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Online CD Rates 2018 – 4-Year CDs

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.

Highest Four-Year Online CD Rates - October 20, 2018

4 Year CD National Average: 1.42% ?

BANK APY? Vs.
Nat'l
Av.
MIN?
M.y. Safra Bank, Fsb
3.25% 2.29x $1,000
Citizens Access
3.05% 2.15x $5,000
Popular Direct
3.05% 2.15x $10,000
Vio Bank, A Division Of Midfirst Bank
3.00% 2.11x $500
Tiaa Bank / Everbank
2.95% 2.08x $1,500
Live Oak Banking Company
2.90% 2.04x $2,500
Pentagon
Restrictions
2.80% 1.97x $1,000
Synchrony Bank
2.80% 1.97x $2,000
Barclays Bank Delaware
2.75% 1.94x $0
Capital One 360
2.75% 1.94x $1,000
Navy Federal Credit Union
Restrictions
2.75% 1.94x $100,000
American Express Bank, Fsb
2.70% 1.90x $0
Marcus: By Goldman Sachs
2.70% 1.90x $500
Discover Bank
2.70% 1.90x $2,500
Northern Bank Direct
2.56% 1.80x $10,000
Ally Bank
2.50% 1.76x $0
Airbanking
2.50% 1.76x $500
Salem Five Direct
2.50% 1.76x $10,000
Radius Bank
1.95% 1.37x $500
Usaa Federal Savings Bank
1.92% 1.35x $175,000
New Dominion Direct
1.90% 1.34x $1,000
Virtualbank, A Division Of Iberiabank
1.79% 1.26x $10,000
Ablebanking, A Division Of Northeast Bank
1.65% 1.16x $1,000
Cnb Bank Direct
1.51% 1.06x $1,000
Cit Bank
1.50% 1.06x $1,000
Axos Bank, A Division Of Bofi Federal Bank
1.40% 0.99x $1,000
Onewest Bank, A Division Of Cit Bank
1.30% 0.92x $1,000
All rates listed are Annual Percentage Yield (APY). The Min listed is the minimum deposit account balance required to obtain the rate listed.

PRODUCT INFORMATION

Four Year CDs - Online Banks 2018

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, please 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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