hree-year CDs are a great choice for your mid-term savings goals. They offer higher APYs than 1-year certificates, while avoiding the time commitment of a longer 5-year CD term. To make sure you give your account the best chance to grow your money, you’ll want to find the best CD rates available.

MagnifyMoney can help you find the right 3-year CD for your savings. Using data from DepositAccounts.com, similar to Magnify Money, a LendingTree-owned site, we’ve found the highest 3-year CD rates available nationwide. We also looked at each account minimum deposit and each bank’s relative health to ensure top picks.

MAC Federal Credit Union — 3.00% APY, $1,000 minimum deposit

For the best 3-year CD rate on the market, open MAC Federal Credit Union’s 36 Months Share Certificate. You’ll need at least $1,000 to open. An early withdrawal from the account will trigger a penalty equal to 90 days’ worth of dividends.

You can become a MAC FCU member if you live, work, worship, use services or attend school in the Fairbanks North Star Borough or are a business/other legal entity located in the Fairbanks North Star Borough. Members of AUSA Polar Bear Chapter and members’ immediate family may also join.

Hughes Federal Credit Union — 2.89% APY, $1,000 minimum deposit

Making a minimum deposit into a Hughes Federal Credit Union 36 Month Certificate can get you its competitive rate. Depositing even more money can make it a Mini-Jumbo or Jumbo CD, boosting the rate a bit higher. Partial withdrawals from a Certificate Account are not allowed, so if you make a withdrawal before maturity, you’ll have to withdraw all the funds, close the account and pay a penalty of  $50.00 or 180 days dividend, whichever is greater.

Hughes Federal Credit Union was founded in 1952 in Tucson, Ariz. to serve Hughes Aircraft Company employees and their families. Today, the credit union serves select employee groups and anyone who lives, works, worships or attends school in Tucson.

Georgia Banking Company — 2.85% APY, $500 minimum deposit

Georgia Banking Company earns at a high interest rate on its 3-year certificate with an opening deposit of just $500. The bank will assess a penalty equal to six months’ interest on early withdrawals from this account.

Georgia Banking Company started in 1998 and now serves the Atlanta area with two physical locations, as well as its nationwide customers online, on mobile and over the phone.

Elements Financial — 2.85% APY, $1,000 minimum deposit

Open a 3 Year Term CD at Elements Financial with $1,000 or more to snag its competitive rate. Making an early withdrawal from the account means you’ll lose 180 days’ dividends.

Founded in 1930, Elements Financial is a credit union that serves employees from over 135 companies in the U.S. If your company is an Elements partner, you can start the application process by opening a checking, savings or credit card account.

Signature Federal Credit Union — 2.80% APY, $500 minimum deposit

Signature Federal Credit Union offers the opportunity to earn at a higher rate than its standard 36 Month Certificate with its 36 Month Bump It Up Certificate. This higher-earning account also comes with the added bonus of being able to boost your rate one time during its term for added savings.
You’ll need at least $500 to open the account. It does not allow for any additional deposits. Signature FCU does not allow for partial withdrawals, either, so if you want to make an early withdrawal, it will have to be for all your funds. Signature charges a penalty equal to half the term’s worth of interest earned. So on the 36 Month Certificate, you would be charged 18 months’ worth of interest earned on the amount withdrawn.

Founded in 1970, Signature FCU opens up membership to USPS employees, employees or members of select associations and organizations and folks referred by current members. You may also become eligible by enrolling in American Consumer Council for free.

Dow Chemical Employees’ Credit Union — 2.76% APY, $1,000 minimum deposit

Get started with a high-rate 36 Months Simple CD at Dow Chemical Employees’ Credit Union with a $1,000 minimum deposit. The penalty for an early withdrawal will equal 365 days’ worth of simple interest earned on the amount withdrawn.

As you might have guessed, the Dow Chemical Employees’ Credit Union was first opened to serve members of the The Dow Chemical Company in 1937. Today, membership is still open to The Dow Chemical Company and its affiliated companies as well as Dow Corning Corporation and its affiliated companies, other Select Employer Group companies, family members of eligible individuals and members of select other groups. The credit union also invites you to give them a call if you’re not eligible now so as to try and find a path of eligibility for you.

American 1 Credit Union — 2.75% APY, $500 minimum deposit

American 1 Credit Union offers some solid rates on its certificates, including its 3 Year certificate. You’ll need at least $500 to open the account. Should you want to make an early withdrawal, you’ll have to give up 90 days’ dividends that you would have earned on the amount withdrawn and close your account.

American 1 was founded in 1950 and is based in Jackson, Mich.

Affinity Plus Credit Union — 2.75% APY, $500 minimum deposit

You need only $500 to get started with a 36-month Basic Certificate from Affinity Plus Credit Union. The early withdrawal penalty equals 180 days’ dividends.

Founded in 1930, Affinity is based in Minnesota. You can join Affinity Plus Credit Union depending on where you work or volunteer, your school, where you live/work/worship or through relatives and roommates. You may also become eligible by joining the Affinity Plus Foundation with a one-time $25 membership fee.

Greenwood Credit Union — 2.75% APY, $1,000 minimum deposit

With just $1,000, you can open a Greenwood Credit Union Certificates of Deposit like its high-yield 36 Month CD. Any early withdrawals from this account will charge a penalty equal to six months dividends that would have been earned on the amount of principal.

Greenwood Credit Union was founded in 1948 and opens its membership to everyone.

First National Bank of America — 2.65% APY, $1,000 minimum deposit

First National Bank of America offers a great spread of Time Certificate of Deposits starting at one month long and reaching to 84 months long. Its 36 Months CD falls nicely in between, especially with its competitive interest rate. You’ll need at least $1,000 to open a Time Certificate of Deposit with the bank.

Established in 1955, First National Bank of America maintains its headquarters and three branches in Michigan. Still, you can easily access your accounts online, as well.

Inflation impact on 3-year CD rates

Inflation reduces the value of any savings or investment balance, including CDs. Your earnings have to exceed the inflation rate for there to be a real return on your money. While mid- and long-term CDs can lock in a high rate today, there’s still potential for inflation to lower your earnings.

For a more inflation-proof savings strategy, consider stock- and bond-based investment products. They can come in handy for long-term savings since their earnings have a better chance of exceeding the inflation rate.

Should I pay early withdrawal penalties if 3-year CD rates rise?

In today’s current rate climate, the zero odds of a Fed rate hike in 2019 don’t point to an increase in 3-year CD rates any time soon. That said, an early withdrawal can sometimes be worth paying the penalties, although you’ll want to do the math and check whether the gains are greater than the costs. Calculate the penalty you would end up paying and ensure it’s lower than the returns on the new CD. This early withdrawal penalty calculator from DepositAccounts.com can run the numbers for you and tell you outright whether breaking your CD is worth it or not.