Discover® 12-Month Certificate of Deposit term
Annual Percentage Yield
4.00%
Minimum Deposit Requirement
$0
Learn More 
On Discover's Website
Member FDIC
Member FDIC
4.00%
$0
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Choosing to put your savings into a CD or share certificate for a three-year period is a serious commitment. Be sure to look at the interest or dividend rate, expressed as APY, to help decide whether tying up your funds for three years at a fixed rate makes sense. Also consider the early withdrawal penalties. In some cases, a longer commitment pays a higher APY, but not always.
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Best 3-Year CD Rates
We’ve compared 142 CD accounts at 84 nationally available banks and credit unions to find some of the best three-year certificates available. See below to learn more about why we picked each account, the pros and cons, and to access individual bank reviews.
Quontic Bank Certificate of Deposit
CD APY 36-month
3.25%
Rates and details as of 2/24/25.
Minimum Deposit Requirement
$500
Interest Compounding Frequency
Daily
Learn More
On Quontic Bank's Website
3.25%
Rates and details as of 2/24/25.
$500
Daily
Editor's Take
Quontic Bank’s three-year (36-month) CD pays a competitive 3.25% APY. It has a relatively low minimum deposit requirement and the interest earned compounds daily. However, if you decide to withdraw your funds before the CD term maturity date, you forfeit two years of earned interest.
Overall, Quontic offers competitive Certificate of Deposit rates, with terms ranging from six months to five years. As an online bank, Quontic provides robust online and mobile banking options. Quontic’s user-friendly mobile app is available on both iOS and Android.
To fund your CD, you can transfer money from an existing Quontic account, from another bank via ACH transfer or by using Plaid technology.
Read our full Quontic Bank Review.
Pros & Cons
- Competitive APYs across CD terms
- Innovative online and mobile tools
- Low minimum deposit requirement
- Only six term options available
- No physical locations
- Quontic doesn’t accept cash deposits
Expert's Take
Some of the benefits of Quontic CDs are the low minimum to open an account and the ability to quickly get started online. The drawback of using digital banks like Quontic is that you don’t have access to physical branches. If you prefer the in-person banking experience or need to deposit cash, this could be a deterrent. It’s also good to note that you don’t necessarily earn a higher interest rate for locking up your money longer.
—Gloria Garcia, CFP
Quontic Bank CD Rates
| TERM | APY |
|---|---|
| 3 Months | 4.00% |
| 6 Months | 3.75% |
| 1 Year | 3.25% |
| 2 Years | 3.35% |
| 3 Years | 3.25% |
| 5 Years | 3.00% |
Rates & details as of 02/24/2025.
Interest compounds daily and is credited monthly. Once your CD matures, Quontic Bank provides a 10-day grace period to withdraw your funds. Otherwise, it automatically renews the CD. Early withdrawal penalties vary by term.
PenFed Credit Union Money Market Certificates
CD APY 36-month
3.20%
Rates and details as of 3/4/25
Minimum Deposit Requirement
$1,000
Interest Compounding Frequency
Daily
Learn More
On Bankrate.com's Website
3.20%
Rates and details as of 3/4/25
$1,000
Daily
Editor's Take
With a fairly modest minimum deposit of $1,000, you can open a PenFed Credit Union Money Market Certificate and earn a very competitive 3.20% APY. Don’t be confused by the “money market” in this certificate’s name; this is a share certificate—the name for a CD that’s issued by a credit union—not a money market account. Dividends on this certificate compound daily.
At PenFed Credit Union, you’ll find competitive yields on nine certificates. Terms range from six months to five years. PenFed gets excellent customer satisfaction scores and its highly rated app is available for iOS and Android.
You can join PenFed Credit Union by opening a savings account with an initial deposit of $5.
You choose your maturity option with PenFed when you open your certificate account and can change it at any time before maturity. This gives you more flexibility to determine how to handle your account when it matures. You can renew your certificate, transfer the funds into another PenFed account or have a check mailed to you.
Read our full PenFed Credit Union Review.
Pros & Cons
- Competitive dividend rates across terms
- Wide range of certificate terms
- Change your maturity option at any time prior to maturity
- Dividends compounded daily on certificate terms greater than six months
- Membership is required to open a certificate
- Early withdrawal penalties can be steep
- Must open a savings account to access certificates
Expert's Take
PenFed certificates have significantly lower rates across the maturity spectrum than others. In addition, their early withdrawal penalties are pretty onerous compared to what is standard. They’re about the most severe I have heard.
—Jill Fopiano, CEO at O’Brien Wealth Partners
PenFed Credit Union CD Rates
| TERM | APY |
|---|---|
| 6 Months | 2.90% |
| 12 Months | 3.40% |
| 15 Months | 3.25% |
| 18 Months | 3.25% |
| 24 Months | 3.20% |
| 36 Months | 3.20% |
| 48 Months | 3.20% |
| 60 Months | 3.20% |
| 84 Months | 3.00% |
Rates & details as of 03/04/2025.
Compounding schedule
The yields earned on credit union accounts are referred to as dividends rather than interest. Dividends on six-month certificates are earned on a simple (not compound) interest basis and are paid when the certificate matures. Dividends on all other CDs are compounded daily and credited monthly.
Early withdrawal penalties
Early withdrawal penalties vary by term.
Maturity options
With PenFed, you choose your maturity option when you open your certificate and can change it anytime prior to maturity. This gives you some flexibility, and extra time, to decide what you’d like to do with the funds in your account when it matures. You can transfer the funds into another PenFed account, roll it into a new certificate, get a mailed check or transfer it via ACH.
Bank5 Connect High-Yield Certificate of Deposit
CD APY 36-month
0.85%
Rates and details as of 4/4/25.
Minimum Deposit Requirement
$500
Interest Compounding Frequency
Monthly
Learn More
On Bankrate.com's Website
0.85%
Rates and details as of 4/4/25.
$500
Monthly
Editor's Take
Bank5 Connect offers certificates of deposit with terms ranging from six months to three years. The three-year CD earns a competitive 0.85% APY with a minimum balance of $500. Bank5 Connect is an online division of BankFive, a Massachusetts-based community bank that’s been serving customers since 1855.
Bank5 Connect receives strongly positive reviews on Trustpilot and its mobile app is highly rated, although it has fewer than 300 ratings combined on the App Store and Google Play.
Regardless of your balance—whether it’s $1 or $1 million—Bank5 Connect insures all of your deposits. On top of the usual $250,000 of Federal Deposit Insurance Corporation (FDIC) insurance, it offers coverage through the Massachusetts Depositors Insurance Fund (DIF), and there are no limits, in the event of a bank failure. Coverage is automatic and free and there are no residency requirements.
Read our full Bank5 Connect Review.
Pros & Cons
- Additional insurance through DIF, on top of FDIC coverage
- Competitive interest rate
- Highly rated mobile app
- Some competitors offer higher APYs
- Interest compounded monthly
- Doesn’t offer 24/7 customer service
Details
Interest on Bank5 Connect’s three-year CD is compounded and credited monthly. If you withdraw principal before the maturity date, you will pay an early withdrawal penalty equal to six months’ interest on the amount withdrawn subject to penalty. The three-year CD renews automatically, for the same term and at the current APY, unless you decide to change the CD term or withdraw the funds for another purpose during the 10-day grace period after maturity.
Connexus Credit Union Share Certificate
CD APY 36-month
2.65%
Rates and details as of 4/1/25.
Minimum Deposit Requirement
$5,000
Interest Compounding Frequency
Quarterly
Learn More
On Bankrate.com's Website
2.65%
Rates and details as of 4/1/25.
$5,000
Quarterly
Editor's Take
Connexus Credit Union offers competitive yields on its share certificates. The three-year share certificate earns a very competitive 2.65% APY and requires a $5,000 minimum deposit.
Connexus also provides a mobile app that receives high ratings on both the App Store and Google Play for savers interested in banking on the go.
Connexus does require membership to be eligible for its share certificate. If you do not meet other group or geographic requirements, you can become a member of the credit union by making a one-time $5 donation to the Connexus Association. You also are asked to open a Connexus Credit Union Simply Savings Account, with a minimum deposit of $5.
Read our full Connexus Credit Union Review.
Pros & Cons
- Competitive rates on its share certificates
- Highly rated mobile app
- No checking or savings account required to open a share certificate
- $5,000 minimum deposit required to open
- Dividends compounded quarterly
Expert's Take
The biggest difference with Connexus is that it’s a credit union, not a for-profit bank. It offers certificates with competitive rates, but the higher minimum could exclude those with less cash. The interest on longer time frames drops off quite a bit, but it compares to some others on the list. This credit union’s emphasis on member service and community involvement may resonate with individuals seeking a personalized banking experience.
—Gloria Garcia, CFP®
Connexus Credit Union CD Rates
| TERM | APY |
|---|---|
| 12 Months | 2.50% or 2.60% APY* |
| 24 Months | 3.00% or 3.10% APY* |
| 36 Months | 2.65% or 2.75% APY* |
| 48 Months | 3.00% or 3.10% APY* |
| 60 Months | 2.50% or 2.60% APY* |
*Higher rates are for deposits of $100,000 or more. Rates & details as of 04/01/2025.
Membership
You must become a credit union member to open a certificate with Connexus Credit Union. If you don’t qualify under the regular group and geographic categories of membership, you can join the credit union by making a one-time $5 donation to the Connexus Association.
Compounding schedule
Yields earned on credit union accounts are referred to as dividends rather than interest. At Connexus, dividends are compounded and credited to your account quarterly. Many other banks compound interest daily and pay it into your account quarterly, allowing your funds to grow faster than if they were held at Connexus.
Early withdrawal penalties and grace period
Early withdrawal penalties range from 90 to 365 days’ worth of dividends on the amount withdrawn. Share certificates automatically renew at maturity, following a 10-day grace period during which you can withdraw funds. All members are required to open a Connexus Credit Union Simply Savings Account with a minimum deposit of $5.
Sallie Mae Bank Certificates of Deposit
CD APY 36-month
3.40%
Minimum Deposit Requirement
$2,500
Interest Compounding Frequency
Daily
Learn More
Read Our Review
3.40%
$2,500
Daily
Editor's Take
Sallie Mae’s CDs are worth consideration if you prefer saving in the form of a time deposit account. The bank’s three-year CD pays a competitive 3.40% APY. Note, however, that the account requires a higher minimum deposit than some of the other accounts on this list: $2,500.
As is true with all CDs, the stated APY assumes that the interest earned by your CD stays on deposit until maturity. Withdrawals of interest from your CD will reduce earnings.
Although Sallie Mae is well known as a loan provider, Sallie Mae Bank also knows savings: Its popular SmartyPig online savings account earned a spot on Forbes Advisor’s Best Online Savings Accounts for its ability to help account holders create and track savings goals, along with its competitive interest rates and low-to-no fees.
Read our full Sallie Mae Bank Review.
Pros & Cons
- Competitive interest rate
- Easy online and mobile access
- Deep experience in both savings and loan services
- Other banks and credit unions offer higher interest rates
- Low ratings on App Store and Google Play for Sallie Mae Banking app
- Customer service available only Monday through Friday
Details
Interest earnings on the three-year CD are compounded daily and credited to your account monthly. If you withdraw principal prior to the maturity date, you will pay an early withdrawal penalty equal to 180 days’ simple interest on the amount withdrawn subject to penalty. If the amount required to be forfeited is greater than the interest earned or paid, the difference will be deducted from the principal.
At the end of the three-year CD term, your CD automatically renews unless you withdraw your funds for another purpose or notify Sallie Mae Bank—at maturity or within the 10-day grace period—by phone or by secure online message.
Summary: Best 3-Year CD Rates
Methodology
To create this list, Forbes Advisor analyzed 142 CD accounts across 84 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. For the star rating, we ranked each institution on 11 data points within the categories of APY, minimums, compound interest schedule, customer experience, digital experience, available terms and overall availability. We also analyzed and ranked each institution by individual term.
The following is the weighting assigned to each category:
- APY: 50%
- Customer and digital experience: 20%
- Minimum deposit requirement: 12.5%
- Compound interest schedule: 7.5%
- Availability: 5%
- Available terms: 5%
CD accounts with higher APYs rose to the top of the list. Minimum deposit requirements of $10,000 or higher affected scores negatively. Accounts with daily compounding interest schedules were scored higher than those with monthly or quarterly schedules. To appear on this list, the account must be nationally available.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.
Complete Guide to 3-Year CDs
Current 3-Year CD Rates
The current national average rate for a 36-month CD is 1.35% as of March 17, 2025, according to the FDIC. Rates above this average are considered to be competitive. Fortunately, many banks boast three-year CD rates that pay well above the national average.
What Is a 3-Year CD?
A three-year CD is a certificate of deposit that has a fixed interest rate and term of three years, or 36 months. This type of account is insured by the Federal Deposit Insurance Corporation (FDIC) and offers a safe place to grow your money.
How Does a 3-Year CD Work?
With a three-year CD, you deposit money into the account and leave it there for three years. During this time, the interest rate remains fixed, so you earn a predictable, guaranteed rate of return on your deposit.
At the end of the three-year term, you can choose to withdraw your money or renew the CD for another term. Withdrawing your money before the end of the term may result in early withdrawal fees.
How To Find the Best 3-Year CD Rates
Finding the best three-year CD rates requires some shopping around, as rates can vary widely by bank. One way to cut down on your research is by using a list like this one from Forbes Advisor. Our team spends countless hours scouring banks for the best rates so you don’t have to.
Prioritize the highest rates while still paying attention to other features and account requirements. Make sure the minimum opening deposit requirement is one you can easily meet, and avoid CDs with steep early withdrawal penalties unless you’re certain you won’t need your money for three years.
You can also consider other types of CDs, like bump-up CDs, which allow you to increase your APY once or twice during your term if rates go up. No-penalty CDs allow for one penalty-free withdrawal, so you can move your money in the middle of your term if you find a better rate elsewhere. Finally, brokered CDs—CDs offered through a brokerage rather than a bank—often have the best rates, but they work a little differently and aren’t without disadvantages.
Pros and Cons of 3-Year CDs
Pros
- May have competitive interest rates. You can potentially earn more with three-year CD rates than you would with a savings account or shorter-term CD rate.
- Your money is safe. As with all CDs, your money is FDIC-insured, which means it can’t lose value like it could in the stock market. You also get your full deposit back if the bank fails.
- Guaranteed returns. Three-year CDs have fixed interest rates that won’t change during your term. This means you’ll know exactly how much you’ll earn when you open your account.
- Ideal for medium-term goals. Three-year CDs are best for people who have idle savings they know they won’t need for at least three years—such as when you’re saving up for a down payment on a house.
Cons
- Your money is off-limits for three years. If you need to tap into your CD early, you could lose some interest—and possibly some of your deposit—to penalties. So it’s important to know for sure that you won’t need your money before then.
- Lower interest rate than other investments. Three-year CD rates may be lower than the returns you’d earn with longer-term CDs or in the stock market.
- May not beat inflation. In times when inflation is high, three-year CD rates may not be competitive enough to outpace the cost of living.
How To Choose a 3-Year CD
A three-year CD can be an attractive medium-term investment. With the right APY, you’ll get decent earnings over three years, with no market risk. However, it’s hard to know how interest rates will fluctuate over a three-year period. As with any CD, consider carefully whether you can afford to lock up your savings for the specified period of time. Consider the APY and other account features:
- APY. Whether you’re looking at interest or dividends, look at the APY. With a three-year CD, you’re making a longer-term commitment of your funds. Be sure that the APY you’ll receive makes sense for your investment.
- Compounding schedule. Look for daily compounding of interest or dividends, as opposed to monthly or quarterly.
- Safety. Choose financial institutions that are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). In the event of a bank or credit union failure, your deposits would be insured for up to $250,000 per account for each account ownership category.
- Early withdrawal. With the longer three-year term, a CD’s early withdrawal penalty is more of a factor. The likelihood of your needing or wanting to access the funds early is that much higher. An early withdrawal penalty can reduce your interest or dividend earnings. (Some banks impose withdrawal penalties that could not only reclaim any interest earned but also reduce your principal balance.)
- Term. The past two years have shown that you don’t know what a year will mean to your family or your finances, much less three. Be sure you won’t need access to the funds during those 36 months. If you might withdraw funds before the CD’s maturity date, a savings account or money market account may be your better savings option.
How To Open a 3-Year CD
Most banks and credit unions let you lock in the best three-year CD rates online. So once you’re ready to open an account, just follow these steps:
- Shop around for the best rates. As with any savings account, it’s important to compare rates from different institutions before you choose one.
- Decide how much you want to deposit. The minimum deposit for a three-year CD is typically $1,000, but some banks may let you get started with as little as $0.
- Read the fine print. This will help you understand all the terms and conditions, such as early withdrawal penalties and what to do when your CD matures.
- Open an account and make a deposit. Navigate to the bank’s website and follow the prompts to set up your three-year CD. This typically includes entering personal information and linking an existing bank account to fund your deposit.
- Monitor your account. Once you open your CD, there’s not much else to do besides keep an eye on it so you know when it’s time to renew.
3-Year CDs vs. Other Terms
The general rule of thumb is that the longer you lock your money away in a CD, the higher your interest rate will be. This is because you’re agreeing to leave your money untouched for a longer period of time.
Most three-year CDs have higher rates than shorter-term CDs and lower rates than longer-term CDs. However, this isn’t always the case. Interest rates vary by bank and you may be able to find a better deal on a one- or two-year CD if you’re willing to shop around.
Is a 3-Year CD a Good Investment?
Whether a three-year CD is a good investment or not depends on your situation. If you invest money you know you won’t need for at least 36 months, a three-year CD can be a good way to lock in a competitive interest rate. However, if you think you might need your money before the CD matures, you run the risk of early withdrawal penalties eating into your earnings. In this case, you might be better off with a high-yield savings account.
Frequently Asked Questions (FAQs)
What is a 3-year CD paying?
Three-year CD rates vary by institution and can change at any time. If you’re looking to get a general idea of what 3-year CDs are currently paying, you can visit the FDIC’s online Bankers Resource Center. There, you’ll find a table of the national rates, which are based on the average rates banks are presently paying.
What are the best 3-year CD rates right now?
The best three-year CD rates right now can be found at Quontic Bank, PenFed Credit Union, Bank5 Connect, Connexus Credit Union and Sallie Mae Bank.
When is a 3-year CD a good idea?
A three-year CD can be a good idea when you have a savings goal you’d like to reach in a few years and want to maximize your interest earning until then. As a general rule, longer CDs tend to earn higher rates than shorter CDs, so you might choose a three-year CD when you find a competitive APY for this term and have enough money to comfortably meet deposit minimums.
