Best 2-Year CD Rates 2024
We compared 142 CDs at 84 national banks and credit unions to find some of the best 2-year CDs available. Read on to explore annual percentage yields (APYs) and find out why we picked each account.
APYs and account details are accurate as of April 16, 2024.
Fidelity Certificates of Deposit
5.0
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 24-month
4.90%
Minimum Deposit Requirement
$1,000
Interest Compounding Frequency
N/A
Learn More
Read Our Full Review
4.90%
$1,000
N/A
Editor's Take
Fidelity’s 2-year brokered CDs earn an impressive APY, making them an attractive savings option for Fidelity customers. Because Fidelity partners with multiple banks, CD deposits are protected beyond FDIC limits of up to $250,000 per account type per customer.
While Fidelity doesn’t allow early withdrawals on CDs, the brokerage lets you sell your CDs on a secondary market. But with a $1,000 minimum deposit requirement, Fidelity CDs require more money to open than many competitors on our list. And Fidelity’s CDs earn simple interest—not compound interest—which can make a significant difference depending on the amount of your deposit.
Read more about brokered CDs, or check out our Fidelity Investments Review.
Pros & Cons
- Ideal for current Fidelity customers
- Competitive APY
- Insured beyond typical FDIC limits
- Requires a Fidelity brokerage account
- No option to withdraw funds before maturity
- Interest doesn’t compound
Details
Fidelity CDs earn simple interest, not compound interest. And Fidelity CDs do not automatically renew at maturity. Rather, Fidelity credits the principal CD balance and interest to your account at maturity. Account holders can enroll in Fidelity’s Auto Roll service to automatically reinvest CD funds into new CDs.
Synchrony Bank Certificates of Deposit
4.9
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 24-month
4.20%
Minimum Deposit Requirement
$0
Interest Compounding Frequency
Daily
4.20%
$0
Daily
Editor's Take
With a competitive rate and no minimum deposit requirement, Synchrony 24-Month CDs are a great option regardless of how much you want to invest. In addition to its traditional CD offering, Synchrony also offers a 24-month Bump-Up CD, which lets you request a rate bump once annually if advertised CD rates increase. Synchrony also lets you withdraw earned interest anytime during the CD term without penalty.
Read our full guide to Synchrony CD Rates, or check out our Synchrony Bank Review.
Pros & Cons
- Competitive APY
- No minimum deposit requirement
- Bump-up CD option
- Can withdraw interest at any time without penalty
- Early withdrawal penalty is equal to 80 days of interest
Details
Interest is compounded daily and credited to the CD monthly. Synchrony’s 24-month CDs are subject to an early-withdrawal penalty of up to 80 days of simple interest at the current rate if you withdraw your principal investment before the maturity date. CDs automatically renew upon maturity following a 10-day grace period. During the grace period, account holders can add or withdraw funds, change CD terms or close the account.
Synchrony Bank CD Rates
| Term | APY |
|---|---|
3 Months | 0.25% |
6 Months | 5.15% |
9 Months | 4.90% |
12 Months | 4.80% |
18 Months | 4.50% |
24 Months | 4.20% |
36 Months | 4.15% |
48 Months | 4.00% |
60 Months | 4.00% |
Barclays Certificates of Deposit
4.9
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 24-month
4.00%
Minimum Deposit Requirement
None
Interest Compounding Frequency
Daily
On Barclays' Website
4.00%
None
Daily
Editor's Take
As an online bank, Barclays offers competitive APYs on all CD terms, including its 24-month CDs. Along with one of the highest rates on the market, Barclays CDs offer flexibility with no deposit requirements and the ability to withdraw earned interest each month.
Read our full guide to Barclays CD Rates.
Pros & Cons
- Competitive APY
- No minimum deposit requirement
- Early withdrawal penalty is equal to 90 days of interest
Details
Interest compounds daily and is credited monthly. 24-month CDs are subject to an early-withdrawal penalty of up to 90 days of simple interest at the current rate if you withdraw CD funds before the maturity date. CDs automatically renew upon maturity following a 14-day grace period. During the grace period, account holders can add or withdraw funds, change CD terms or close the account.
Quontic Bank Certificate of Deposit
4.9
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 24-month
4.50%
Minimum Deposit Requirement
$500
Interest Compounding Frequency
Daily
On Quontic Bank's Website
4.50%
$500
Daily
Editor's Take
Quontic has made a name for itself as a full-service online bank partially due to competitive APYs on checking, savings, money market accounts and CDs. Opening a CD through Quonitc only requires a $500 deposit.
Read our full Quontic Bank Review.
Pros & Cons
- Competitive APYs across CD terms
- Innovative online and mobile tools
- Low minimum deposit requirement
- Open an account online within minutes
- Only offers five term options
- Quontic doesn’t accept cash deposits
Details
Interest compounds daily and is credited monthly. Once your CD matures, Quontic Bank provides a 10-day grace period to withdraw your funds. Otherwise, it automatically renews the CD. Early withdrawal penalties vary by term.
Quontic Bank CD Rates
| Term | APY |
|---|---|
6 Months | 5.05% |
12 Months | 4.50% |
24 Months | 4.50% |
48 Months | 4.40% |
60 Months | 4.30% |
LendingClub Certificates of Deposit
4.7
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 24-month
4.50%
Minimum Deposit Requirement
$2,500
Interest Compounding Frequency
Daily
Learn More
Read Our Full Review
4.50%
$2,500
Daily
Editor's Take
LendingClub acquired Radius Bank in February 2021. The fintech company continues to provide personal banking offerings, including high-yield CDs. While LendingClub’s CDs require a steep $2,500 minimum deposit, they also earn some of the highest rates around.
Read our full Radius, Now LendingClub, Bank Review.
Pros & Cons
- Competitive APY
- Requires a $2,500 minimum deposit
- Early withdrawal penalty is equal to the total interest earned on the amount withdrawn
Details
Interest compounds daily and is credited monthly. LendingClub’s 24-month CDs are subject to an early withdrawal penalty equal to the simple interest earned to date on the amount withdrawn. CDs automatically renew upon maturity following a 10-day grace period. During the grace period, account holders can add or withdraw funds, change CD terms or close the account.
Summary: Best 2-Year CD Rates
| Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | CD APY 24-month | Minimum Deposit Requirement | Interest Compounding Frequency | Learn More CTA text | Learn more CTA below text | Learn More |
|---|---|---|---|---|---|---|---|---|---|
| Fidelity Certificates of Deposit |  | 5.0 |  | 4.90% | $1,000 | N/A | Learn More | Read Our Full Review | |
| Synchrony Bank Certificates of Deposit |  | 4.9 | | 4.20% | $0 | Daily | Learn More | Read Our Full Review | |
| Barclays Certificates of Deposit |  | 4.9 | | 4.00% | None | Daily | Learn More | On Barclays' Website | |
| Quontic Bank Certificate of Deposit |  | 4.9 | | 4.50% | $500 | Daily | Learn More | On Quontic Bank's Website | |
| LendingClub Certificates of Deposit |  | 4.7 |  | 4.50% | $2,500 | Daily | Learn More | Read Our Full Review |
Methodology
To find the best certificates, Forbes Advisor reviewed 348 CD accounts across 134 financial institutions, including traditional banks, online banks and credit unions. Each account was ranked on 10 data points within the following categories: APY, deposit requirements, customer service, digital experience, available terms and overall availability.
The following weights were assigned to each category of the star rating:
- APY: 50%
- Minimum deposit requirement: 12.5%
- Customer service: 10%
- Digital experience: 10%
- Compound interest schedule: 7.5%
- Available terms: 5%
- Availability: 5%
Because APY is given the most weight in this analysis, accounts with the highest APYs have been ranked at the top. Minimum deposit requirements of greater than or equal to $10,000 resulted in lower scores. CDs with daily compounding schedules were ranked higher than those with monthly or quarterly schedules. All accounts on this list are available nationwide.
To learn more about our rating and review methodology and editorial process, see our guide on How Forbes Advisor Reviews Banks.
Highest 2-Year CD Rates
The highest 2-year CD rates are currently around 4.00% to 5.00%, which is much more than the average account earns. According to the FDIC, the national average rate on a 24-month CD sits at 1.54% as of April 15, 2024.
Because certificates of deposit are tied closely to the federal funds rate, CD rates are often impacted by interest rate changes made by the Federal Reserve. This means the best CD rates are subject to change if the Fed decides to increase or decrease rates.
What Is a 2-Year CD?
A certificate of deposit (CD) is a type of savings account that earns a fixed interest rate for a set amount of time, referred to as a term. During a CD’s term, funds are “locked up” and the account earns interest on its total balance until the term ends or the CD reaches maturity. While a CD owner can still access their cash before maturity, they’re discouraged from making withdrawals by penalty fees.
A two-year CD has a term of two years. After two years are up, the owner can renew or close the account.
How Does a 2-Year CD Work?
When you open a two-year CD, you deposit an amount you’d like to save and agree to leave it alone for at least two years. Standard CDs do not permit additional deposits after opening, and most CDs charge early withdrawal penalty fees if you withdraw funds before maturity. These fees are often equal to a few months’ worth of interest, meaning you’ll forfeit a chunk of your earnings to access your funds.
Between the time you open a CD and the time it matures, it will earn whatever APY you were locked into when you set up the account. Your initial deposit will grow as interest is added. Typically, CDs earn compound interest, which means your interest earns interest. Interest is calculated as a percentage of your balance and might compound daily, monthly or quarterly (depending on the account you choose).
At maturity, you will often have a window of time during which you can close your account and take the money out without paying fees. This is referred to as a grace period and is typically around 10 days.
Pros and Cons of a 2-Year CD
Pros
- Typically better rates than savings accounts and MMAs
- Guaranteed rate of return
- Low risk and FDIC-insured
- May have higher rates than shorter or longer terms
Cons
- Early withdrawal penalties
- Funds locked for duration of term
- May have lower rates than one-year or promotional CDs
How To Choose the Best 2-Year CD Rates
Regardless of the CD term length, there are some factors to consider when choosing the best CD for your needs. First, shop around for the best CD rates to ensure you’re earning the most interest on your investment. Also, consider bank deposit requirements. Some banks and credit unions require no minimum deposit to open a CD, while others may require a minimum deposit of $1,000 or more. Only open a CD if you can comfortably afford the minimum needed to open it.
If you’re planning to open a CD, understand that your money isn’t easily accessible by design. Your bank may charge a significant fee if you withdraw funds from your CD account before it reaches maturity. Compare early withdrawal penalties when looking at 2-year CDs in case you need to access your money before the term ends.
Pro Tip
Banks often offer promotional rates on CD terms of two years or less. Keep an eye out for these special offers and compare the requirements for different accounts to choose the best fit. If your savings timeline is flexible, consider unconventional term lengths such as 19 months or 25 months instead of two years to earn the most interest.
How Does a 2-Year CD Compare With Other Term CDs?
CD terms vary between financial institutions, ranging anywhere from one week to ten years, sometimes longer. Two-year CDs often fall in the middle of CD terms available from various banks and credit unions.
Banks usually reserve their highest interest rates for long-term CDs to reward customers for leaving deposits untouched for several years. Not all banks follow this model, though, and some offer promotional rates on specific CD term lengths. As a midrange option, 2-year CDs let you take advantage of higher interest rates while maintaining some flexibility.
Short-Term CD vs. Long-Term CD
Choosing between short-term and long-term CDs often depends on your specific savings goals and how long you can part with your funds. Many banks still offer competitive rates on shorter CD terms, which lets you earn a decent APY without tying up your money for too long.
On the flip side, longer CD terms let you lock in higher APYs for a longer period of time, which may help you maximize the benefits of compound interest. However, your money is also locked up for a longer period of time. Withdrawing it before the term is up likely means incurring an early withdrawal penalty, which is typically equal to a set number of days or months of simple interest earned.
Should You Apply for a 2-Year CD?
If you have funds you won’t need access to for the next 24 months, opening a 2-year CD account might make sense. It depends on your circ*mstances, your time horizon for the available funds and whether you’ll earn enough interest to make it worthwhile.
A lot can happen in two years, especially during times of global economic uncertainty. CDs represent guaranteed earnings with fixed rates, but a 2-year CD may not earn enough to keep up with inflation. Consider your needs and the market to determine if it makes sense to open a 2-year CD. You might find that another term option—or another type of account, such as a high-yield savings account—is a better fit.
Banks We Monitor
These financial institutions were included in our research for the best CD rates: ableBanking, Affinity Federal Credit Union, Ally Bank, American Express, Axos Bank, Apple Federal Credit Union, Bank of America, Bank5 Connect, BankDirect, BankPurely, BankUnitedDirect, Barclays, Bethpage Federal Credit Union, Bread Savings (formerly Comenity Direct), BrioDirect Banking, Capital One, Charles Schwab Bank, Chase, Chevron Federal Credit Union, CIT Bank, Citibank, Citizens Access, Colorado Federal Savings Bank, Comerica, CommunityWide Federal Credit Union, Connexus Credit Union, Consumers Credit Union, Credit Union of Denver, Discover, Dollar Savings Direct, EmigrantDirect, Financial Partners Credit Union, Financial Resources Federal Credit Union, First National Bank of America, Georgia’s Own Credit Union, Golden1 Credit Union, Greenwood Credit Union, HSBC Direct, Hughes Federal Credit Union, Ideal Credit Union, iGoBanking, Investors eAccess, Keybank, Kinecta Federal Credit Union, Limelight, Live Oak Bank, MAC Federal Credit Union, Marcus by Goldman Sachs, Michigan State University Federal Credit Union, My eBanc, MySavingsDirect, Navy Federal Credit Union, nbkc Bank, Northern Bank Direct, Northpointe Bank, Nuvision Federal Credit Union, Pacific National Bank, Pen Air Federal Credit Union, PenFed, PNC Bank, Popular Direct, Quontic, Quorum Federal Credit Union, Radius Bank, Rising Bank, SalemFiveDirect, Sallie Mae Bank, Spectrum Federal Credit Union, State Bank of Texas, State Department Federal Credit Union, Superior Choice Credit Union, Synchrony Bank, TAB Bank, TD Bank, EverBank, TotalDirect Bank, U.S. Bank, USAA, USAlliance Federal Credit Union, Vio Bank, Virtual Bank, Wells Fargo and Truist.
Frequently Asked Questions (FAQs)
How do you use a 2-year CD in a ladder?
CD ladders are made up of multiple CDs with staggered maturity dates. Once a CD matures, the owner reinvests the principal and earnings from that account in a new CD. This strategy frees up cash more frequently and ensures that owners can take advantage of the best interest rates available.
Two-year CDs are midrange CDs. They are usually in the middle of a CD ladder, with shorter-term and longer-term CDs maturing before and after.
What are the 2-year jumbo CD rates?
Currently, two-year jumbo CD rates are similar to rates for two-year standard certificates. The best rates are above 4.00% APY, but the average account will earn less than this. Jumbo CDs often require a minimum opening deposit of at least $100,000.
How much interest can I earn on a 2-year CD?
You can calculate how much interest you can earn with a two-year CD using your deposit amount, term length and APY. For example, if you deposit $2,000 into a two-year CD earning 4.00% APY, you’ll earn $163.20 in interest. The more you deposit, the more you’ll make.
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