August 2023’s Best 3-Year CD Rates (Up to 4.95%)

August 2023's Best 3-Year CD Rates (Up to 4.95%)

The Best 3-Year CD Rates: Secure Your Savings and Earn High Interest

As technology continues to advance, the realm of personal finance is adapting and evolving. One area where technology has made a significant impact is in the world of banking and investing. Traditional methods of saving and growing wealth, such as certificates of deposit (CDs), have become more accessible and lucrative.

CDs offer a secure way to save and earn interest on your money over a fixed period of time. Unlike traditional savings accounts, CDs have higher interest rates and require you to lock your money away for a specific term. One popular option for savers is the 3-year CD, which offers higher returns compared to shorter-term CDs.

Why Choose a 3-Year CD?

A 3-year CD provides a great balance between earning high interest rates and maintaining liquidity. With a 3-year CD, you can enjoy a higher annual percentage yield (APY) compared to shorter-term CDs. At the same time, you won’t have to commit your funds for an extended period of time, as you would with a longer-term CD.

The average APY on a 3-year CD stands at 1.36%, but you can find even higher rates with the right institutions. One standout option is Quorum Federal Credit Union, which offers an impressive 4.85% APY on balances under $100,000 and 4.95% APY on balances of $100,000 or more – the highest rate in the market.

The Best 3-Year CD Rates

Here are our top picks for the best 3-year CD rates:

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• Quorum Federal Credit Union 3 Year Term Savings: 4.85% APY on balances $1,000 – $99,999, or 4.95% APY on balances of $100,000 or more
• Crescent Bank 3 Year CD: 4.75% APY
• First Internet Bank of Indiana 3 Year CD: 4.75% APY
• Popular Direct 3 Year CD: 4.75% APY
• Bread Savings 3 Year High-Yield CD: 4.75% APY
• First National Bank of America 3 Year CD: 4.60% APY

These options provide impressive returns on your investment, ensuring that your savings work harder for you.

Trustworthy and Expert Advice

When it comes to making financial decisions, it’s important to have expert advice you can trust. That’s why we consulted four highly knowledgeable individuals to gain insights into the world of CDs. These experts include Tania Brown, a certified financial planner at SaverLife; Sophia Acevedo, a certified educator in personal finance and banking reporter; Roger Ma, a certified financial planner and author; and Mykail James, an MBA and certified financial education instructor.

Key Considerations When Choosing a 3-Year CD

To make an informed decision, it’s essential to ask yourself some crucial questions, as advised by our experts:

• Is the bank FDIC-insured or the credit union NCUA-insured?
• What features matter most to you in a bank account? In-person customer service, a mobile app, checks, interest rates, or low maintenance fees?
• What is your time horizon for needing the funds, and how do you plan to use the money?
• How much access to your money do you require and when?

Answering these questions will help you determine the best CD option for your specific needs.

Our Methodology: A Comprehensive Analysis

At Personal Finance Insider, we strive to provide the best information to help you make informed decisions. To select the top 3-year CD options, we spent hours researching and comparing over 20 banks and credit unions. Our analysis focused on key factors, including minimum opening deposits, early withdrawal penalties, interest rates, customer support availability, mobile app ratings, and ethics.

We are committed to providing you with the most comprehensive and well-rounded banking options available.

Frequently Asked Questions about 3-Year CDs

To address common concerns, we have compiled a list of frequently asked questions:

Reviews of Our Top Picks

Quorum Federal Credit Union 3 Year Term Savings

Why it stands out: Quorum Federal Credit Union offers competitive interest rates on its online CDs. You can earn a fixed interest rate for a specific term, with an additional 0.10% APY for balances of $100,000 or more.

• APY for 3-year CD: 4.85% (on balances $1,000 – $99,999) or 4.95% (on balances of $100,000 or more) APY
• 3-year CD early withdrawal penalty: 3% of the amount withdrawn

Crescent Bank 3 Year CD

Why it stands out: Crescent Bank offers high interest rates on a variety of online CDs.

• APY for 3-year CD: 4.75% APY
• 3-year CD early withdrawal penalty: 180 days of interest

First Internet Bank of Indiana 3 Year CD

Why it stands out: First Internet Bank of Indiana provides a range of CD terms and is featured in our best money market account guide.

• APY for 3-year CD: 4.75% APY
• 3-year CD early withdrawal penalty: 360 days of interest

Popular Direct 3 Year CD

Why it stands out: Popular Direct offers a competitive rate and compounds interest daily.

• APY for 3-year CD: 4.75% APY
• 3-year CD early withdrawal penalty: 365 days of simple interest

Bread Savings 3 Year High-Yield CD

Why it stands out: Bread Savings offers higher CD rates compared to many other banks.

• APY for 3-year CD: 4.75% APY
• 3-year CD early withdrawal penalty: 180 days of interest

First National Bank of America 3 Year CD

Why it stands out: First National Bank of America has nationwide access to its online CDs and offers competitive interest rates.

• APY for 3-year CD: 4.60% APY
• 3-year CD early withdrawal penalty: 360 days of interest

Other Options Considered

While we provide our top picks for 3-year CDs, we also considered other options. Our winners stand out due to their higher interest rates, lower minimum opening deposits, and more favorable early withdrawal penalties.

3-Year CD Rates at Major US Banks

While larger banks may offer familiarity, their rates tend to be lower. Here are the rates offered by some popular institutions for a 3-year CD:

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Bank Trustworthiness and BBB Ratings

When considering a bank, it’s important to evaluate its trustworthiness and Better Business Bureau (BBB) rating. The BBB assesses businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. Here are the scores for each company:

[Table]

It’s worth noting that Comenity Bank, the partner bank of Bread Savings, currently has an NR (“No Rating”) due to ongoing efforts to address previous customer complaints. They are taking steps to investigate and resolve these issues, ensuring a better customer experience moving forward.

It’s advisable to supplement BBB ratings with insights from current customers or online reviews to determine the overall reputation of a bank.

With the information provided, you can confidently choose the 3-year CD that best suits your financial goals. Remember to consider the APY, minimum opening deposit, early withdrawal penalties, and customer experience. Investing your money in a high-yielding CD is a smart strategy that will secure your savings and help them grow.

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