The top 3-year CD rates for September 2024 (up to 4.75% APY)

The APYs listed in this article are accurate as of the time of publication. They may change as the Fed rate fluctuates. CNBC Select will update as new information becomes available.

A 36-month CD is a three-year savings account that helps you securely grow your savings for future use.

We have compared numerous accounts to identify the top three-year CDs that provide APYs significantly higher than the national average. All of our top picks are insured by either FDIC or NCUA. (For more details on our selection process, please refer to our methodology.)

Compare CD rates

Best for high APY

Best from an online bank

Best for low minimum deposit

Best for a large deposit

Best from a credit union

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American 1 Credit Union

If you're looking for the highest APY for a three-year CD term, look no further than American 1 Credit Union, which offers 4.75% APY. To maximize your returns over three years, this CD account is the perfect choice. Membership at Community 1 Cooperative is open to anyone, and all it takes is a $3 membership fee to join.

CD terms offered

180 days, 1 year, 18 months, 2 years, 3 years, 4 years, 5 years can be rewritten as: The time periods equivalent to 180 days, 1 year, 18 months, 2 years, 3 years, 4 years, and 5 years are 6 months, 12 months, 15 months, 24 months, 36 months, 48 months, and 60 months, respectively.

Monthly fee

None

Early withdrawal penalty fee

Early withdrawal penalties may apply if funds are removed before maturity date

The Federal Savings Bank

The Federal Savings Bank's three-year CD rate of 4.60% APY makes it a top online banking option, as many of the best three-year CD rates we found come from credit unions.

CD terms offered

5 years, 4 years, 3 years, 2 years, 18 months, 12 months

Monthly fee

None

Early withdrawal penalty fee

A penalty may be imposed for early withdrawal

Credit Human Federal Credit Union

Credit Human Federal Credit Union offers a competitive 4.355% APY on its three-year CD term with a low minimum deposit of $500. This is a suitable option for those with limited funds to invest in a CD. Membership at the American Consumer Council is open to everyone, and Credit Human covers the enrollment fee for you.

CD terms offered

3 to 5 months, 6 to 11 months, 12 to 17 months, 18 to 23 months, 24 to 35 months, 36 to 59 months, 60 to 83 months, 84 to 119 months, 120 months

Monthly fee

None

Early withdrawal penalty fee

Withdrawing funds early from tax-deferred instruments will result in a penalty, which may be substantial.

NexBank

If you have a large deposit, NexBank offers a 4.55% APY on its three-year CD, which would net you $1,428.05 in interest earnings over the three years. However, the required minimum deposit is $10,000.

CD terms offered

Six, twelve, twenty-four, thirty-six, forty-eight, sixty months.

Monthly fee

None

Early withdrawal penalty fee

The penalty for early withdrawal on a 12-month CD is 6 months of interest; the penalty for early withdrawal on a 3- or 6-month CD is 1 month of interest; other early withdrawal penalty fees may apply for additional CD terms.

Lafayette Federal Credit Union

If you're looking for a credit union with a community feel, Lafayette Federal Credit Union is a great option. Their three-year CD offers an impressive 4.52% APY. Membership is open to everyone through a lifetime Home Ownership Financial Literacy Council membership for just $10.

CD terms offered

One year, two years, three years, four years, five years, six years, seven years.

Monthly fee

None

Early withdrawal penalty fee

The fixed-rate certificates and IRA certificates will have penalties imposed on any amounts withdrawn, regardless of whether dividends have been earned or not, at the rate paid or payable for the term.

7-month, 90 days of dividends
1-year & 1-year jumbo, 180 days of dividends
2-year & 2-year jumbo, 270 days of dividends
3-year & 3-year jumbo, 360 days of dividends
4-year & 4-year jumbo, 480 days of dividends
5-year & 5-year jumbo, 600 days of dividends

The variable-rate certificates and IRA certificates will be subject to penalties on any amounts withdrawn, whether earned or not, at the rate paid or payable for the term.

18-month, 180 days of dividends
3-year, 360 days of dividends
5-year, 600 days of dividends

What's a three-year CD?

A CD, or certificate of deposit, is a type of deposit account that earns interest. It offers a fixed rate of interest for a set period, ranging from six months to five years. However, you cannot withdraw your funds during the entire term length without paying an early withdrawal penalty fee and potentially losing out on accrued interest.

A three-year CD, specifically, is a CD term of three years.

How three-year CDs work

Opening a CD account with a fixed interest rate for a set period of time, typically ranging from three months to five years, is the option you choose when you deposit money into a CD.

A CD and a savings account are similar, but the traditional CD model has some key differences.

At the start of the CD term, you can only deposit money once. Additional contributions are not allowed during the term. There is often a minimum deposit requirement, typically $500 or more.
Withdrawing your money before the end of your CD term can result in an early withdrawal penalty, which may be calculated based on the interest earned or the interest you would have earned over a specific period. The penalty fees can vary depending on your bank and the length of your CD term, but generally, longer CDs result in more costly penalties.

When the CD term ends, savers can receive their initial investment plus the interest earned, or they can transfer the funds to a new CD without any action required. CDs automatically renew at the interest rate offered at maturity unless specified otherwise.

An advantage of choosing a CD over a high-yield savings account is that CDs offer a fixed APY, which means you can secure the rate the day you open the account. This can be beneficial if you open an account during a time when interest rates are high. However, if interest rates decrease after you open the account, a CD may not be as advantageous.

CDs are typically not subject to monthly fees and are federally insured, making them a safe savings option.

How to choose a three-year CD

Consider the length of time you want to keep your money tied up when selecting a CD. A three-year CD will keep your funds locked up for three years.

To determine the best CD for your needs, consider the length of the CD and the rate offered. If you're saving for a long-term goal like a down payment on a home, a longer-term CD such as a three- or five-year option may be the best choice. Look for banks that offer competitive rates for these specific CD terms. On the other hand, if you have a shorter-term goal in mind, such as a vacation, a shorter CD term like a three- to six-month option may be more suitable.

How to compare three-year CDs

To accurately compare CDs, ensure that you are examining CDs with the same term across various banks. This way, you are comparing "apples-to-apples." In this scenario, you would analyze what banks and credit unions offer on their three-year, or 36-month, CDs.

You can compare interest rates, minimum deposit requirements, and fees like early withdrawal penalties once you determine the CD term you want.

Pros and cons of CDs

The advantages and disadvantages of CDs are similar, and your perception of them depends on various factors. Our opinions are presented below.

Pros of CDs

Fixed interest rates (a good thing when rates are high)
You cannot access CD funds until the maturity date, which helps prevent impulsive spending.
Different CD types offer various options, including bump-up CDs, no-penalty CDs, add-on CDs, jumbo CDs, and IRA CDs.

Cons of CDs

Low fixed interest rates can be detrimental if they occur during the duration of a CD term.
If you need the money from CD funds, it's a bad thing because you can't touch them until the term is up.
Early withdrawal penalty fees may apply
It is generally not possible to make additional deposits into a CD after the initial deposit has been made at the start of the term.
Usually a minimum deposit requirement, typically $500 and up

Why trust CNBC Select?

Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to managing their finances. Each CD review we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of savings and banking products. At CNBC Select, we maintain the highest journalistic standards and ethics, and we earn a commission from affiliate partners on many offers and links. However, our content creation process is entirely independent of our commercial team and any external third parties. To learn more about our methodology for selecting the best three-year CDs, please refer to our website.

Our methodology

We compared numerous three-year CD options from online banks and credit unions and discovered that many of the top rates are offered by credit unions. However, we only examined credit unions that allow anyone to join.

We ranked our top three-year CDs based on their APYs, minimum deposit requirements, penalties for early withdrawals, ease of use, and industry rankings. Our top picks were ranked according to their high APY, online bank, low minimum deposit, large deposit, and credit union.

All CDs on this list are FDIC- or NCUA-insured up to $250,000 per person. The rates and fee structures advertised by banks for their CD accounts are not guaranteed and may change without notice. They often fluctuate based on the Fed rate. When you open a CD account, you are typically locked into the APY offered at account opening for the entire term length.

The amount of money you earn from a CD depends on several factors, including the term length, the initial deposit, the annual percentage rate (APY) offered when you opened the account, and any associated fees. Typically, a larger deposit and a higher interest rate will result in higher earnings. However, if you withdraw your funds early, you may be subject to penalty fees that reduce your principal balance and earnings.

Most banks and institutions mandate a deposit of new funds when opening a CD account for the first time, preventing the transfer of existing funds from an account at that bank.

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