Best 4-year CD rates for December 2024

Note: Annual percentage yields (APYs) shown were updated between Dec. 23, 2024 and Dec. 29, 2024. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

Having a four-year CD means that your savings will be tied up for 48 months. Generally, you won’t be able to access your funds during that period of time without incurring an early withdrawal penalty.

Today’s top widely available four-year CD pays 4.20% APY , which may be a good way to invest for a long-term financial obligation, like starting a business.

Finding the best four-year CD rates requires some research. Start by comparing deals offered by online financial institutions. The best four-year CDs pay nearly three times the national average of 1.46 percent APY, according to Bankrate’s most recent national survey of banks and thrifts on Dec. 30, 2024.

An account that doesn’t require you to fork over too much money up front is ideal. Look for offers that don’t force you to jump through extra hoops — such as opening a new checking account — before you can open a CD.

A four-year CD can be a good option “when you have the luxury of four years to lock your money up,” says Mark Hamrick, senior economic analyst at Bankrate. “If there’s a reasonable chance that you’ll need the money before that, opt for a high-yield savings account (risking a lower return over time) or a shorter-term CD.”

APYs on CDs and other deposit accounts remain high even as the Federal Reserve has cut rates and is signaling more rate cuts will come, Hamrick points out. “There’s a lot to like about locking in that superior yield to get a predictable return on one’s money.” He advises, however, to be aware of early withdrawal penalties and to opt for a federally insured account.

Pros

• You’ll earn a fixed APY.
• If your account is insured by the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF) — and you’re within the insurance guidelines — your money will be backed by the full faith and credit of the U.S. government. This means each depositor is insured up to $250,000 per insured institution, per account category.
• If APYs end up decreasing, you’d be locked in at a higher rate for the next few years.
• A four-year CD could help you diversify some of your savings/investments.

Cons

• If rates start increasing, the funds in a four-year CD may return less interest than you might otherwise be able to earn.
• If you need to make an early withdrawal, you’re likely subject to a penalty.
• A four-year CD might not keep up with inflation over time, causing your money to lose purchasing power.

Research methodology

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, 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 the Federal Deposit Insurance Corp. (FDIC) or by the National Credit Union Share Insurance Fund (NCUSIF).

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.