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The Best Credit Union CD Rates – April 2019

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

The top credit union CD rates
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Certificates of deposit (CDs) are a great way to safely store your savings at a financial institution, as they offer a guaranteed rate of return, and CD rates tend to be higher than those on traditional savings accounts. Maybe you’ve even heard that credit union CD rates offer higher returns—but is that really the case?

On average, yes. As of December 2018, the average one-year credit union CD had a 1.29% annual percentage yield (APY), compared to the 1.02% APY average among one-year bank CDs.

Using data from DepositAccounts.com, another LendingTree company, we identified the top one-year credit union CD rates, as of April 3, 2019. We then eliminated any credit union with a health rating lower than a B and identified the top three offerings in three categories: restricted, no cost, and best banking app. If there was a tie by APY, we went with the product with the lower minimum deposit. Here are the best one-year credit union CD rates.

Best credit union CD rates with restricted memberships or membership fees

Each of these credit unions have restricted membership criteria, but don’t let that scare you away. If you don’t meet their membership criteria, it’s possible to make a small donation to their charity of choice in order to become eligible for membership. Furthermore, these credit union CD rates offer some of the highest-returning share certificates out of any category.

Partner Colorado Credit Union – 12 Month CD Special, 2.05% APY, min. deposit $500

60 Month CD Special from Partner Colorado Credit UnionMembership to Partner Colorado Credit Union is open to anyone willing to donate $5 to the Partner Colorado Foundation. The credit union will help you make the donation when you’re ready to open an account. You may want to first find out if you’re eligible through the other fields of membership prior to opening an account.

Once you’re a member of Partner Colorado Credit Union, you can open the 12-month CD Special with a minimum of $500. Their early withdrawal penalty is 90 days interest.

LEARN MORE Secured

on Partner Colorado Credit Union’s secure website

NCUA Insured

State Department Federal Credit Union – 12 Month Share Certificate, 2.73% APY, min. deposit $500

12 Month Certificate from State Department Federal Credit UnionDon’t worry, you don’t need a security clearance from the federal government to join this credit union—you simply need to sign up with the American Consumer Council and you can begin enjoying the benefits of your new membership.

One of those benefits, should you so choose, includes this 12-Month Share Certificate, which allows you to park your money in an account earning 2.73% APY with a minimum deposit of at least $500. You’ll have to pay 180 days worth of interest if you withdrawal your money from the certificate before it matures, but it’s worth noting you can make a partial early withdrawal — and pay the penalty — without closing out the account completely.

LEARN MORE Secured

on State Department Federal Credit Union’s secure website

NCUA Insured

Alliant Credit Union – 12-17 Month Share CD, 2.70% APY, min. deposit $1,000

Alliant Credit Union
With a minimum deposit of $1,000, you could earn an APY of 2.70% on a 12-17 month CD. An early withdrawal penalty of 90 days’ worth of interest may be imposed if you withdraw funds prior to the CD’s maturity date.

With a $10 donation to Foster Care to Success, you can easily become a member of Alliant Credit Union. You can also become a member if you are an employee or retiree of certain organizations, related to existing Alliant members, or live or work in qualifying communities.

LEARN MORE Secured

on Alliant Credit Union’s secure website

NCUA Insured

Sun East Federal Credit Union – 12 Month CD, 2.60% APY, min. deposit $500

12 Month CD from Sun East Federal Credit Union

Headquartered in Aston, PA, this credit union offers its services to members nationwide via the internet. Anyone can join this credit union by making a $10 donation to the Sun East Charitable Foundation, allowing them to enjoy one of the most competitive CDs around.

Depositors into this CD can expect an APY of 2.60% should they let the certificate fully mature. Otherwise, they face a penalty of 180 days worth of interest if they withdrawal the funds early.

LEARN MORE Secured

on Sun East Federal Credit Union’s secure website

NCUA Insured

CommunityWide Federal Credit Union – 12 Month CD, 2.55% APY, min. deposit $2,000

Communitywide Federal Credit Union
Membership to CommunityWide Federal Credit Union is open to members of the Michiana Goodwill Boosters or Marine Corps. of St. Joseph Valley. However, if you’re not a member of either of those organizations, you can qualify by becoming a donor member of select organizations such as the Y.M.C.A.

Once you’re a member of CommunityWide Federal Credit Union, you can open a 12-month CD with a minimum of $2,000. Their early withdrawal penalty equals the withdrawn amount multiplied by the number of days that remain in the term.

LEARN MORE Secured

on Communitywide Federal Credit Union’s secure website

NCUA Insured

Best CD rates for credit unions with no cost to join

The thing about credit unions is that they’re not usually just open to anyone. You usually need to meet some membership criteria in order to get in and get access to all of their really nice products. These credit unions, however, will let you in for free regardless of your personal details. (Note: Only two credit unions met our criteria for this list.)

Unify Financial Credit Union – 1-Year Share Certificate, 1.75% APY, min. deposit $1,000

UNIFY Financial Credit Union
Unify FCU offers the highest interest rates on CDs (which it calls share certificates) of any credit union with no cost to join. The interest rate on their 12-month CD, for example, is 1.75%, compared to the national average of 1.37% in April. You’ll need to deposit a minimum of $1,000 to open this CD. If you withdraw your money early, however, you’ll face a penalty of 90 days’ worth of interest.

LEARN MORE Secured

on UNIFY Financial Credit Union’s secure website

NCUA Insured

NASA Federal Credit Union – 1-Year Share Certificate, 1.60% APY, min. deposit $1,000

NASA Federal Credit Union
If the rigid inflexibility of CDs makes you leery, NASA FCU might be your best bet. They have a lot of flexible certificates, such as add-on certificates that let you start with as little as $250, and bump-rate certificates that let you opt for a one-time interest rate increase if rates go up. You can even take out a loan from your certificate should you need the cash before it’s matured. You can join NASA FCU with a complimentary membership to the National Space Society.

If you do need to make an early withdrawal, you will face a penalty of 180 days’ worth of interest.

LEARN MORE Secured

on NASA Federal Credit Union’s secure website

NCUA Insured

Best CD rates for credit unions with the best mobile apps

By their very nature, CDs aren’t something that require constant attention, poking, and prodding. It’s a set-it-and-forget-it kind of a deal, so you won’t need any spiffy banking apps to use CDs.

But, if you’d like to switch all of your banking to the same institution that holds your CDs, it might be a wise idea to consider one of these credit unions if you’re a digital junkie. Most credit unions lag behind their bank compatriots in terms of mobile banking apps, but these credit unions offer top-notch mobile apps, according to MagnifyMoney’s 2018 mobile banking app analysis.

Wright-Patt Credit Union – 1-Year Certificate, 2.07% APY, min. deposit $500

Wright-Patt Credit Union
Unlike many credit unions, you can’t just make a simple donation to join Wright-Patt CU if you fail to meet their membership criteria. You need to live in certain areas of Ohio, be associated with Wright-Patterson Air Force Base, or be an employee of their select employer group, among other options.

You can earn $10.35 on a 12-month CD with just a relatively small $500 deposit. However, if you’re able to deposit $100,000 or more, you’ll earn an APY of 2.17%, which will return $2,170 in interest. Early withdrawal penalties vary depending on the original term of your CD, however they’ll be anywhere between 5-12 months’ worth of dividends.

LEARN MORE Secured

on Wright-Patt Credit Union’s secure website

NCUA Insured

Eastman Credit Union – 1-Year Investment Certificate, 2.00% APY, min. deposit $1,000

Eastman Credit Union
Eastman Credit Union also has pretty restrictive membership requirements. You’ll have to be an employee (or a family member of an employee) of one of their select employers, or live in certain parts of Tennessee, Texas, or Virginia.

Eastman CU is another one of the rare credit unions that allow you to withdraw your dividends penalty-free before the maturity date, although again, doing so will lower your total returns. Currently, you can earn an interest rate of 2.00% on a 12-month CD with a minimum deposit of $1,000. If you withdraw your money before the CD matures, you’ll owe a penalty fee of anywhere between seven days’ worth of dividend earnings or all of your dividend earnings.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

Redstone Federal Credit Union – 12 Month MemberPlus Regular Share Certificate, 1.99% APY, min. deposit $1,000

Redstone Federal Credit Union
You can’t just make a simple donation to join to Redstone Federal Credit Union if you fail to meet their membership criteria. You need to be a government employee or contractor, a member of the military, reserve, or National Guard, or affiliated with a number of organizations listed on their website among other options.

However, if you do qualify for membership, you could earn an APY of 1.99% with a minimum deposit of $1,000. Redstone FCU has compounding and non-compounding certificates, which allow you to have the option to withdraw interest earned or not throughout the term of the certificate.

LEARN MORE Secured

on Redstone Federal Credit Union’s secure website

NCUA Insured

Delta Community Credit Union – 1-Year Certificate, 1.60% APY, min. deposit $1,000

Delta Community Credit Union
There are many ways to join Delta Community CU, such as living in certain parts of Georgia, being a member of one of their select employers, or being a member of one of their partner organizations. Interestingly, citizens of many countries like Argentina, France, and Peru are also eligible to join.

Delta Community CU used to be the lowest-earning credit union on our list, but recently increased the APY on this product from 1.10% to 1.60%. The early withdrawal penalty is 90 days’ worth of interest on a 12-month CD.

LEARN MORE Secured

on Delta Community Credit Union’s secure website

NCUA Insured

 

3 questions to consider before opening a credit union CD

Banks are more likely to call their products certificates of deposit, while credit unions often refer to them as share certificates. Aside from the name, the biggest difference between the two is that credit unions have higher average annual percentage yields (APYs) than traditional banks, as of September 2018. That’s good news: It means more money back in your pocket when the CD matures (i.e., reaches the end of its term and is available for withdrawal).

There really is no difference in safety between depositing money in a CD with a credit union versus a bank, as long as they participate in either the National Credit Union Administration (NCUA) for credit unions, or the Federal Deposit Insurance Corporation (FDIC) for banks.

According to Neal Frankle, a Los Angeles-based Certified Financial Planner with Wealth Pilgrim, deposits of up to $250,000 per financial institution are “backed by the full faith and credit of United States Government, so it’s pretty solid.”

For the most part, choosing a CD at a bank or a credit union boils down to your preference as a consumer: Do you want to be a bank customer or a member of a credit union? Here’s a primer on the differences.

The biggest advantage of credit union CDs over bank CDs is that you can likely earn more interest. But with both products, the longer the CD term, the more interest you will earn. And with a CD laddering strategy, you can have the best of both worlds: frequent access to your money, yet you can still keep it locked away in high-interest, long-term CDs.

Beyond that, the disadvantages of opening a credit union CD are the same as if you’re opening a CD with a bank. You can’t access that money without paying an early withdrawal penalty until the CD matures. While CDs do offer some of the highest rates for any financial product you’re likely to come across at a bank or credit union, they still don’t really earn great interest. If you’re investing for the long-term (like retirement savings), your money is better invested in the riskier (but higher-earning) stock or bond market.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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The Best 5-Year CD Rates in 2019

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

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 April, the average 1-year CD interest rate is 1.37% APY and the average 3-year CD rate is 1.86% APY, compared to the average 5-year CD rate of 2.25% APY.

Longer-term CDs do exist, but even their yields don’t often exceed 5-year CD rates these days. The highest yield on a CD of six or more years is 3.45% APY, though the next best rate comes in at 3.25% APY. 5-year CDs are also useful components to a CD ladder. When you build a ladder with CDs maturing a year apart, you can renew each one into a 5-year CD at maturity. This locks in the higher long-term rates for years to come.

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, similar to MagnifyMoney, a LendingTree owned company, 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 2019

InstitutionAPYMinimum deposit amount

The Federal Savings Bank

3.30%$10,000

Alabama Credit Union

3.03%$500

Affinity Plus FCU

3.25%$500

Main Street Bank

3.25%$500

Sun East FCU

3.25%$500

Tampa Bay FCU

3.25%$500

Presidential Bank

3.25%
$1,000

Service Credit Union

3.25%$1,000

Superior Choice Credit Union

3.25%$10,000

Georgia Banking Company

3.20%$500

The Federal Savings Bank, 3.30% APY, $10,000 minimum deposit

To earn the highest rate on this list, you’ll need at least $10,000 to spare, as this is the minimum opening deposit required to open a Federal Savings Bank 5-year CD. The penalty for an early withdrawal from this account equals one year of interest.

Established in 2000, the Federal Savings Bank is veteran-owned and focuses heavily on mortgage lending throughout all 50 U.S. states. It has two retail banking branches in the Chicago area.

learn more Secured

on The Federal Savings Bank’s secure website

Member FDIC

Alabama Credit Union, 3.03% APY, $500 minimum deposit

The 60-month CD from Alabama Credit Union works better for those who have a lower minimum deposit starting point than the top-ranked CD. Plus, the rate is still competitive — only nominally lower than our top pick. Alabama Credit Union will assess a penalty equal to 360 days’ worth of interest for any early withdrawals you make from a 60-month CD.

Alabama CU was founded in 1956 to serve the University Of Alabama community, and is based in the school’s hometown of Tuscaloosa, Ala. Alabama Credit Union membership is available to employees of Value Partners (its name for the businesses and organizations it works with) and some members of their families, residents of select local communities and members of select associations.

learn more Secured

on Alabama Credit Union’s secure website

NCUA Insured

Affinity Plus FCU, 3.25% 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.

Your Affinity Plus FCU membership eligibility depends on the organization where you’re employed or volunteer, your school or place of residence, work or worship or through eligible/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.

learn more Secured

on Affinity Plus Federal Credit Union’s secure website

NCUA Insured

Main Street Bank, 3.25% APY, $500 minimum deposit

Main Street Bank offers a great rate on its 60-month CD (and its 3-year CD) for a low minimum deposit of $500. An early withdrawal from this account will land you a penalty of 180 days’ worth of interest.

Founded in 2005, Main Street Bank is headquartered in Bingham Farms, Mich., and has a few branches in the Detroit area.

learn more Secured

on Main Street Bank (MI)’s secure website

Member FDIC

Sun East FCU, 3.25% APY, $500 minimum deposit

At Sun East FCU, you only need $500 to start saving through a 60-month certificate of deposit. Plus, Sun East insures your deposits up to $500,000. The penalty for early withdrawals will depend on when during the term you make your withdrawal, according to Sun East FCU customer service.

Founded in 1949 by Sun Oil Company employees, Sun East serves members throughout Delaware, Pennsylvania and New Jersey. Sun East FCU membership depends on your place of residence, family members, employer or community, though you can also join with a $10 donation to the Sun East Charitable Foundation.

learn more Secured

on Sun East Federal Credit Union’s secure website

NCUA Insured

Tampa Bay FCU, 3.25% APY, $500 minimum deposit

You can earn Tampa Bay FCU’s high 60-month share certificate rate on all balances starting at $500. The penalty for making an early withdrawal from this account will be six months of last dividends earned.

Tampa Bay Federal Credit Union was founded in 1935 by City of Tampa workers and was originally called Tampa City Employees Credit Union. Today, membership at Tampa Bay FCU is open to employees at select companies, select association members and members/residents of certain areas and organizations. You may also qualify through a current member or by joining Prime Time Club with a one-time, non-refundable $5 fee.

learn more Secured

on Tampa Bay Federal Credit Union’s secure website

NCUA Insured

Presidential Bank, 3.25% APY, $1,000 minimum deposit

You’ll need a slightly higher minimum deposit to open a Presidential Bank CD which requires at least $1,000. The bank will assess a penalty of 24 months’ worth of interest on any early withdrawal you make from its 5-year CD — the largest penalty listed here.

Presidential Bank was founded in 1985. Its main office is located in Bethesda, Md., with a handful of branches in the Washington, D.C. metro area.

learn more Secured

on Presidential Bank (MD)’s secure website

Member FDIC

Service Credit Union, 3.25% APY, $1,000 minimum deposit

Another great high-rate 60-month CD comes from Service Credit Union. It requires at least $1,000 to open an account and start earning interest. The penalty for early withdrawals equals one year’s worth of dividends, according to Service Credit Union customer service.

Service Credit Union membership is available to residents or those employed in select areas of New Hampshire and Massachusetts, as well as active duty military, veterans and their families and Department of Defense employees and their families.

Service Credit Union was founded in 1957. It has branch and ATM locations in Massachusetts, New Hampshire, Germany and at Grand Forks Air Force Base in North Dakota. You can also access to 5,000 shared branches and 30,000 fee-free ATMs within the SUM and CO-OP networks.

learn more Secured

on Service Credit Union’s secure website

NCUA Insured

Superior Choice Credit Union, 3.25% APY, $10,000 minimum deposit

While you only need $2,500 to open a Superior Choice Credit Union 5-year share certificate, you’ll need at least $10,000 to earn at its most competitive rate. All other balances will earn at a lower APY. 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.

Superior Choice Credit Union was established in 1932. It has a handful of branches in near its Superior, Wisc., headquarters, including one in nearby Duluth, Minn. You can also access over 30,000 fee-free ATMs and 5,000 branches nationwide and in Canada through the CO-OP Network.

learn more Secured

on Superior Choice Credit Union’s secure website

NCUA Insured

Georgia Banking Company, 3.20% APY, $500 minimum deposit

Georgia Banking Company’s 5-year certificate closes out our list. You’ll need a $500 minimum deposit to start earning at the given interest rate. The bank’s early withdrawal penalty equals six months interest.

Georgia Banking Company was established in 1998, and currently has two branches in the Atlanta metro area.

learn more Secured

on Georgia Banking Company’s secure website

Member FDIC

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 (the most common rate in our list) would result in $882 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.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here

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The Best 3-Year CD Rates in April 2019

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

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, 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.

The 10 best 3-year CD rates in April 2019

InstitutionAPYMinimum deposit amount

WebBank

3.00%$2,500

CD Bank

3.07%$10,000

Veridian Credit Union

3.05%$1,000

North American Savings Bank

3.05%$5,000

Citizens Access

2.90%$5,000

BankDirect

3.05%$10,000

M.Y. Safra Bank

3.01%$1,000

Main Street Bank

3.00%$500

Sun East FCU

3.00%$500

USALLIANCE Financial

3.00%$500

WebBank — 3.00% APY, $2,500 minimum deposit

WebBank offers five Time Deposits, or CDs. Its 3-Year Time Deposit offers a competitive rate on balances of $2,500 and over. WebBank compounds interest daily, which can grow your savings a little faster. An early withdrawal from a 3-Year Time Deposit will trigger a penalty equal to nine months’ simple interest.

WebBank, founded in 1997, is headquartered in Salt Lake City. It holds an industrial bank charter and maintains Strategic Partnerships in order to provide its customers with a variety of financial products beyond its savings and CD accounts.

learn more Secured

on WebBank’s secure website

Member FDIC

CD Bank — 3.07% APY, $10,000 minimum deposit

Maybe it’s no surprise that CD Bank offers competitive CD rates, including on its 36-month account. The CDs require a pretty high deposit of $10,000 to open and start earning interest, which is credited semi-annually. Making a withdrawal from the 36-month CD before maturity will result in a heavy penalty equal to 24 months worth of interest.

As its name might suggest, CD Bank offers only CD accounts for now. CD Bank is an online division of TBK Bank, which is itself a subsidiary of Triumph Bancorp, Inc.

learn more Secured

on CD Bank’s secure website

Member FDIC

Veridian Credit Union —3.05%APY, $1,000 minimum deposit

If you’re okay with waiting an extra five months for your CD to mature, Veridian Credit Union offers a 41-Month Bump-Up Certificate. It starts off with a competitively high rate and gives you the chance to bump it up once during the term if rates go even higher — plus, you need only $1,000 to open up this account. Unlike most banks/credit unions, Veridian assesses early withdrawal penalties depending on how much you want to withdraw, and how long the CD has until its maturity date.

Veridian Credit Union was first founded as John Deere Employees Credit Union by John Deere employees in Waterloo, Iowa, in 1934; it changed its name to Veridian Credit Union in 2006. You can become a Veridian Credit Union member in a few different ways, including through your place of residence, your employer and family membership. You must open a Member Equity Savings account with at least $5 to join.

learn more Secured

on Veridian Credit Union’s secure website

NCUA Insured

North American Savings Bank — 3.05% APY, $5,000 minimum deposit

While you need only $1,000 to open a 36-Month CD from NASB, you’ll need a balance between $5,000 and $1 million to earn at its more competitive rate — balances outside of that bracket earn at a pretty paltry interest rate for CDs. Its penalty for early withdrawals equals 6 months’ worth of interest on the amount withdrawn.

North American Savings Bank was founded in 1927 and has a handful of branches in the Kansas City, Mo. area.

learn more Secured

on North American Savings Bank’s secure website

Member FDIC

Citizens Access — 2.90% APY, $5,000 minimum deposit

With competitive rates across the board, Citizens Access 3-year CD offers a high rate for those who can deposit at least $5,000 at opening. Early withdrawals from a 3-year CD will trigger a penalty of 180 days’ of interest.

Citizens Access is the online division of Citizens Bank, which traces its roots back to 1828 and is now headquartered in Providence, R.I.

learn more Secured

on Citizens Access’s secure website

Member FDIC

BankDirect — 3.05% APY, $10,000 minimum deposit

If you have an extra $10,000 to save away for a few years, consider BankDirect’s 36-month CD. It offers a high interest rate and compounds interest daily. If you make a withdrawal from the account before maturity, you’ll face a penalty of 180 days’ worth of interest.

BankDirect, which operates without branches, first went live on the internet in 1999. It is a division of Texas Capital Bank, N.A.

learn more Secured

on BankDirect’s secure website

Member FDIC

Main Street Bank — 3.00% APY, $500 minimum deposit

You can save towards a future goal easily with Main Street Bank’s low minimum deposit of $500 and competitive rates, including on its 36-month CD accounts. Early withdrawals from the 36-month CD will trigger a penalty of 180 days’ interest.

Main Street Bank was founded in 2005 and has a few locations just north of Detroit.

learn more Secured

on Main Street Bank (MI)’s secure website

Member FDIC

Sun East FCU — 3.00% APY, $500 minimum deposit

You only need $500 to start saving with a Sun East FCU 36-Month Certificate of Deposit, and your deposits are insured up to $500,000. Making an early withdrawal from the account may result in a penalty of 180 days’ worth of dividends.

Sun East FCU was founded in 1949 by Sun Oil Company employees. Today, it serves members throughout Delaware, Pennsylvania and New Jersey. You can join Sun East’s membership through your place of residence, family members, employer or by way of your community affiliation (e.g. where you might attend church or school, or a location where you might volunteer). You can also choose instead to make a $10 donation to the Sun East Charitable Foundation.

learn more Secured

on Sun East Federal Credit Union’s secure website

NCUA Insured

USALLIANCE Financial — 3.00% APY, $500 minimum deposit

USALLIANCE Financial offers a high-yield, fixed-rate 36-month CD with a minimum deposit of only $500. USALLIANCE compounds interest daily and credits it monthly. Early withdrawals from the account may trigger a penalty equal to 360 days of interest.

USALLIANCE Financial was founded by IBM employees in 1966. Today, you can join USALLIANCE Financial through your place of residence, employer, place of worship, school or organization.

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on USALLIANCE Financial’s secure website

NCUA Insured

Georgia Banking Company — 3.00% 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.

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on Georgia Banking Company’s secure website

Member FDIC

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.

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Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here

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