The top 4-year CDs have something in common. They offer:
- A higher yield than savings and money market accounts
- A guaranteed rate of return
- A safe place for investments when you choose a federally-insured account
Finding the best 4-year CD rates
These are the top nationally available 4-year CD rates. Evaluate the offers, then calculate how much interest you would earn when your CD matures.
|Communitywide Federal Credit Union||3.20%||$2,000|
|Main Street Bank||3.15%||$500|
Finding the best 4-year CD rates will require some research. Comparing deals offered by online financial institutions is a good place to start.
The best 4-year CDs pay nearly three times the national average of 1.15 percent APY, according to Bankrate’s most recent national survey of banks and thrifts.
Top account details
- KS StateBank is headquartered in Manhattan, Kansas. The bank, which was founded in 1969, was known as the Kansas State Bank of Manhattan until 2015. In Bankrate’s latest review of its financial health, the bank earned five out of five stars.
- Communitywide Federal Credit Union is based in South Bend, Indiana. It was established in 1967 and earned five out of five stars in the latest review of its financial health.
- Main Street Bank was founded in 2005 and is based in Bingham Farms, Michigan. It earned four out of five stars in the latest review of its financial health.
- Citizens Access is a new online division of Citizens Bank. It’s headquartered in Providence, Rhode Island and offers competitive CD rates and a savings account. Citizens Bank earned four out of five stars in the latest review of its financial health.
- Popular Direct is a subsidiary of Popular Inc., a financial services firm serving the United States, Puerto Rico and the Caribbean. Popular Direct accounts are opened through Popular Bank, a federally insured institution that earned three out of five stars in Bankrate’s latest review of its financial health.
Factor in flexibility
With the Federal Reserve gradually raising its benchmark interest rate, investing in a long-term CD may not seem like the best idea. You risk losing out on better deals as banks and credit unions slowly increase their rates.
A typical CD comes with an early withdrawal penalty of six months’ interest. Looking for a deal that isn’t too expensive to exit may be worth it, especially if you may ditch your 4-year CD before it matures. Another option is to look for institutions giving savers a one-time rate increase over the course of their terms.