Best 4-Year CD Rates For July 2020 | Bankrate

Best 4-year CD rates — July 2020

Sunday, July 05, 2020

The top 4-year CDs have something in common. They offer savers a higher yield than savings accounts and money market accounts. Combine that with a guaranteed rate of return and safety (when you choose a federally-insured account) and these investments may be worth your consideration.

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 more than twice the national average of 0.47 percent APY, according to Bankrate’s most recent national survey of banks and thrifts.

Today’s top widely available 4-year CD pays around 1.40 percent APY. This may be a good place to invest for long-term financial obligations, like starting a business.

As you compare rates, pay attention to details. An account that doesn’t require you to fork over too much money upfront is ideal. Consider finding offers that don’t force you to jump through extra hoops — such as opening a new checking account — before you can open a CD.

Bankrate's guide to choosing the right cd rate

Why you can trust Bankrate

Bankrate has more than four decades of experience in financial publishing, so you know you’re getting information you can trust. Bankrate was born in 1976 as “Bank Rate Monitor,” a print publisher for the banking industry and has been online since 1996. Hundreds of top publications rely on Bankrate. Outlets such as The Wall Street Journal, USA Today, The New York Times, CNBC and Bloomberg depend on Bankrate as the trusted source of financial rates and information.

Methodology for Bankrate's Best CD Rates

At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers and our content is thoroughly fact-checked to ensure accuracy.

Bankrate regularly surveys around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.

To find the best CDs, our editorial team analyzes various factors, such as: annual percentage yield (APY), the minimum needed to earn that APY (or to open the CD) and whether or not it is broadly available. All of the accounts on this page are insured by Federal Deposit Insurance Corp. (FDIC) banks or by the National Credit Union Share Insurance Fund (NCUA) at National Credit Union Administration (NCUA) credit unions.

When selecting the best CD for you, consider the purpose of the money and when you'll need access to these funds to help you avoid early withdrawal penalties.

Best 4-year CD rates for July 2020

Note: The APYs (Annual Percentage Yield) shown are as of July 1, 2020. The APYs for some products may vary by region.

These are the top widely available 4-year CD rates. Evaluate the offers, then calculate how much interest you would earn when your CD matures.

Best 4-year CD rates for July 2020

Golden 1 Credit Union – 1.40% APY; $500 minimum deposit

Golden 1 Credit Union has one million members with its main office being located in Sacramento, Calif. Golden 1 Credit Union has 72 branches in California, and has been around since 1933. Membership to Golden 1 Credit Union is open to all Californians.

Non-Californians can join Golden 1 Credit Union if they are a registered domestic partner or family member of a member. They can also join if they’re a member of one of the select employee groups.

In addition to CDs, Golden 1 Credit Union also offers a money market account, checking and savings accounts. The credit union also has credit cards and loans.

TIAA Bank – 1.31% APY; $5,000 minimum deposit

TIAA Bank is a division of TIAA, FSB. TIAA Bank has 10 financial centers, all located in Florida.

Besides its TIAA Bank CD, TIAA Bank also offers a Yield Pledge Checking account, a Yield Pledge Money Market and other products. TIAA Bank’s CDs require $5,000 to open one. TIAA Bank also offers IRA-eligible CDs.

VyStar Credit Union – 1.30% APY; $500 minimum deposit

VyStar Credit Union was founded in 1952. It was originally called Jax Navy Federal Credit Union and it was chartered at Naval Air Station in Jacksonville, Florida.

Membership at VyStar Credit Union is open to anyone who works or lives in the 49 Florida counties or the four Georgia counties listed on its website.

VyStar Credit Union offers 10 CDs terms ranging from three months to five years. It also offers a one-year CD for Kid’s, VyTeen, Bravo and Achieve members only

First Internet Bank of Indiana – 1.26% APY; $1,000 minimum deposit

First Internet Bank of Indiana was the first FDIC-insured financial institution to operate entirely online, according to the bank’s website. First Internet Bank of Indiana opened in 1999 and is available in all 50 states.

First Internet Bank offers eight terms of CDs, a money market savings account with a competitive yield, a savings account and two checking accounts.

SchoolsFirst Federal Credit Union – 1.25% APY; $20,000 minimum deposit for this APY

SchoolsFirst Federal Credit Union was formed during the Great Depression in 1934. The credit union, created by school employees, has 50 branches.

SchoolsFirst serves the education community in California. Certain school employees, certain retired school employees and immediate family members of existing SchoolsFirst Federal Credit Union are eligible to join.

The credit union has low minimum balances and CD terms from as short as 30 days to as long as five years. The more money you put in your CD, the higher the APY. CDs at SchoolsFirst have four balance tiers: $500, $20,000, $50,000 or $100,000.

Quontic Bank – 1.21% APY; $500 minimum deposit

Quontic Bank was established in 2005 and has its headquarters in New York. Quontic Bank calls itself the Adaptive Digital Bank.

You only need $500 to open a Quontic Bank CD. Quontic Bank offers five terms of CDs, ranging from one year to five years.

In addition to its CDs, Quontic Bank also has a money market account, a High Yield Savings account and two checking accounts.

Navy Federal Credit Union – 1.20% APY, $1,000 minimum deposit

Navy Federal Credit Union has more than 8.8 million members and is the world’s largest credit union. It has a global network of 340 branches. Navy Federal Credit Union has its headquarters in Vienna, Virginia.

Membership at Navy Federal Credit Union is open to all Department of Defense and Coast Guard Active Duty, civilian, contract personnel, veterans and their families.

In addition to CDs, Navy Federal Credit Union also offers checking and savings accounts, loans and credit cards.

Randolph-Brooks Federal Credit Union – 1.11% APY; $1,000 minimum deposit for APY

Randolph-Brooks Federal Credit Union has more than 55 branches. It has at least one location in Austin, Corpus Christi and San Antonio.

Randolph-Brooks Federal Credit Union was established in 1952 and has its headquarters in Live Oak, Texas.

Besides its CDs, it offers a Really Free Checking account that doesn’t require a minimum balance and it doesn’t have a monthly fee.

 

Coronavirus and Your Money

The COVID-19 pandemic is deepening financial hardships for millions of Americans.

While CD rates are not likely to rise in this environment, their stability can offer some comfort to those who still have extra cash on hand. The rate on a CD stays the same during the deposit term and the account holder knows exactly when that term will end. With their locked-in interest rates, CDs are also a great choice to avoid the stock market’s ups and downs.

Who is a 4-year CD good for?

A 4-year CD is good for someone who wants to earn a certain amount of money. This is a product to consider if this is long-term money that you don’t want exposed to volatility. Money invested in the stock market would be an example of funds that are subject to volatility and uncertainty – and a possible risk of principal.

So, a 4-year CD can be a good option if you value safety and don’t want surprises – since you’ll earn a fixed APY. Your CD is protected if it’s in a 4-year CD at an FDIC-insured bank or in a 4-year CD at a National Credit Union Administration (NCUA) credit union. FDIC banks and NCUA credit unions are both backed by the full faith and credit of the U.S. government. But there are limits to the insurance. Each depositor at an FDIC bank is insured to at least $250,000 per insured bank, according to the FDIC. The standard share insurance amount at an NCUA credit union is $250,000 per share owner, per insured credit union, for each ownership category at an NCUA credit union, according to the NCUA.

Why get a 4-year CD?

Get a 4-year CD if you have money that you’re looking to grow for more than four years. Generally, if you withdraw your money from the CD before the CD matures in four years, you’ll incur an early withdrawal penalty. If applicable, this will take away from your interest earnings.

You should get a 4-year CD if you want an APY that’s potentially higher than savings accounts and money market accounts. If you feel as if APYs will be stagnant or decreasing in the near future, then a 4-year CD is a way to earn an APY that is currently beating the inflation rate.

4-year CD yields offered by popular banks – July 2020

Synchrony Bank – 1.15% APY; $2,000 minimum deposit

Synchrony Bank offers 12 CD terms with competitive yields. But there are higher APYs available at other banks. Synchrony Bank also offers a savings account and a money market account.

The bank is an online-only financial institution that’s part of a company that also issues credit cards. The bank’s relatively new mobile app makes it possible to transfer funds and check account balances at any time from anywhere.

Marcus by Goldman Sachs – 1.10% APY; $500 minimum deposit

Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA. Marcus offers a variety of CDs, three no-penalty CD terms and a savings account.

The online bank has a wide variety of CDs. This includes nine regular term CDs and three no-penalty CDs. Marcus added a no-penalty CD to its lineup in November 2018.

Live Oak Bank – 1.00% APY, $2,500 minimum deposit

Live Oak Bank is an online bank continuing to offer competitive yields. Though the minimum deposit may be slightly steep for new savers without much money to lock up, it’s still accessible to others looking for a safe place to park their short-term funds.

In addition to CDs, the bank offers a high-yield savings account with no monthly maintenance fees and interest that compounds daily. Established in 2008, Live Oak Bank is a federally-insured financial institution. Supporting small business owners is part of its mission statement.

Capital One Bank – 0.90% APY; no minimum deposit

Capital One has both a brick-and-mortar presence and is an online bank. It offers competitive nine terms of regular CDs.

Capital One CDs and its 360 Performance Savings account don’t have minimum balance requirements. Its savings account earns the competitive APY on all balances.

Capital One’s 360 Checking account also doesn’t have a minimum balance requirement to open that account. Capital One is based in McLean, Virginia.

Pros and cons of a 4-year CD

Pros of a 4-year CD

  • Earn a fixed APY.
  • If your account is insured by the FDIC or the NCUA – and you're within the previously mentioned insurance guidelines – your money will be backed by the full faith and credit of the U.S. government.
  • You’d lock in an APY that’s ahead of the current inflation rate.
  • If APYs end up decreasing, you’d be locked in for the next few years.
  • A 4-year CD could help you diversify some of your savings/investments.

Cons of a 4-year CD

  • A 4-year CD may be long-term for a CD at this point – especially if APYs start increasing dramatically.
  • If you need to make a withdrawal, generally, you’ll incur a penalty for that early withdrawal.
  • A 4-year CD might not keep up with inflation over time, causing your money to lose purchasing power.

Factor in flexibility

The Federal Reserve lowered interest rates three times in 2019 and there were a pair of emergency cuts in March 2020. The future is uncertain and CD rates are likely to decrease in the near future.

A typical CD has an early withdrawal penalty. If your investment strategy calls for putting your money into a 4-year CD, consider looking for a deal that isn't too expensive to exit, especially if you may ditch your account before it matures. Another option is to look for institutions giving savers a one-time rate increase over the course of their terms.

The best 4-year CD rates for July 2020

Institution APY Minimum deposit for APY
Golden 1 Credit Union 1.40% $500
TIAA Bank 1.31% $5,000
VyStar Credit Union 1.30% $500
First Internet Bank of Indiana 1.26% $1,000
SchoolsFirst Federal Credit Union 1.25% $20,000
Quontic Bank 1.21% $500
Navy Federal Credit Union 1.20% $1,000
Randolph-Brooks Federal Credit Union 1.11% $1,000

Learn more about other CD terms:

Learn more about CDs:

 

CD Tools

CD Calculator

Use this free CD calculator to find out how much interest is earned on a CD.

CDS

Savings Calculator

Use this simple savings calculator to estimate your investment growth over time.

CDS

Best rates available

Resources