Best 3-Year CD Rates for June 2024

Review and compare the best 3-year CD rates. A 3-year CD is a good way to generate interest on your money when you don't need access to it for a few years.

The best 3-year CD rate is 5.00% APY from Vibrant Credit Union, DollarSavingsDirect, and Transportation Federal Credit Union. To find you the highest 3-year CD rates nationwide, we review CD rates from hundreds of banks and credit unions every day. CD terms of 30-41 months are eligible for our 3-year rankings, with minimum deposit requirements of up to $25,000. If you're looking for a way to generate some interest on your money and don't necessarily need access to it for a few years, a 3-year certificate of deposit (CD) might be worth a look. Below are the top CD rates available from our partners, followed by the best CD rates that we've found from our research that are available to U.S. customers everywhere.

IN THE NEWS

The Fed held rates steady for a seventh consecutive time at its June 12 meeting. The federal funds rate is at its highest level since 2001, but Fed officials are projecting one or possibly two rate cuts before the end of the year. CD yields closely follow the fed funds rate. Back in October, CD rates reached peaks not seen in more than 20 years, but once the Fed starts cutting rates, CD rates will fall.

You can find our ranking of the highest CD rates with terms of 30-41 months below. In cases where more than one institution pays the same annual percentage yield, we've prioritized CDs by the shortest term, then the CD requiring a smaller minimum deposit, and if still a tie, alphabetically by institution name.

Best 3-Year CD Rates

  • Vibrant Credit Union - 5.00% APY
  • DollarSavingsDirect - 5.00% APY
  • Transportation Federal Credit Union - 5.00% APY
  • Hughes Federal Credit Union - 4.86% APY
  • Crescent Bank - 4.85% APY
  • Dow Credit Union - 4.81% APY
  • Credit Human - 4.75% APY
  • EFCU Financial - 4.75% APY
  • Workers Credit Union - 4.75% APY
  • Luana Savings Bank - 4.70% APY
  • MYSB Direct - 4.70% APY
  • Seattle Bank - 4.65% APY
  • First Internet Bank - 4.61% APY
  • Department of Commerce Federal Credit Union - 4.60% APY
  • BMO Alto - 4.60% APY
  • First National Bank of America - 4.60% APY
  • The Federal Savings Bank - 4.60% APY

Our full ranking of the top-paying nationally available 3-year CDs is listed below, including details about minimum deposits and early withdrawal penalties. For credit union CDs, information is also provided on how to easily join the credit union.

Looking for a wider selection of CDs? See our picks for the best CD rates to see terms ranging from three months to 10 years.

Vibrant Credit Union - 5.00% APY

  • Term (months): 30
  • Minimum deposit: $5
  • Early withdrawal penalty: All earned interest
  • Overview: Anyone can join Vibrant Credit Union through membership in the Illinois Consumer Council and by maintaining a balance of $5 in a savings account. Headquartered in Moline, Illinois, Vibrant dates back to 1935.

DollarSavingsDirect - 5.00% APY

  • Term (months): 36
  • Minimum deposit: $1,000
  • Early withdrawal penalty: 6 months of interest
  • About: DollarSavingsDirect is FDIC-insured as an online division of Emigrant Bank, which dates back to 1850. Emigrant Bank is headquartered in New York.

Transportation Federal Credit Union - 5.00% APY

  • Term (months): 36
  • Minimum deposit: $1,000
  • Early withdrawal penalty: 6 months of interest
  • Membership: Anyone nationwide is eligible for membership with Transportation Federal Credit Union by joining the American Consumer Council.

Hughes Federal Credit Union - 4.86% APY

  • Term (months): 36
  • Minimum deposit: $1,000
  • Early withdrawal penalty: 6 months of interest ($50 minimum)
  • Membership: Anyone can join Hughes by donating $10 to one of three local library nonprofits and keeping at least $50 in a savings account.

Crescent Bank - 4.85% APY

  • Term (months): 30
  • Minimum deposit: $1,000
  • Early withdrawal penalty: 6 months of interest
  • Overview: Headquartered in New Orleans, Crescent Bank was founded in 1991.

Dow Credit Union - 4.81% APY

  • Term (months): 36
  • Minimum deposit: $500
  • Early withdrawal penalty: 12 months of interest
  • Membership: Anyone can join Dow Credit Union by making a $10 donation to the Midland Area Community Foundation scholarship fund during the membership application process. The credit union is based out of Midland, Michigan, and was chartered in 1937.

Credit Human - 4.75% APY

  • Term (months): 24-35
  • Minimum deposit: $500
  • Early withdrawal penalty: 9 months of interest ($50 minimum)
  • Membership: Anyone can join Credit Human by agreeing to a complimentary membership in the nonprofit American Consumer Council and keeping at least $5 in a member savings account.

EFCU Financial - 4.75% APY

  • Term (months): 30
  • Minimum deposit: $500
  • Early withdrawal penalty: 6 months of interest
  • Membership: Anyone can join EFCU by making a donation of any amount to the EFCU Financial Foundation and keeping at least $5 in a member savings account.

Workers Credit Union - 4.75% APY

  • Term (months): 36
  • Minimum deposit: $500
  • Early withdrawal penalty: 50% of interest that would have been earned
  • Overview: Anyone can join Workers Credit Union through a complimentary 1-year membership through the Financial Fitness Association and by keeping $5 in a credit union savings account. Workers Credit Union was founded in 1914 in Massachusetts, where it is home to physical branches today.

Luana Savings Bank - 4.70% APY

  • Term (months): 30
  • Minimum deposit: $2,000
  • Early withdrawal penalty: 6 months of interest
  • About: Luana Savings Bank was founded in 1908 in northeastern Iowa, and in addition to operating six Iowa branches, it serves nationwide customers online.

MYSB Direct - 4.70% APY

  • Term (months): 36
  • Minimum deposit: $500
  • Early withdrawal penalty: All earned interest (3 months minimum)
  • Overview: MYSB Direct is the online banking arm of M.Y. Safra Bank, which is headquartered in New York City and operates a single branch there.

Seattle Bank - 4.65% APY

  • Term (months): 36
  • Minimum deposit: $1,000
  • Early withdrawal penalty: 6 months of interest
  • About: Established as a mortgage company in the 1940s, Seattle Bank expanded to branch banking in the early 2000s and serves online customers across the country as well as operates in downtown Seattle.

First Internet Bank - 4.61% APY

  • Term (months): 36
  • Minimum deposit: $1,000
  • Early withdrawal penalty: 12 months of interest
  • About: First Internet Bank is so-named because it claims to be the first FDIC-insured bank to operate exclusively online. Founded in 1999, it is based in the Indianapolis suburb of Fishers, Ind.

Department of Commerce Federal Credit Union - 4.60% APY

  • Term (months): 24-35 months
  • Minimum deposit: $25,000*
  • Early withdrawal penalty: 6 months of interest
  • Overview: Anyone can join the DCFCU by agreeing to a free membership in the nonprofit American Consumer Council. Chartered in 1964, DCFCU is headquartered in Washington, D.C., where it operates two branches.

*Rates listed in DCFCU's rate charts are 0.10% lower than what's listed here, for a minimum deposit amount of $500. The fine print indicates that for deposits of $25,000, a 0.10% premium applies.

BMO Alto - 4.60% APY

  • Term (months): 36
  • Minimum deposit: Any amount
  • Early withdrawal penalty: 6 months of interest
  • Overview: BMO Alto is an online-only division of BMO, which is a U.S. subsidiary of Bank of Montreal. In addition to CDs, it offers an online savings account. It was founded in 1817 in Montreal, Canada. BMO Alto currently operates out of Chicago, Illinois.

First National Bank of America - 4.60% APY

  • Term (months): 36
  • Minimum deposit: $1,000
  • Early withdrawal penalty: 12 months of interest
  • Overview: Headquartered in East Lansing, Michigan, First National Bank of America serves customers nationwide through online banking. It was founded in 1955 and has three locations in Michigan.

The Federal Savings Bank - 4.60% APY

  • Term (months): 36
  • Minimum deposit: $5,000
  • Early withdrawal penalty: 12 months of interest
  • Overview: The Federal Savings Bank is a national bank with a network of over 55,000 ATMs across the U.S. It offers checking and savings accounts, as well as mortgages and loans. Headquartered in Chicago, it was established in 2000.

Fast Fact

When asked in late April what they would invest in if they had an extra $10,000, 12% of Googlawi readers said they would open a CD. Back in December and January, 11% and 9% of readers (respectively) said they’d invest extra funds in CDs, with that share dipping even further to 8% in March. While CDs sit below individual stocks as the top response (at 19%), CDs are always a good option for those looking for safer investments.

Pros and Cons of a 3-Year CD

  • Pays a fixed, guaranteed return

Pays a fixed, guaranteed return

  • Offers predictable earnings

Offers predictable earnings

  • May pay a higher rate than other options

May pay a higher rate than other options

  • Is safe and essentially risk-free

Is safe and essentially risk-free

  • Can deter spending temptations

Can deter spending temptations

  • If rates go up, you may wish you'd chosen a shorter CD

If rates go up, you may wish you'd chosen a shorter CD

Pros Explained

  • Pays a fixed, guaranteed return: A CD's return is presented to you as the annual percentage yield (APY), and once you make your deposit, you'll be locking in that rate for the full duration of the CD. The bank cannot change the APY.
  • Offers predictable earnings: Because you'll know the fixed rate, you can calculate exactly how much your CD will be worth at maturity. Changes in financial markets or other news will not impact your earnings.
  • May pay a higher rate than other options: In some rate environments, you can earn a higher interest rate the longer you're willing to commit your funds, so stretching to three years may give you a rate premium over 2-year options. (It's not always true, though, so be sure to shop around.)
  • Is safe and essentially risk-free: If you open your CD at an FDIC-insured bank or NCUA-insured credit union, your CD deposits of up to $250,000 per person and per institution are protected, even if the institution fails.
  • Can deter spending temptations: Because you can't make withdrawals from a CD without paying a penalty, you may be dissuaded from spending your savings on unplanned purchases.

Cons Explained

  • Imposes a penalty if you withdraw early: If you need your funds before maturity, you can cash out, but you'll be charged an early withdrawal penalty. The amount of that penalty will be spelled out in your CD agreement, which you should review before committing your funds, as penalty policies can vary widely across institutions.
  • Only allows one deposit: Most CDs are designed to take one initial deposit that is kept on hold through the CD's term. Only niche "add-on" CDs offer the ability to deposit additional funds.
  • If rates drop, you may wish you'd chosen a longer CD: If rates go down after you lock-in your 3-year yield, you may wish you'd gone for a 4- or 5-year term instead, to extend your guaranteed rate further into the future.
  • If rates go up, you may wish you'd chosen a shorter CD: If you open a 3-year CD rate and then rates climb higher, you may wish you had opted for a shorter CD, enabling you to get out of your current rate sooner and open a new CD at a higher rate.

Compare the Best 3-Year CDs