- A 4-year CD ladder uses four rungs — 1-year, 2-year, 3-year, and 4-year CDs — opened simultaneously, with one maturing every 12 months.
- Marcus by Goldman Sachs offers 3.70% on 2-year, 3-year, and 4-year CDs — a flat rate structure that makes the middle rungs of a 4-year ladder essentially equivalent in yield.
- The 4-year ladder takes four years to fully build. After that, every maturing CD gets reinvested in a new 4-year CD, producing annual liquidity indefinitely.
- Deposit tiering matters most at traditional banks. The top online banks in REBOLST's database offer the same APY regardless of balance size, simplifying rung selection.
- A 4-year ladder is a reasonable middle ground if a 3-year horizon feels too short but a 5-year commitment feels too long for your current financial plan.
What Is a 4-Year CD Ladder?
A 4-year CD ladder is a savings strategy where you divide a lump sum into four equal parts and open a 1-year, 2-year, 3-year, and 4-year CD simultaneously. Each CD matures 12 months apart, so you always have access to one-quarter of your deposits per year without paying an early withdrawal penalty. When each rung matures, you reinvest the proceeds in a new 4-year CD — the longest rung of the ladder.
The setup phase lasts four years, during which your ladder transitions from a mix of shorter and longer CDs into a fully mature portfolio of 4-year CDs. Once built, one 4-year CD matures every year forever, as long as you keep reinvesting. The discipline is simple; the benefit is that you capture competitive CD rates while retaining annual flexibility.
How to Build a 4-Year CD Ladder
Divide your total deposit into four equal parts. Open one CD at each of the four target terms simultaneously. Here's what a ladder started in July 2026 looks like through its setup period:
| Rung | Term | Opens | Matures | Reinvested As |
|---|---|---|---|---|
| Rung 1 | 1-Year | July 2026 | July 2027 | 4-Year CD → matures July 2031 |
| Rung 2 | 2-Year | July 2026 | July 2028 | 4-Year CD → matures July 2032 |
| Rung 3 | 3-Year | July 2026 | July 2029 | 4-Year CD → matures July 2033 |
| Rung 4 | 4-Year | July 2026 | July 2030 | 4-Year CD → matures July 2034 |
After July 2030, all four original CDs have matured and been reinvested in 4-year CDs. From that point forward, you have one 4-year CD maturing every July — 2031, 2032, 2033, 2034, and so on. Annual access, at a fixed 4-year rate, indefinitely.
Don't overthink the split. Equal allocation is the standard approach because it maximizes simplicity and gives you consistent annual cash flow. If you have a specific need — say, a large expense in year 2 — weight that rung slightly heavier. But resist the temptation to over-optimize the allocation. The compounding effect of discipline over time matters more than percentage-point tweaks between rungs.
Best Rates for Each Rung Right Now
The table below shows the best available rate per term band from REBOLST's live database. All rates shown are APY, all institutions are FDIC- or NCUA-insured, and all are accessible with minimum deposits of $10,000 or less.
| Maturity | Bank | Min. Deposit | APY |
|---|---|---|---|
| ★1-Year | American Express National Bank | $0 | 4.00% |
| 2-Year | Synchrony Bank | $0 | 4.00% |
| 3-Year | Marcus by Goldman Sachs | $500 | 3.70% |
| 4-Year | Marcus by Goldman Sachs | $500 | 3.70% |
| 5-Year | Marcus by Goldman Sachs | $500 | 3.80% |
Rates sourced directly from institution public rate sheets and verified weekly by REBOLST. Compare all live rates →
The Flat Rate Anomaly: Why Middle Rungs Pay the Same
In a typical yield curve, each additional year of CD commitment earns meaningfully more. In mid-2026, that relationship has compressed dramatically. Looking at REBOLST's live database: Marcus by Goldman Sachs offers 3.70% on its 2-year, 3-year, and 4-year CDs. Other top online banks show similarly flat structures across the 2-year through 4-year range — check the live table above for current figures.
This flat structure actually benefits 4-year ladder builders. It means the middle three rungs of your ladder (2yr, 3yr, 4yr) earn essentially the same rate — you're not sacrificing yield by locking money at a 4-year term versus a 2-year term. The only meaningful step-down is from the 1-year rung (4.00%) to the longer rungs (3.70%). That 0.30%–0.40% gap reflects how banks are pricing near-term rate risk rather than long-term commitment.
Deposit Tiers and Rate Differences by Balance Size
The top online banks in REBOLST's database — Marcus, Synchrony, Capital One, and Ally — use flat rate structures. Your $2,000 deposit earns the same APY as a $200,000 deposit at these institutions for any given CD term. This simplifies the 4-year ladder considerably: you can open all four rungs at the same institution and capture the best available rate at each term without tracking tiers.
Traditional banks and regional credit unions frequently use tiered pricing. Common breakpoints are $1,000, $10,000, $25,000, $50,000, and $100,000. At some institutions, crossing the $100,000 threshold on a 4-year CD can add 0.10–0.25% APY — a meaningful difference at scale. REBOLST's database reflects these tiers where institutions disclose them: you can filter by minimum deposit to see what rates are accessible at your actual deposit size.
One practical rule of thumb: if your per-rung deposit is under $10,000, the top online banks almost certainly offer the best available rate. If your per-rung deposit is $50,000 or more, it is worth checking both the top online institutions and any local institutions you already bank with, as their jumbo or tiered rate may be competitive.
You don't have to use the same institution for every rung. Some savers mix institutions: the best 1-year rate at Bank A, the best 4-year rate at Bank B. Just track maturity dates carefully, and keep deposits at each institution within FDIC or NCUA coverage limits — $250,000 per depositor, per ownership category, per institution.
How a 4-Year Ladder Compares to 3-Year and 5-Year Options
The 3-year ladder builds faster and requires less patience in the setup phase. If you have a defined goal in 3–4 years — a home purchase, a business launch, an education expense — the 3-year version keeps your commitment shorter. The 4-year ladder is more appropriate when you want more runway before the ladder is fully operational, or when you want to include a 4-year CD as the longest rung rather than committing to 5-year terms.
Compared to a 5-year ladder, the yield tradeoff is modest in the current environment: the top 5-year CD in REBOLST's database (Marcus by Goldman Sachs, 3.80%) pays approximately 0.10% more than the top 4-year CD (Marcus by Goldman Sachs, 3.70%). Over a $10,000 deposit, that difference works out to roughly $10 per year in additional interest. Whether that incremental yield justifies one additional year of the longest-rung commitment is a personal decision. For most savers who don't specifically need 5-year CDs, the 4-year ladder is a sensible and slightly more flexible alternative.
Rate Risk and What Happens If Rates Move
A CD ladder is a hedge against uncertainty in both directions. If rates fall — as Federal Reserve policy signaled for 2025 and 2026 — your locked rungs outperform variable-rate instruments (savings accounts, money market funds) that reprice downward with every Fed cut. If rates rise unexpectedly, the ladder's annual maturity windows let you capture the new, higher rates each year — one-quarter of your portfolio gets repriced every 12 months.
What a CD ladder does not do is let you exit without cost. Early withdrawal penalties on a 4-year CD are typically 12 months of interest or more. Breaking a 4-year CD in Year 1 will almost certainly result in receiving less than your original deposit, after the penalty is applied. Build the ladder only with money you are genuinely confident you can leave untouched for the full 4-year cycle of each rung.
Never build a CD ladder with emergency savings. Your emergency fund needs to be in a high-yield savings account or similar liquid vehicle — accessible within days, not subject to penalty. A CD ladder is for money beyond your emergency reserve: funds with a clear multi-year timeline and no expected near-term need.
A 4-year CD ladder is a disciplined strategy for savers who want competitive fixed rates and annual liquidity over a medium-term horizon. In the current flat-rate environment, the yield differences between 2-year, 3-year, and 4-year CDs are minimal — which means you capture near-equivalent rates on every rung without sacrificing meaningful yield to lock in the longest term.
The setup takes four years. After that, annual maturity is permanent. Choose online banks that don't tier rates unless your per-rung balance is large enough to justify checking regional institutions for jumbo pricing. Reinvest every maturing rung in a new 4-year CD, and set reminders 7 days before each maturity date to avoid accidental auto-renewal at an unfavorable rate.
Frequently Asked Questions
What is a 4-year CD ladder?
A 4-year CD ladder splits your deposit into four equal parts and opens a 1-year, 2-year, 3-year, and 4-year CD simultaneously. One CD matures each year. When each matures, you reinvest in a new 4-year CD. After the 4-year setup period, you have one 4-year CD maturing annually, giving you annual access to funds at a competitive fixed rate.
How does a 4-year CD ladder differ from a 3-year or 5-year ladder?
A 3-year ladder builds faster (3 years to full deployment) and uses 3-year CDs as its longest rung. A 5-year ladder takes 5 years to fully build and locks the longest rung in 5-year terms, which currently pay slightly more (3.80% vs. 3.70% at the top institutions). A 4-year ladder is a middle option: more time than a 3-year build, slightly less final yield than a fully-deployed 5-year ladder.
What are the top 4-year CD rates right now?
The top 4-year CD rate currently in REBOLST's database is 3.70% (Marcus by Goldman Sachs). Rates change regularly — use REBOLST's live CD comparison tool for current figures before opening any account.
Do I need to use the same bank for every rung?
No. Using different institutions for different rungs is perfectly reasonable — and can help maximize rates at each term. The only considerations are managing multiple maturity dates and ensuring each institution's deposits stay within FDIC or NCUA coverage limits ($250,000 per depositor, per ownership category, per institution).
What happens if interest rates rise while my 4-year ladder is running?
Each year, one-quarter of your ladder matures and can be reinvested at the new, higher rate. A rising-rate environment benefits a CD ladder progressively — 25% of your deposits reprice each year. If rates rise sharply, you could also exit a rung early by paying the withdrawal penalty, but only do so if the penalty math clearly favors the move. Calculate breakeven before breaking any CD.