The Best 3-Year CDs

The best 3-year CDs are a smart option for savers looking to achieve longer-term saving goals.

Whether you're planning a dream vacation, a down payment on a second home or want money earmarked for something down the road, CDs give you a risk-free way to reach your goals.

However, you'll want to act quickly to secure the higher rates. The Federal Reserve didn't cut rates at its latest meeting, giving you time to lock in higher rates while they're available.

How to find the best 3-year CD rates

Currently, 3-year CDs help you earn a rate that outpaces inflation. Even with the Fed cutting rates three times to end 2025, you can still find APYs that'll earn you a healthy rate to reach your midrange savings goals.

However, CDs work best when you can park the money and forget about it. If you need to make a withdrawal before your term expires, your bank or credit union will close the CD and assess a fee.

These fees can offset the interest you earn, so only lock in longer-term CDs if you're confident you won't need the money before the maturity date.

In the meantime, here are the best three-year CD rates I found:

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Top-earning 3-year CD rates
Account	APY	Min Deposit	Early Withdrawal Penalty
America First Credit Union	4.05%	$500	6 months of interest
Sallie Mae	3.95%	$2,500	6 months of interest
All in Credit Union	3.77%	$1,000	3 months of interest
EFCU Financial	3.75%	$500	6 months of interest
MYSB Direct	3.75%	$500	3 months of interest
Lafayette Federal Credit Union	3.66%	$500	1 year of interest
Synchrony	3.60%	$0	6 months of interest

What is a CD account?

With a CD account, your cash is locked away for a fixed period, typically one to five years, unless you’re prepared to pay a fee to withdraw it early.

Because of early withdrawal fees, CDs aren’t a good place to park cash you plan to spend in the coming months, nor do they make good emergency funds.

However, they're good options if you’re trying to save for a future purchase or event and want to grow your cash without accessing it.

You’re guaranteed a fixed return on your cash so that the rate won’t fluctuate based on market conditions. This is both a good thing, as you get certainty, but also a possible problem, in case rates elsewhere shoot up, and you can't benefit.

As with other savings accounts, they're a good option for those who value risk-free returns, as you aren’t riding the waves of the stock market. In addition, most CD accounts are FDIC or NCUA insured, depending on whether they’re opened through a bank or credit union, so your cash is safe, even if your bank or credit union closes.

FDIC insurance protects up to $250,000 per account ($250,000 per person in a joint account), while NCUA insurance protects up to $250,000 per credit union member.

Pros of 3-year CDs:

CDs offer guaranteed returns on deposits
Fixed rates on CDs mean that even if rates fall, the APY on your account will remain the same
Most CD accounts from banks and credit unions are federally insured for up to $250,000
Since you can only withdraw funds when your CD account matures, you won't be tempted to spend your money elsewhere

Things to consider with 3-year CDs

No liquidity: Accessing funds from a CD account isn't as easy as with a savings account. If you need to withdraw funds from a CD before the maturity date, you'll be charged a fee, which will likely offset any interest earned
Money can't be added to a CD once it's been opened, in most cases
CDs have a lower earnings potential compared with stocks or mutual funds
Fixed rates on CDs also mean that if rates increase, you'll miss potential earnings
Rates might not be high enough to outpace inflation, and high-yield savings accounts could offer better rates of return

Use the tool below to explore some of today's top savings offers, powered by Bankrate:

Which CD term is right for me?

CDs are excellent savings vehicles if you want to place your money, then forget about it. However, with a wide range in terms, it's vital to strike a balance between earmarking money for future goals and having some cash on hand to pay for unexpected expenses.

Your savings goal can influence the term you choose. If you want a shorter option that helps you outpace inflation but also gives you access to your cash fast, a 1- or 2-year CD might be a wise choice.

Meanwhile, if you have larger savings goals, such as helping a child with a down payment on a home or taking that dream retirement vacation, then a longer term ensures you lock in a higher rate now before the Fed could cut rates again in the future.

Lock in today’s yield while rates remain higher

Now is a great time to lock in a higher rate, as the Fed didn't cut rates at its January meeting. It means that for savers with long-term goals, you can secure a high rate now that won't be lowered due to future rate cuts. Not only will this help achieve your savings goals, but it can also help outpace inflation.

Sean is a veteran personal finance writer, with over 10 years of experience. He's written finance guides on insurance, savings, travel and more for CNET, Bankrate and GOBankingRates.