What is the best 4-year CD rate available?

As of May 2026, the best 4-year CD rates are approximately 3.60%–4.00% APY at top online banks and credit unions. The 4-year term is less common than 3-year or 5-year CDs, with fewer institutions offering it. In the current inverted yield curve environment, 4-year rates are typically lower than 1-year, 2-year, and 3-year CD rates.

Is a 4-year CD a good investment right now?

In May 2026, 4-year CD rates are below 1-year and 2-year rates — a reflection of the inverted yield curve. Locking in for 4 years at a lower rate than you'd earn on a 12-month CD is hard to justify for most savers. A CD ladder using 1-year and 2-year CDs typically produces better results. The exception: if you expect rates to fall sharply before your next reinvestment, locking in today's 4-year rate can protect against that decline.

Who offers 4-year CDs?

Not all banks offer an exact 4-year (48-month) CD. Banks that commonly list 4-year or 48-month CDs include Discover Bank, Synchrony Bank, and some credit unions. Many institutions skip from 3 years to 5 years in their lineup. Brokered CD platforms (Fidelity, Schwab) typically offer 4-year CDs from multiple issuers. If you can't find a 4-year CD, a 3-year CD or 5-year CD may be practical alternatives.

How much does a 4-year CD earn on $10,000?

At 3.80% APY for 4 years (compounded annually), a $10,000 deposit grows to approximately $11,606 — earning $1,606 in interest. A 5-year CD at 3.65% APY on the same $10,000 earns approximately $1,970. The 4-year CD earns less total because of the shorter period, but frees up your money a year earlier than the 5-year term.

What is the early withdrawal penalty on a 4-year CD?

Early withdrawal penalties on 4-year CDs are typically 120–180 days of interest, and some banks charge as much as 365 days of interest for terms of 3 years or more. At 3.80% APY on $10,000, 180 days of interest = approximately $190. Breaking a 4-year CD early is costly — only open one with money you are confident you won't need for 4 years.

Best 4-Year CD Rates 2026 — Is a 48-Month CD Worth Locking In?

The best 4-year CD rates reach approximately 3.60%–4.00% APY in May 2026 — meaningfully below the 4.50%–4.80% APY available on 12-month CDs. The 4-year term is a less common product, with fewer institutions offering it, and the inverted yield curve makes it a harder case to make compared to shorter terms.

Rates shown are as of May 2026 and change frequently. Verify current rates directly with the institution before opening.

Best 4-Year CD Rates (May 2026)

Institution Type	Approximate 4-Year APY
Online banks (top offers)	3.60%–4.00%
Credit unions	3.50%–3.90%
Brokered CDs	3.55%–3.95%
Traditional big banks	0.25%–1.00%

Note: not all banks offer a 4-year term. Discover Bank lists a 4-year CD. Brokered CD platforms (Fidelity, Schwab) often have the widest selection of 48-month offerings.

The Rate Ladder Problem

In May 2026, longer terms don’t pay more — they pay less:

Term	Typical Top APY	Interest on $10,000
12 months	4.65%	~$465
2 years	4.10%	~$838
3 years	3.90%	~$1,221
4 years	3.80%	~$1,606
5 years	3.65%	~$1,970

The 4-year CD earns more total dollars than a 1-year CD simply because you’re invested for 4 years. But if you rolled a 12-month CD at 4.65% four times (assuming rates hold), you’d earn approximately $1,980 — more than the 4-year CD’s $1,606.

The core trade-off: A 4-year CD protects you from rate drops at each reinvestment point. Four consecutive 12-month CDs earn more if rates stay high, but leave you exposed if rates fall.

When a 4-Year CD Makes Sense

A 4-year CD is worth considering when:

You have high confidence interest rates will fall significantly before your next 12-month CD renewal
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
A credit union or brokered CD offers a 4-year rate close to the current 12-month rate (rare but occasionally happens)

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	May 2027
2	2-year CD	May 2028
3	3-year CD	May 2029
4	4-year CD	May 2030
5	5-year CD	May 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 — Higher Risk at Longer Terms

Long-term CD early withdrawal penalties are significant:

Bank	Typical 4-Year Penalty
Ally	120 days of interest
Discover	18 months of interest
Synchrony	365 days of interest

Discover’s 18-month penalty and Synchrony’s 365-day penalty mean breaking a 4-year CD early could cost you a large fraction of all interest earned. On a $10,000 CD at 3.80% APY, Discover’s 18-month penalty = approximately $570 — nearly one-third of the total interest you’d earn over the full 4 years.

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), slightly lower APY
4-year CD → frees funds one year earlier, slightly higher APY per year

The 12-month earlier access of a 4-year CD is often worth the slight total interest difference for most savers. But if you have genuinely long-term money and want maximum simplicity, the 5-year CD is a cleaner choice.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy