Highest Yielding Three-Year Fixed Deposits
In the ever-evolving world of finance, Certificate of Deposit (CD) accounts continue to be a popular choice for those seeking risk-free returns. Here's a rundown of the current 3-year CD rates in the United States, as of early August 2025.
CD accounts are ideal for saving for future purchases or events, or growing your cash without the need for frequent access. However, they are not suitable for short-term savings or emergency funds due to early withdrawal fees.
As of now, the top 3-year CD rates range around 4.00% to 4.15% Annual Percentage Yield (APY). Some of the highest offers include Popular Direct (4.10% APY), E*TRADE (4.10% APY), Bread Savings (4.00% APY), Synchrony Bank (4.00% APY), NASA Federal Credit Union (4.00% APY), and Sallie Mae (4.00% APY).
Other notable institutions offering competitive rates include Marcus by Goldman Sachs (3.90%), TAB Bank (3.80%), and Alliant Credit Union (3.65%). It's worth noting that the national average for a 3-year CD is much lower, around 1.34% to 2.1%, depending on the source.
These rates have largely held steady in 2025 after some earlier fluctuations due to Federal Reserve policy and economic uncertainty. The Federal Reserve has kept benchmark rates steady in 2025, which has stabilized CD rates.
When choosing a CD, it's essential to consider details like minimum deposit requirements, early withdrawal penalties, and compounding frequency. Early withdrawal penalties for these CDs range from 3 months to 1 year of interest. The minimum deposit required for these CDs varies from $500 to $5,000.
It's also worth mentioning that most CD accounts are FDIC or NCUA insured, providing safety for your cash even if the bank or credit union closes.
For those seeking the highest yields on a 3-year CD, institutions like Popular Direct, E*TRADE, Bread Savings, and Synchrony Bank offer rates slightly above 4.00% APY in early August 2025. However, it's important to remember that your cash is guaranteed a fixed return with CD accounts, which can be both an advantage due to certainty but also a disadvantage if rates elsewhere rise and you miss out on higher returns.
For even higher yields, consider institutions like Lafayette Federal Credit Union (4.28% APY), Synchrony (4.00% APY), INOVA Federal Credit Union (4.00% APY), The Federal Savings Bank (3.95% APY), MYSB Direct (3.91% APY), All in Credit Union (3.87% APY), Securityplus Federal Credit Union (3.85% APY), and EFCU Financial (3.75% APY).
In conclusion, CD accounts can be a valuable tool for savers looking for a risk-free investment with competitive returns. However, it's crucial to understand the terms and conditions associated with each account to make the most informed decision.
Personal finance enthusiasts seeking higher liquidity for their savings may find investing in a 3-year CD beneficial, particularly with institutions offering rates above 4.00% APY such as Popular Direct, E*TRADE, Bread Savings, and Synchrony Bank. However, it's essential to consider factors like minimum deposit requirements, early withdrawal penalties, and compounding frequency when making a decision in personal-finance investing.
