A 3 Year CD (certificate of deposit) is a time deposit with a fixed rate for the entirety of the 36 month term. Upon maturity of the certificate you can withdraw the balance without penalty. 3 year CD’s are FDIC insured for up to $250,000. A penalty will typically be enforced for early withdraw of funds.
Banks offer daily, monthly and quarterly compounding rates. The yield on a 3 year bank CD is higher than the rate because the yield factors in compounding interest over the term of the certificate. Many financial institutions require a minimum deposit for 3 year CD accounts, some require no minimum deposit.
Best 3 Year CD Rates
| Bank Rate | Name of Bank | Investment Type | Term | Rate | Compounded | Min. Deposit |
|---|---|---|---|---|---|---|
| 1 | Melrose Credit Union | Bank CD | 3 yr | 2.15% | Daily | $5,000 |
| 2 | Bank of Internet | Bank CD | 3 yr | 1.86% | Daily | $1,000 |
| 3 | Aurora Bank | Bank CD | 3 yr | 1.79% | Daily | $1,000 |
| 4 | Colorado Federal Savings | Bank CD | 3 yr | 1.75% | Daily | $5,000 |
| 5 | Ally Bank | Bank CD | 3 yr | 1.75% | Daily | $0 |
Comparing our best 3 year CD rates above, and also reviewing our local market CD Rates section is going to help you find the best 3 year CD for your needs.
Finding the Best 3 Year CD
When selecting a 3 year CD there are many factors besides rate you need to consider. You need to keep in mind minimum deposit amounts, interest earning withdraw guidelines, whether the financial institution is FDIC or NCUA insured and APY (Annual Percentage Yield).
Right now the 3 year CDs is typically the lowest term in which you can receive a 3% rate. This shows the return on the 3 year CD is great. Couple the best 3 year CD rates with the possibility of compounding interest over the 36 month duration of the certificate and that equals a great investment. Although you will see better returns on your money with a 3 year CD, because the term is longer the flexibility is less then that of the 6 to 24 month terms.
The right 3 year CD will be a great investment.
