4-year CD rates: where to find the highest returns
Katherine Haan is a former financial advisor turned small business coach. Katherine holds an MBA, and is a former staff writer for Fit Small Business. She is a regular contributor to Forbes and maintains a popular lifestyle and travel blog.
Cassie is the business and banking editor at Fortune Recommends. She obtained her degree from Northern Kentucky University and is a certified SCRUM master. Prior to joining the team at Fortune Recommends, Cassie was a deputy editor at Forbes Advisor and a Central Operations Project Manager at Fit Small Business.
A 4-year certificate of deposit (CD) offers a great way to lock in high interest rates over 48 months, all with the safety offered by Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA) insurance of up to $250,000. Below are some of the best CD rates around the country from institutions that allow opening accounts online.
Best 4-year CD rates of July 24, 2024
*APYs are current as of July 24, 2024 and are subject to change. Read our complete methodology here.
The best 4-year CD rates: Our editor's top 10 picks*
| Institution | APY | Minimum Deposit | Withdrawal Penalty | See Details |
|---|---|---|---|---|
| First Internet Bank | 4.45 | $1,000 | 360 days interest | View offer at Bankrate |
| First National Bank of America | 4.43 | $1,000 | 540 days of interest | View offer at First National Bank of America |
| Alliant Credit Union | 4.00 | $1,000 | Number of days the certificate is open, up to 180 days | View offer at Alliant Credit Union |
| BMO Alto | 4.70 | $0 | 180 days of interest | View offer at Bankrate |
| MYSB Direct | 4.20 | $500 | All interest earned | View offer at Bankrate |
| Capital One | 3.95 | $0 | 6 months of interest | View offer at Bankrate |
| Marcus by Goldman Sachs | 4.05 | $500 | 180 days of interest on the original principal at the CD’s rate | View offer at Bankrate |
| Prime Alliance Bank | 4.00 | $500 | 90 days’ interest on the amount withdrawn | View offer at Bankrate |
| TAB Bank | 4.05 | $1,000 | 180 days’ interest on the withdrawn amount | View offer at Bankrate |
| Bread Savings | 4.15 | $1,500 | 365 days simple interest | View offer at Bankrate |
| First Internet Bank | View offer at Bankrate |
|---|---|
| APY | 4.45 |
| Minimum Deposit | $1,000 |
| Withdrawal Penalty | 360 days interest |
| First National Bank of America | View offer at First National Bank of America |
| APY | 4.43 |
| Minimum Deposit | $1,000 |
| Withdrawal Penalty | 540 days of interest |
| Alliant Credit Union | View offer at Alliant Credit Union |
| APY | 4.00 |
| Minimum Deposit | $1,000 |
| Withdrawal Penalty | Number of days the certificate is open, up to 180 days |
| BMO Alto | View offer at Bankrate |
| APY | 4.70 |
| Minimum Deposit | $0 |
| Withdrawal Penalty | 180 days of interest |
| MYSB Direct | View offer at Bankrate |
| APY | 4.20 |
| Minimum Deposit | $500 |
| Withdrawal Penalty | All interest earned |
| Capital One | View offer at Bankrate |
| APY | 3.95 |
| Minimum Deposit | $0 |
| Withdrawal Penalty | 6 months of interest |
| Marcus by Goldman Sachs | View offer at Bankrate |
| APY | 4.05 |
| Minimum Deposit | $500 |
| Withdrawal Penalty | 180 days of interest on the original principal at the CD’s rate |
| Prime Alliance Bank | View offer at Bankrate |
| APY | 4.00 |
| Minimum Deposit | $500 |
| Withdrawal Penalty | 90 days’ interest on the amount withdrawn |
| TAB Bank | View offer at Bankrate |
| APY | 4.05 |
| Minimum Deposit | $1,000 |
| Withdrawal Penalty | 180 days’ interest on the withdrawn amount |
| Bread Savings | View offer at Bankrate |
| APY | 4.15 |
| Minimum Deposit | $1,500 |
| Withdrawal Penalty | 365 days simple interest |
Find the best CD for you
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The 10 best 4-year CDs of July 2024
First Internet Bank
| 4-year APY | 4.45% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | 360 days interest |
at Bankrate
at Bankrate
Why we picked it
You’ll earn 4.45% APY with a 4-year CD at First Internet Bank. Your minimum deposit is $1,000, and it’s insured up to $250,000, just like any other CD. Opening an account is easy too. It takes about five minutes to fill out the online application, upload your ID, and fund your account.
First National Bank of America
| 4-year APY | 4.43% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | 540 days of interest |
at First National Bank of America
at First National Bank of America
Why we picked it
First National Bank of America's 4-year CD has a 4.43% APY. Its minimum deposit is $1,000 and, while you can open the account online, it can take up to 10 business days for the money to pull from your external account and be placed into your new one. Once your CD matures, you can deposit more money into your account—you have up to 10 days to do so before it locks down again.
Alliant Credit Union
| 4-year APY | 4.00% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | Number of days the certificate is open, up to 180 days |
at Alliant Credit Union
at Alliant Credit Union
Why we picked it
Not many banks or credit unions offer jumbo CDs, but Alliant Credit Union is one of them. A jumbo CD is when you deposit a large sum of money into a CD, although Alliant has a lower threshold for this at $75,000―it’s usually $100,000 at other institutions―and you’ll earn an even higher APY than a standard certificate.
BMO Alto
| 4-year APY | 4.70% |
| Minimum Deposit | $0 |
| Early withdrawal penalty | 180 days of interest |
at Bankrate
at Bankrate
Why we picked it
BMO Alto is one of the few banks on this list that requires a $0 minimum deposit for opening a 4-year CD. You'll earn a 4.70% APY, and your CD can renew automatically at maturity, although you'll have a 10-calendar day grace period to withdraw your money or add funds to your CD.
MYSB Direct
| 4-year APY | 4.20% |
| Minimum Deposit | $500 |
| Early withdrawal penalty | All interest earned |
at Bankrate
at Bankrate
Why we picked it
While most banks require a $1,000 minimum deposit, MYSB Direct is just $500. With a 4-year CD, you’ll earn a 4.20% APY and can invest up to $250,000. Your CD is FDIC-insured for that same amount, and setting up your account takes just 3 minutes to do online.
Capital One
| 4-year APY | 3.95% |
| Minimum Deposit | $0 |
| Early withdrawal penalty | 6 months of interest |
at Bankrate
at Bankrate
Why we picked it
With a 4-year CD at Capital One, you have a variety of options for receiving interest, and you can choose this within 20 days of account opening and maturity. You can have the interest sent to another Capital One account, transfer it to an outside account, or credit the CD with the interest. Keep in mind that APY factors in compound interest as though you use the latter option, so choosing to transfer the interest elsewhere may result in lower overall earnings than the stated APY.
Marcus by Goldman Sachs
| 4-year APY | 4.05% |
| Minimum Deposit | $500 |
| Early withdrawal penalty | 180 days of interest on the original principal at the CD's rate |
at Bankrate
at Bankrate
Why we picked it
Unlike most banks, Marcus by Goldman Sachs lets you deposit more funds into your CD after you open it. Within a 30-day window starting from the opening of the CD, you can choose to deposit more money into your current CD by making a quick phone call to its customer service team.
Prime Alliance Bank
| 4-year APY | 4.00% |
| Minimum Deposit | $500 |
| Early withdrawal penalty | 90 days’ interest on the amount withdrawn |
at Bankrate
at Bankrate
Why we picked it
Prime Alliance Bank is another one of the few banks that require a small minimum deposit. You can deposit as little as $500 into your 4-year CD and earn a 4.00% APY. Opening an account takes two business days, however, as it takes a while for fund verification.
TAB Bank
| 4-year APY | 4.05% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | 180 days' interest on the withdrawn amount |
at Bankrate
at Bankrate
Why we picked it
To open a 4-year CD with TAB Bank, you must deposit a minimum of $1,000. You'll earn a 4.05% APY and can receive that interest via check, transfer, or have it compound in the CD. Keep in mind that the APY assumes you're compounding within your CD, so if you choose an alternative option, the rate earned will be lower.
Bread Savings
| 4-year APY | 4.15% |
| Minimum Deposit | $1,500 |
| Early withdrawal penalty | 365 days simple interest |
at Bankrate
at Bankrate
Why we picked it
When you open a 4-year CD at Bread Savings, you can enjoy a 4.15% APY because it has no physical branch locations, so there’s not as much overhead as a brick-and-mortar bank. Your minimum deposit is $1,500, and you'll have up to $250,000 in FDIC protection. Your interest accrues and compounds daily, and it takes just a few minutes to open and fund an account.
Pros & cons of a 4-year CD
A 4-year CD offers both safety and great rates. However, it isn’t for everyone. Here’s what you need to know.
Pros
- Higher interest rates: A longer-term CD, such as a 4-year CD, tends to have a higher interest rate than a short-term CD. However, this is more accurate in a low-interest rate environment.
- Insured: Provided you're investing $250,000 or less in a single institution, you're covered by either FDIC or NCUA insurance, depending on if you've bought the CD via a bank or credit union.
- Stability: Because you're investing long-term, you're less susceptible to market fluctuations.
Cons
- Longer lock-in: Your money is tied up for four years. If you need your money before maturity, you'll pay an early withdrawal penalty.
- Opportunity cost: If you tie up your money for four years and the rates rise significantly, you're missing out on those higher rates.
- Inflation risk: Your rate might not keep pace with inflation over your four-year term.
How to choose the best 4-year CD
There are a few things to consider before investing in a 4-year CD. Here’s how to choose one:
- Interest rates: Some rates are only available to certain ZIP codes or members of a credit union. Ensure you’re comparing apples to apples and only what’s available to you.
- Minimum deposit: Some banks, though few, have no minimum deposit. However, some require deposits of $25,000.
- Early withdrawal penalties: If you need access to your funds before the four years is up, what kind of penalty will you pay?
- How is interest paid: If you’re looking for a steady stream of income, you may want to consider a CD that allows for monthly interest payouts. However, if you don’t allow the interest to accumulate in the CD, you’re losing out on compound interest that makes up the higher APY.
Alternatives to 4-year CDs
While 4-year CDs generally offer great rates, they’re not for everyone, especially if you can’t tie up your money for that long. Here are some alternatives to consider with better liquidity and equal safety:
- Savings accounts: A savings account won’t have as great of a rate as a 4-year CD, however, you’ll still benefit from FDIC or NCUA insurance and will have much better liquidity than a CD.
- High-yield savings account: A high-yield savings account might have restrictions on the number of transactions allowed per month, but you’re still getting a much better rate than a standard savings account with the same relative safety.
- MMAs: A MMA offers safety and liquidity as it’s a mashup of a checking and savings account. You’ve got a great interest rate, check writing privileges, and safety wrapped up in one.
Best CD rates for more terms
While some banks may offer higher interest rates, it’s not guaranteed that they’ll be accessible nationwide. When selecting 4-year CDs for this list, our main focus is on ensuring that they’re easily accessible to all. Local or regional banks might offer better rates but they may not be easily accessible to everyone.
More CDs to consider:
Methodology
The Fortune Recommends™ team uses third-party data from industry leader Curinos, updated daily, to determine the best possible CD rates available for consumers right now. This is the most significant determining factor when deciding which financial corporation to feature in our best CD rates articles.
Learn more: read about our banking methodology
Frequently asked questions
Are CDs FDIC insured?
Yes, certificates of deposit (CDs) are protected by the Federal Deposit Insurance Corporation (FDIC). This federal agency insures all types of bank accounts held by its members, such as savings accounts, money market accounts, and CDs, up to $250,000 per customer per bank. This insurance secures your funds in the unlikely event of a bank failure. If you opt for a CD from a credit union, verify that it is insured by the National Credit Union Administration (NCUA), which functions similarly to the FDIC but specifically insures credit unions.
Who has the best 4-year CD rate?
The best 4-year CD rate depends on how much you have to invest, and whether you have access to local, regional, or membership-only rates. Rates change daily but First Internet Bank, Alliant Credit Union, and BMO Alto often offer excellent rates.
Can you get a 6% rate on a CD?
It’s rare to find a 6% CD, and it’s normally under very specific conditions. You might find this kind of rate in a high-interest rate environment, and typically through a credit union. This is because you must be a member of the credit union to get the rate, and it answers to other members rather than shareholders.
What is the highest CD rate in history?
In December 1980, there was a 3-month CD with 18.65% interest.
About the contributors
Katherine Haan is a former financial advisor turned small business coach. Katherine holds an MBA, and is a former staff writer for Fit Small Business. She is a regular contributor to Forbes and maintains a popular lifestyle and travel blog.
EDITORIAL DISCLOSURE: The advice, opinions, or rankings contained in this article are solely those of the Fortune Recommends™ editorial team. This content has not been reviewed or endorsed by any of our affiliate partners or other third parties.