Best 3 Year CD Rates For November 2022
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In most cases, you’re not allowed to get your cash before the CD matures. With a three-year CD, that means keeping your money in the account for three years. If you do withdraw the money, there’s a good chance you’ll have to pay a penalty. The penalty depends on the financial institution, and can vary widely. A penalty might be expressed as a certain number of months’ worth of interest or as a percentage of the principal. In some cases, that percentage of principal might be based on the entire amount in the CD, or it might only apply to the amount you withdraw early.
If you’re unsure that you can keep your money in the account for three years, consider other options. There are no-penalty CDs that won’t charge you for taking the money out early. However, no-penalty CDs often come with lower interest rates than those on conventional CDs.
Additionally, you can choose a six-month or one-year CD, instead of getting a three-year CD. You’ll be able to access your money earlier, but you’ll earn a lower yield.
Also, because there are liquidity restrictions on a CD, you’ll often see a higher yield on a CD than what you’d get with a traditional savings account or money market account, though savings and money market accounts provide easier access to your money.
Also, while a three-year CD can feature a higher interest rate than shorter-term CDs and liquid savings accounts, it often has a lower yield than what you’d see if you were willing to tie up your money for a longer term. For example, you might get a higher yield on a five-year CD than what’s available for a three-year CD.
Carefully consider your needs before putting your money in a CD. Be realistic about when you might need the money, based on your short- and medium-term financial goals. Knowing your needs will help you to make a better decision about the type of account that’s best for your money.
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We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
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A three-year CD is a deposit account in which you agree to keep the money in the account for three years. Yields on three-year CDs are often higher than and . can help you when your CD matures. Your principal is protected, so you won’t have to worry about fluctuations in value, like you might when . Plus, with a CD, your interest rate is locked in, so you also don’t have to worry about your yield decreasing.Bankrate s picks for the top 3-year CD rates
: 4.15% APY, $0 minimum deposit 4 10% APY $2 500 minimum deposit 4 02% APY $1 000 minimum deposit 4 01% APY $0 minimum deposit 4 00% APY $500 minimum deposit 4 00% APY $1 000 minimum deposit* 4 00% APY $1 500 minimum deposit 4 00% APY $2 500 minimum deposit 4 00% APY $10 000 minimum deposit 3 66% APY $1 000 minimum deposit 3 65% APY $1 000 minimum deposit 3 60% APY $1 000 minimum deposit 3 60% APY $1 000 minimum deposit Note: Annual percentage yields (APYs) shown are as of Oct. 31, 2022. Bankrate’s editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. *Rate not available in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin. Today’s top, widely available three-year CD pays 4 percent APY — higher than some of the . A CD that matures in three years could be a good investment for midterm financial obligations, like a down payment on a car.A closer look at the top 3-year CD rates
4 15% APY $0 minimum opening deposit
Capital One is an online bank that also has a brick-and-mortar presence, with around 300 branches and about 50 Capital One cafes. It offers nine competitive terms of regular CDs. Capital One CDs and its 360 Performance Savings account don’t have minimum balance requirements. Capital One is based in McLean, Virginia.4 10% APY $2 500 minimum deposit
LendingClub Bank is a digital financial company that offers personal and business banking products. It acquired Radius Bank in early 2021. LendingClub Bank offers five terms of CDs, a high-yield savings account with a competitive yield and a checking account that earns cash back.4 02% APY $1 000 minimum deposit
First Internet Bank of Indiana is an FDIC-insured financial institution that operates online and has no branches. It opened in 1999 and offers products in all 50 states. First Internet Bank offers eight terms of CDs, a money market savings account with a competitive yield, a savings account and two checking accounts.4 01% APY $0 minimum deposit
Synchrony Bank offers competitive CD yields across 14 terms, including 10 terms that are less than two years. An 11-month no-penalty CD and a two-year bump-up CD are also available. The bank also offers a savings account and a money market account. The savings account features a competitive APY and has no minimum balance requirement.4 00% APY $500 minimum deposit
Suncoast Credit Union was started in 1934 as Hillsborough County Teachers Credit Union. Suncoast Credit Union is the largest credit union in Florida and in early 2022 it surpassed one million members. People who attend school, live, work or worship in a county in Florida that Suncoast Credit Union serves are welcome to join.4 00% APY $1 000 minimum deposit
BMO Harris offers online accounts and operates more than 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin. The bank is based in Chicago. BMO Harris offers 10 CD terms ranging from three months to five years, each requiring a minimum $1,000 deposit to open. It also offers several CD specials with very competitive rates. The competitive rates offered on CDs with terms six months and longer are unavailable to residents of states where BMO has branches.4 00% APY $1 500 minimum deposit
Bread Savings, formerly Comenity Direct, is an online bank that offers a high-yield savings account and five terms of CDs ranging from one year to five years. Bread Savings is part of Comenity Capital Bank, which is a unit of Bread Financial.4 00% APY $2 500 minimum deposit
Sallie Mae Bank offers 11 terms of CDs, as well as a savings account and a money market account with no minimum balance requirements or monthly fees. All of these products offer competitive yields. Sallie Mae Bank was established in 2005 and has its headquarters in Salt Lake City. In 2014, Sallie Mae became a stand-alone consumer banking business.4 00% APY $10 000 minimum deposit
Popular Direct CDs require a minimum $10,000 deposit, making them best suited to established savers. The CDs come in terms ranging from 30 days to six years. Popular Direct’s High-Rise savings account offers a competitive yield and requires a $5,000 minimum deposit.3 66% APY $1 000 minimum deposit
USAA is an online bank for military members, military veterans and their families. Without a link to the military, you might not qualify to join. USAA offers CDs in terms ranging from one month to seven years. It also offers checking and savings accounts, credit cards, mortgages and other loans.3 65% APY $1 000 minimum deposit
Pentagon Federal Credit Union was established in 1935 and is headquartered in McLean, Virginia. It has more than 2 million members. PenFed has nine terms of CDs, ranging from six months to seven years.3 60% APY $1 000 minimum deposit
Alliant Credit Union was founded in 1935 as the United Airlines Employees’ Credit Union. It is one of the largest credit unions in Illinois and has 600,000 members nationwide. Alliant offers six terms of CDs with competitive APYs and a reasonable minimum deposit requirement. It also offers IRA CDs, a high-yield savings account and a high-yield checking account.– 3 60% APY $1 000 minimum deposit
Limelight Bank is a division of Capital Community Bank, with headquarters in Provo, Utah. It offers four terms of online CDs: six months, one year, 18 months and three years. It offers no other bank accounts. Limelight uses deposits to focus on funding eco-friendly initiatives, such as providing loans for solar projects, according to its website.How to find the best 3-year CD rates
Include online banks, credit unions and other banks in your search to find the best three-year CD rates. Many savers tend to stick with the same bank that provides their . But that can be a mistake, especially at large national banks, where deposit rates tend to fall well short of what some smaller institutions offer. Opening a three-year CD might make sense for people who don’t need access to their money for at least three years. As a result, these accounts are ideal for midterm goals, like setting aside money for a car down payment. Getting a three-year CD could also be a good idea if you’re planning to build a . Search for the best three-year CD rates online and compare your options. If you’re looking for a higher yield, consider some of the lesser-known institutions willing to offer good interest rates to attract depositors.3-year CD FAQs
Can you withdraw cash early
When putting money into CDs, it’s important to read the fine print. After all, CDs come with restrictions dictating when you can withdraw your money.In most cases, you’re not allowed to get your cash before the CD matures. With a three-year CD, that means keeping your money in the account for three years. If you do withdraw the money, there’s a good chance you’ll have to pay a penalty. The penalty depends on the financial institution, and can vary widely. A penalty might be expressed as a certain number of months’ worth of interest or as a percentage of the principal. In some cases, that percentage of principal might be based on the entire amount in the CD, or it might only apply to the amount you withdraw early.
If you’re unsure that you can keep your money in the account for three years, consider other options. There are no-penalty CDs that won’t charge you for taking the money out early. However, no-penalty CDs often come with lower interest rates than those on conventional CDs.
Additionally, you can choose a six-month or one-year CD, instead of getting a three-year CD. You’ll be able to access your money earlier, but you’ll earn a lower yield.
3-year CD rate vs other CD terms
A three-year CD rate often comes with a higher interest rate than CDs with shorter terms.Also, because there are liquidity restrictions on a CD, you’ll often see a higher yield on a CD than what you’d get with a traditional savings account or money market account, though savings and money market accounts provide easier access to your money.
Also, while a three-year CD can feature a higher interest rate than shorter-term CDs and liquid savings accounts, it often has a lower yield than what you’d see if you were willing to tie up your money for a longer term. For example, you might get a higher yield on a five-year CD than what’s available for a three-year CD.
Carefully consider your needs before putting your money in a CD. Be realistic about when you might need the money, based on your short- and medium-term financial goals. Knowing your needs will help you to make a better decision about the type of account that’s best for your money.