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The Best 6-Year CD Rates in 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

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If you want to earn the highest CD rates, you generally need to invest in a longer-term CD. When the bank or credit union gets to keep your money for an extended period of time, it rewards you with higher interest rates.

Higher rates can make a 6-year term an appealing choice when considering CDs. However, there aren’t as many 6-year CDs available as with other CD terms. Most banks don’t offer this particular term, often maxing out at five years or skipping to 7-year CDs. In our analysis, we managed to find ten great choices when sorting through long-term CD data from DepositAccounts.com, a LendingTree-owned company.

To find the best 6-year CDs, we first looked at the highest 6-year CD rates available nationwide. Then we ranked each by APY, taking the accounts’ minimum deposit requirements into consideration for wider availability. We also made sure to include institutions with great health ratings so you know you’re working with a reputable bank with FDIC or NCUA insurance.

The best 6-year CD rates

Institution

APY

Minimum deposit amount

Evansville Teachers Federal Credit Union

1.30%

$1,000

SRP Federal Credit Union

1.26%

$5,000

AFFCU

1.15%

$2,500

First National Bank of America

1.05%

$1,000

Third Federal Savings and Loan (OH)

0.70%

$500

INOVA Federal Credit Union

0.70%

$200

EmigrantDirect.com

0.70%

$1,000

Chartway Federal Credit Union

0.65%

$100

Marcus by Goldman Sachs

0.60%

$500

1st Source Bank

0.50%

$500

As of January 2021
All rates expressed in annual percentage yield (APY) unless otherwise stated.

1. Evansville Teachers FCU— 1.30% APY, $1,000 minimum deposit

The 6-year certificate is Evansville Teachers FCU’s longest term and earns at a competitive interest rate alongside the credit union’s other certificates. You’ll need at least $1,000 to open an account. The penalty for an early withdrawal will equal either $100 or 180 days’ worth of interest, whichever is greater.

ETFCU was founded in 1936 by several teachers in Evansville, Ind. who needed better financial services. Today, you can be eligible for Evansville Teachers FCU membership not just as a teacher, but also through select employers or organizations, or a family or household member. You may also join by donating $5 to the Mater Dei Friends & Alumni Association.

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on Evansville Teachers Federal Credit Union’s secure website

NCUA Insured

2. SRP Federal Credit Union — 1.26% APY, $5,000 minimum deposit

A longer-term account worth consideration is the 7 Year Flex Certificate from SRP Federal Credit Union. It requires an opening deposit of at least $5,000. The account allows you to adjust your rate at the end of your 5th and 6th years, allowing you to snag the current rate at the time if it’s higher. The penalty for an early withdrawal equals one year’s dividends.

SRP Federal Credit Union was founded in 1960. SRP membership is open to members of select Georgia and South Carolina communities, their family and household members and spouses of deceased members. You’re also eligible if you sign up for a membership with the Greater Augusta-Fort Gordon Chapter of the Association of the United States Army.

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on SRP Federal Credit Union’s secure website

NCUA Insured

3. AFFCU — 1.15% APY, $2,500 minimum deposit

Though this 7-year certificate is already a top earner, you can earn even higher dividends if you are part of AFFCU’s member rewards program. Interest is compounded and credited monthly. The penalty for early withdrawal is half of the dividends you would have earned from the date of withdrawal until maturity on the amount withdrawn.

AFFCU was formed in 1952 by servicemen at Lackland Air Force Base as Lackland Federal Credit Union. It grew over the years, eventually becoming AFFCU, with now over 52,000 members. There are a number of ways to qualify for membership as a member of the military or a civilian in certain areas, but if you live outside of Texas, Oklahoma, Arkansas, Louisiana or Mississippi, your best bet is joining through a $25 donation to the Airman Heritage Foundation.

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on AFFCU’s secure website

NCUA Insured

4. First National Bank of America — 1.05% APY, $1,000 minimum deposit

This 72-month CD from First National Bank of America easily earns one of the top spots. The CD will roll over automatically when it matures, or you can opt for a new CD term or withdraw your money altogether. First National allows for partial withdrawals but at a stiff penalty — you’ll lose 540 days’ interest on the amount you take out.

First National Bank of America is based in Michigan and is family-owned. The bank opened their doors in 1955.

5. Third Federal Savings and Loan — 0.70% APY, $500 minimum deposit

The 72-month standard CD is the longest term offered by Third Federal Savings and Loan. It earns at a competitive rate and requires only $500 to open and start saving. The penalty for an early withdrawal from a 72-month CD equals 18 months’ interest, whether earned or not.

Third Federal is based in Cleveland, where it was founded back in 1938.

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on Third Federal Savings And Loan (OH)’s secure website

Member FDIC

6. INOVA Federal Credit Union— 0.70% APY, $200 minimum deposit

Earn the best 6-year CD rate from Inova FCU. You need at least $200 to deposit and open up INOVA’s 6-year certificate. The penalty for an early withdrawal from this account is equal to 180 days’ of dividends.

Headquartered in Indiana, INOVA Federal was originally founded to serve the employees of Miles Laboratories in 1942. You can join INOVA through your employer or other organization, or through an immediate family member who is already an INOVA member. Membership is also open to those who join the Tru Direction Financial Literacy Program.

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on INOVA Federal Credit Union’s secure website

NCUA Insured

7. EmigrantDirect — 0.70% APY, $1,000 minimum deposit

EmigrantDirect offers a lower but still good rate on its 60- to 120-month certificates of deposit, including its 6-year term. You need $1,000 to open an account here. The penalty for early withdrawals will be an amount equal to 180 days’ interest, whether earned or not.

EmigrantDirect is a digital-only division of Emigrant Bank.

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on EmigrantDirect.com’s secure website

Member FDIC

8. Chartway Federal Credit Union— 0.65% APY, $0 minimum deposit

You can take advantage of Chartway FCU’s longest share certificate term of 71 months with a $100 minimum. It earns at a competitive rate, which applies to certificates between 60 and 71 months. This rate is not applicable to accounts opened in North Carolina, Nevada, Texas, Utah or Virgina. The penalty for making an early withdrawal from this certificate will equal 180 days’ worth of interest.

Chartway FCU started as NorVA N.A.S. Federal Credit Union by civilian workers at the Norfolk Naval Air Station in 1959. Today, you can join Chartway if you live, work, go to school or worship in select areas in Texas, Utah or Virgina, you work for a select partner employer or you have an immediate family member who is a member. You may also join by donating $10 to Chartway’s We Promise Foundation, which benefits children with medical issues and illnesses.

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on Chartway Federal Credit Union’s secure website

NCUA Insured

9. Marcus by Goldman Sachs — 0.60% APY, $500 minimum deposit

A big name in the online banking space, Marcus by Goldman Sachs, offers consistently competitive rates. This includes its high-yield 6-year CD, the longest term among its offerings. It features a competitive annual percentage yield and requires an initial deposit of at least $500 within 10 days after opening the account. Marcus by Goldman Sachs makes a 10-day CD rate guarantee, so if the rate increases during that period, you can switch to that higher rate.

Just be careful of making an early withdrawal from the 6-year CD, as it will trigger a penalty of 365 days’ worth of simple interest on the principal.

Marcus by Goldman Sachs is the banking branch of investment giant Goldman Sachs, which traces its history back to 1869.

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on Marcus By Goldman Sachs’s secure website

Member FDIC

10. 1st Source Bank— 0.50% APY, $500 minimum deposit

You can get started with 1st Source Bank’s 6-year CD with just $500. The penalty for an early withdrawal is 12 months’ interest that would have been earned on the amount withdrawn.

1st Source Bank was established back in 1863 in South Bend, Ind. It has branches in Florida, Indiana and Michigan.

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on 1st Source Bank’s secure website

Member FDIC

Is it worth getting a 6-year CD?

It can be worth getting a 6-year CD if you’re signing up for the highest rates on our list. Perhaps it would make a solid addition to a CD ladder you’re building.

In truth, 6-year CD rates aren’t always competitive enough to make them a reliable investment. In fact, 5- and 7-year CD terms consistently have much better rates, despite the small one-year difference.

When we compare 6-year CD rates with 5-year CD rates, the 6-year yields struggle to keep up. You can see above that the best 6-year CD rates jump from 1.30% APY at the top all the way to 0.50%. Meanwhile, all the best 5-year CD rates offer a much better savings opportunity, ranging between 1.50% and 1.15% APY. No matter which 5-year CD you pick from the list, you’re bound to yield some solid earnings.

We tend to expect that the longer the CD term, the higher the rate will be, but we just don’t see that when comparing 6-year CDs with other long-term CDs. On the whole, 6-year CD terms are bookended by better-earning products. Opening 5- and 7-year CDs will give you a wider product selection to choose from and a better chance at growing your savings.

Alternative long-term investments

Other than 5- and 7-year CDs, Ken Tumin, founder of DepositAccounts.com (which similar to MagnifyMoney, is owned by LendingTree) suggests turning to individual bonds to beef up your savings. “Much like a CD ladder, the same technique can be used with individual bonds (Treasury, municipal, corporate, etc.) to build steady savings over time,” he offered. Note that non-Treasury bonds do have some default risk that CDs don’t carry when they have FDIC/NCUA insurance.

Another alternative to a bond ladder is a mutual fund or an ETF of bonds. Unlike a ladder, the value of a bond mutual fund or ETF fluctuates with interest rates. This can give you the chance to boost your savings when interest rates go down. However, the opposite is also true, where the value of your bonds decrease when interest rates rise.

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The Best 5-Year CD Rates in January 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

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Five-year CDs offer some of the highest savings interest rates available. In exchange for keeping your money on deposit for half a decade, banks are willing to dole out higher returns on these long-term accounts. For example, in January, the average 1-year CD interest rate is 0.41% APY and the average 3-year CD rate was 0.62% APY, compared to the average 5-year CD rate of 0.79% APY in the same month.

Longer term CDs do exist, but even their yields don’t often exceed 5-year CD rates. The highest yield on a nationally available CD of six or more years is 1.30% APY.

To make sure you’re getting the best CD rates, MagnifyMoney has uncovered the highest 5-year CD rates available nationwide. Using data from DepositAccounts.com, we found that the best 5-year CD rates earned well above the national average interest rate for 5-year CDs. We also took minimum deposit requirements into consideration, to check for wider customer availability.

The 10 best 5-year CD rates in January 2021

1. Affinity Plus Federal Credit Union — 1.50% APY, $500 minimum deposit

To start earning at Affinity Plus FCU’s competitive rate on a 60-month basic certificate, you’ll need an opening deposit of at least $500. Early withdrawals from this account may trigger a penalty of 365 days’ worth of dividends.

Affinity Plus FCU membership extends to employees and volunteers of select organizations; those who live, work or worship in certain Minnesota cities; and relatives and roommates of current members. You can also easily join by making a one-time $25 donation to the Affinity Plus Foundation. Affinity Plus Federal Credit Union was founded in 1930 and is currently headquartered in St. Paul, Minn.

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on Affinity Plus Federal Credit Union’s secure website

NCUA Insured

2. Hiway Federal Credit Union — 1.35% APY, $25,000 minimum deposit

Typically, Hiway Federal Credit Union Certificates require a $500 minimum deposit, but you’ll need to deposit at least $25,000 to unlock the highest rate available on this 60-month certificate. The penalty for an early withdrawal from this account will equal 365 days’ worth of dividends.

Hiway Federal Credit Union was founded in 1931 to serve employees of the Minnesota Department of Transportation. Today, it is based in St. Paul, Minn., and opens up membership to employees of qualifying companies or government agencies; members of Minnesota Recreation & Park Foundation; members of the Association of the U.S. Army; and those who live, work, worship or attend school in the Metro Community Area. You may also qualify through a current member or household member.

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on Hiway Credit Union’s secure website

NCUA Insured

3. Wings Financial Credit Union — 1.31% APY, $10,000 minimum deposit

Wings Financial Credit Union offers a few options on its certificates, where different rates apply to different balances and can depend on how often you receive dividend payouts. Interest is paid out quarterly. The early withdrawal penalty equals two years’ dividends (730 days), which is the highest penalty on this list.

Wings Financial was founded in 1938 by Northwest Airlines employees. Today, membership is open to those who live or work in the Minneapolis-St. Paul area or the Seattle-Tacoma area; work in the U.S. aviation industry; are related to current members; and members of the Wings Financial Foundation.

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on Wings Financial Credit Union’s secure website

NCUA Insured

4. Partner Colorado Credit Union — 1.30% APY, $500 minimum deposit

Partner Colorado Credit Union offers a solid rate on its 60-month CD, which you can open with at least $500. You’ll lose 180 days’ interest on an early withdrawal.

Founded in 1931, Partner Colorado Credit Union membership is open to a wide range of potential members. This includes current or retired employees of affiliated organizations, family or household members of current members, anyone who lives or works in select Colorado counties and more. You can also join by making a $5 donation — which the credit union will help fund — to the Partner Colorado Foundation.

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on Partner Colorado Credit Union’s secure website

NCUA Insured

5. Superior Choice Credit Union — 1.30% APY, $25,000 minimum deposit

While you only need $2,500 to open a Superior Choice Credit Union 5-year share certificate, you’ll need at least $25,000 to earn at its most competitive rate. All other balances will earn at a lower APY but would still hover around our list. According to Superior Choice Credit Union customer service, making an early withdrawal from this account will result in a percentage of your balance being charged as a penalty, including accrued interest.

Established in 1932, Superior Choice Credit Union has a handful of branches near its Superior, Wisc., headquarters. You can also access over 30,000 fee-free ATMs and 5,000 branches nationwide and in Canada through the CO-OP Network. The easiest way to qualify for membership to Superior Choice, especially for those who don’t live in Minnesota or Wisconsin, is by joining the American Consumer Council.

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on Superior Choice Credit Union’s secure website

NCUA Insured

6. Lafayette Federal Credit Union — 1.26% APY, $500 minimum deposit

Lafayette Federal Credit Union offers a variety of certificates, but it’s the 5-year fixed-rate certificate you’ll want to turn to for competitive savings. It earns 1.26% APY and requires only $500 to open. You’ll lose 600 days’ worth of dividends if you make a withdrawal from the 5-year term fixed rate certificate.

There are several ways you can become an LFCU member: You can live or work in its serviced areas; work at partner institutions; be an immediate family member of a current credit union member; or be a member of the Home Ownership Financial Literacy Council.

LFCU was founded in 1935 and is based in Rockville, Md. Members can take advantage of its branches throughout Maryland, Virginia and Washington, D.C., as well as CO-OP Shared Branches and ATMs nationwide.

SEE DETAILS Secured

on Lafayette Federal Credit Union’s secure website

NCUA Insured

7. Evansville Teachers Federal Credit Union — 1.25% APY, $1,000 minimum deposit

You can open any fixed-rate certificate at Evansville Teachers Federal Credit Union with only $1,000 — including this 5-year certificate. You will earn this rate until the certificate matures. To gain access to the credit union’s certificates, however, you will also need to open a regular share account with at least $5.

Evansville Teachers FCU was formed to help teachers in Indiana after the Great Depression, but today anyone can join by making a charitable contribution of as little as $5 to the Mater Dei Friends and Alumni Association. Membership may also extend to you through your employer, organization or family or household member.

8. Pen Air Federal Credit Union — 1.20% APY, $500 minimum deposit

Open a 60-month Pen Air Federal Credit Union Certificate Account with a $500 minimum deposit. The penalty for an early withdrawal will equal 180 days of dividends.

Founded in 1936, Pen Air is headquartered in Pensacola, Fla. and has 16 locations in Florida and Alabama. You qualify for Pen Air membership if you are active duty or retired military, a civil service employee, an employee at a partnering Select Employer Group or an immediate family member of eligible individuals. You can also become a member by joining the Navy-Marine Corps Relief Society, Inc.

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on Pen Air Federal Credit Union’s secure website

NCUA Insured

9. Ideal Credit Union — 1.16% APY, $25,000 minimum deposit

Investing $25,000 in Ideal Credit Union’s 60-month CD will earn you this high APY, but amounts less than that still pay out at a rate that would nearly make our list. The penalty for withdrawing funds before maturity will cost you the lesser of 180 days’ interest or interest earned.

Ideal Credit Union was established in 1926 by and for postal workers as the St. Paul Postal Employees Credit Union. Today, anyone who lives, works, worships, attends school or volunteers in any of six Minnesota counties can join the credit union. You can also join by making a one-time $5 donation to the John D. Miller Scholarship Foundation, which is donated automatically during the process of opening an account.

10. Lake Michigan Credit Union — 1.15% APY, $500 minimum deposit

Lake Michigan Credit Union’s 60-month CD only requires $500 to open. What’s more, if you have other accounts with the credit union that accrue points through their MORE VIP Relationship Rewards program, you can cash in for an additional 0.25% on the listed APY if you have enough points.

Membership to Lake Michigan CU is open to anyone who donates $5 to the ALS (Amyotrophic Lateral Sclerosis) Foundation, but is also open to select individuals in Michigan or Florida and family members of current LMCU members.

SEE DETAILS Secured

on Lake Michigan Credit Union’s secure website

NCUA Insured

5-year CDs vs. savings accounts

If you’re simply looking for the highest rates available, 5-year CDs are going to seem much more appealing than a savings account. Even the best savings accounts can’t quite reach the 5-year CD rates you’ll find above. Plus, 5-year CDs lock in their rates at opening for the term of the investment, guaranteeing your rate of return. This can make for a great savings vehicle for conservative investors, who don’t want to ride the waves of an ever-changing economy.

Looking at the numbers, a $5,000 deposit into a 5-year CD at 3.25% APY would result in $881 of extra savings at maturity. Meanwhile, making a $5,000 deposit into one of the best savings accounts at 2.25% APY lands you with nearly $595 in savings after five years.

Savings accounts do provide easier access to your money, though. If you find yourself in a pinch suddenly, you can make a quick ACH transfer online or a withdrawal at a branch or ATM. Withdrawing from CDs isn’t as easy, especially when you account for the money you’ll lose to early withdrawal penalties. As you can see from the accounts above, early withdrawals from a 5-year CD can result in the loss of six months’ to two years’ worth of interest.

5-year CDs vs. other investment options

Investing in individual bonds — Treasury, municipal, or corporate — can be a solid alternative to saving with 5-year CDs. Non-Treasury bonds do have some risk by default as they don’t have the FDIC/NCUA insurance coverage limits. You can use these bonds to build a ladder similar to a CD ladder, so each bond matures a year or so apart.

An alternative to creating a bond ladder is to invest in a mutual fund or ETF of bonds. Unlike a ladder, however, the value of a bond mutual fund or ETF does fluctuate with interest rates. So when interest rates go up, the value of those investments will drop and vice versa.

The best way to maximize your 5-year CD investment

If you’re putting away money for five years, you’re going to want to make it worthwhile. For starters, CDs are best for those who have already maxed out their other savings accounts and have their emergency savings in a liquid savings account for easy access. They’re also better if you have a higher deposit to stash away. That will earn more interest in the long term for more tangible savings.

For example, placing $1,000 in a 5 year CD with a 3.25% APY will yield about $176 in savings by the end. Making a $10,000 deposit, on the other hand, lands you with a little over $1,764 in interest. That $176 is a good chunk of change, but you should make sure it’s enough to justify stashing away $1,000 now instead of perhaps waiting to make a larger deposit.

A great way to utilize a 5-year CD is to include it in a CD ladder. A 5-year, five-CD ladder is a standard and easy-to-track method of saving. You open five CDs, each maturing a year apart. Once a CD matures, you renew it as a new 5-year CD. Eventually, all your CDs will be 5-year accounts, maturing a year apart. You can also choose to withdraw your money whenever an account matures if you need to use those funds. This allows you to take advantage of the longer terms’ higher rates and bigger savings.

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The 10 Best 3-Year CD Rates in January 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

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Three-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, 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 we featured the best offers.

The 10 best 3-year CD rates in January 2021

1. Evansville Teachers Federal Credit Union — 1.15% APY, $1,000 minimum deposit

All of Evansville Teachers Federal Credit Union CDs are available for a minimum deposit of $1,000, including this 3-year certificate. If three years is just a bit too long, you’ll still earn a high APY if you opt for the slightly shorter 30-month CD instead.

You don’t need to be a teacher to join this credit union, which has been around since 1936. You can join Evansville FCU by work, organization or family association or by making a $5 donation to the Mater Dei Friends & Alumni Association.

2. American Heritage Credit Union — 1.10% APY, $1,000 minimum deposit

To score this 3-year CD rate from American Heritage Credit Union, you’ll first need to open a savings account with at least $15, which establishes your membership. Then, you can opt for a CD. Dividends are compounded and credited monthly, but you may face a penalty of 360 days’ dividends if you withdraw your money early.

There are a few ways to become a member of American Heritage, which is based in Philadelphia. You are eligible if you work for one of its workplace partners or have an immediate family member with an account. Those who live, work, worship or attend school in or around Philadelphia are also eligible. If none of these apply to you, you also can qualify as a member of the Kids-N-Hope Foundation, and American Heritage will even make the donation for you.

SEE DETAILS Secured

on American Heritage Federal Credit Union’s secure website

NCUA Insured

3. Hiway Federal Credit Union — 1.10% APY, $25,000 minimum deposit

You’ll need $25,000 to contribute if you want to get the high APY on this 36-47 month CD. If you have less cash on hand, but can still swing at least $10,000, you’ll still get an APY that would make this list. Any amount below $10,000 and you might want to go with another institution’s CDs. Also note that you may lose 180 days’ dividends if you need to access your cash before maturity.

Founded in 1931, Hiway Federal Credit Union was established for employees of the Minnesota Department of Transportation. Now almost anyone can join Hiway FCU if you live, work, worship or attend school in the Metro Community Area; work at a qualifying company or government agency; are related or know an eligible individual; join the Minnesota Recreation and Park Foundation with a onetime $10 contribution; or join the Association of the United States Army with a one-time $40 contribution.

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on Hiway Credit Union’s secure website

NCUA Insured

4. Partner Colorado Credit Union — 1.05% APY, $500 minimum deposit

Partner Colorado Credit Union solidly makes our list and for a minimum deposit of only $500. If you withdraw any of your funds before the maturity date, however, you’ll lose 180 days’ interest. This includes requests to withdraw interest only.

Many people who live or work in Colorado — and their family members — qualify for membership to Partner Colorado Credit Union through partner companies, organizations and residence in certain geographic areas. It’s also easy to join by donating just $5 to the Partner Colorado Foundation.

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on Partner Colorado Credit Union’s secure website

NCUA Insured

5. Superior Choice Credit Union — 1.05% APY, $25,000 minimum deposit

The minimum is a bit steep for this 3-year CD compared to the others on this list, but if you don’t have that much to invest, a minimum of $2,500 will get you a rate that’s not too far off the top 10. And if you have even more ($50,000 and over), you’ll score an even better rate.

Membership to Superior Choice is open to residents of certain counties in Wisconsin and Minnesota, but you can also join by becoming a member of the American Consumer Council or the Douglas County Historical Society in Superior, Wis.

SEE DETAILS Secured

on Superior Choice Credit Union’s secure website

NCUA Insured

6. Lafayette Federal Credit Union — 1.01% APY, $500 minimum deposit

Lafayette Federal Credit Union offers a handful of certificates, including its 3-year Fixed Rate Certificate, which requires $500 to open and earns 1.01%APY. Interest is compounded and paid quarterly. An early withdrawal from this 3-year account will trigger a penalty equal to 360 days of dividends.

Established in 1935 and headquartered in Rockville, Md., Lafayette Federal credit union has branches in Maryland, Virginia and Washington, D.C., plus CO-OP Shared Branches. You can join LFCU if you live or work in its serviced areas, work at a partner company, are an immediate family member of a current member or are a member of the Home Ownership Financial Literacy Council.

SEE DETAILS Secured

on Lafayette Federal Credit Union’s secure website

NCUA Insured

7. Pen Air Federal Credit Union — 1.00% APY, $500 minimum deposit

Pen Air Federal Credit Union requires a $500 minimum deposit to open and start saving with a 36-month certificate. The penalty for an early withdrawal will equal 180 days’ interest.

Founded in 1936, Pen Air is based in Pensacola, Fla., with 15 branded locations in northwest Florida and southeast Alabama plus CO-OP Shared Branch and ATM access nationwide. Pen Air membership is open to active duty or retired military; civil service employees; employees at partnering select employer groups; immediate family members of eligible members; and members of the Friends of the Navy-Marine Corps Relief Society, Inc., for which Pen Air will pay the one-time $3 donation on your behalf.

SEE DETAILS Secured

on Pen Air Federal Credit Union’s secure website

NCUA Insured

8. State Department Federal Credit Union — 1.00% APY, $500 minimum deposit

With just $500, you can open a high-yield, 36-month share certificate with State Department Federal Credit Union. There are no service charges, and dividends are compounded daily for further savings. If you make an early withdrawal from the 36-month share certificate, you’ll pay a penalty that’s either 180 days of dividends on the amount withdrawn or the amount of dividends earned since the date of issuance, whichever is less.

You can join State Department FCU if, of course, you are an employee of the U.S. Department of State or a family member. Eligibility may also apply to members of select organizations, immediate family members of someone who qualifies or members of the American Consumer Council. You can also apply as a group with your employer/employees.

SDFCU was founded in 1935. Headquartered in Alexandria, Va., it offers its customers branch access through the CO-OP Shared Branch network.

SEE DETAILS Secured

on State Department Federal Credit Union’s secure website

NCUA Insured

9. Greenwood Credit Union — 1.00% APY, $1,000 minimum deposit

With just $1,000, you can open a Greenwood Credit Union certificate 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 as long as you open a savings account with them and keep $5 in it at all times. Greenwood Credit Union is part of the Co-Op Shared Branching Network, which provides members with nationwide branch access.

SEE DETAILS Secured

on Greenwood Credit Union’s secure website

NCUA Insured

10. Wings Financial Credit Union — 1.00% APY, $10,000 minimum deposit

Wings Financial Credit Union offers 3-year CD rates for a range of investment amounts. For this APY, you’ll need to deposit at least $10,000. For lower amounts, you’ll still get a rate that would almost make our top 10. The penalty for an early withdrawal from this CD is 730 days’ dividends.

Wings membership is available to anyone who works for the aviation industry as well as anyone who lives or works in certain metro areas of Michigan, Florida, Georgia and Washington, and specific counties in Minnesota and Wisconsin. You can also join by making a donation of at least $5 to the Wings Financial Foundation.

SEE DETAILS Secured

on Wings Financial Credit Union’s secure website

NCUA Insured

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 odds 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.