The best 4-year CD rates reach approximately 4.30%–4.50% APY in September 2026 — now close to the 4.30%–4.44% APY available on 12-month CDs. The 4-year term is a less common product, with fewer institutions offering it, but the case for locking in longer is stronger than it was earlier in 2026, when the CD yield curve was more sharply inverted.
Rates shown are as of September 2026 and change frequently. Verify current rates directly with the institution before opening.
Best 4-Year CD Rates (September 2026)
| Institution Type | Approximate 4-Year APY |
|---|---|
| Online banks (top offers) | 4.30%–4.50% |
| Credit unions | 4.10%–4.40% |
| Brokered CDs | 4.15%–4.45% |
| Traditional big banks | 0.25%–1.00% |
Not all banks offer a 4-year term — many skip from 3 years to 5 years. Brokered CD platforms (Fidelity, Schwab) often have the widest selection of 48-month offerings.
The Rate Curve Has Flattened
Earlier in 2026, longer CD terms paid noticeably less than 1-year CDs — a partially inverted yield curve. By September 2026, that gap has largely closed:
| Term | Typical Top APY (Sept 2026) | Interest on $10,000 |
|---|---|---|
| 12 months | 4.30%–4.44% | ~$435 |
| 2 years | 4.30%–4.40% | ~$889 |
| 3 years | 4.30%–4.50% | ~$1,379 |
| 4 years | 4.30%–4.50% | ~$1,880 |
| 5 years | 4.30%–4.50% | ~$2,402 |
The 4-year CD now earns roughly the same annual rate as a 1-year CD while locking in that rate for four years instead of one. If you rolled a 12-month CD at 4.35% four times and rates held flat, you’d earn a similar total to the 4-year CD (~$1,880) — but you’d be exposed to reinvestment risk at each renewal if rates fall.
The core trade-off: A 4-year CD protects you from rate drops at each reinvestment point, at little cost in current annual yield compared to shorter terms.
When a 4-Year CD Makes Sense
A 4-year CD is worth considering when:
- You want to lock in a rate close to today’s 1-year rate without the risk of reinvesting at a lower rate next year
- You have a specific financial goal exactly 4 years out (a college payment, a planned purchase)
- You’re building a long-term CD ladder and want 4-year rungs for a steady maturity schedule
- You believe the Fed may resume cutting rates and want protection through 2030
How a 4-Year CD Fits in a CD Ladder
A common ladder structure using the 4-year term:
| Rung | Term | Matures |
|---|---|---|
| 1 | 1-year CD | Sep 2027 |
| 2 | 2-year CD | Sep 2028 |
| 3 | 3-year CD | Sep 2029 |
| 4 | 4-year CD | Sep 2030 |
| 5 | 5-year CD | Sep 2031 |
Each rung matures one year apart, giving you annual access to a portion of your savings without locking everything up for 5 years.
Early Withdrawal Penalties — Confirm the Exact Formula
Long-term CD early withdrawal penalty formulas vary by bank and are not standardized. Some banks use a flat penalty regardless of when you withdraw (e.g., 6 months of interest for any term over 12 months); others tier the penalty by how much time remains. On a $10,000 CD at 4.40% APY, a 180-day (6-month) penalty is roughly $217 — a meaningful fraction of the roughly $1,880 you’d earn over the full 4 years if you withdrew early in the term. Always confirm the exact penalty schedule with the institution before opening.
4-Year vs. 5-Year CD
If you’re committed to a long-term CD, the choice between 4 and 5 years is usually straightforward:
- 5-year CD → earns more total interest (more time deployed), rate is currently comparable
- 4-year CD → frees funds one year earlier, at a similar rate to the 5-year term as of September 2026
Since 4-year and 5-year top rates are now close, the earlier access of a 4-year CD comes at little rate cost for most savers. If you have genuinely long-term money and want maximum simplicity, the 5-year CD is a cleaner choice.
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- 5-Year CD Rates 2026
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- CD Laddering Strategy 2026
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