Discover® 9-Month Certificate of Deposit term
Annual Percentage Yield
4.25%
Minimum Deposit Requirement
$2,500
Learn More 
On Discover's Website
4.25%
$2,500
Kevin has been writing and creating personal finance and travel content for over six years. He is the founder of the award-winning blog, Family Money Adventure, and host of the Family Money Adventure Show podcast. He has been quoted by publications like Readers Digest and The Wall Street Journal. Kevin's work has been featured in Bankrate, Credible, CreditCards.com, Fox Money, LendingTree, MarketWatch, Newsweek, New York Post, Time, ValuePenguin and USA Today.
Kevin Payne
Kevin has been writing and creating personal finance and travel content for over six years. He is the founder of the award-winning blog, Family Money Adventure, and host of the Family Money Adventure Show podcast. He has been quoted by publications like Readers Digest and The Wall Street Journal. Kevin's work has been featured in Bankrate, Credible, CreditCards.com, Fox Money, LendingTree, MarketWatch, Newsweek, New York Post, Time, ValuePenguin and USA Today.
With eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel. Her work has been featured in Business Insider, The Motley Fool, Bankrate, Investopedia, LendingTree, Student Loan Hero, ValuePenguin, USA Today, Credit Karma, NASDAQ, Yahoo! Finance and more.
Fact Checked
Elizabeth Aldrich
With eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel. Her work has been featured in Business Insider, The Motley Fool, Bankrate, Investopedia, LendingTree, Student Loan Hero, ValuePenguin, USA Today, Credit Karma, NASDAQ, Yahoo! Finance and more.
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Certificates of deposit (CDs) offer guaranteed returns, but one major drawback is you usually can’t withdraw your money before the CD term ends without incurring a fee. That’s why it’s important to know when you might need to access your money before putting it in a CD account.
You can find CD terms to fit almost any time timeline. If you have some money you know you won’t need for the next four years, a four-year CD can offer predictable returns and a competitive APY. Here are the best four-year CD rates currently on the market.
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Show Summary
Best 4-Year CD Rates 2024
We compared 203 CDs from 135 financial institutions to find the best four-year CDs available. Read on to explore annual percentage yields (APYs) and find out why we picked each account. APYs and account details are accurate as of May 3, 2024.
Synchrony Bank Certificates of Deposit
CD APY 48-month
4.00%
Minimum Deposit Requirement
$0
Interest Compounding Frequency
Daily
Learn More
On Fiona.com's Website
4.00%
$0
Daily
Editor's Take
We chose Synchrony’s four-year CD because it offers one of the best rates on the market, and there’s no minimum deposit requirement. You’ll earn high-yield interest on all of Synchrony’s CDs regardless of how much money you’re able to set aside. Account holders can withdraw earned interest at any time during the CD term or let it continue to accrue in the account. Most CDs don’t offer this option.
Pros & Cons
- Competitive APY
- No minimum deposit requirement
- Bump-up CD option
- Can withdraw interest at any time without penalty
- Early withdrawal penalty is equal to 80 days of interest
Details
Interest is compounded daily and credited to the CD monthly. Synchrony’s 24-month CDs are subject to an early-withdrawal penalty of up to 80 days of simple interest at the current rate if you withdraw your principal investment before the maturity date. CDs automatically renew upon maturity following a 10-day grace period. During the grace period, account holders can add or withdraw funds, change CD terms or close the account.
Expert's Take
Synchrony lets you withdraw interest before maturity without penalty. The penalties for early withdrawal of the principal seem pretty standard. Synchrony’s no-penalty CD pays a much lower rate than others, so you can really see the cost of early redemption.
—Jill Fopiano, CEO at O’Brien Wealth Partners
Synchrony Bank CD Rates
| Term | APY |
|---|---|
3 Months
| 0.25%
|
6 Months
| 4.80%
|
9 Months
| 4.90%
|
12 Months
| 4.80%
|
18 Months
| 4.50%
|
24 Months
| 4.20%
|
36 Months
| 4.15%
|
48 Months
| 4.00%
|
60 Months
| 4.00%
|
Barclays Certificates of Deposit
CD APY 48-month
3.50%
Minimum Deposit Requirement
None
Interest Compounding Frequency
Daily
Learn More
On Barclays' Website
3.50%
None
Daily
Editor's Take
Barclays Online four-year CD made our list because its APY is competitive with the top online banks. You can open a Barclays CD account with any deposit amount since there are no minimum requirements. You can leave earned interest in your account to compound, or you can transfer it each month to a Barclays savings account or other linked account. All of Barclays’ CD terms earn high rates, making them an excellent choice for individuals building a CD ladder.
Pros & Cons
- Competitive APY
- No minimum deposit requirement
- Early withdrawal penalty is equal to 90 days of interest
Details
Interest compounds daily and is credited monthly. 24-month CDs are subject to an early-withdrawal penalty of up to 90 days of simple interest at the current rate if you withdraw CD funds before the maturity date. CDs automatically renew upon maturity following a 14-day grace period. During the grace period, account holders can add or withdraw funds, change CD terms or close the account.
Fidelity Certificates of Deposit
CD APY 48-month
4.70%
Minimum Deposit Requirement
$1,000
Interest Compounding Frequency
N/A
Learn More
Read Our Full Review
4.70%
$1,000
N/A
Editor's Take
Fidelity’s brokered four-year CD earns a spot near the top thanks to its high-yield interest rate and the ample protection the Fidelity provides for your deposits. Opening a brokered CD typically requires a $1,000 minimum deposit, which is more than many banks require. The brokerage firm doesn’t allow withdrawals before maturity and therefore, doesn’t charge early withdrawal penalties. Instead, account holders can sell their brokered CDs on the secondary market at any time if needed.
Because Fidelity partners with banks to offer its brokered CDs, you can expand insurance coverage beyond traditional FDIC limits by opening multiple Fidelity CDs. Fidelity CDs don’t automatically renew at maturity, but you can enroll in the brokerage firm’s Auto Roll service to reinvest funds into a new CD.
Pros & Cons
- Ideal for current Fidelity customers
- Competitive APY
- Insured beyond typical FDIC limits
- Requires a Fidelity brokerage account
- No option to withdraw funds before maturity
- Interest doesn’t compound
Details
Fidelity CDs earn simple interest, not compound interest. And Fidelity CDs do not automatically renew at maturity. Rather, Fidelity credits the principal CD balance and interest to your account at maturity. Account holders can enroll in Fidelity’s Auto Roll service to automatically reinvest CD funds into new CDs.
First Internet Bank Certificate of Deposit (Personal)
CD APY 48-month
4.50%
Minimum Deposit Requirement
$1,000
Interest Compounding Frequency
Monthly
Learn More
Read Our Full Review
4.50%
$1,000
Monthly
Editor's Take
First Internet Bank’s four-year CD made our list because it offers a high APY with a $1,000 minimum deposit. First Internet Banks CDs are perfect for a CD ladder, with terms ranging from three months to five years.
Pros & Cons
- Savers earn impressive rates across all CD terms
- Simple online account opening
- Interest compounds monthly
- No add-on or bump-rate CD options
Details
CD interest compounds and is credited to your account on a monthly basis. Savers are subject to an early withdrawal penalty when taking money out ahead of maturity. The penalty ranges from 90 days of interest to 360 days of interest, depending on the CD term.
Capital One Certificates of Deposit
CD APY 48-month
3.95%
Minimum Deposit Requirement
$0
Interest Compounding Frequency
Monthly
Learn More
Read Our Full Review
3.95%
$0
Monthly
Editor's Take
We picked Capital One 360’s four-year CD because it offers one of the highest APYs around with no minimum deposit requirement. Like most CDs, Capital One CD accounts are FDIC-insured up to $250,000. They also offer flexibility, with the option to receive payouts monthly, annually or at the end of the CD term.
Pros & Cons
- No minimum deposit requirement
- Flexible interest payout options
- Backed by a reputable institution
- Other banks offer higher APYs
- Few branches compared to other national banks
- Strict early withdrawal penalty
Details
Interest on Capital One’s 18-month CD compounds daily and gets credited to your account monthly. Upon your CD’s maturity, you have a 10-day grace period during which you can withdraw from your CD before it renews for another term. If you withdraw your principal balance before maturity, you’ll pay a penalty fee equal to six months of interest.
Summary: Best 4-Year CD Rates
Methodology
To create this list, Forbes Advisor analyzed 142 CD accounts across 84 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. For the star rating, we ranked each institution on 11 data points within the categories of APY, minimums, compound interest schedule, customer experience, digital experience, available terms and overall availability. We also analyzed and ranked each institution by individual term.
The following is the weighting assigned to each category:
- APY: 50%
- Customer and digital experience: 20%
- Minimum deposit requirement: 12.5%
- Compound interest schedule: 7.5%
- Availability: 5%
- Available terms: 5%
CD accounts with higher APYs rose to the top of the list. Minimum deposit requirements of $10,000 or higher affected scores negatively. Accounts with daily compounding interest schedules were scored higher than those with monthly or quarterly schedules. To appear on this list, the account must be nationally available.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.
What Is a 4-Year CD?
A four-year CD is a certificate of deposit with a term of four years or 48 months. Four-year CDs are available at many banks, credit unions and other financial institutions.
Four-year CDs are typically considered long-term CDs and may come with higher interest rates than shorter terms. Because CDs require you to leave your funds untouched for a certain period of time, they often come with higher rates than more flexible savings products, like savings accounts and money market accounts. However, those accounts allow more frequent withdrawals and deposits. A four-year CD typically only allows one initial deposit, and if you withdraw your funds before the four-year period ends, you’ll usually have to pay a penalty.
When Is a 4-Year CD a Good Idea?
Four-year CDs require you to keep deposits locked up for 48 months. With an extended term length, four-year CDs are best for medium- to long-term savings goals.
These CDs are also good for individuals who want to earn safe, predictable and guaranteed returns over an extended period. Deposits into CD accounts are insured up to allowable limits. CDs kept at banks are FDIC insured up to $250,000 per depositor, per insured bank, for each account ownership category. CDs at federal credit unions and most state-chartered credit unions are insured by the National Credit Union Administration (NCUA) for the same amount.
Can You Withdraw From a CD Before Maturity?
Most banks allow you to withdraw CD funds early, but you’ll typically have to pay an early withdrawal penalty to do so. In most cases, the penalty is equal to a certain number of days’ or months’ worth of interest, based on your CD term length. Longer CD terms generally carry more significant penalties.
Some banks offer no-penalty CDs, which provide more flexibility to withdraw funds as needed without repercussions. Typically, these special CDs earn lower APYs than traditional CDs.
How To Choose the Best 4-Year CD
First, compare multiple banks and financial institutions to find the best CD rates available for four-year terms. Other factors should play a role in your decision regardless of the CD term length and APY. Consider minimum deposit requirements, as you won’t want to deposit more than you can afford into a CD account.
A four-year CD is generally better for savers with medium- to long-term goals. Remember, your funds are inaccessible for four years unless you pay an early withdrawal penalty. If you need more flexibility, consider a no-penalty CD or a CD ladder.
How To Build a CD Ladder With a 4-Year CD
A CD ladder is a savings strategy that involves opening multiple CD accounts with varying terms to maximize interest earning while maintaining liquidity and flexibility.
To build a CD ladder that includes a four-year CD, you could open the following CDs and split your funds equally across each one:
- 6-month CD
- 12-month CD
- 18-month CD
- 24-month CD
- 36-month CD
- 48-month CD
As each CD reaches maturity, you then roll over the funds into another 48-month CD—or you can withdraw the money if you need it. Having CDs with different maturity dates allows you to take advantage of higher APYs on longer terms while also gaining access to your funds every six to 12 months. A CD ladder can help you avoid paying costly early withdrawal penalties if you need to access your savings.
Find The Best CD Rates Of 2024
Frequently Asked Questions (FAQs)
Is a 4-year CD worth it?
Four-year CDs are worth it if you have funds you won’t need to access for four years and you can lock in a high interest rate. Expensive early withdrawal penalties can undermine your saving efforts, so only deposit funds you can live without for an extended period.
How does a certificate of deposit work?
Financial institutions offer competitive, guaranteed interest rates in exchange for you agreeing to keep the money you deposit untouched for the duration of the CD term. CD terms can range from seven days to 10 years or longer.
What is the main disadvantage of a certificate of deposit?
The main disadvantage of CDs is that you often can’t withdraw money without paying a penalty until the CD term ends. Another disadvantage may be the fixed interest rate. While guaranteed returns can be one of the biggest draws of a certificate of deposit, they can also be a disadvantage. If interest rates go up, you could miss out on higher APYs, especially if your funds are tied up in a long-term CD. Also, your CD rate may not earn enough to maintain pace with inflation.
Do CDs earn more than savings accounts?
CDs generally offer higher APYs than savings accounts. Banks and credit unions often reward CD customers with higher rates because funds sit untouched in the account. Some high-yield savings accounts may offer higher rates comparable with CDs.
