The best 2-year CD rate is 5.30% APY fromCredit Human. To find you the highest 2-year CD rates nationwide, we review CD rates from hundreds of banks and credit unions every day. CD terms of 21 to 29 months are eligible for our 2-year rankings, with minimum deposit requirements of up to $25,000. When you have money you want to save for a goal that's still a bit on the horizon, or simply have surplus savings you won't need to touch for a couple of years, a 2-year certificate of deposit (CD) can keep your savings safe and protected. Below are the top certificate of deposit rates available from our partners, followed by the best CD rates that we've found fromour researchthat are available to U.S. customers everywhere. At the Fed's most recent meeting in March, the committee decided to hold rates steady—the fifth meeting in a row it has done so—but said again that it expects to cut rates later this year. The Fed's dot plot shows that Fed members believe there will be three rate cuts later this year. CD yields closely follow the fed funds rate. Back in October, CD rates reached peaks not seen in more than 20 years. But now, the Fed’s holding pattern has caused CD rates to plateau. Once it appears the Fed is ready to make a rate cut, CD rates are expected to fall. You can find our ranking of the highest CD rates with terms of 21–29 months below. In cases where more than one institution pays the same top rate, we prioritize CDs by the shortest term, then the CD requiring a smaller minimum deposit, and if still a tie, alphabetically by institution name. Full details on these top-paying nationally available 2-year CDs are outlined below, including information about minimum deposits and early withdrawal penalty. For credit union CDs, information is also provided on how to easily join the credit union. Looking for a wider selection of CDs? See our picks for the best CD rates to see terms ranging from three months to 10 years. *Rates listed in DCFCU's rate charts are 0.10% lower than what's listed here, for a minimum deposit amount of $500. But the fine print indicates that for deposits of $25,000, a 0.10% premium applies. When asked in March what they would invest in if they had an extra $10,000,8% of Investopedia readerssaid they would open a CD, in fourth place behind individual stocks, ETFs, and stock index funds. That’s down from 11% in December and 9% in January. The change likely comes as stock markets have closed at new highs in 2024, with the. While investors may be more interested in stocks than in CDs right now, CDs are always a good option for those looking for safer investments. Pros Interest rate fixed for two full years Better return than liquid accounts Fully predictable earnings Can help deter spending Extremely safe, with virtually no risk Cons Early withdrawal incurs a penalty Only allows you to deposit once If rates climb later, you'll be locked at a lower rate If rates decline, you may wish you'd chosen a longer term Federal law requires that all banks and credit unions disclose their early withdrawal penalty policy to you before you open a certificate account. If you can't find early withdrawal information on the institution's website, call or chat with a customer service representative to ask what their policy is for the CD term you're considering. Don't choose a particular CD until you have that information. While a 2-year CD can be a great investment in certain situations, one of the alternatives may suit certain savers and circ*mstances better. Certificates of deposit exist in all variety of term lengths. Though the most common terms range from 3 months to 5 years and follow standard increments, you'll also see CDs with odd terms, like 13 months or 22 months. Deciding the right CD term for you depends on two things: your personal financial situation (when will you need the money) and where you think interest rates are headed. When interest rates are rising, you may want to choose a short CD now so that you can use the funds to open one with a better rate in the future. Conversely, if rates are declining, you're generally better off locking in a current rate for as long as you comfortably can, since future CD rates will be lower. Even if you know you'd like a CD of a certain length, it's worth shopping around in case you find one that offers a better APY if you stretch just a little longer than your planned duration. Or perhaps you'll decide to open two CDs of different durations to hedge your bets by locking in different rates, but allowing you to access the funds of one CD earlier than the other. Accounts with free access to your funds are called liquid accounts, meaning you can add or withdraw funds as you like. Examples of these are savings, money market, and brokerage cash accounts. (Checking accounts are also liquid, but they are not considered an alternative to a CD since they generally pay no interest.) Just as with CDs, it's critical you shop around when opening a savings or money market account, as the rates vary widely, with some banks paying close to zero while others pay 12 times the national average. You can find the top-paying options in our daily rankings of the best high-yield savings accounts and the best money market accounts. Instead of holding money in the bank, you can also invest your funds in various types of bonds. Examples include: Best Bank CD Rates for April 2024 Certificates of deposit allow savers to earn a higher interest rate by agreeing to keep their funds in a special bank account for an agreed upon time period. In essence, banks are willing to pay more on CDs than savings and money market accounts because your CD balance represents money they can count on and that incurs little administration costs since there is almost no activity on CD accounts. What the consumer trades off for higher earnings is a written commitment to keep the funds on deposit for the CD's full term. This means just one deposit is made at the outset, and no withdrawals are made until the CD matures. Of course, there is an escape hatch should you find you desperately need early access to the money. But exercising this option will cost you an early withdrawal penalty, and you might pay dearly. CD terms can range from a week to 10 years, but the most common terms run from three months to five years, with 2-year certificates being a popular choice. In theory, financial institutions are willing to pay a higher interest rate on longer-term CDs, because they can count on the money for a longer period. However, sometimes shorter-term CDs pay a better rate than longer ones, such as when banks and credit unions expect interest rates to drop in the future. Your savings goals and your available funds will help determine whether you should open a CD, and if so, what term you should choose. Two-year CDs represent a mid-range length. While shorter CDs are great when you think you might need the money within a year, and long terms like five years are a good way to lock in a high interest rate when it seems interest rates will be declining, 2-year certificates represent a balance between duration and accessibility. If you're saving for a large purchase like a house, car, or boat—or maybe even a big trip—or will be making tuition payments for your child in the next couple of years, 2-year CDs are a good choice. They include a safeguard against you accessing the funds willy-nilly, while not keeping your funds locked up for too many years. Two-year CDs may also be appealing when the future of interest rates is uncertain. Interest rates are impossible to predict, but sometimes their direction is widely expected. When the rate environment is very uncertain, however, 2-year CDs strike a balance between knowing you'll have a good rate for the foreseeable future and getting access to your funds thereafter if rates go up or you need your money for something else. Lastly, many CD ladders involve a 2-year CD. CD laddering is a strategy that enables savers to capitalize on the higher rates offered by long-term certificates but with access to some of your funds sooner (often, once every year). To complete a 5-year CD ladder, you will need at least one 2-year certificate. Certificates of deposit have long been a staple of traditional brick-and-mortar banks. And in times past, the only place a customer would consider opening a CD was where they already banked. But the internet has changed all that, with savers now able to open a CD online at hundreds of banks and credit unions. You can now research rates much more easily by going online. As a result, traditional banks have been given a run for their money on CDs, with online-only banks and credit unions often offering the best-paying certificates. The reason credit unions often pay better than banks is due to their nonprofit nature and consequent desire to pass benefits onto their member customers. For online banks, it's their low overhead expenses—they don't need to operate, staff, and maintain physical branches—that allow them to pay higher deposit rates to attract customers. There is also a third category of CD institution, and that is the brick-and-mortar bank that also offers banking products online to customers anywhere. Some do so from their existing website, while other banks start up separate online-only subsidiaries, sometimes even with a completely different name and brand. Fortunately for CD shoppers, it doesn't matter too much whether the top-paying CD you just found is from a bank or credit union, or from a traditional vs. online bank. So long as you ensure that the bank is FDIC-insured (or the credit union is NCUA-insured), your protection as a consumer will be the same. Though a bank may operate only online, carrying the FDIC logo indicates it meets all the same regulatory standards as a physical bank. As for credit unions, it's good to be open-minded to these as well, as their rates are often among the top-ranking in any CD term, and especially long terms. The one caveat with opening a credit union CD is that you must first become a member of the credit union. This is generally easy and fast. But it may sometimes involve making a donation to an affiliated nonprofit. When a bank or credit union has a special certificate they want to offer for a limited time, they will often release it as an odd-term product. What "odd-term" refers to is a duration that differs from the conventional terms, such as 1-year, 2-year, 3-year, etc. Instead, you might see an 11-month CD or even a 29-month CD, for instance. All that's happening here is the institution is trying to differentiate this CD from its regular menu of standard CDs, both as a marketing tool to make the CD stand out and perhaps also as an internal signal to its staff that this is a limited-time CD. It's wise to pay just as much attention to odd-term CDs as conventional ones because these promotional certificates often offer much higher interest rates. That's also what helps them stand out and draw customers. Even when you make the most careful financial plans, you can run into something unexpected that challenges your budget and savings goals. While it's true that CDs involve a lock of sorts, prohibiting you from simply withdrawing the funds at will, every CD institution offers an option to access your funds prematurely. This is called an early withdrawal penalty. Essentially, the penalty is the price you can opt to pay the bank in exchange for cashing in your CD early. While some banks allow you to take out just some of your funds, others require you to remove them all and close the CD. In either case, the bank or credit unions should spell out how the early withdrawal penalties are calculated. The most common method is to deduct a certain number of months' of interest from your balance before the remaining funds are paid to you. Typically, the longer the original CD term, the more months of interest you'll pay as a penalty. But buyer beware: Penalty policies vary quite widely, with some even allowing for the penalty to eat into your principal. Even with the best intentions to keep a CD fully funded for the entire term, it's smart to investigate the early withdrawal penalty in advance of committing to any CD, and then only choosing a certificate with a potential penalty you can stomach. 1st Source Bank, 5star Bank, ableBanking, Abound Credit Union, Achieva Credit Union, Affinity Federal Credit Union, Affinity Plus Federal Credit Union, Air Force Federal Credit Union, Alabama Credit Union, Allegacy Federal Credit Union, Alliant Credit Union, Ally Bank, Amerant Bank, American 1 Credit Union, American Express, American Heritage Credit Union, Andrews Federal Credit Union, Apple Federal Credit Union, Banco do Brasil Americas, Banesco USA, Bank of Baroda, Bank5 Connect, Bank7, Texas Capital Bank, bankESB (Easthampton Savings Bank), BankUnitedDirect, Barclays, BBVA Bank, Bellco Credit Union, Blue Federal Credit Union, BMO, BMO Alto, BrioDirect, Cadets Federal Credit Union, California Coast Credit Union, Capital One, Capitol Federal Savings Bank, CD Bank, CFG Bank, Chase Bank, Chevron Federal Credit Union, CIBC (Agility Banking), CIT Bank, Citibank, Citizens Access, Citizens Trust Bank, Colorado Federal Savings Bank, Bread Savings, Communitywide Federal Credit Union, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Corporate America Federal Credit Union (CAFCU), Credit Union of Denver, Credit Union of the Rockies, Digital, Federal Credit Union, Discover Bank, DollarSavingsDirect, Dover Federal Credit Union, Dow Credit Union, Evergreen Bank Group, RocklandTrust Bank, Elements Financial, EmigrantDirect.com, Liberty Federal Credit Union, Fidelity Investments, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Financial Credit Union, First Financial Northwest Bank, First Internet Bank, First National Bank of America, First Technology Federal Credit Union, Fort Bragg Federal Credit Union, Garden Savings Federal Credit Union, Georgia Banking Company, Georgia's Own Credit Union, GreenState Credit Union, Greenwood Credit Union, Grow Financial Federal Credit Union, GTE Financial, Gulf Coast Bank & Trust Company, Hanscom Federal Credit Union, Heritage Bank, Hiway Federal Credit Union, Home Loan Investment Bank, Home Savings Bank, Hope Credit Union, HSBC Direct, Hughes Federal Credit Union, Hyperion Bank, Ideal Credit Union, iGObanking, Interior Federal Credit Union, Justice Federal Credit Union, Kinecta Federal Credit Union, KS State Bank, La Capitol Federal Credit Union, Lafayette Federal Credit Union, Lake Michigan Credit Union, Langley Federal Credit Union, Latino Community Credit Union, Limelight Bank, Live Oak Bank, Luther Burbank Savings, MYSB Direct, MAC Federal Credit Union, Main Street Bank, MainStreet Bank, MapleMark Bank, Marcus by Goldman Sachs, Market USA Federal Credit Union, Matadors Community Credit Union, MECU Credit Union, Merrick Bank, Michigan State University Federal Credit Union, Mills42 Federal Credit Union, Mountain America Credit Union, MTC Federal Credit Union, MutualOne Bank, My Banking Direct, My eBanc, My Savings Direct, NASA Federal Credit Union, Nationwide by Axos Bank, Navy Federal Credit Union, nbkc, NexBank, North Country Savings Bank, Northern Bank Direct, Northfield Bank, Northpointe Bank, Nuvision Federal Credit Union, Oklahoma Central Credit Union, One American Bank, OneUnited Bank, Pacific National Bank, Paramount Bank, PARDA Federal Credit Union, Partner Colorado Credit Union, Patelco Credit Union, Pen Air Federal Credit Union, PenFed Credit Union, People's Credit Union, First Service Credit Union, Pinnacle Federal Credit Union, Popular Direct, Premier America Credit Union, Presidential Bank, FSB, Prime Alliance Bank, PSECU (Pennsylvania State Employees Credit Union), Quontic Bank, Quorum Federal Credit Union, Rising Bank, Merrimack Valley Credit Union, Salal Credit Union, Sallie Mae Bank, Santa Clara County Federal Credit Union, Signature Federal Credit Union, Spectrum Credit Union, SRP Federal Credit Union, State Bank of India Chicago, State Bank of India New York, State Bank of Texas, State Department Federal Credit Union, Summit Credit Union, Sun East Federal Credit Union, Superior Choice Credit Union, Synchrony Bank, TAB Bank, Teachers Federal Credit Union, Technology Credit Union, The Federal Savings Bank, , EverBank, TotalDirectBank, Transportation Federal Credit Union, TruStone Financial Credit Union, UNIFY Financial Credit Union, Expedition Credit Union, United States Senate Federal Credit Union, United Texas Bank, University Federal Credit Union, US Bank, USAlliance Financial, USPS Federal Credit Union, Velocity Credit Union, VeraBank, Vio Bank, Virtual Bank, WebBank, Webster Bank, Wells Fargo, Western Vista Credit Union, Wings Financial Credit Union, XCEL Federal Credit Union, BankPurely, Umbrella Bank, giantbank.com, CapEd Credit Union, Zeal Credit Union, Finworth, Coastal1 Credit Union, Service Credit Union, National Cooperative Bank, Premier Members Credit Union, Bank of America, Flagstar Bank, 1st MidAmerica Credit Union, INOVA Federal Credit Union, Genisys Credit Union, Ivy Bank, Heartland Credit Union, Luana Savings Bank, Spectra Credit Union, Workers Credit Union, Credit Human, EFCU Financial, Poppy Bank, Credit One Bank, Vibrant Credit Union, CFBank, Department of Commerce Federal Credit Union, Seattle Bank, Crescent Bank, Pima Federal Credit Union, Cross River Bank, USAA, Great River Federal Credit Union, Brilliant Bank, Merchants Bank of Indiana, LendingClub, Chartway Credit Union, First Central Savings Bank, AgFed Credit Union, North American Savings Bank, Pelican State Credit Union, First Community Credit Union, Bask Bank, Skyla Credit Union, SkyOne Federal Credit Union, 3Rivers Federal Credit Union, Utah First Credit Union, Pasadena Federal Credit Union, Magnifi Financial, AloStar, Primis Bank, Farmers Insurance Federal Credit Union, Tampa Bay Federal Credit Union, Veridian Credit Union, Republic Bank, Salem Five Direct, All In Credit Union, Bethpage Federal Credit Union, Self-Help Federal Credit Union, Forbright Bank, Jovia Financial Credit Union, Sun Canyon Bank, Fortera Credit Union, Partners 1st Federal Credit Union, SouthEast Bank, American Bank, Newtek Bank, CBC Federal Credit Union, Vanguard, All America Bank, Amalgamated Bank, Citizens State Bank, AmBoy Direct, Republic Bank of Chicago, Oklahoma Community Credit Union, BluPeak Credit Union, Valley Direct, Bayer Heritage Federal Credit Union, First Harvest Credit Union, Orion Federal Credit Union, Wellby Financial, FedChoice Federal Credit Union, CoVantage Credit Union, Choice First Bank, Sandia Area Federal Credit Union, OMB Bank, Minnequa Works Credit Union, Securityplus Federal Credit Union, Bank of South Texas, T Bank Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide, and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the CD's minimum initial deposit must not exceed $25,000. Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Federal Reserve System. "Open Market Operations."In the News
Best 2-Year CD Rates
Credit Human – 5.30% APY
Pelican State Credit Union – 5.00% APY
MYSB Direct – 4.90% APY
Department of Commerce Federal Credit Union – 4.86% APY*
My eBanc – 4.85% APY
First Internet Bank – 4.82% APY
Luana Savings Bank – 4.81% APY
TAB Bank – 4.80% APY
First National Bank of America – 4.80% APY
Colorado Federal Savings Bank – 4.80% APY
NexBank – 4.80% APY
Lafayette Federal Credit Union – 4.78% APY
Pima Federal Credit Union – 4.75% APY
Bellco Credit Union – 4.75% APY
EFCU Financial – 4.75% APY
Seattle Bank – 4.75% APY
Newtek Bank – 4.75% APY
Fast Fact
Compare the Best 2-Year CDs
Institution Rate (APY) Term Minimum Deposit Early Withdrawal Penalty Credit Human 5.30% 18–23 months $500 9 months of interest ($50 minimum) Pelican State Credit Union 5.00% 24 months $500 9 months of interest MYSB Direct 4.90% 24 months $500 All interest (3 months minimum) Department of Commerce Federal Credit Union 4.86% 12–23 months $25,000 6 months of interest My eBanc 4.85% 24 months $5,000 6 months of interest First Internet Bank 4.82% 24 months $1,000 12 months of interest Luana Savings Bank 4.81% 24 months $2,000 6 months of interest TAB Bank 4.80% 24 months $1,000 6 months of interest First National Bank of America 4.80% 24 months $1,000 12 months of interest Colorado Federal Savings Bank 4.80% 24 months $5,000 6 months of interest NexBank 4.80% 24 months $10,000 6 months of interest Lafayette Federal Credit Union 4.78% 24 months $500 9 months of interest Pima Federal Credit Union 4.75% 24 months $250 50% of the interest left to be earned through the end of the term Bellco Credit Union 4.75% 24 months $500 3 months of interest EFCU Financial 4.75% 24 months $500 6 months of interest Seattle Bank 4.75% 24 months $1,000 6 months of interest Newtek Bank 4.75% 24 months $2,500 6 months of interest Pros and Cons of 2-Year CDs
Pros Explained
Cons Explained
Tip
Alternatives to a 2-Year CD
Shorter or Longer Term CDs
Liquid Accounts
Bonds & Bond Funds
Frequently Asked Questions
What Is a 2-Year CD?
Am I a Good Candiate for a 2-Year CD?
What Is the Difference Between CDs From Traditional Banks, Online Banks, and Credit Unions?
Why Odd-Term CDs Are Important to Consider
What If I Need to Withdraw My Money Early?
Financial Institutions We Review
How We Find the Best 2-Year CD Rates
Best 2-Year CD Rates for April 2024 (2024)
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