The best 4-year CD rate is 4.86% APY from Wellby Financial. To find you the highest 4-year CD rates nationwide, we review CD rates from hundreds of banks and credit unions every day. CD terms of 42-53 months are eligible for our 4-year rankings, with minimum deposit requirements of up to $25,000. Below are the top CD rates available from our partners, followed by the best CD rates that we've found from our research that are available to U.S. customers everywhere.
IN THE NEWS
The Fed held rates steady for a seventh consecutive time at its June 12 meeting. The federal funds rate is at its highest level since 2001, but Fed officials are projecting one or possibly two rate cuts before the end of the year. CD yields closely follow the fed funds rate. Back in October, CD rates reached peaks not seen in more than 20 years, but once the Fed starts cutting rates, CD rates will fall.
You can find our ranking of the highest CD rates with terms of 42-53 months below. In cases where more than one institution pays the same annual percentage yield, we've prioritized CDs by the shortest term, then the CD requiring a smaller minimum deposit, and if still a tie, alphabetically by institution name.
Best 4-Year CD Rates
- Wellby Financial - 4.86% APY
- BMO Alto - 4.70% APY
- Credit Human - 4.65% APY
- Department of Commerce Federal Credit Union - 4.60% APY
- Seattle Bank - 4.55% APY
- The Federal Savings Bank - 4.55% APY
- Pima Federal Credit Union - 4.50% APY
- Dow Credit Union - 4.50% APY
- Securityplus Federal Credit Union - 4.50% APY
- Crescent Bank - 4.50% APY
- First National Bank of America - 4.50% APY
- Farmers Insurance Federal Credit Union - 4.50% APY
- First Internet Bank - 4.45% APY
- NexBank - 4.45% APY
- Lafayette Federal Credit Union - 4.42% APY
Detailed information on the top-paying four-year CDs available nationwide is provided below, including specifics about minimum deposits and early-withdrawal penalties. For credit union CDs, information is also provided on how anyone can become a member.
Looking for a wider selection of CDs? See our picks for the best CD rates to see terms ranging from three months to 10 years.
Wellby Financial - 4.86% APY
- Term (months): 48
- Minimum deposit: $1,000
- Early withdrawal penalty: 12 months of interest
- Membership: Anyone is eligible to join the credit union through membership in the American Consumer Council.
BMO Alto - 4.70% APY
- Term (months): 48
- Minimum deposit: Any amount
- Early withdrawal penalty: 6 months of interest
- About: BMO Alto is an online-only division of BMO, which is a U.S. subsidiary of Bank of Montreal. In addition to CDs, it offers an online savings account.
Credit Human - 4.65% APY
- Term (months): 36-59
- Minimum deposit: $500
- Early withdrawal penalty: 12 months of interest ($50 minimum)
- Membership: Anyone can join Credit Human by agreeing to a complimentary membership in the nonprofit American Consumer Council and keeping at least $5 in a member savings account.
Department of Commerce Federal Credit Union - 4.60% APY*
- Term (months): 36-47
- Minimum deposit: $25,000
- Early-withdrawal penalty: 6 months of interest
- Membership: Anyone can join the DCFCU by agreeing to a free membership in the nonprofit American Consumer Council.
*Rates listed in DCFCU's rate charts are 0.10% lower than what's listed here, for a minimum deposit amount of $500. But the fine print indicates that for deposits of $25,000, a 0.10% premium applies.
Seattle Bank - 4.55% APY
- Term (months): 48
- Minimum deposit: $1,000
- Early-withdrawal penalty: 6 months of interest
- About: Established in 1999, Seattle Bank serves online customers across the country and operates a branch in downtown Seattle.
The Federal Savings Bank - 4.55% APY
- Term (months): 48
- Minimum deposit: $5,000
- Early withdrawal penalty: 12 months of interest
- Overview: The Federal Savings Bank is a national bank with a network of over 55,000 ATMs across the U.S. It offers checking and savings accounts, as well as mortgages and loans. Headquartered in Chicago, it was established in 2000.
Pima Federal Credit Union - 4.50% APY
- Term (months): 48
- Minimum deposit: $250
- Early withdrawal penalty: 50% of the interest left to be earned through the end of the term
- Membership: Anyone can join Pima by making a $20 donation to one of their affiliated nonprofits and keeping at least $5 in a Pima savings account.
Dow Credit Union - 4.50% APY
- Term (months): 48
- Minimum deposit: $500
- Early withdrawal penalty: 12 months of interest
- Overview: Based out of Midland, Michigan, anyone can join Dow Credit Union by making a $10 donation to the Midland Area Community Foundation scholarship fund during the membership application process. Dow Credit Union dates back to 1937 when it was founded to serve employees of Dow Chemical Company.
Securityplus Federal Credit Union - 4.50% APY
- Term (months): 48
- Minimum deposit: $1,000
- Early withdrawal penalty: 3 months of interest
- Overview: Anyone is eligible to join Securityplus by paying the $15 fee to become a member of the American Consumer Council and opening a savings account with a minimum deposit of $5. Founded in 1938, Securityplus has physical branches in Maryland and over 34,000 members.
Crescent Bank - 4.50% APY
- Term (months): 48
- Minimum deposit: $1,000
- Early withdrawal penalty: 6 months of interest
- Overview: Headquartered in New Orleans, Crescent Bank was founded in 1991.
First National Bank of America - 4.50% APY
- Term (months): 48
- Minimum deposit: $1,000
- Early-withdrawal penalty: 18 months of interest
- About: First National Bank of America is a Michigan-based community bank established in 1955. In addition to three branches in the state, FNBA offers online banking products to customers nationwide.
Farmers Insurance Federal Credit Union - 4.50% APY
- Term (months): 48
- Minimum deposit: $1,000
- Early withdrawal penalty: Complex formula with a minimum penalty of 6 months' interest
- Overview: Anyone is eligible to join the credit union through membership in the American Consumer Council. Farmers Insurance FCU dates back to 1936 and is headquartered in Burbank, California.
First Internet Bank - 4.45% APY
- Term (months): 48
- Minimum deposit: $1,000
- Early-withdrawal penalty: 12 months of interest
- About: First Internet Bank takes its name from its status as the first FDIC-insured bank to operate exclusively online. Founded in 1999, it is based in the Indianapolis suburb of Fishers, Ind.
NexBank - 4.45% APY
- Term (months): 48
- Minimum deposit: $10,000
- Early withdrawal penalty: 6 months of interest
- About: NexBank is the fourth-largest bank in Dallas, founded in 1922.
Lafayette Federal Credit Union - 4.42% APY
- Term (months): 48
- Minimum deposit: $500
- Early withdrawal penalty: 16 months of interest
- Overview: Anyone can join Lafayette Federal with a $10 membership in the Home Ownership Financial Literacy Council and $50 or more held in a savings account. Lafayette was founded in 1935 and is headquartered in Rockville, Maryland.
Fast Fact
When asked in late April what they would invest in if they had an extra $10,000, 12% of Googlawi readers said they would open a CD. Back in December and January, 11% and 9% of readers (respectively) said they’d invest extra funds in CDs, with that share dipping even further to 8% in March. While CDs sit below individual stocks as the top response (at 19%), CDs are always a good option for those looking for safer investments.
Though not as common as their three-year and five-year siblings, four-year CDs are offered by banks and credit unions across the country. Not only might a four-year certificate offer the perfect time horizon for your financial plans, but it is also important to anyone establishing a CD ladder.
Pros and Cons of a 4-Year CD
- Guaranteed yield for four years
Guaranteed yield for four years
- Entirely predictable earnings
Entirely predictable earnings
- Potentially higher APY than alternatives
Potentially higher APY than alternatives
- Spending deterrent
Spending deterrent
- Safe and virtually risk-free
Safe and virtually risk-free
- If rates drop, you might wish you'd chosen a longer CD
If rates drop, you might wish you'd chosen a longer CD
- Future rate environment can't be predicted
Future rate environment can't be predicted
Pros Explained
- Guaranteed yield for four years: A CD's annual percentage yield (APY) is presented to you before you open it, and once you make your deposit, you'll be locking in that return for the full duration of the CD. The bank cannot change the rate.
- Entirely predictable earnings: Because you'll know the rate, and because it's locked, you can calculate exactly how much your CD will be worth on its maturity date. Changes in financial markets or other factors in the news will have no bearing on your earnings.
- Potentially higher APY than alternatives: In some rate environments, you can earn a higher interest rate the longer you're willing to commit your funds. So when shopping around, check if stretching to a four-year CD can increase your rate.
- Spending deterrent: Because you can't make withdrawals from a CD without paying a penalty, you may be dissuaded from spending your savings on unplanned purchases.
- Safe and virtually risk-free: If you open your CD at an FDIC-insured bank or NCUA-insured credit union, your CD deposits of up to $250,000 per person and per institution are protected, even if the institution fails.
Cons Explained
- Incurs penalty if withdrawn early: If you need to cash out your CD before maturity, you can do so, but you'll be charged an early withdrawal penalty. The amount of that penalty will be spelled out in your CD agreement, which you should review before committing your funds, as penalty policies can vary widely across institutions.
- Only allows you to make a single deposit: The vast majority of CDs are designed to take one initial deposit that is kept on hold through the CD's term. Only niche "add-on" CDs offer the ability to deposit additional funds.
- If rates rise, you might wish you'd chosen a shorter CD: If you lock in your 4-year CD rate and then rates climb higher, you may wish you had opted for a shorter CD so you could have gotten out of your current rate sooner and opened a new CD at a higher rate.
- If rates drop, you might wish you'd chosen a longer CD: If rates go down after you lock in a 4-year CD, you may wish you'd gone for a 5-year term instead, to retain your rate further into the future.
- Future rate environment can't be predicted: Only very occasionally is it clear where interest rates are headed. Most of the time, anything is possible months or years down the road, making it difficult to gauge what the best CD moves are at any given time.