BEST OF
15 Best 3-Year CD Rates January 2021
The best three-year CD rates can give a boost to short-term savings. The rates featured on this page are much higher than the national average rate of 0.25% APY for three-year CDs. See our picks below.
» Want to see a wider pool of high rates? See our list of the best high-interest accounts
Also scroll down to see "no-penalty" CDs that allow you to withdraw your money whenever you want.
The best three-year CD rates can give a boost to short-term savings. The rates featured on this page are much higher than the national average rate of 0.25% APY for three-year CDs. See our picks below.
» Want to see a wider pool of high rates? See our list of the best high-interest accounts
Also scroll down to see "no-penalty" CDs that allow you to withdraw your money whenever you want.
Summary of Best 3-Year CD Rates January 2021
| Bank/Institution | NerdWallet Rating | APY | Minimum Deposit | Learn More |
|---|---|---|---|---|
0.55% | $500 | Read review | ||
0.65% | $1,000 | Read review | ||
0.65% | $0 | Read review | ||
0.85% | $1,500 | Read review | ||
0.55% | $1,000 | Read review | ||
0.75% | $10,000 | Read review | ||
0.90% | $5,000 | Read review | ||
0.70% | $2,000 | Read review | ||
0.75% | $10,000 | Read review | ||
0.60% | $250 | at Consumers Credit Union, Federally insured by the NCUA | ||
0.60% | $1,000 | Read review | ||
0.60% | $1,000 | Read review | ||
0.60% | $2,500 | Read review | ||
0.55% | $500 | Read review | ||
0.55% | $2,500 | at Discover Bank, Member FDIC |
Marcus by Goldman Sachs High-Yield CD
APY
With $500 minimum balance
Minimum Balance
Member FDIC
TAB Bank CD
APY
With $1,000 minimum balance
Minimum Balance
Member FDIC
Ally Bank High Yield CD
APY
With $0 minimum balance
Minimum Balance
Member FDIC
Comenity Direct CD
APY
With $1,500 minimum balance
Minimum Balance
Member FDIC
TIAA Bank Basic CD
APY
With $1,000 minimum balance
Minimum Balance
Member FDIC
Bank7 CD
APY
With $10,000 minimum balance
Minimum Balance
Member FDIC
Connexus Credit Union CD
APY
With $5,000 minimum balance
Minimum Balance
Federally insured by the NCUA
Synchrony Bank CD
APY
With $2,000 minimum balance
Minimum Balance
Member FDIC
Salem Five Direct CD
APY
With $10,000 minimum balance
Minimum Balance
Member FDIC
at Consumers Credit Union, Federally insured by the NCUA
Consumers Credit Union CD
APY
With $250 minimum balance
Minimum Balance
Federally insured by the NCUA
at Consumers Credit Union, Federally insured by the NCUA
Alliant Credit Union CD
APY
With $1,000 minimum balance
Minimum Balance
Federally insured by the NCUA
PenFed Credit Union Money Market Certificate
APY
With $1,000 minimum balance
Minimum Balance
Federally insured by the NCUA
Sallie Mae Bank CD
APY
With $2,500 minimum balance
Minimum Balance
Member FDIC
Bank5 Connect High-Yield CD
APY
With $500 minimum balance
Minimum Balance
Member FDIC
at Discover Bank, Member FDIC
Discover Bank CD
APY
With $2,500 minimum balance
Minimum Balance
Member FDIC
at Discover Bank, Member FDIC
» Want to see more options? Check out our list of the best CD rates overall
No-penalty CDs offer more freedom
When you withdraw your money from a CD before the term expires, you generally pay a penalty of at least several months’ of interest earned.
Some providers, however, allow you to withdraw your money before the term expires, with no penalty. Keep in mind that rates may be a little lower for these no-penalty CDs.
The following three banks offer no-penalty CDs:
Marcus by Goldman Sachs Bank (read NerdWallet's full review)
CIT Bank (read NerdWallet's full review)
Ally Bank (read NerdWallet's full review)
Here's our list of the best 3-year CD rates for January 2021:
Connexus Credit Union: 0.90% APY.
Comenity Direct: 0.85% APY.
TAB Bank: 0.65% APY.
Bank7: 0.75% APY.
SalemFive Direct: 0.75% APY.
Synchrony Bank: 0.70% APY.
Ally Bank: 0.65% APY.
Consumers CU: 0.60% APY.
Alliant Credit Union: 0.60% APY.
PenFed: 0.60% APY.
TIAA Bank: 0.55% APY.
Sallie Mae Bank CD: 0.60% APY.
Bank5 Connect: 0.55% APY.
Marcus by Goldman Sachs: 0.55% APY.
Discover Bank: 0.55% APY.
Last updated on January 1, 2021
Methodology
On a monthly basis, we compare rates at over 20 financial institutions from our full list which we’ve seen to be consistently competitive. On a quarterly basis, we take a close look at over 70 financial institutions, including the largest U.S. banks based on assets, debit card volume, internet search traffic and other factors; the nation’s largest credit unions, based on deposits as well as broad-based membership requirements; and other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more; we favored those with the highest CD rates. We excluded banks that offered brokered CDs, since those accounts work differently from standard bank CDs. Higher rates might be available elsewhere.
Financial institutions surveyed include: Alaska USA Federal Credit Union, Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Associated Bank, Axos Bank, Bank5 Connect, Bank7, Bank of America, Bank of the West, Barclays, BB&T, BBVA, BMO Harris, Boeing Employees Credit Union, Capital One 360, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens Access, Citizens Bank, Comenity Bank, Comerica Bank, Commerce Bank, Connexus Credit Union, Consumers Credit Union, Discover Bank, E*TRADE Bank, Fifth Third Bank, First Foundation Bank, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, GoBank, Golden 1 Credit Union, Goldman Sachs Bank USA, HSBC Bank, Huntington Bank, KeyBank, Live Oak Bank, M&T Bank, Nationwide Bank, Navy Federal Credit Union, NBKC Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Radius Bank, Redneck Bank, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, State Employees' Credit Union of North Carolina, Suncoast Credit Union, SunTrust Bank, Synchrony Bank, TAB Bank, TCF Bank, TD Bank, TIAA Bank, U.S. Bank, UFB Direct, Union Bank, USAA, Varo, Vio Bank, Wells Fargo, Woodforest National Bank and Zions Bank.
To recap our selections...
NerdWallet's Best 3-Year CD Rates January 2021
- Marcus by Goldman Sachs High-Yield CD: 0.55% APY
- TAB Bank CD: 0.65% APY
- Ally Bank High Yield CD: 0.65% APY
- Comenity Direct CD: 0.85% APY
- TIAA Bank Basic CD: 0.55% APY
- Bank7 CD: 0.75% APY
- Connexus Credit Union CD: 0.90% APY
- Synchrony Bank CD: 0.70% APY
- Salem Five Direct CD: 0.75% APY
- Consumers Credit Union CD: 0.60% APY
- Alliant Credit Union CD: 0.60% APY
- PenFed Credit Union Money Market Certificate: 0.60% APY
- Sallie Mae Bank CD: 0.60% APY
- Bank5 Connect High-Yield CD: 0.55% APY
- Discover Bank CD: 0.55% APY
Frequently asked questions
Ideally, you'll take out a CD only if you're certain that you won’t need that money before the term ends. Current CD rates tend to be higher than savings account rates. However, if you want to keep your funds more accessible, a high-yield online savings account is a better choice. (Check out our list of the best online savings accounts.)
That depends on how much risk you're willing to take. Investment accounts can have higher returns than CDs, but CDs offer guaranteed returns in the form of fixed interest rates. And they're typically federally insured for up to $250,000. Brokerage accounts can be riskier since you aren’t protected against losses. (For more information, see our list of the best online brokers.)
Although most CDs don't have monthly fees, banks typically charge early withdrawal penalties if you remove money before the CD's expiration date. The penalty is often several months' worth of interest. (If you're worried about losing access to your money for too long, consider shorter terms such as six-month CDs.)
» See what CDs can earn with our CD calculator
Certificates of deposit, or CDs, are savings accounts in which cash is locked away for a predetermined period of time, generally three months to five years.
CD rates are shown as an annual percentage yield, or APY. That number shows how much the CD earns in one year and includes compound interest. The higher the APY, the more your money will grow. Long-term CDs usually earn the highest rates. See this month’s top 3-year CD rates.
