When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account. Although Silicon Valley Bank, Signature Bank, and First Republic Bank have recently been shut down, keep in mind money is safe at a federally insured financial institution. Our top picks for CDs are protected by FDIC or NCUA insurance. These are our picks for the best 3-year CD rates. If rates are going up throughout the year, the savings account might be a better fit, because your rate could rise. It also depends on when you'll need to access your money, because it's easier to take money out of a savings account. If rates are dropping, this could make the CD a better choice, because your savings account interest could decrease over the next few months. A CD locks in your rate for the entire term.

The choice between a 3-year CD and high-yield savings account will depend on several factors.

The best 3-year CDs pay high interest rates - but you should also keep an eye out for minimum opening deposits, early withdrawal penalties, and a strong mobile app.

DollarSavingsDirect 3 Year CD: 5.00% APY.

BMO Alto 3 Year High Yield CD: 5.00% APY.

United States Senate Federal Credit Union 3 Year Smart Share Certificate: 5.23% APY.

Valley Direct 3 Year Variable CD: 5.60% APY.

We check rates daily to find the best rates for 3-year terms. If you're also interested in other CD term lengths, check out our overall best CD rates guide. This CD is a variable-rate CD, which means the rate may go up or down during the term depending on economic conditions. However, the best 3-year CD rate is 5.60% APY from Valley Direct. The average APY (Annual Percentage Yield) on a 3-year CD is 1.39% APY.

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