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Best 4-Year CD Rates October 2024

The best 4-year CDs or Certificates of Deposit are often the top choice when comparing investment options. In addition to locking in funds for 4 year at a fixed interest rate, these CDs often offer higher yields than national averages, ensuring consistent returns without fluctuating rates.

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Overview

Capital One was founded in 1988 in Richmond, Virginia, and has become one of the most recognized names in finance. It originated as a credit card company but has since expanded its services, offering various financial products, including banking, loans, and investment solutions. Their main attraction is leveraging technology to provide more innovative financial solutions that can be tailored to individual needs. Capital One sets itself apart with its user-friendly platforms and digital tools that can simplify business and personal finance for its customers.

Pros

pros iconNo minimum deposit requirement

pros iconCompetitive and guaranteed CD interest rates

pros iconOption to collect interest at end of the term, monthly, or annually

Cons

cons iconLower APYs on short term CDs compared to competition

cons iconEarly withdrawal penalties

  • No minimum Min. deposit
  • 3.75% 48-Month APY
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Overview

Marcus is an online banking provider owned by Goldman Sachs. Marcus was launched in 2016 to offer products designed to address consumer pain points regarding personal finance.

Marcus is named after Goldman Sachs’ founder, and its online platform combines digital technology with the financial strength and 150-year history of Goldman Sachs. Marcus has over $50 billion in bank deposits and $5 billion in consumer loan balances in the United States and the United Kingdom, all without the traditional brick-and-mortar branch model.

Marcus is a public company: stock ticker NYSE: MCS.

Marcus by Goldman Sachs offers:

  • High-Yield Savings
  • A variety of CD products
  • Credit Cards

As of January 2023, Marcus no longer offers new personal loans.

Pros

pros iconHigh APYs

pros iconLow minimum deposit

pros iconNo monthly fees

Cons

cons iconEarly withdrawal penalties

cons iconNo partial withdrawals

cons iconNot a liquid investment

  • $500 Min. deposit
  • 4.00% 48-Month APY
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Overview

Discover was created by Sears in 1985 as a credit card company. Since then, it has branched out into a fully-fledged financial institution and is one of the biggest financial brands in America. Discover provides credit cards, online banking services, personal loans, student loans, and home loans.

Currently based in Riverwoods, Illinois, Discover has more than 50 million customers in the US and over 17,000 employees. The financial powerhouse offers all the benefits of a full-service bank with an excellent online presence and top-quality customer service.

Discover is a public company: stock ticker NYSE: DFS.

Pros

pros iconDaily compounding interest.

pros iconMany term options.

pros iconStart accruing interest immediately.

Cons

cons icon$2,500 minimum deposit.

cons iconNo bump-up or no-penalty CD options.

  • $3K Min. deposit
  • 3.60% 4-Year APY
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Overview

Synchrony is a leading consumer financial services company that offers a wide range of financial solutions, including credit cards, savings accounts, and other consumer financing products. Known for its partnerships with major retailers and businesses, Synchrony provides private-label credit cards and promotional financing options to help consumers make purchases more affordable. The company also offers a variety of savings products, such as high-yield savings accounts and certificates of deposit, with a strong focus on digital services. Synchrony’s mission is to provide flexible and accessible financial solutions to its customers.

Synchrony is listed on the NYSE under the ticker SYF.

Pros

pros iconVariety of CD terms

pros iconCompetitive rates

pros iconNo minimum deposit

Cons

cons iconNo terms over 5 years

cons iconOnly one term option for No-Penalty and Bump-Up CDs

  • No minimum Min. deposit
  • 4.00% 48-Month APY
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Overview

Quontic Bank is an online-only, FDIC-insured bank based in New York City, NY. The bank offers multiple deposit account options with reasonable opening deposit minimums and competitive annual percentage yields (APYs). Quontic Bank’s primary goal is to innovate traditional banking without losing the personal connection with its customers.

Quontic offers checking and savings accounts, CDs, as well as a variety of mortgage loan products. 

Quontic Bank also offers a really cool, first-of-its-kind Pay Ring, a wearable payment device.

Pros

pros iconNo monthly service fees

pros iconHighest rate on 6-month CD

pros iconFDIC insured

Cons

cons icon$500 minimum deposit required

cons iconFunding account only through money transfer

  • $500 Min. deposit
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Overview

Alliant Bank has operated under its existing brand since December 2003. However, the company’s history can be dated back to 1888. With five physical branches in Northern and Central Missouri, Alliant Bank offers both online personal and business banking. The financial company is also a full-service bank registered with the FDIC. Alliant Bank’s ethos is firmly built around community partnership and working together with its customers on a personal basis.

Alliant Bank is a public company: stock ticker NASDAQ: LNT

Pros

pros iconCompetitive rates, especially on long-term CDs

pros iconFDIC insured

pros iconCD laddering

Cons

cons icon$1,000 minimum deposit

cons iconInterest compounded monthly, not daily

  • $1K Min. deposit
  • 4.05% 48-Month APY
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Overview

Ally Financial is headquartered in Sandy, Utah, and was founded in 2009. As a full-service online bank, it offers its customers competitive interest rates, no minimum balance requirements, low fees, and round-the-clock customer service. Ally Bank is the digital banking division of Ally Financial Inc. Ally is best suited to customers familiar with online banking using a PC, tablet, or mobile device. The banking division offers checking & savings, credit card, money market, and certificate of deposit accounts. In addition, other Ally Financial divisions offer investing and retirement services, mortgage loans, vehicle financing, and insurance services with Ladder.

Ally is a public company: stock ticker NYSE: ALLY

Pros

pros iconNo minimum balance requirements

pros iconVariety of CD terms and types

pros iconNo monthly maintenance fees

Cons

cons iconNo cash deposit

cons iconNo branch access

cons iconEarly withdrawal penalties

  • No minimum Min. deposit
  • 3.60% Raise Your Rate CD
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Overview

Pentagon Federal Credit Union (PenFed), established in 1935, is now the second-largest federal credit union in the US. The company boasts over 2.8 million members and over $33.5 billion in assets. PenFed offers a wide range of financial products, including checking, savings, certificates, credit cards, auto loans, mortgage and home equity loans, and more. PenFed has partnered with Sparrow to connect credit union members with pre-qualified rates from over 15 lenders.

Headquartered in Virginia, PenFed is regulated by the National Credit Union Administration.

Pros

pros iconWide selection of terms and certificate types

pros iconOffers education certificate

pros iconFDIC-Insured up to $250,000

Cons

cons iconNo no-penalty CD option

cons iconMust open and maintain a savings account to become a member.

  • $500 Min. deposit
  • 3.20% Money Market Certificate
  • 3.10% IRA certificate
  • 3.10% Coverdell Education Certificate
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Overview

Popular Direct traces its lineage back to 1893, as it’s a subsidiary of Popular, Inc., founded in Puerto Rico. With over a century of banking expertise, the company has emerged as a significant financial player, focusing on providing its customers with high-yield savings products and competitive CD rates. Their commitment to deliver seamless online banking experiences has led to massive technological advances. The main selling point for Popular Direct is its dedication to offering attractive interest rates. While many banks have expanded services, this company focuses on high-yield opportunities, specializing where others have broadened.

Pros

pros iconAccounts with highly competitive rates

pros iconNo monthly fees

pros iconExtended phone customer service hours

Cons

cons iconHigh minimum deposit requirements

cons iconExcess withdrawal fees

cons iconThe mobile app has limited capabilities and low customer ratings

  • $10K Min. deposit
  • 4.00% 48-Month APY
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Overview

Sallie Mae has existed since 1973, initially as a federally guaranteed student loan program. It has been a private company since 2004. They stopped servicing federal loans in 2014 and now focus on private student loans and savings accounts. One of its main focuses is catering to students looking for flexible repayment terms.

Sallie Mae’s savings products include:

  • A standard savings account called SmartyPig
  • Money Market Accounts
  • Certificates of Deposit Accounts
  • High-Yield Savings Accounts

Sallie Mae is a public company: stock ticker NASDAQ: SLM.

Pros

pros iconCompetitive rates on CDs

pros iconVarious types of savings accounts

pros iconNo monthly fees

Cons

cons iconNo physical locations

cons iconLimited customer support phone hours

  • $3K Min. deposit
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Overview

First National Bank of Pennsylvania (F.N.B.) is headquartered in Pittsburgh, Pennsylvania. Its roots can be traced back to 1864 when the First National Bank of West Greenville was founded. Today, it operates across seven states and Washington, D.C., offering a wide range of financial services, including commercial and consumer banking, wealth management, loans, insurance, and more. It has to be mentioned that First National Bank also has an eStore featuring more than 30 financial products and services that make this bank feel like a 1-stop-shop for almost all of your financial needs.

With over 350 branches in the key metropolitan areas, they serve Pennsylvania, Ohio, Maryland, Washington DC, Virginia, North Carolina, South Carolina, and West Virginia residents. This bank has grown significantly through acquisitions and now ranks among the 50 largest U.S.-based bank holding companies, with assets exceeding $20 billion.

The company is publicly traded under the stock ticker “FNB” on the New York Stock Exchange.

Pros

pros iconOffers competitive interest rates on its CDs

pros icon900+ ATMs

pros iconMultiple account options

Cons

cons iconOverdraft protection may incur a fee

cons iconUncomfortable online experience

cons iconStandard CDs have low APYs

  • $100 Min. deposit
  • 1.00% Standard CD (min deposit $500)
  • 3.00% CD Special - New Money (min deposit $5,000)
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Overview

First National Bank of America (FNBA), headquartered in East Lansing, Michigan, has a proud history dating back to 1955. Over the years, the bank has grown from a local entity to a national presence, particularly with its online offerings, such as CDs and high-yield savings accounts available to consumers nationwide. Primarily serving Michigan residents with a broader array of products, FNBA has consistently expanded its services while retaining its family-owned essence.

With over $2.6 billion in assets, the bank’s reputation for stability, commitment to customer service, and innovative banking solutions position it well. Its Michigan-focused brick-and-mortar presence and strong online service suite set FNBA apart in the banking sector.

Pros

pros iconCompetitive yields and a wide range of terms

pros iconThe same APY applies to accounts opened online and in a branch

pros icon$1,000 is the minimum deposit for opening a CD

Cons

cons iconNo specialty CDs, such as no-penalty or bump-up CDs

cons iconLong-term CDs have much greater early withdrawal penalties.

cons iconCustomer service isn’t available on weekends

  • $1K Min. deposit
  • 3.85% 48-Month APY

Top 4-Year CD Rates 2024

Capital One Logo
Capital One

Competitive CD rates with no minimum balance

3.75%

48-Month APY

No minimum

Minimum Deposit

$0

Minimum Balance

None

Monthly fee

Yes

Daily Compounded Interest

Yes

Early withdrawal penalty

Pros & Cons

drop-down-btn
  • con-icon No minimum deposit requirement
  • con-icon Competitive and guaranteed CD interest rates
  • con-icon Option to collect interest at end of the term, monthly, or annually
  • con-icon Lower APYs on short term CDs compared to competition
  • con-icon Early withdrawal penalties

Account types

drop-down-btn
  • 6-Month APY 4.25%
  • 9-Month APY 4.25%
  • 12-Month APY 4.50%
  • 18-Month APY 4.25%
  • 24-Month APY 4.00%
  • 30-Month APY 4.00%
  • 36-Month APY 3.75%
  • 48-Month APY 3.75%
  • 60-Month APY 3.75%
discover_l
Discover

A high number of CD term options.

3.60%

4-Year APY

$3K

Minimum Deposit

$1

Minimum Balance

None

Monthly fee

Yes

Daily Compounded Interest

Yes

Early withdrawal penalty

Pros & Cons

drop-down-btn
  • con-icon Daily compounding interest.
  • con-icon Many term options.
  • con-icon Start accruing interest immediately.
  • con-icon $2,500 minimum deposit.
  • con-icon No bump-up or no-penalty CD options.

Account types

drop-down-btn
  • 3-Month APY 2.00%
  • 6-Month APY 4.10%
  • 9-Month APY 4.40%
  • 12-Month APY 4.50%
  • 18-Month APY 4.25%
  • 24-Month APY 4.00%
  • 30-Month APY 3.75%
  • 3-Year APY 3.75%
  • 4-Year APY 3.60%
  • 5-Year APY 3.60%
  • 7-Year APY 3.60%
  • 10-Year APY 3.60%

4.00%

48-Month APY

No minimum

Minimum Deposit

$0

Minimum Balance

None

Monthly fee

Yes

Daily Compounded Interest

Yes

Early withdrawal penalty

Pros & Cons

drop-down-btn
  • con-icon Variety of CD terms
  • con-icon Competitive rates
  • con-icon No minimum deposit
  • con-icon No terms over 5 years
  • con-icon Only one term option for No-Penalty and Bump-Up CDs

Account types

drop-down-btn
  • 3-Month APY 0.25%
  • 6-Month APY 4.40%
  • 9-Month APY 4.80%
  • 12-Month APY 4.60%
  • 18-Month APY 4.25%
  • 24-Month APY 4.00%
  • 36-Month APY 4.15%
  • 48-Month APY 4.00%
  • 60-Month APY 4.00%
  • No-Penalty CD 0.25%
  • Bump-Up CD 3.25%

4.00%

48-Month APY

$10K

Minimum Deposit

$0.01

Minimum Balance

None

Monthly fee

Yes

Daily Compounded Interest

Yes

Early withdrawal penalty

Pros & Cons

drop-down-btn
  • con-icon Accounts with highly competitive rates
  • con-icon No monthly fees
  • con-icon Extended phone customer service hours
  • con-icon High minimum deposit requirements
  • con-icon Excess withdrawal fees
  • con-icon The mobile app has limited capabilities and low customer ratings

Account types

drop-down-btn
  • 3-Month APY 5.05%
  • 6-Month APY 4.90%
  • 12-Month APY 4.80%
  • 18-Month APY 4.30%
  • 24-Month APY 4.20%
  • 36-Month APY 4.05%
  • 48-Month APY 4.00%
  • 60-Month APY 3.95%
OB_D_M_logo_chase
CHASE

Fixed rates with a low minimum deposit

2.50%

48-Month APY

$1K

Minimum Deposit

$1K

Minimum Balance

N/A

Monthly fee

Yes

Daily Compounded Interest

Yes

Early withdrawal penalty

Pros & Cons

drop-down-btn
  • con-icon Offers high interest rates
  • con-icon Low minimum balance required
  • con-icon Easy to open a CD online or by phone
  • con-icon Early withdrawal penalties
  • con-icon Not available in all states
  • con-icon Lower APY on terms than competitors

Account types

drop-down-btn
  • 1-Month APY 0.02%
  • 2-Month APY 3.25%
  • 3-Month APY 4.25-4.75%
  • 6-Month APY 2.00%
  • 9-Month APY 3.50-4.00%
  • 12-Month APY 2.00%
  • 15-Month APY 2.50%
  • 18-Month APY 2.50%
  • 21-Month APY 2.50%
  • 24-Month APY 2.50%
  • 30-Month APY 2.50%
  • 36-Month APY 2.50%
  • 42-Month APY 2.50%
  • 48-Month APY 2.50%
  • 60-Month APY 2.50%
  • 84-Month APY 2.50%
  • 120-Month APY 2.50%

How Does a 4-Year CD Work?

A 4-year CD (Certificate of Deposit) is a type of savings account offered by banks and credit unions. When you open a 4-year CD, you agree to deposit a fixed sum of money for a set period of 4 years. In return, the financial institution guarantees a specific interest rate for the term.

How it works:

  • Fixed Term: You commit to leaving your money in the account for 4 years.
  • Guaranteed Interest Rate: The bank or credit union provides a fixed interest rate, ensuring a predictable return.
  • Interest Compounding: Interest can be compounded daily, monthly, or annually, depending on the institution's terms.
  • Maturity: At the end of the 4 years, the CD reaches its maturity. You'll receive your initial deposit back along with the accrued interest.
  • Early Withdrawal: Withdrawing funds before the 4-year term ends usually results in a penalty, which can vary by institution.

Best 4-Year CD Rates for October 2024

In October 2024, the 4-year CD rates are showing competitive offerings. The average APY for top-performing institutions is hovering around 4.75%. Some institutions are offering slightly lower rates, with APYs in the range of 3.90% to 5.62%. The minimum deposit requirements vary, with some institutions requiring no minimum deposit while others might ask for upwards of $25,000. It's crucial to remember that these rates can change based on the broader economic environment and the policies of individual financial institutions. Always check for the most up-to-date rates and terms before making a decision.

How Are 4-Year CD Rates Determined?

Determining CD rates is complex and involves various factors, both macro and micro. The rate you see isn’t just a random figure, but a result of an avaluation of these factors. Some of the primary determinants include:

  1. Federal Reserve Rates (Fed rates):
    The Fed plays an important role in influencing CD rates. Whenever the Fed moves its overnight banking rate - for instance, hiking it higher to combat inflation - banks usually adjust their CD rates in response. Thus, a rise or fall in the Fed rate often directly translates to rises and falls in CD rates.
  2. CD Term Length:
    The duration for which you commit your money impacts the rate you receive. Longer-term CDs usually offer higher rates because you’re locking in your money for a longer period, allowing banks to utilize those funds for longer. Conversely, shorter-term CDs generally have lower rates. It’s not always the case, so double-check before purchasing.
  3. Deposit Amount:
    The more you deposit, the more the financial institution benefits. Higher deposit amounts then can sometimes fetch better rates. Some institutions offer tiered rates, where larger deposits get a higher APY.
  4. Competition Among Financial Institutions:
    Banks and credit unions always want new customers. They closely monitor what each other offers and can adjust their rates accordingly. If a bank wants to increase deposits, it may offer higher rates to lure customers.
  5. Inflation Expectations and Predictions:
    Inflation diminishes your purchasing power over time. If banks anticipate higher inflation, they may increase CD rates to get ahead of their counterparts. This makes CDs more appealing, so customers feel that they’re at least maintaining, if not growing, their money’s value.
  6. Overall Economic Health:
    The general economic situation of a country or region affects its CD rates. In an expansionary economy, consumers are more likely to spend than save, which may lead banks to increase CD rates to entice them to save.
  7. Bank’s Strategic Objectives:
    Sometimes a bank will have a desire to boost its deposits or manage its liquidity higher or lower, which can affect its CD rate offer decision.

The CD rates you come across reflect these intertwined factors, and understanding them will help you be a more informed investor.

Conclusion

A 4-year CD account offers both a secure investment and a relatively attractive return for a medium-term investment. Their fixed interest rates offer predictability for investors seeking stability in their investments. While they lock in funds for the duration, the trade-off is often a higher yield than shorter-term options. Evaluating your needs and goals before making any financial decision is important.