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Best 3-Year CD Rates April 2024

3-year CD rates offer a middle-ground for investors seeking a balance between a decent return and a moderate commitment period. Influenced by the Federal Reserve's actions and the broader economic environment, these rates can provide a secure investment option for those willing to lock in their funds for three years

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Overview

Capital One was founded in 1988 in Richmond, Virginia, and has become one of the most recognized names in finance. It originated as a credit card company but has since expanded its services, now offering a wide range of financial products, including banking, loans, and investment solutions. Their main attraction is leveraging technology to provide more innovative financial solutions that can be tailored to individual needs. Capital One sets itself apart with its user-friendly platforms and digital tools that can simplify business and personal finance for its customers.

Pros

pros iconNo minimum deposit requirement

pros iconCompetitive interest rates

pros iconFlexible terms

Cons

cons iconLow APYs on some term lengths

cons iconEarly withdrawal penalties

  • No minimum Min. deposit
  • 4.00% 3-Year APY
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Overview

Marcus is a personal loan and online banking provider owned by Goldman Sachs. Marcus was launched in 2016 to offer products designed to address consumer pain points regarding personal finance.

Marcus is named after Goldman Sachs’ founder, and its online platform combines digital technology with the financial strength and 150-year history of Goldman Sachs. Marcus has over $50 billion in bank deposits and $5 billion in consumer loan balances in the United States and the United Kingdom, all without the traditional brick-and-mortar branch model.

Marcus is a public company: stock ticker NYSE: MCS

Pros

pros iconHigh APYs

pros iconLow minimum deposit

pros iconNo monthly fees

Cons

cons iconEarly withdrawal penalties

cons iconFDIC-insured only up to $250,000.

cons iconNot a liquid investment

  • $500 Min. deposit
  • 4.15% 3-Year APY
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Overview

Initially launching as a credit card company, Discover was created by Sears in 1985. Since then, the company has branched out into a fully-fledged financial institution and is one of the biggest financial brands in America. Discover provides online banking services, personal loans, student loans, and mortgages, all alongside its famous Diners Club credit card offering.

Currently based in Riverwoods, Illinois, Discover has more than 50 million customers in the US and over 17,000 employees. The financial powerhouse offers all the benefits of a full-service bank with an excellent online presence and top-quality customer service.

Discover is a public company: stock ticker NYSE: DFS

Pros

pros iconDaily compounding interest

pros iconMany term options

pros iconLonger terms earn higher APYs

Cons

cons icon$2,500 minimum deposit

cons iconAutomatic renewal upon maturity

  • $3K Min. deposit
  • 3.75% 3-Year APY
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Overview

Synchrony is a premier consumer financial services company born out of GE capital and an independent entity as of 2014. With its original roots going back to 2003, this Stamford, Connecticut-based company specialized in offering a wide range of credit products. They partner with many national and regional retailers, local merchants, manufacturers, industry associations, and healthcare service providers to tailor their credit solutions for varying consumer needs. They have extensive industry knowledge and innovative solutions, providing a strong commitment to their partnerships. Synchrony’s edge lies in understanding the distinct financial needs of its consumers and bridging the gap

Pros

pros iconVariety of CD terms

pros iconCompetitive rates

pros iconNo-Penalty and Bump-Up CDs each only have one term

pros iconNo minimum deposit

Cons

cons iconNo terms over 5 years

  • No minimum Min. deposit
  • 4.15% 36-Month APY
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Overview

Quontic Bank is an online-only, FDIC-insured bank based in New York City, NY. The bank offers multiple deposit account options with reasonable opening deposit limits and competitive annual percentage yields (APYs). Quontic Bank’s primary goal is to innovate on traditional banking without losing the personal connection with its customers.

Along with bank accounts, Quontic offers member-exclusive financial products and opportunities, including loans. Borrowers can use these loans for things like down payment assistance on their home.

Pros

pros iconNo monthly fees

pros iconCompetitive rates on savings account and CDs

pros iconExtended phone customer service

Cons

cons iconNo branch access

cons iconNo checking account

cons iconExcess withdrawal fees

  • $500 Min. deposit
  • 4.40% 3-Year APY
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Overview

Alliant Bank has operated under its existing brand since December 2003. However, the company’s history can be dated back to 1888. With five physical branches in Northern and Central Missouri, Alliant Bank offers both online personal and business banking. The financial company is also a full-service bank registered with the FDIC. Alliant Bank’s ethos is firmly built around community partnership and working together with its customers on a personal basis.

Alliant Bank is a public company: stock ticker NASDAQ: LNT

Pros

pros iconCompetitive rates, especially on long-term CDs

pros iconFDIC insured

pros iconCD laddering

Cons

cons icon$1,000 minimum deposit

cons iconInterest compounded monthly, not daily

  • $1K Min. deposit
  • 4.20% 36-Month APY
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Overview

Ally Bank is headquartered in Sandy, Utah and was founded in 2009. As a full-service online bank, it offers its customers competitive interest rates, no minimum balance requirements, low fees, and round the clock customer service. Ally Bank is the digital banking division of Ally Financial Inc., and has roots that date back for nearly a century. Ally is best suited to customers who are familiar with online banking using a PC, tablet, or mobile device. The bank offers checking, savings, money market and certificate of deposit accounts. In addition, it also offers personal and auto loans, mortgages, investment accounts, and retirement services.

Ally is a public company: stock ticker NYSE: ALLY

Pros

pros icon24/7 customer service

pros iconNo monthly maintenance fees

pros iconNo minimum balance requirements

pros iconZero overdraft fees

Cons

cons iconNo cash deposit

cons iconNo branch access

cons iconEarly withdrawal penalties

  • No minimum Min. deposit
  • 4.00% 3-Year APY
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Overview

Pentagon Federal Credit Union (PenFed) was established in 1935 and has grown to become the third largest credit union in the US. The company boasts over 2.8 million members and caters to individuals in all 50 states, with more than $36 billion of assets under management. PenFed offers a wide range of financial products, including mortgages, personal loans, HELOC, student loans, and student loan refinancing.

Headquartered in Virginia, the company holds valid regulation with the National Credit Union Administration. PenFed is also known for its competitive interest rates and attractive features, such as spousal loan refinancing.

Pros

pros iconWide selection of terms

pros iconMinimum deposit as low as $500

pros iconFDIC-Insured up to $250,000

Cons

cons iconSteep early withdrawal penalty for certificates

cons iconMust open and maintain a savings account to become a member.

cons iconSome minimums required to avoid fees

  • $500 Min. deposit
  • 3.60% 3-Year APY
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Overview

Popular Direct traces its lineage back to 1893, as it’s a subsidiary of Popular, Inc., which was founded in Puerto Rico. With over a century of banking expertise, the company has emerged as a significant financial player, focusing on providing its customers with high-yield savings products and competitive CD rates. Their commitment to deliver seamless online banking experiences has led to massive technological advances. The main selling point for Popular Direct is its dedication to offering attractive interest rates. While many banks have expanded services, this company focuses on high-yield opportunities, specializing where others have broadened.

Pros

pros iconAccounts with highly competitive rates

pros iconNo monthly fees

pros iconExtended phone customer service hours

Cons

cons iconHigh minimum deposit requirements

cons iconExcess withdrawal fees

cons iconThe mobile app has limited capabilities and low customer ratings

  • $10K Min. deposit
  • 4.55% 36-Month APY
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Overview

Sallie Mae has been around since as far back as 1973, originally setting up as a student loan program that was federally guaranteed. It has been a private company since 2004. While it has not been servicing any federal loans since 2014, it still focuses on providing private student loans. One of its main focuses is catering to students who are looking for flexible repayment terms.

Sallie Mae is a public company: stock ticker NASDAQ: SLM

Pros

pros iconCompetitive rates on CDs

pros iconVarious types of accounts for short term savings

pros iconNo monthly fees

Cons

cons iconNo physical locations

cons iconLimited customer support phone hours

  • $3K Min. deposit
  • 4.00% 36-Month APY
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Overview

First National Bank (F.N.B.) Corporation, a diversified financial services entity headquartered in Pittsburgh, Pennsylvania, has a legacy tracing back to 1864 with the establishment of its chief affiliate, First National Bank of Pennsylvania. Operating across seven states and the District of Columbia, F.N.B.’s service offerings are broad, from commercial and consumer banking to wealth management. The bank’s footprint spreads across major metropolitan territories, including Pittsburgh, Baltimore, Cleveland, and Washington, D.C., among others. With assets nearing $44 billion as of the end of 2022, and an extensive network of around 350 banking offices, F.N.B. demonstrates a unique blend of traditional banking and innovative financial solutions. The company is publicly traded under the stock ticker “FNB” on the New York Stock Exchange.

Pros

pros iconOffers competitive interest rates on its CDs

pros icon900+ ATMs

pros iconMultiple account options

Cons

cons iconTransfer fee if you use overdraft protection

cons iconLow annual percentage yields for most accounts

cons iconInterest compounded monthly or quarterly, not daily

  • $500 Min. deposit
  • 3.00% 35-Month APY
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Overview

First National Bank of America (FNBA), headquartered in East Lansing, Michigan, has a proud history dating back to 1955. Over the years, the bank has grown from a local entity to a national presence, particularly with its online offerings, such as CDs and high-yield savings accounts available to consumers nationwide. Primarily serving Michigan residents with a broader array of products, FNBA has consistently expanded its services while retaining its family-owned essence.

With over $2.6 billion in assets, the bank’s reputation for stability and its commitment to customer service and innovative banking solutions positions it well. Its Michigan-focused brick-and-mortar presence and strong online service suite set FNBA apart in the banking sector.

Pros

pros iconCompetitive yields and a wide range of terms

pros iconThe same APY applies to accounts opened online and in a branch

pros icon$1,000 is the minimum deposit for opening a CD

Cons

cons iconNo specialty CDs, such as no-penalty or bump-up CDs

cons iconLong-term CDs have much greater early withdrawal penalties.

cons iconCustomer service isn’t available on weekends

  • $1K Min. deposit
  • 4.65% 36-Month APY

Top 3-Year CD Rates 2024

4.00%

3-Year APY

No minimum

Minimum Deposit

$0

Minimum Balance

None

Monthly fee

Yes

Daily Compounded Interest

Yes

Early withdrawal penalty

Pros & Cons

drop-down-btn
  • con-icon No minimum deposit requirement
  • con-icon Competitive interest rates
  • con-icon Flexible terms
  • con-icon Low APYs on some term lengths
  • con-icon Early withdrawal penalties

Account types

drop-down-btn
  • 6-Month APY 4.25%
  • 9-Month APY 4.25%
  • 1-Year APY 5.10%
  • 18-Month APY 4.45%
  • 2-Year APY 4.00%
  • 30-Month APY 4.10%
  • 3-Year APY 4.00%
  • 4-Year APY 3.95%
  • 5-Year APY 3.90%

3.75%

3-Year APY

$3K

Minimum Deposit

$0

Minimum Balance

None

Monthly fee

Yes

Daily Compounded Interest

Yes

Early withdrawal penalty

Pros & Cons

drop-down-btn
  • con-icon Daily compounding interest
  • con-icon Many term options
  • con-icon Longer terms earn higher APYs
  • con-icon $2,500 minimum deposit
  • con-icon Automatic renewal upon maturity

Account types

drop-down-btn
  • 3-Month APY 2.00%
  • 6-Month APY 4.25%
  • 9-Month APY 4.25%
  • 12-Month APY 4.70%
  • 18-Month APY 4.40%
  • 24-Month APY 4.00%
  • 30-Month APY 3.75%
  • 3-Year APY 3.75%
  • 4-Year APY 3.75%
  • 5-Year APY 3.75%
  • 7-Year APY 3.75%
  • 10-Year APY 3.75%

4.15%

36-Month APY

No minimum

Minimum Deposit

$0

Minimum Balance

None

Monthly fee

Yes

Daily Compounded Interest

Yes

Early withdrawal penalty

Pros & Cons

drop-down-btn
  • con-icon Variety of CD terms
  • con-icon Competitive rates
  • con-icon No-Penalty and Bump-Up CDs each only have one term
  • con-icon No minimum deposit
  • con-icon No terms over 5 years

Account types

drop-down-btn
  • 3-Month APY 0.25%
  • 6-Month APY 5.15%
  • 9-Month APY 4.90%
  • 12-Month APY 4.80%
  • 18-Month APY 4.50%
  • 24-Month APY 4.20%
  • 36-Month APY 4.15%
  • 48-Month APY 4.00%
  • 60-Month APY 4.00%
  • No-Penalty CD 11 Months 4.50%

4.40%

3-Year APY

$500

Minimum Deposit

$0

Minimum Balance

None

Monthly fee

Yes

Daily Compounded Interest

Yes

Early withdrawal penalty

Pros & Cons

drop-down-btn
  • con-icon No monthly fees
  • con-icon Competitive rates on savings account and CDs
  • con-icon Extended phone customer service
  • con-icon No branch access
  • con-icon No checking account
  • con-icon Excess withdrawal fees

Account types

drop-down-btn
  • 6-Month APY 5.05%
  • 1-Year APY 4.50%
  • 2-Year APY 4.50%
  • 3-Year APY 4.40%
  • 5-Year APY 4.30%

4.00%

36-Month APY

$3K

Minimum Deposit

$0

Minimum Balance

None

Monthly fee

Not available

Daily Compounded Interest

Yes

Early withdrawal penalty

Pros & Cons

drop-down-btn
  • con-icon Competitive rates on CDs
  • con-icon Various types of accounts for short term savings
  • con-icon No monthly fees
  • con-icon No physical locations
  • con-icon Limited customer support phone hours

Account types

drop-down-btn
  • 6-Month APY 4.80%
  • 9-Month APY 4.85%
  • 11-Month APY 4.90%
  • 12-Month APY 4.95%
  • 13-Month APY 4.90%
  • 15-Month APY 4.80%
  • 18-Month APY 4.75%
  • 24-Month APY 4.50%
  • 30-Month APY 4.00%
  • 36-Month APY 4.00%
  • 60-Month APY 4.00%

4.55%

36-Month APY

$10K

Minimum Deposit

$0.01

Minimum Balance

None

Monthly fee

Yes

Daily Compounded Interest

Yes

Early withdrawal penalty

Pros & Cons

drop-down-btn
  • con-icon Accounts with highly competitive rates
  • con-icon No monthly fees
  • con-icon Extended phone customer service hours
  • con-icon High minimum deposit requirements
  • con-icon Excess withdrawal fees
  • con-icon The mobile app has limited capabilities and low customer ratings

Account types

drop-down-btn
  • 3-Month APY 5.25%
  • 6-Month APY 5.30%
  • 1-Year APY 5.15%
  • 18-Month APY 4.90%
  • 24-Month APY 4.70%
  • 36-Month APY 4.55%
  • 48-Month APY 4.45%
  • 60-Month APY 4.45%

Best 3-Year CD Rates for September 2023

As of April 2024, competitive 3-year CD rates are available. The average APY for top-performing institutions is hovering around 4.75%. Some institutions are offering slightly lower rates, with APYs ranging from 4.40%-4.45%. It depends on the institution, but some may require as little as $500 for a deposit, while others may require as much as $10,000.

Before making a decision, always check for the most current rates and terms based on the broader economic climate and the policies of individual financial institutions.

Quontic Bank

Quontic Bank is a digital bank that offers a range of deposit accounts with competitive rates and affordable minimum deposit requirements. Quontic Bank offers a Certificate of Deposit (CD) with an APY of 5.05% for a 6-month term. The minimum deposit to open a Quontic Bank account is $500.

4.40%

3-Year APY

$500

Minimum Deposit

$0

Minimum Balance

None

Monthly fee

Yes

Daily Compounded Interest

Yes

Early withdrawal penalty

Pros & Cons

drop-down-btn
  • con-icon No monthly fees
  • con-icon Competitive rates on savings account and CDs
  • con-icon Extended phone customer service
  • con-icon No branch access
  • con-icon No checking account
  • con-icon Excess withdrawal fees

Account types

drop-down-btn
  • 6-Month APY 5.05%
  • 1-Year APY 4.50%
  • 2-Year APY 4.50%
  • 3-Year APY 4.40%
  • 5-Year APY 4.30%

Alliant Bank

Alliant Credit Union is a top choice for eligible customers seeking a diverse selection of high-yield products while aiming to minimize fees. With multiple methods of eligibility, becoming a member is made simple and accessible. With competitive APYs and minimal fees, opening a CD account with Alliant Credit Union is an attractive route for its customers.

4.20%

36-Month APY

$1K

Minimum Deposit

$0

Minimum Balance

None

Monthly fee

No

Daily Compounded Interest

Yes

Early withdrawal penalty

Pros & Cons

drop-down-btn
  • con-icon Competitive rates, especially on long-term CDs
  • con-icon FDIC insured
  • con-icon CD laddering
  • con-icon $1,000 minimum deposit
  • con-icon Interest compounded monthly, not daily

Account types

drop-down-btn
  • 3-Month APY 4.25%
  • 6-Month APY 5.00%
  • 12-Month APY 5.15%
  • 18-Month APY 4.90%
  • 24-Month APY 4.30%
  • 36-Month APY 4.20%
  • 48-Month APY 4.05%
  • 60-Month APY 4.00%
  • Jumbo Share Certificate 5.45%

Several are in the same range, so do your due diligence and find what works for you. 

3-Year CD: Pros & Cons

Pros

Cons

Safety and Security: 3-Year CDs are generally considered a safe investment, especially if institutions like the FDIC or NCUA insure them. Penalties: Withdrawing funds before the maturity date can result in penalties.
Higher Rates: Typically, a 3-Year CD might offer a higher interest rate compared to shorter-term CDs or regular savings accounts. Inflation Concerns: The fixed interest rate might not keep pace with rising inflation.
Guaranteed Returns: The interest rate is usually fixed, ensuring a predictable return over the term. Limited Liquidity: Funds are locked in for the duration of the term, making them less accessible than other savings options.
CD Laddering: This strategy allows for flexibility and the potential to leverage changing interest rates. Missed Investment Opportunities: The locked-in nature might mean missing out on higher returns from other investment opportunities.

Are 3-Year CDs Safe?

Generally, 3-Year CDs are considered safe and secure investment options. Your deposits are protected up to $250,000 per person and per institution when you invest in an FDIC-insured bank or NCUA-insured credit union.

CD Fees

There are some associated fees and fee structures when purchasing CDs. While they might seem to be negligible and unimportant when you first purchase them, watch out for any early withdrawal fees and terms. Should you find yourself in a position where you urgently need access to your deposited funds before the maturity date, banks can and often do levy a penalty for taking your money out. The penalty can be large enough to significantly reduce or even negate your accrued interest and, in some cases, claw back some principal.

Another thing to look for is any associated maintenance fees, like annual fees or monthly fees. Some banks may charge you if you are under a certain balance or simply have annual fees associated with the type of account. Always do your due diligence and read the fine print, as any costs associated will affect your true return on investment.

Conclusion

A 3-Year CD account offers both a secure investment and a relatively attractive return for a medium-term investment. Their fixed interest rates offer predictability for investors seeking stability in their investments. While they lock in funds for the duration, the trade-off is often a higher yield than shorter-term options. Evaluating your needs and goals before making any financial decision is important.