Earn 3.27% With The Best 36-Month CDs

The best rates you can get on short-to-medium term certificates of deposit are on 36-month CDs.

Sure, 48-month and 60-month CDs pay a little better, but who wants their money locked into a 3.65% yield for five years when rates are sure to head up before then?

A number of these CDs are paying well — close to twice the national average of 1.77%. Don’t settle for less.

Acacia Federal Savings Bank, which had the best deal on 36-month CDs earlier this week, has reduced its interest rate to 3.10% APY.

But the best rates on 3-year CDs are actually up a little bit since we surveyed them last month:

3.27% APY with a $2,500 minimum deposit from Tennessee Commerce Bank in Franklin, Tenn.

3.20% APY with no minimum deposit from Ally Bank, formerly known as GMAC Bank.

3.20% APY with a $2,500 minimum deposit from Discover Bank, which is part of Discover Financial Services.

Community banks that only accept deposits from local customers sometimes offer high rates to compete with bigger institutions. Credit unions members also often enjoy far better-than-average returns on their money.

Here are a few of the best local deals:

Melrose Credit Union, which is open to all residents of the State of New York, is paying 3.34% with a minimum deposit of $5,000.

Atlas Savings and Loan Association in Brooklyn is paying 3.30% APY with a deposit of $2,500 or more.

Capital City Bank, headquartered in Topeka, Overland Park and Lawrence, Kan., is paying 3.25% with a minimum deposit of $500.

Click here to see our complete list of the best CD rates.