumers in any state.

It provides six-CD options, including an add-on CD called a 24-month Investment CD. However, it does not have a CD that matures for more than three years.

Moreover, Bank 5 is a current member of the Depositors Insurance Fund, which enables depositors with deposits above $250,000 to ensure their whole balance.

↳ Best Feature?

Bank5 Connect features a 24-Month Investment CD, which is an add-on CD that enables you to deposit extra cash at any moment throughout the two-year term.

↳ Who is it Best For?

Bank5 Connect is a good alternative if you want an internet banking service with competitive yields. The low account minimums make it an appealing alternative for both small and big investors.

Its extensive customer service features and convenient chat software enable many clients to abandon real bank locations.

Click Here to Know More About Bank5 Connect 3-years CD.


Pentagon Federal Credit Union: Best for Seekers of a Credit Union

Minimum DepositTermAPYMore Details
3 years1.00%Click Here

Since its inception in 1935, the Penfed credit union has expanded to almost 2 million customers and far more than $25 billion in sales.

PenFed offers a humble service and product selection for anyone who joins. It provides a comprehensive range of borrowing and loan products and services on par with bigger banks.

PenFed Credit Union was formerly restricted to persons having strong links to the federal government and military.  Since it expanded, its appealing services and goods are now accessible to all Americans throughout the country.

PenFed Credit Union’s online savings account, money market certifications, and checking accounts provide competitive rates and fees.

↳ Best Feature?

Money market certificates, PenFed’s equivalent of certificates of deposit, provide competitive annual percentage yields (APYs) of up to 1.25 percent. They work similarly to conventional share certificates, as most credit unions refer to them.

Unless you choose the nonrenewal option, money market certificates shall be renewed automatically at maturity. When this occurs, the money is immediately placed into a standard savings account.

↳ Who is it Best For?

This bank or credit union is perfect for those who favor credit unions and those who desire high rates of interest and easy access to public ATMs, as well as people who are rarely to overspend.

Click Here to Know More About Pentagon Federal CU 3-years CD.


VyStar Credit Union: Best for Floridians and Georgians

Minimum DepositTermAPYMore Details
3 years0.80%Click Here

VyStar Credit Union has been the biggest credit union in northeast Florida. Its traditional CDs are available for durations of three months to 5 years which includes extra terms, such as a 30-month CD.

Local individuals in Florida and Southeast Georgia are eligible to join. You may also be eligible if you work for a company, church, or organization from one of the regions covered by it.

To open a standard CD, a $500 deposit is required. Customers who invest more money get a slightly greater APY. However, in order to be eligible for the greatest rate for each term, account holders must deposit at least $50,000.

In addition to the ordinary share certificates, there is an eighteen-month step-up certificate, that permits the account’s yield to be increased once before the period ends.

↳ Best Feature?

Its minimum deposit requirement is minimal, and the credit union does not levy monthly service charges or ATM fees.

Furthermore, its account choices are accessible for children, teenagers, and college students, and those who have account balances will be able to earn interest.

↳ Who is it Best For?

VyStar may be a good alternative for those who are living in Florida and Georgia in certain regions searching for minimal banking needs with checking and savings account for the entire family.

Click Here to Know More About Vystar Credit Union 3-years CD.


Comenity Direct: Best for Seekers for High-Average Rates

Minimum DepositTermAPYMore Details
3 years0.80%Click Here

Aside from being the bank behind various branded retail credit and debit cards, Comenity offers great savings account rates and CD rates. It has a low minimum deposit requirement and is presently guaranteed by the FDIC.

Comenity Direct provides various durations of CDs with returns that are much higher than those offered by the ordinary brick-and-mortar bank. The minimum deposit requirement is fair at $1,500.

It also provides high-yield savings account with such a favorable annual percentage yield (APY). The required minimum deposit is only $100, and that there are no recurring monthly costs.

↳ Best Feature?

Comenity Direct’s CD APYs are among the greatest CD rates available. Other than that, its APY on its High-Yield Savings Accounts are also quite competitive than typical brick-and-mortar banks.

↳ Who is it Best For?

Comenity Direct is an excellent option for customers who prefer to deposit funds online and want a secure location to put their money and see it grow at attractive rates.

This is an institution for those who want to save but don’t want to make regular withdrawals. If you’re seeking higher-than-average savings rates, Comenity Direct might be a suitable choice.

Click Here to Know More About Comenity Direct 3-years CD.


First Internet Bank of Indiana: Best for Online Users

Minimum DepositTermAPYMore Details
3 years0.80%Click Here

First Internet Bank of Indiana is more than a decade old. It was the first FDIC-insured internet bank and offers checking, savings, money market, and certificate of deposit accounts.

It offers eight CD terms with competitive APYs. Contracts range from 3 to 5 years and a  $1,000 deposit is needed to open a First Internet Bank CD.

The three-month CD has a 90-day interest penalty while its long-term year CD has a 180-day interest penalty. Early withdrawal penalties from a CD with a maturity date of two years or more will cost you 1 year of interest.

First Internet Bank also offers a competitive yearly percentage interest on Money Market Savings. The account includes an ATM card and no fees for incoming wire transfers.

↳ Best Feature?

The best thing about this institution is that you may use Zelle to transmit money. ATM withdrawals are also free of charge and deposits may be made at various PLUS ATMs.

Its Free Savings account features no recurring monthly cost and pays back up to $10 in out-of-network ATM fees.

↳ Who is it Best For?

First Internet Bank of Indiana is ideal for people seeking a choice of accounts. It provides two types of checking accounts, money market accounts, a savings account, and eight CD maturities.

Click Here to Know More About First Internet Bank 3-years CD.


Capital One: Best for Seekers of a Complete Bank

best business bank
Minimum DepositTermAPYMore Details
3 years0.75%Click Here

Capital One is known for its vast credit card services. It has now evolved into a completely online bank, with limited offices in a few U.S. states.

For a large bank, Capital One CDs provide attractive APYs. Capital One provides nine CD periods on which lengths of these periods vary from 6 months to 5 years.

It also provides a wide range of high-yield CDs with varying maturities and rates that are reasonable and with no minimum deposit.  Moreover, customers can have more than 50 CDs open at the same time.

Early withdrawal penalties vary depending on the term’s length. To withdraw money early from a CD with a period of 12 months or less has a penalty of three months’ interest and a 6-month penalty for greater than 12 months.

↳ Best Feature?

Capital One is one of the mixed financial institutions that you can find that offers internet banking as well as certain branch services. There are no monthly charges for its personal accounts.

Account-holders may also choose to receive interest payments monthly or yearly, depending on their preferences.

↳ Who is it Best For?

This bank is great for anyone searching for a complete bank with a large network of non-charged ATMs and some physical branch access.

Click Here to Know More About Capital One 3-years CD.


Synchrony Bank: Best for Small Shop Owners

Minimum DepositTermAPYMore Details
3 year0.75%Click Here

Synchrony Bank’s CD rates are competitive when compared to other banks. Individual retirement account (IRA) CDs are also offered, something not all online banks provide.

A $2,000 minimum deposit requirement is required for certificates of deposit (CDs). Its CD periods span from three to sixty months, with a three-month CD earning 0.75 percent APY and a 60-month CD yielding a 2.8% APY.

Synchrony also offers a 1.20% annual percentage yield on money market accounts with no minimum amount and no recurring service fees.

↳ Best Feature?

Synchrony Bank offers competitive interest rates on a variety of accounts, as well as several options to withdraw funds and contact customer care.

It is an internet bank that provides shops and healthcare professionals with attractive deposit options and credit cards.

↳ Who is it Best For?

Synchrony Bank provides financing via partnerships with hundreds of shops and healthcare providers throughout the United States. These may help customers to acquire things and services now and compensate for them later.

Click Here to Know More About Synchrony Bank 3-years CD.


Delta Community Credit Union: Best for Individuals who reside in Atlanta

Minimum DepositTermAPYMore Details
3 years0.75%Click Here

Delta Community is Georgia’s biggest credit union with members of more than 427,000.

Currently, it has five CD periods available and is among the best yielding options available. Delta Community’s CDs vary in length from six months to five years.

An early withdrawal from a half-year CD will charge you 2 months of interest, while a one-year CD would cost you 90 days charge. If you withdraw early from a 2-year CD and 3-year CDs, you are subjected to a 180-day interest penalty, whereas a five-year CD is subject to a 270-day interest penalty.

↳ Best Feature?

Delta Community Credit Union offers competitive rates on the majority of its CDs. It is also famous for its Personal Checking Account which accumulates reward points every time you sign up for a debit card transaction.

↳ Who is it Best For?

If you reside in Metro Atlanta, this bank and credit union is a fantastic alternative if you desire free checking accounts, high CD interest rates, or the option to earn points for perks such as travel and cash backs.

Click Here to Know More About Delta Community CU 3-years CD.


Salem Five Direct: Best for Online Users in Massachusets

Minimum DepositTermAPYMore Details
3 years0.75%Click Here

Salem Five is a Massachusetts-based banking firm that was established in 1855. They have 36 branches throughout the Northeastern United States, and it is an excellent alternative for online-only banking.

They’re most well-known for their no-fee checking and savings accounts. Salem Five Direct has three CDs available: a 12-month CD, an 18-month CD, and a 36-month CD.

The minimum amount necessary to obtain a CD is $10,000, which is greater than the minimum level demanded by many other online banks. However, if you take money out of it, this CD matures and you’ll have to pay an additional penalty.

↳ Best Feature?

Salem Five Direct is a fantastic digital bank that offers cheap fees and competitive interest rates. The features are significantly greater if you reside in Massachusetts.

↳ Who is it Best For?

Savings, checking accounts, and certificates of deposit (CD), and combination checking and savings accounts are available from Salem Five Direct.

Furthermore, Salem Five Direct goods and services are developed for consumers who desire to transact online.

Click Here to Know More About Salem Five Direct 3-years CD.


SchoolsFirst Federal Credit Union: Best for Academic Institutions

Minimum DepositTermAPYMore Details
3 years0.75%Click Here

SchoolsFirst Federal is the biggest credit union in California, serving educators and their dependents throughout the state. It offers minimal account fees and most accounts such as student loans and personal loans are free of monthly fees.

They provide CD terms ranging from 30 days to 5 years CD and share certificates that are available in nine different periods. The minimum amount required to open a share certificate is $500.

This bank or credit union offers CDs with 4 balance tiers: $500, $20,000, $50,000, and $100,000.

If you have a minimum of $100,000 in savings, you may purchase jumbo share certificates. If you want to use a CD to help you save for retirement, you may also have access to an IRA certificate.

↳ Best Feature?

CD yields are quite competitive, particularly at the upper balance levels. Most accounts have little or no fees, and members have accessibility to over 28,000 fee-free ATMs.

↳ Who is it Best For?

SchoolsFirst Federal Credit Union may be a great option for any California educator or school administrator seeking high dividend share certificates or low-cost banking.

Click Here to Know More About SchoolFirst Federal CU 3-years CD.


Golden 1 Credit Union: Best for Californians

Minimum DepositTermAPYMore Details
3 years0.70%Click Here

Golden 1 Credit Union is among the biggest credit unions in the USA, offering a diverse range of goods and services to its members. Most of their accounts need very little money to open, and many have little or no monthly fees.

CDs are available ranging from 3 months to five years. Most consumers should be able to select a CD that meets their financial needs by using these phrases.

To start a CD with Golden 1, you’ll need at least $500, although amounts above $100,000 often earn the best annual percentage returns or APYs.

Competitors with greater interest rates will see your money grow faster, but Golden 1 doesn’t impose monthly charges on basic accounts, and all account holders have no minimum beginning deposits.

↳ Best Feature?

Golden 1 provides CD maturities that range from 3 months to 5 years. You may get started with as little as a $500 investment without penalty.

Monthly dividends may also be credited to the balance certificate or can be transferred to another account.

↳ Who is it Best For?

If you live or work in California, Golden 1 Credit Union may be an excellent option if you’re seeking dependable credit unions with such a large branch network and cheap fees.

It works for those who want in-person banking services, and doesn’t worry about earning the highest interest rate, and are reluctant to overdraft.

Click Here to Know More About Golden 1 Credit Union 3-years CD.


Bethpage Federal Credit Union: Best for Long-island Residents

Minimum DepositTermAPYMore Details
3 years0.70%Click Here

Bethpage Federal Credit Union, New York’s biggest credit union, is a full-service banking organization. The National Credit Union Administration insures all of its savings accounts up to $250,000 in value.

It provides a variety of conventional certificates with varying terms and provides unique certifications, such as a 39-month bump-up certificate. All certificate alternatives need just a $50 deposit.

Yields are quite competitive in all parameters because Bethpage Federal Credit Union excels in many categories.

Not only does the credit union provide members with access to over 30,000 free ATMs, but it also provides a variety of budgeting tools.

↳ Best Feature?

The Bethpage Money Market account features a high annual percentage yield (APY), $500 minimum deposit, and no other hidden fees that allow you to make checks.

Bethpage also allows you to do anything from the search for transactions to create a budget and check your balance on your Apple Watch.

↳ Who is it Best For?

This credit union is great for Long Island residents seeking branch access, affordable loans, and reasonably priced savings options.

Click Here to Know More About Bethpage Federal Credit Union 3-years CD.


Suncoast Credit Union: Best Trusted Credit Union in Florida

Minimum DepositTermAPYMore Details
3 years0.70%Click Here

Suncoast Credit Union is a reliable financial institution that is situated in Florida because it offers a checking account that pays dividends, as well as reasonable share certificate rates with minimal fees.

The rates on Suncoast’s share certificates range from 0.30 percent for a six-month certificate to 0.95 percent for a five-year CD. Minimum balances and initial deposits amount only to $500.

The credit union also provides jumbo certificates with a minimum deposit of $100,000, although the rates are just marginally higher.

Suncoast Credit Union CDs carry a deferral penalty. A CD with a duration of one year or less may incur a penalty of ninety days of dividends and a duration of more than a year would result in a loss of three months of dividends.

↳ Best Feature?

Suncoast Credit Union provides its members with different varieties of accounts and provides several benefits and incentives to its members.

It also provides competitive returns on CDs and several levels of money market savings accounts to its subscribers.

↳ Who is it Best For?

Suncoast Credit Union is ideal for Floridians who want to have a wonderful bargain on interest-bearing checking accounts as well as highly competitive CD rates.

Click Here to Know More About Suncoast Credit Union 3-years CD.


Navy Federal Credit Union: Best for Military Families

Minimum DepositTermAPYMore Details
3 years0.70%Click Here

Navy Federal Credit Union is the biggest credit union in the world, servicing millions of servicemen and their families. Members of NFCU have access to almost 300 branches, that includes nine overseas sites.

Navy Federal has been acknowledged for providing excellent customer service, and it has access to a wide range of ATMs. It also provides competitive APYs on money market fundings and certificates.

Members seeking share certificates have a few alternatives with Navy Federal. Standard certificates are available with periods ranging from 3 months to 7 years plus it also has a three-year variable interest rate certificate with an annual yield adjustment.

To acquire most of its certificates, Navy Federal demands a reasonable $1,000 deposit. The APYs on its regular certificates remain the same regardless of deposit quantity until you reach $100,000.

↳ Best Feature?

Customers that deposit in the six-figure range are compensated with a little greater yield and the majority of its bank accounts have no recurring monthly cost.

Moreover, Navy Federal offers four certificate alternatives, with several of them offering greater rates than other major banks.

↳ Who is it Best For?

Navy Federal Credit Union pays an excellent choice for military families around the country. Membership is also available to civilians from the Department of Defense, including pensioners and annuitants.

It’s also a terrific option for anybody seeking a business recognized for delivering excellent customer service and a distribution network.

Click Here to Know More About Navy Federal Credit Union 3-years CD.


Limelight Bank: Best for Seekers of Short-term CDs

Minimum DepositTermAPYMore Details
3 years0.70%Click Here

The financial firm located in Utah is not your normal bank. They are a paperless bank that is ecologically responsible and they only provide one sort of financial product: certificates of deposit.

The 6 month CD from Limelight Bank has been by far the most attractive product. It consistently ranks as being one of the great offers for a 6-month CD.

The bank’s 12 and 18-month CD choices are similarly attractive; but, you may be able to get equivalent rates with a lower minimum deposit through an online bank or a smaller financial institution.

You may also fund your CD with up to $500,000 in cash. The interest on the CD will be compounded daily and put into your account once a month.

↳ Best Feature?

Limelight Bank distinguishes itself with competitive rates and a high sustainability focus. Overall, it provides some quite competitive prices and its shorter-term online CDs provide the greatest value for money.

↳ Who is it Best For?

Limelight Bank’s CDs are a wonderful alternative for anybody wishing to invest their money in a short-term CD.

Click Here to Know More About Limelight Bank 3-years CD.


TIAA Bank: Best for Long-term Consumers

Minimum DepositTermAPYMore Details
3 years0.70%Click Here

TIAA Bank is a completely online bank that also provides other financial services and products. TIAA Bank, in addition to a variety of personal accounts, also provides home mortgage and investment alternatives.

Customers interested in Certificates of Deposit (CDs) may choose from a variety of alternatives at TIAA Bank. It offers Basic CD accounts with periods ranging from 3 months to 5 years.

Depending on the length, basic CDs may yield 0.35 percent APY to 0.85 percent APY. A $1,000 minimum deposit is required to start a Simple CD account.

They are established to roll over automatically, with a 3-weeks maturity warning. These Basic CDs are subject to early withdrawal penalties.

↳ Best Feature?

Its best feature is the Bump Rate CD, which costs a $1,500 deposit to start and has a $250,000 account limit. Bump Rate CDs only come in one term length: 3.5 years and it has an annual percentage yield of 0.70 APY.

Customers may increase their interest rates on these CDs, which makes them appealing. When interest rates rise, you have a one-time opportunity to lock in a higher interest rate on your CD.

↳ Who is it Best For?

Most consumers who want a comprehensive variety of services from an online-only bank should find TIAA Bank appealing.

This is also ideal for those who wish to earn some of the highest CD rates and have access to a vast ATM network.

Click Here to Know More About TIAA Bank 3-years CD.


Sallie Mae Bank: Best for Home-Earners

Minimum DepositTermAPYMore Details
3 year0.70%Click Here

Sallie Mae Bank is an eCommerce bank that offers personal banking clients a variety of savings accounts. Sallie Mae provides accounts with affordable rates, making it a realistic alternative for many consumers.

Certificates of deposit (CDs) are also available that vary from 6 months to 5 years. The low minimum deposit for Sallie Mae CDs is $2,500. Sallie Mae CDs also do not have a monthly cost.

Interest payments might be made monthly, quarterly, yearly, or at maturity. Payments are made to a connected bank account.

There is a 90-day simple interest penalty for early cancellation of CDs with periods of twelve months or less and those periods greater than 12 months are 180 days’ simple interest.

↳ Best Feature?

Sallie Mae’s bank products, including CDs, and several accounts, all provide quite high APYs. While greater rates may be available elsewhere, these prices are still significant.

↳ Who is it Best For?

For consumers who desire to put money away for savings purposes, Sallie Mae provides attractive rates.

It’s an excellent banking option for clients who want to avoid monthly charges and accounts with minimum balance limitations.

Click Here to Know More About Sallie Mae Bank 3-years CD.


Live Oak Bank: Best for Personal Savers

Minimum DepositTermAPYMore Details
3 years0.70%Click Here

Live Oak Bank is a straightforward and alternative for people looking for an FDIC-insured bank account with a higher interest.

Its CDs allow you to save money for a certain amount of time and they often provide larger interest rates allowing your money to grow more quickly.

There are no monthly account fees with Live Oak Bank’s CDs plus the terms may range from 6 months to 5 years. However, the low minimum deposit for a CD is $2,500.

↳ Best Feature?

Both personal finance account types provide competitive interest rates, making the bank a feasible alternative for consumers looking to optimize their savings.

For online savings accounts and CDs, it provides many of the most reasonable rates on the market. All 7 CD term lengths provide customers with reasonably high and guaranteed profits.

↳ Who is it Best For?

Live Oak Bank is worth considering whether you’re a small-business owner searching for loans or a consumer wishing to shift your funds into an accredited online account.

It’s also a good option for people who are experienced with internet banking since they can use the app or go onto their computer to do anything from creating an account to moving money across accounts.

Click Here to Know More About Live Oak Bank 3-years CD.



What is a 3-year CD?

A three-year CD is an account in which you deposit and pledge to hold the funds for three years. Yields on money market and savings accounts may be greater than the national average.

How does 3-year CD works?

A certificate of deposit (CD) allows you to deposit money for a certain period of time and receive interest on it. CDs are typical accounts for long-term money with the primary purpose of capital preservation and their interest is compounded and applied to the principal.

One of the grounds you earn a higher APY is that the banks know how much time you’ll put your money mostly in CD.

The bank additionally accounts for the risk for premature withdrawals by charging a charge if you take funds before the CD period expires.

Who is 3-year CD best for?

CDs are ideal for small investors since they do not need a big minimum investment to start and may provide competitive rates. CDs are also attractive for investors who have a low tolerance for risk and want a set rate of return.

For folks who won’t require access to their money for at least three years, a three-year CD may be a good option.

Can you lose money on a 3-year CD?

On a practical basis, you won’t lose funds on a 3-year CD since they are insured by credit unions. That means they are legally compelled to pay you the agreed-upon amount of principal and fixed interest rate.

Other than that, they are often guaranteed by the federal government, which means that even if the institution went bankrupt, your capital would very certainly be returned.

3-year CD vs Money Market Accounts

The interest rate spread between CDs and savings accounts has shrunk. A 3-year CD, on the other hand, are more likely to give a greater interest than a money market account.

Money market accounts provide greater liquidity than CDs, frequently allowing you to issue a limited number of checks each month straight from the account. While CDs often provide a greater interest rate than money market accounts in return for less liquidity.

CDs and money market accounts also share several characteristics and are regarded safe as long as they are guaranteed by the FDIC in the case of banks and the NCUSIF in the case of credit unions.

3-year CD vs Savings Account

CDs are less liquid than savings accounts. which means that the money you keep is simpler to obtain and has lower withdrawal penalties and restrictions. As a result, savings accounts are preferable for your emergency savings.

However, you may withdraw your CD funds, but be ready to pay a penalty if you do so before the CD’s maturity date.

3-year CD vs 5-year CD

A three-year CD rate is often greater than a CD with a shorter period. CDs have also liquidity constraints, you’ll typically receive a greater return on a CD than you would on a regular savings or money market account.

Final Verdict

Most CDs may be a good method to lock away some funds for a short-term objective, like purchasing a vehicle or home in the next several years. Aside from objectives, CDs may be a secure haven for money that you wish to earn assured yields on without the danger of volatility that the stock market entails.

The rate is the most important basis for comparison for each CD: the greater the rate, the further you save. When choosing banks and credit unions, compare its CD rates by term and evaluate additional factors such as the minimum deposit or a hefty early withdrawal penalty.

The CD you select should be directly related to the financial objective you are attempting to achieve. We do suggest that you look into our top-pick choice which is Quontic Bank that shines with high rates throughout maturities ranging from 6 months to 5 years.


Are CD rates going up or down in 2024?

The Fed lowers rates to near zero in March 2020, and current economic estimates anticipate no rate rises until 2023.

How much will a 10 000 CD make in a year?

This is determined by your deposit, CD rate, and term duration. In such an instance, a $10,000 minimum deposit in a five-year CD with 0.30 percent APY would yield around $150 in interest.

Although, the same deposit in a five-year CD with 0.80 percent APY would earn just $406 in interest with all parameters being constant.

What is the average rate for a 3 year CD?

According to the Federal Deposit Insurance Corporation, the national average APY on a 3-year CD is 0.20 percent as of November 2021.

Are all accounts listed above insured by Federal Deposit Insurance Corp or National Credit Union Administration?

Yes, all the institutions mentioned are insured by the FDIC and the NCUA.

John V

John is a digital marketing master's student who enjoys writing articles on business, finance, health, and relationships in his free time. His diverse interests and ability to convey complex ideas in a clear, engaging manner make him a valuable contributor to these fields.

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