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Online CD Rates – 4 Year 2017

Four Year Certificates of Deposit (CD) are not as popular as the three and five year terms which means the rates often aren’t as competitive. The best four year cd rates are often only marginally above the 3 year rates. Nevertheless, for those who want to lock in a rate for a longer period of time, 4 year cds are worth a look. Four Year CDs rates from online banks are often higher than the national average.

March 23, 2017

4 Year CD National Average: 0.97% ?

APY Vs.
Nat'l
Av.
MIN
EverBank
1.97% 2.03x $1,500
Reviews (7)
Synchrony Bank
1.95% 2.01x $25,000
Reviews (24)
NAVY FEDERAL CREDIT UNION
Restrictions
1.85% 1.91x $100,000
Reviews (7)
Capital One 360
1.80% 1.85x $1,000
Reviews (1)
Virtualbank
1.78% 1.83x $10,000
Reviews (1)
PENTAGON
Restrictions
1.76% 1.81x $1,000
Reviews (1)
Salem Five Direct
1.75% 1.80x $10,000 Reviews
ableBanking
1.65% 1.70x $1,000
Reviews (3)
E-Loan
1.65% 1.70x $10,000
Reviews (2)
Barclays Bank Delaware
1.60% 1.65x $0
Reviews (14)
Discover Bank
1.60% 1.65x $2,500
Reviews (2)
CIT Bank
1.60% 1.65x $100,000
Reviews (13)
Goldman
1.55% 1.60x $500
Reviews (16)
CNB Bank Direct
1.51% 1.56x $1,000 Reviews
American Express Bank, FSB
1.45% 1.49x $0
Reviews (4)
Nationwide Bank
1.45% 1.49x $100,000
Reviews (1)
Ally Bank
1.40% 1.44x $0
Reviews (25)
Bank of Internet
1.40% 1.44x $1,000 Reviews
OneWest Bank
1.30% 1.34x $1,000 Reviews
AirBanking
1.20% 1.24x $500 Reviews
USAA Federal Savings Bank
1.00% 1.03x $175,000 Reviews
New Dominion Direct
0.50% 0.51x $1,000 Reviews

PRODUCT INFORMATION

Four Year CDs - Online Banks 2017

Four year CDs are a longer-term CD and offer a fixed rate for 4 years in return for a commitment to keep the money in the bank for this period of time. While savers can withdraw the money (termed "breaking the CD") high penalties make this undesirable. Generally, an individual should not invest in a four year CD unless they are comfortable parting with the money for this period of time.

Safety

Four year CDs from FDIC insured banks are insured up to FDIC limits (generally $250,000 per account holder per bank). If your deposit is over the FDIC limit then you may not receive the uninsured money in case of a bank failure. For this who remain within FDIC limits, the principal threat is inflation. The value of longer-term CDs are especially prone to be eaten away by inflation, especially if the CD is opened in a rising rate environment.

Interest

Four year CDs currently pay between .40-.60 percentage points more in interest than a one year CD. In general, CDs of this duration are best opened as part of a laddered CD portfolio or if the depositor thinks that rates will either stagnate or drop over the next couple of years. To get a sense of rate trends, please visit our BestCashCow rate analysis page.

ADVANTAGES AND DISADVANTAGES

Advantages

  • 4 year CDs provide a fixed rate for the term of the CD.
  • The rate is higher than a savings account or a 1 year CD to compensate for the longer term.
  • CDs opened online can be done from the comfort of a saver's living room.

Disadvantages

  • The saver's money is locked away for four years unless they want to break the CD and pay a penalty.
  • In a rising rate environment, inflation will reduce the value of the money in the CD over time.

All banks listed on BestCashCow are FDIC insured; BestCashCow.com strongly recommends that you stay within FDIC insurance limits and that if you are unsure of how the limits affect you, you visit the FDIC website.

To understand all of the income generating options available to a saver, please view the Income Generating Investments Comparison Chart.

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