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As of March 2023, the national average APY (Annual Percentage Yield) on a 2-year CD is 1.28% APY. However, select online banks and credit unions pay up to 4.70% APY on 2-year CDs.
With a 2-year CD, you’ll earn the same rate for the entire two years. If you’re also interested in other CD term lengths, check out our overall best CD rates guide. Read below for our top picks for 2-year CDs.
The Best 2-Year CDs
Compare the Best 2-Year CDs
Quorum Federal Credit Union 2 Year Term Savings
Annual Percentage Yield (APY)
4.60% (on balances $1,000 – $99,999) or 4.70% (on balances of $100,000 or more)
Minimum Deposit Amount
$1,000
Quorum Federal Credit Union 2 Year Term Savings
Annual Percentage Yield (APY)
4.60% (on balances $1,000 – $99,999) or 4.70% (on balances of $100,000 or more)
Minimum Deposit Amount
$1,000
on Quorum’s website. Member NCUA.
Quorum Federal Credit Union 2 Year Term Savings
Details
Annual Percentage Yield (APY)
4.60% (on balances $1,000 – $99,999) or 4.70% (on balances of $100,000 or more)
Minimum Deposit Amount
$1,000
Annual Percentage Yield (APY)
4.65%
Minimum Deposit Amount
$1,000
Annual Percentage Yield (APY)
4.65%
Minimum Deposit Amount
$1,000
on Crescent’s website. Member FDIC.
Crescent Bank 2 Year CD
Details
Annual Percentage Yield (APY)
4.65%
Minimum Deposit Amount
$1,000
Bread Savings 2 Year High-Yield CD
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$1,500
Bread Savings 2 Year High-Yield CD
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$1,500
on Bread’s website. Member FDIC.
Bread Savings 2 Year High-Yield CD
Details
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$1,500
Bethpage Federal Credit Union 2 Year Certificate Account
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$50
Bethpage Federal Credit Union 2 Year Certificate Account
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$50
Bethpage Federal Credit Union, NCUA insured.
Bethpage Federal Credit Union 2 Year Certificate Account
Details
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$50
First Internet Bank of Indiana 2 Year CD
Annual Percentage Yield (APY)
4.49%
Minimum Deposit Amount
$1,000
First Internet Bank of Indiana 2 Year CD
Annual Percentage Yield (APY)
4.49%
Minimum Deposit Amount
$1,000
on FIB’s website. Member FDIC.
First Internet Bank of Indiana 2 Year CD
Details
Annual Percentage Yield (APY)
4.49%
Minimum Deposit Amount
$1,000
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$2,500
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$2,500
on Sallie Mae’s website. Member FDIC.
Sallie Mae 2 Year CD
Details
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$2,500
Pentagon Federal Credit Union 2 Year Money Market Certificate
Annual Percentage Yield (APY)
4.45%
Minimum Deposit Amount
$1,000
Pentagon Federal Credit Union 2 Year Money Market Certificate
Annual Percentage Yield (APY)
4.45%
Minimum Deposit Amount
$1,000
Pentagon Federal Credit Union, NCUA insured.
Pentagon Federal Credit Union 2 Year Money Market Certificate
Details
Annual Percentage Yield (APY)
4.45%
Minimum Deposit Amount
$1,000
First National Bank of America 2 Year CD
Annual Percentage Yield (APY)
4.40%
Minimum Deposit Amount
$1,000
First National Bank of America 2 Year CD
Annual Percentage Yield (APY)
4.40%
Minimum Deposit Amount
$1,000
on FNBA’s website. Member FDIC.
First National Bank of America 2 Year CD
Details
Annual Percentage Yield (APY)
4.40%
Minimum Deposit Amount
$1,000
Experts’ Advice on Choosing the Best CD
We consulted banking and financial planning experts to inform these picks and provide their advice on finding the best high-yield savings accounts to use for your money.
Insider
Here’s what they had to say about CDs. (Some text may be lightly edited for clarity.)
How can someone determine whether a bank is the right fit for them?
Tania Brown, certified financial planner at SaverLife:
“Obviously, you want to make sure it’s FDIC insured. Also, your banking experience — do you like walking into a bank? Well, then you need someone local. Do you just not care if you ever see your bank? Then you’re okay online. Do you write checks? Do you not write checks? So it’s thinking through how your experience with it is going to be before you make that decision.”
Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider:
“I would create a list of what I prioritize most in a bank account. For example, some banks have accounts that charge monthly service fees. I would look to see what the requirements are for waiving the monthly service fee and whether I think I could feasibly meet those requirements each month. If I’m searching for an interest-earning bank account I’ll pay attention to interest rates. I would make sure the account pays a higher interest rate than the average bank account.”
How should someone choose a CD term length?
Roger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”:
“I would think about when you need the money and then compare that with what the prevailing CD rates are, and then what makes sense from a financial perspective, but also from your own personal timing perspective.”
Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:
“I believe in having a plan for whatever the funds are. If it’s supposed to be a house fund, and you want to wait for another two years to buy a house, that’s what you should be thinking of when you want to have this money.”
How should someone decide whether to put their money in a high-yield savings account, money market account, or CD?
Tania Brown, CFP:
“So I guess we’ll start off with how much money you want to put in and the level of transactions you want to have. If you want to have any transactions, that automatically takes out CDs. Then you’re stuck between the high-yield savings and the money market account.”
Sophia Acevedo, Personal Finance Insider:
“Generally, I think a high-yield savings account or money market account could be good options for an emergency fund or short-term savings goals. A high-yield savings account offers a higher interest rate than traditional savings accounts at brick-and-mortar banks. Meanwhile, money market accounts might be worth considering if you want more account accessibility — several offer paper checks, ATM cards, or debit cards. CDs could be worthwhile if you don’t need access to some of your money, since they have a fixed interest rate for a specific term.”
2-Year CD Frequently Asked Questions
With a 2-year CD, you stash away your money for 24 months and typically earn a fixed rate. You have the option to renew your CD at the end of the 2-year period, or close the account and pocket the money.
If you open a 2-year CD at 4.50% APY, you’ll earn 4.50% for the entire period. If you renew your CD after it matures, you’ll earn the new rate available in two years.
There are exceptions to the fixed-rate rule. Some institutions offer variable-rate CDs or CDs that allow your rate to change after a predetermined amount of time.
Your choice will likely depend on how soon you plan to need the money and which term pays the highest rate.
Going for a shorter term gives you the opportunity to get a better APY if rates are up in a year or two. With a 3-year or 5-year CD, you could miss out on higher rates. But on the other hand, you could avoid lower rates with a 3-year or 5-year term if rates drop later.
Many experts recommend CD laddering. With this strategy, you open multiple CDs with different term lengths so you can take advantage of higher rates with longer terms, but also access some of your money earlier. For instance, you might open 1-year, 2-year, and 4-year CDs at the same time, which means you’ll get some of your money back in one year, then more in two years, then more in four years.
The choice between a 2-year CD and high-yield savings account will depend on several factors.
First, a bank typically pays a higher rate for a 2-year CD than for a high-yield savings account. However, that’s not always the case, and the rates can be pretty close.
A 2-year CD locks in your rate for the entire term. If rates are dropping, this could make the CD a better choice, because your savings account APY could decrease throughout the two-year period. If rates are rising, the savings account might be a better fit, because your rate could go up.
It also depends on when you’ll need to access your money. You should be able to access funds from your savings account regularly — but if you need access to money from your 2-year CD before it matures, then you’ll have to pay a fee.
You can also continuously add money to your savings account, whereas most CDs block you from making additional deposits after opening the account.
You may prefer a money market account over a CD if you want quick access to your money. With a CD, you’re putting your money in an account, and if you withdraw money before the term ends you’ll usually face an early withdrawal penalty. Money market accounts do not have early withdrawal penalties.
Many banks require higher deposits for money market accounts than CDs, which could affect your decision. It’s also good to remember that you can add more funds to your money market account over time, while a CD typically only allows an opening deposit.
CDs aren’t generally considered investments the same way something like an index fund, which puts your money into the stock market, is. Instead, a CD is typically viewed as a type of savings account, and your potential for losses and gains — your risk — is much more limited. Because the stock market is risky, experts generally don’t advise investing money you’ll need in the next five years. In the case of a stock market drop, you wouldn’t have time to make up your losses.
If you need to access your money in a couple of years and want a guaranteed rate of return, a 2-year CD is a better choice than a different type of investment account.
If you’re comfortable parting with your money for longer and want to take more risk with your money, then you may want to invest in the stock market. One way to do this is through brokerage accounts, which are useful tools to build long-term wealth, but can’t guarantee a given return like a CD can.
There is such a thing as an IRA CD, which is sort of a combo savings/investment account. It’s a safe investment tool that may be a worthwhile option for people who are close to retirement age.
Compare our top picks for 2-year CDs
Competitive interest rate
4.60% (on balances $1,000 – $99,999) or 4.70% (on balances of $100,000 or more)
Competitive interest rate
Competitive interest rate
Low minimum opening deposit
Competitive interest rate
Competitive interest rate
Competitive interest rate
Competitive interest rate
Learn more
Bethpage Federal Credit Union, NCUA insured.
Learn more
Pentagon Federal Credit Union, NCUA insured.
Quorum Federal Credit Union 2 Year Term Savings
Why it stands out: Quorum Federal Credit Union is an online financial institution with one branch in New York. It offers term accounts, which are similar to high-yield CDs — you’ll earn a fixed interest rate for a specific term. The 2-year term account pays the highest interest rate out of all its term accounts.
APY for 2-year CD: 4.60% (on balances $1,000 – $99,999) or 4.70% (on balances of $100,000 or more) APY
2-year CD early withdrawal penalty: 2% of the amount withdrawn
What to look out for: Credit unions require membership to open accounts. At Quorum, you or a family member have to work for a Select Employee Group on this list, or you must join the American Consumer Council or Select Savers Club.
Crescent Bank 2 Year CD
Why it stands out: Crescent Bank has online CDs with great interest rates.
You may deposit money into the CD by mailing a check or transferring money from a bank account at another financial institution.
APY for 2-year CD: 4.65% APY
2-year CD early withdrawal penalty: 180 days of interest
What to look out for: Once a CD matures, it will automatically renew unless your call customer service to cash out the CD.
Bread Savings 2 Year High-Yield CD
Why it stands out: Bread Savings pays higher CD rates than what you would earn at many brick-and-mortar banks or online banks. Bread Savings also could be a good choice if you’re looking to open a high-yield savings account as well.
APY for 2-year CD: 4.50% APY
2-year CD early withdrawal penalty: 180 days of interest
What to look out for: The minimum opening deposit for Bread Savings CDs is $1,500, which is a bit steep compared to other institutions.
Bread Savings is also an online-only bank with a high-yield savings account and CDs. It doesn’t have a checking account or ATM network. Its partner bank, Comenity Bank, also has a D+ rating from the BBB because it hasn’t resolved the underlying cause of a pattern of complaints.
Bethpage Federal Credit Union 2 Year Certificate Account
Why it stands out: Bethpage Federal Credit Union is a solid option if you’re prefer being part of a credit union instead of a bank. You’ll need a minimum of $50 to open a CD. Generally, financial institutions require at least $1,000 to get a CD.
APY for 2-year CD: 4.50% APY
2-year CD early withdrawal penalty: 180 days of interest
What to look out for: To join Bethpage FCU, you just need to open a Bethpage Federal Credit Union Savings Account account with $5.
Bethpage Federal Credit Union review
First Internet Bank of Indiana 2 Year CD
Why it stands out: A 2-year First Internet Bank of Indiana Certificate of Deposit pays a higher interest rate than most brick-and-mortar and online banks.
First Internet Bank of Indiana also might be appealing if you’re looking for a money market account.
APY for 2-year CD: 4.49% APY
2-year CD early withdrawal penalty: 360 days of interest
What to look out for: First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference. You can also find a bank that charges less for an early withdrawal from a 2-year CD.
First Internet Bank of Indiana review
Sallie Mae 2 Year CD
Why it stands out: Sallie Mae pays higher CD rates than most brick-and-mortar and online banks. Sallie Mae has a variety of short-term CDs and is also featured in our guide to the best money market accounts.
APY for 2-year CD: 4.50% APY
2-year CD early withdrawal penalty: 180 days of interest
What to look out for: At Sallie Mae, an initial deposit of $2,500 is required to open a CD. Other banks on our list let you open a CD with $1,000 or less.
Pentagon Federal Credit Union 2 Year Money Market Certificate
Why it stands out: PenFed stands out because it’s a credit union anyone in the US can join. PenFed has several CD terms, and a high interest rate on a 2-year CD.
APY for 2-year CD: 4.45% APY
2-year CD early withdrawal penalty: 365 days of interest (if withdrawn in the first year) or 30% of the interest earned at maturity (if withdrawn after the first year, but before maturity)
What to look out for: To become a part of PenFed, you’ll need to become a member first. The easiest way to become a part of PenFed is by opening a savings account with at least $5. You’re also eligible for membership if you’ve served in the military or work at a select employer.
The early withdrawal penalties for a 2-year term are also pretty steep compared to other financial institutions. If you would like a CD with standard or low early withdrawal penalties, you might consider one of the other options on our list.
Pentagon Federal Credit Union review
First National Bank of America 2 Year CD
Why it stands out: First National Bank of America lets you open CDs online from anywhere in the US, and offers a variety of terms.
You also might like First National Bank of America if you live Lansing, Grand Rapids, or Traverse City, Michigan. It has branches in these cities.
APY for 2-year CD: 4.40%
2-year CD early withdrawal penalty: 360 days of interest
What to look out for: First National Bank of America has steep early withdrawal penalties for most terms. You might prefer one of the other options on our list if you are worried about CD early withdrawal penalties.
First National Bank of America reivew
Other 2-Year CDs We Considered
We looked at the following 2-year CDs as well. These CDs ultimately weren’t chosen among our top picks because they may have lower rates than our winners, higher minimum opening deposits, or more substantial early withdrawal penalties.
You might find some of these options appealing though, depending on your preferences.
- Alliant Certificate: Alliant’s 2-year certificate pays a lower interest rate than our top picks.
- Marcus High-Yield CD: A 2-year Marcus CD is the online institution’s most appealing option, but the banks on our list stand out for their higher interest rates or lower minimum opening deposits.
- Synchrony CD: Synchrony has a variety of CD terms and pays good interest rates. However, our top picks have higher interest rates for 2-year CDs.
- Capital One 360 CD: Capital One 360 might be worth considering if you’d like to open a CD with a $0 initial deposit. But, its CD rates aren’t as competitive as our top picks.
- Bask Bank CD: Bask Bank only has a few CD terms to choose from. While its CDs offer higher interest rates than the average CD, its rates aren’t as appealing as banks and credit unions on our list.
- LendingClub CD: Our top picks have lower minimum opening deposits. You’ll need at least $2,500 to open a LendingClub CD.
- Popular Direct CD: You need at least $10,000 to open a CD at Popular Direct. In comparison, financial institutions usually require $1,000 for an initial deposit on a CD.
- Barclays Online CD: Our top picks have even higher interest rates or stronger mobile app ratings. You might consider Barclays worthwhile if you’d like to open accounts with a low minimum opening deposit, though.
- Ally Raise Your Rate CD: Ally has a $0 minimum opening deposit, but some of our top picks offer higher interest rates.
- Connexus Credit Union Share Certificate: While Connexus offers competitive interest rates on CDs, you’ll need at least $5,000 to open a CD.
- American Express CD: American Express offers a good interest rate, but our top picks offer even higher rates.
- TIAA Yield Pledge® CD: TIAA has a variety of CDs, but other online banks and credit unions pay higher interest rates on CDs right now.
- Navy Federal Credit Union Standard Certificate: Navy Federal Credit Union has a variety of CD terms, but its 1-year CD rate isn’t as strong as the institutions we’ve chosen.
- NBKC CD: NBKC offers competitive interest rates on long-term CDs, but its short-term CDs aren’t as strong.
- Discover CD (Member FDIC): Discover has competitive interest rates on long-term CDs, but you must have at least $2,500 to get a CD.
- CIT Bank Term CD: Other institutions on our list offer higher interest rates right now.
- BrioDirect High-Yield CD: BrioDirect has a variety of CD terms, but its 1-year CD rate isn’t as strong as our top picks.
- Golden 1 Credit Union Certificate of Deposit: Golden 1 Credit Union offers competitive rates, but you must live in California to join.
- Signature Federal Credit Union Certificate: Signature Federal Credit Union has a strong 3-year CD, but its other terms aren’t quite as strong.
Bank Trustworthiness and BBB Ratings
We’ve compared each bank’s Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices.
A good BBB rating doesn’t necessarily mean that your relationship with the bank will be perfect. Talk to current customers or read online customer reviews to get a more well-rounded perspective about whether the bank may be ideal for you.
Here is each company’s score:
Our top picks received an A+ rating from the BBB, with the exception of Bread Savings.
Comenity Bank, the partner bank of Bread Savings, currently has a D+ grade because the BBB says the business is in the process of responding to previously closed complaints.
According to a note on the BBB website, there has been a pattern of complaints and reviews received between October 15, 2022, and November 14, 2022. The complaints allege that customers have experienced billing inaccuracies, customer service deficiencies, and inaccurate reporting to credit bureaus. The BBB has written to the company about these issues twice in the last two months and hasn’t yet received a response. The BBB will provide updates as needed.
Why Trust Our Recommendations?
Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.
UFB Preferred Savings
Earn up to 4.55% APY on your savings. No monthly maintenance fees. No minimum deposit required to open an account.
