Best 4-Year CD rates of July 2024

Best 4-Year CD rates

• Fidelity certificates of deposit.
• First Internet Bank certificates of deposit.
• Barclays Online certificates of deposit.
• First National Bank of America certificates of deposit.
• Bread Savings certificates of deposit.

Fidelity certificates of deposit

BLUEPRINT RATING

Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.

BLUEPRINT RATING

Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.

CD APY 48 month

4.50%

Minimum deposit requirement

$100 to $1,000

What should you know

Fidelity is an investment platform, meaning all of the CDs available through it are brokered by Fidelity and actually issued by another financial institution. The exact yield depends on the issuer, but new-issue, four-year CDs here currently have rates around 4.50% APY. You purchase a whole CD for a minimum of $1,000 or buy CD fractions in increments of $100. You can breathe easy knowing that brokered CDs have many of the same benefits as direct CDs. Every Fidelity CD is covered by the Federal Deposit Insurance Corporation (FDIC), for instance. A big difference, however, pops up in the case of early withdrawals. You can’t pay a penalty and cash out a brokered CD — instead, you must typically resell it as a “secondary CD” on the same investment platform. A successful resell isn’t guaranteed, but you may be able to sell it for a greater (or a lesser) amount than its par value.

Pros and cons

Pros

• High yield.
• No monthly service fee or early withdrawal charge.
• Deposit insurance up to $250,000.

Cons

• Trading fees may apply.
• It may lose value if you want to sell early.

First Internet Bank certificates of deposit

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Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.

BLUEPRINT RATING

Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.

CD APY 48 month

4.45%

Minimum deposit requirement

$1,000

What should you know

First Internet Bank, sometimes called the First Internet Bank of Indiana, features a four-year CD that offers 4.45% APY and requires only a $1,000 minimum deposit, which is on the lower end for the industry. Its mobile apps are well rated — earning 4.8 stars out of 5 stars on iOs; 4.4 stars on Android — and the bank has an A+ rating from the Better Business Bureau. Plus, if you’re considering getting multiple CDs, you can choose from seven more terms, between three to 60 months, all with strong yields. An early withdrawal, however, will cost you 360 days of interest, which, while standard, isn’t the best. And while the bank’s name might clue you in, there are no physical branches, so you can’t do business in person.

Barclays Online certificates of deposit

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On Barclays’ website

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CD APY 48 month

3.50%

Minimum deposit requirement

$0

What should you know

If you’re a beginning saver, Barclays might be for you. The early withdrawal penalty is rather lenient — only 180 days’ worth of simple interest for terms greater than 24 months — and there isn’t a required minimum deposit amount. You can open an account without forking over any cash within the first 14 days and you can earn interest on amounts starting at one cent. And, most importantly, you’ll earn a high yield on whatever savings you put away. The mobile app has a nearly perfect rating on the Apple App Store, 4.8 out of 5 stars, but it slips slightly to 4.4 stars on Android devices, which is still a strong rating given that it has a greater magnitude of reviews with more than ten million downloads. Upon the CD’s maturity, you have 14 calendar days to make a change before it automatically renews. The biggest con is that if you do need to cash out early and your CD hasn’t earned enough interest to cover the penalty, the difference can come from your principal.

First National Bank of America certificates of deposit

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On Fiona’s website

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CD APY 48 month

4.50%

Minimum deposit requirement

$1,000

What should you know

While the 4.50% APY may leave stars in your eyes, be sure that you can commit your funds to the entire four-year term here because the early withdrawal penalty is especially steep for terms between 48 to 84 months: You’ll pay 540 days’ worth of interest if you need to access your cash before the maturity date. You’re also not able to take interest disbursements more than quarterly, as that’s how often the yield compounds. But, if you don’t have a problem committing your funds, including your interest, for that time period, the competitive yield might be enough to draw both your attention and your money. If long-term CDs interest you in general, check out the five-, six- and seven-year CDs offered here as well.

Bread Savings certificates of deposit

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On Fiona’s website

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Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.

CD APY 48 month

4.15%

Minimum deposit requirement

$1,500

What should you know

Bread Savings keeps its CD ingredients simple: For a $1,500 minimum deposit, you can get a competitive yield on any one of five traditional CDs. The four-year term offers a 4.15% APY, which is top-notch. Sadly, the rate bump (0.05 percentage points) that you can get for allowing a one-, two- or three-year CD to automatically renew doesn’t apply to four- or five-year CDs. If you need to take your savings out of the oven before the timer is up, you’ll forfeit 365 days’ interest for terms of four years and greater, which is a standard penalty given the term length. And the fee could eat into your CD’s principal if it hasn’t yet earned enough interest.

Compare the best 4-year CDs

INSTITUTION	4-YEAR CD APY	MIN. DEPOSIT
Fidelity certificates of deposit	4.50%	$100 to $1,000
First Internet Bank certificates of deposit	4.45%	$1,000
Barclays Online certificates of deposit	3.50%	$0
First National Bank of America certificates of deposit	4.50%	$1,000
Bread Savings certificates of deposit	4.15%	$1,500

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What is a 4-year CD?

A four-year CD is a type of savings product where you deposit money for four years or 48 months. Think of it like a locked box: You put money in, lock it for four years and the bank pays you interest for keeping it tucked away. 

The bank generally offers a higher interest rate for CDs than regular savings accounts because you promise not to touch the money for the set time. This is great if you want a secure place for your savings with a guaranteed return. 

“You also do not want to use the funds before the four year term is up or you will have to pay a penalty,” said Kendall Meade, a certified financial planner (CFP) at SoFi.

A four-year CD isn’t meant to act as a place for your regular savings, which you may need to access occasionally in case of a rainy day or a celebration.

Short-term vs. long-term CDs

Short-term CDs usually last a few months to a year. For example, three-month CDs and one-year CDs are usually considered to be short-term. Long-term CDs last more than one year, with some banks offering ones with maturity dates as far out as 10-years. 

Traditionally, long-term CDs have higher interest rates than short-term because you’re promising the bank that it can keep your money longer. But this isn’t always the case. Nowadays, as the market fluxes due to pressure from the Federal Reserve’s fight with inflation, many banks offer their best rates on one-year terms. 

Short-term CDs are good if you think you’ll need your money soon. Long-term CDs are better if you can wait and want to potentially earn more interest. Before choosing, ask yourself: “How long can I go without touching this money?” Let that answer be your guide.

Remember that the term and the amount matter. For example, you may be fine to invest $10,000 for a cozy six months, but comfortable investing only $1,000 for five years. 

If you’re at ease with a whole range of terms and don’t know where to start, consider splitting the difference. You could choose to split your available deposit into two or more CDs, both short- and long-term. 

A CD ladder is a strategy where you spread your investment across multiple CDs with different maturity dates. For a four-year CD ladder, you might invest in CDs that mature in one, two, three and four years. This gives you periodic access to funds while still allowing you to take advantage of varying interest rates.

What is a good CD rate?

When looking for a CD, the interest rate is key. It’s how much extra money the bank gives you for keeping your money locked in. But what’s considered a “good” rate? 

A good CD rate is typically above the national average. As of June 17, 2024, the national average rate for a four-year CD is 1.36% APY, according to the Federal Deposit Insurance Corp. (FDIC). So, anything above this could be seen as good. 

Yet the best CD rates set the bar higher. Top-notch four-year CD rates exceed 4.00% APY. It’s like shopping; just as you’d want more value for your money, with CDs you’d want more interest for your savings. 

Aim for a rate that’s well above average to maximize your earnings. Use a CD calculator to estimate how much you could earn. It’s also important that the bank or credit union is insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA). 

Choosing the best CD term and rate

Picking the right CD can be a bit like choosing the perfect outfit — it needs to fit your goals and be comfortable for your financial situation. Begin by scouting multiple banks and online institutions to discover the top CD rates, especially for terms like four-years. 

But don’t get dazzled just by the rate. Check other aspects: the minimum amount you need to deposit and early withdrawal penalties. Most standard CDs have opening deposits of $1,000 or more, while jumbo CDs usually require at least $100,000 to open an account. Make sure you aren’t stretching your savings too thin. 

“CDs are a great fit for a ‘sinking fund’ if you need the money in four years for a specific purpose, like a down payment for a big purchase,” said Brandon Robinson, president and founder of JBR Associates Financial Services. “If too much ‘lazy money’ is building up in a low interest savings or checking account, then a four-year CD can be a good fit to provide a much higher APY than a bank savings account.” 

Therefore, you should place your emergency fund in a high-yield savings account since you want access to that cash at a moment’s notice without having to pay a penalty. 

Frequently asked questions (FAQs)