The top four-year CDs have something in common. It offers depositors higher yields than savings and money market accounts. Combine that with guaranteed returns and safety (if you choose a federal insurance account), and these investments are worth considering.
What is a 4-year CD?
Having a 4-year CD means your savings are tied up for 48 months. Funds are generally not accessible during this period without early withdrawal penalties.
Today’s most widely available 4 year CD pays 4.55% APY. This could be a good way to invest in long-term financial obligations such as starting a business.
Bankrate’s Top 4 Year CD Rates
Randolph Brooks Federal Credit Union: 4.55% APY, minimum $20,000 to earn APY
BMO Harris: 4.50% APY; $1,000 Minimum Deposit*
saving bread: 4.50% APY; $1,500 minimum deposit
popular direct: 4.47% APY; $10,000 Minimum Deposit
First Internet Bank of Indiana: 4.44% APY; $1,000 minimum deposit
discovery bank: 4.35% APY; $2,500 Minimum Deposit
barclays: 4.30% APY; $0 Minimum Deposit
Synchronous bank: 4.30% APY; $0 Minimum Deposit
alliant credit union: 4.25% APY; $1,000 minimum deposit
capital one: 4.20% APY; $0 Minimum Deposit
SchoolsFirst Federal Credit Union: 4.10% APY; minimum deposit $20,000 to get APY
Note: Annual Yield (APY) shown is as of February 1, 2023 and may vary by region for some products.
*Rates not available in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri, Wisconsin.
These are the top four-year CD rates that are widely available. Evaluate your offer and then calculate the interest you will earn when your CD matures.
Top 4 Year CD Rate Details
Randolph Brooks Federal Credit Union: 4.55% APY; minimum $20,000 to earn APY
Randolph Brooks Federal Credit Union is headquartered in Live Oak, Texas and operates 61 branches serving four major markets: Austin, Corpus Christi, Dallas-Fort Worth and San Antonio. It has approximately 975,000 members.
Randolph-Brooks Federal Credit Union has CDs with terms ranging from 6 months to 7 years. We also offer a truly free checking account with no minimum balance required and no monthly fees.
BMO Harris: 4.50% APY; $1,000 Minimum Deposit
BMO Harris offers CDs for 15 terms ranging from 3 months to 5 years, with a minimum starting deposit of $1,000.
The Chicago-based bank operates over 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin. Competitive rates offered on CDs of six months or longer are not available to residents of states where BMO has branches.
Bread Savings: 4.50% APY; $1,500 Minimum Deposit
Bread Savings (formerly Comenity Direct) is an online bank that offers high-yield savings products and five term CDs ranging from 1 to 5 years.
Bread Savings is part of Comenity Capital Bank, a division of Bread Financial.
Popular Direct: 4.47% APY; $10,000 Minimum Deposit
Popular Direct is an online bank and a subsidiary of Popular Inc., a financial services company with over 120 years of history. Popular Direct was formerly known as Banco Popular North America.
Popular Direct offers CDs in eight terms ranging from 3 months to 5 years. With a minimum deposit of $10,000, these CDs are aimed at serious savers. Interest is compounded daily. Popular Direct does not offer special CDs such as bump-up CDs or no-penalty CDs. It offers savings accounts at competitive rates.
First Internet Bank of Indiana: 4.44% APY; $1,000 Minimum Deposit
First Internet Bank of Indiana was the first FDIC-insured financial institution to operate entirely online, according to the bank’s website. The first Internet Bank of Indiana opened on February 22, 1999, serving all 50 states online, with no physical branches available.
First Internet Bank offers eight term CDs, a competitive yield money market savings account, a savings account and two checking accounts.
Discover Bank: 4.35% APY; $2,500 minimum deposit
Discover Bank offers a wide range of banking products including 12 CD terms as well as money market accounts, savings accounts and checking accounts. Discover Bank products tend to offer competitive APY.
Barclays: 4.30% APY; $0 Minimum Deposit
Barclays is a global bank founded in London over 300 years ago. In 1967, it introduced the world’s first ATM. Barclays has no minimum balance requirement to open an online CD. We offer 9 CD terms ranging from 3 months to 60 months.
Synchrony Bank: 4.30% APY; $0 Minimum Deposit
Synchrony Bank is an online-only bank, part of Synchrony Financial, a listed provider of consumer financial services, including credit cards.
Synchrony Bank offers competitive yields on CDs over 14 periods. It also comes with a bump-up CD and a no-penalty CD. The bank also offers savings accounts and money market accounts.
Alliant Credit Union: 4.25% APY; $1,000 minimum deposit
Alliant Credit Union was founded in 1935 as the United Airlines Employees Credit Union. One of the largest credit unions in Illinois, he has 600,000 members nationwide.
Alliant offers 6-condition CDs with competitive APYs and reasonable minimum deposit requirements. We also offer IRA CDs, high-yield savings accounts, and high-yield checking accounts.
Capital One: 4.20% APY; $0 Minimum Deposit
Capital One, based in McLean, Virginia, is an online bank with branches.
Capital One offers nine competition terms for regular CDs. Capital One CD and 360 Performance Savings accounts have no minimum balance requirements.
SchoolsFirst Federal Credit Union: 4.10% APY; minimum deposit $20,000 to earn APY
SchoolsFirst serves the California education community. Certain school employees, certain retired school employees, and immediate family members of SchoolsFirst Federal Credit Union members are eligible to participate.
SchoolsFirst offers CDs from 30 days to 5 years. A minimum deposit of $500 is required to open the CD. SchoolsFirst has four fee tiers: $500, $20,000, $50,000, and $100,000, so the more money you put in, the higher your APY can be.
How to find the best 4 year CD rate
Finding the best 4-year CD rate takes some research. Start by comparing deals offered by online financial institutions. According to Bankrate’s latest national survey of banks and thrifters, the highest 4-year CD pays more than four times the national average Annual Yield (APY) of 1.14%.
An account that does not require large upfront payments is ideal. Look for offers that don’t require you to take extra steps, such as opening a new checking account, before opening your CD.
4 Years CD FAQ
Who is the 4 year CD suitable for?
The 4-year CD offers a fixed rate of return and is a solid choice for consumers who value safety and don’t want surprises, unlike money invested in stocks, which is subject to market volatility and loss of principal. may be an option. For FDIC insurance banks or NCUA credit unions, CDs are protected. Both are backed by the full trust and credit of the U.S. government.
However, the insurance amount is limited. Each FDIC bank depositor has insurance up to $250,000 per account category per insured bank. The NCUA credit union standard stock insurance amount is $250,000 per shareholder per insured credit union for each ownership category.
Why get a 4 year CD?
If you have funds that you want to grow for at least 4 years, consider a 4-year CD. Withdrawing money from a CD before it expires may result in early withdrawal penalties.
The 4-year CD is suitable for those looking for higher APY than they would earn on a regular savings or money market account, especially in environments where APY is stagnant or declining.
Advantages and disadvantages of a 4-year CD
Advantages of 4 year CD
Earn a certain amount of APY.
If your account is insured by the FDIC or NCUSIF and falls within the aforementioned insurance guidelines, your money is insured in full confidence and credit with the U.S. Government.
If APY decreases, it will be pegged at a higher rate for the next few years.
A 4-year CD can help you diversify some of your savings and investments.
4 Years CD Cons
When interest rates begin to rise, 4-year CD funds may return less interest than they would otherwise earn.
If you have to make an early withdrawal, you will be subject to penalties.
A four-year CD can over time outpace inflation and money lose purchasing power.
A typical CD has an early withdrawal penalty. If your investment strategy calls for investing in a 4-year CD, consider looking for a CD with affordable fees, especially if you’re likely to close your account before it expires. Another option is to look for institutions that offer the saver his one-time rate hike during his term.
Bankrate Best CD Rate Methodology
At Bankrate, we strive to help our clients make smarter financial decisions. We follow strict guidelines to ensure our editorial content is unbiased and unaffected by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy.
Bankrate regularly surveys approximately 70 widely available financial institutions, consisting of large banks, credit unions and many popular online banks.
To find the best CDs, our editorial team analyzes various factors. For example, the annual yield, the minimum value required to earn APY (or open a CD), and whether it is widely available. All accounts on this page are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Stock Insurance Fund (NCUSIF).
When choosing the best CD for you, consider what your money is for and when you need access to these funds to help avoid early withdrawal penalties.
bank to monitor
These financial institutions are featured in our CD rate survey: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank5 Connect, Bank of America, Bank of the West, Barclays, Bask Bank, BB&T, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank , Citizens, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, Morgan Stanley Private Bank, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, PurePoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem F IVE Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Suntrust Bank, Synchrony Bank, TD Bank, TIAA Bank, UFB Direct, Union Bank (California ), US Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo, Zions Bank.
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