3 year CD rate
As of February 14, 2023, the average interest rate for a 3-year CD is 4.22%. This is up from 0.09% a year ago. The highest interest rate for a 3-year CD is 4.64%.
There are a few things to keep in mind when choosing a 3-year CD. First, you’ll want to make sure that the bank or credit union is insured by the FDIC or NCUA. This will protect your money in case the bank or credit union fails.
Second, you’ll need to decide how much money you want to invest in the CD. The minimum deposit for a 3-year CD is typically $1,000.
Third, you’ll need to choose a term for the CD. The term is the length of time that you will agree to leave your money in the CD. The most common terms for CDs are 1 year, 3 years, and 5 years.
Once you’ve chosen a bank or credit union, a deposit amount, and a term, you can open a 3-year CD. You can usually do this online or in person at a bank branch.
When your CD matures, you will have the option to withdraw your money or renew the CD. If you withdraw your money, you will earn interest on your investment. If you renew the CD, you will start a new term with a new interest rate.
3-year CDs are a good option for investors who want to save money for a short-term goal, such as a down payment on a house or a new car. They are also a good option for investors who want to earn a higher interest rate than they would on a savings account.
Here are some of the benefits of 3-year CDs:
- They offer a higher interest rate than savings accounts.
- They are FDIC or NCUA insured, which means your money is safe if the bank or credit union fails.
- They are a good way to save money for a short-term goal.
Here are some of the drawbacks of 3-year CDs:
- You cannot access your money until the CD matures.
- You may pay a penalty if you withdraw your money early.
- Interest rates can fluctuate, so you may not earn the same interest rate for the entire term of the CD.
Overall, 3-year CDs are a safe and secure way to save money and earn a higher interest rate than a savings account. If you are looking for a short-term investment option, a 3-year CD may be a good choice for you.