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Two-year CDs typically earn a competitive annual percentage yield, so they may be a good option for someone saving money for an event or purchase that’s two years out, like a down payment for a house or maybe a wedding.
We review more than 150 banks and credit unions to find the best rates available nationwide for 2-year CDs. We track APYs and re-order and re-evaluate the list every weekday. All accounts are available to the public and are insured by either the Federal Deposit Insurance Corp. or the National Credit Union Administration.
For this list, we considered products that lock in deposits for 21 to 29 months and chose the best. Our rankings are based primarily on the best APY, but in the case of a tie, we look at the CD with the shortest term, and then the lowest minimum deposit required to earn the APY. From there, we compare the penalties for early withdrawal. Here are the best CD rates for 2-year terms as of May 24, 2022.
Best 2-Year CD Rates
|Bank or Credit Union||APY||Minimum Deposit||Early Withdrawal Penalty|
|Connexus Credit Union||2.86%||$5,000||6 months of interest|
|Department of Commerce Federal Credit Union (24–35 months)||2.52%||$25,000||180 days of dividends|
|Merrick Bank||2.45%||$25,000||3% of balance|
|Department of Commerce Federal Credit Union (24–35 months)||2.42%||$500||180 days of dividends|
|Colorado Federal Savings Bank||2.30%||$5,000||6 months of interest|
|Popular Direct||2.30%||$10,000||9 months of interest|
|KS State Bank||2.25%||$500||9 months of interest|
|Teachers Federal Credit Union||2.25%||$1,000||All earnings up to 9 months' worth|
|First National Bank of America||2.25%||$1,000||12 months of interest|
|KS State Bank (27 months)||2.25%||$1,000||9 months of interest|
Below are the top certificate of deposit rates available from our partners, followed by details about some of the institutions in our ranking.
Connexus Credit Union serves members nationwide through online banking and as a member of the CO-OP shared network. CO-OP and MoneyPass ATMs also are surcharge-free for members. The credit union is based in Wisconsin and has branches there as well as in Minnesota, Ohio, and New Hampshire.
Membership is available to residents of several communities in Minnesota, Wisconsin, and Ohio, and to anyone affiliated with one of multiple organizations, employers, or schools, including the Connexus Association, which anyone can join for $5.
The Department of Commerce Federal Credit Union was chartered in 1964 and has two branches in Washington, D.C.—one at the U.S. Department of Commerce and another at the White House. It also has a branch in Silver Springs, Maryland. Those who do not live in the D.C. area can manage their accounts online or via a mobile app available for Android and Apple devices.
DOCFCU membership is available to anyone who lives, works, worships, or attends school in Washington, D.C., is a family member of a current member, or is a current or former employee of the U.S. Department of Commerce or its contractors, the National Oceanic and Atmospheric Administration, the White House Management and Administration Office, or the Executive Office of the President. Those who do not meet these eligibility requirements can gain eligibility by joining the American Consumer Council.
Serving Colorado and the rest of the nation, Colorado Federal Savings Bank is headquartered in Greenwood Village. It opened in the 1990s as a savings institution and transformed into a non-branch direct banking platform after being acquired by new ownership in 2008.
Among the products offered are mortgages, commercial loans, savings accounts, and CDs. Customers can apply for a CD account online, choosing terms from 1-month to 5-years.
As a digital branch of Popular Bank, a full-service bank in the U.S., Puerto Rico, and the Caribbean, Popular Direct has more than 120 years of history. It is a subsidiary of Popular Inc. Popular Direct is focused on savings and CD accounts with CD terms ranging from three months to five years, and you can rest easy knowing your deposits are FDIC-insured.
Customers can manage accounts online or through an app available for both Android and Apple devices.
KS StateBank is based out of Manhattan, Kansas, and has been around since 1969. It still operates chiefly in the state today, although it also has one additional branch in Phoenix, Arizona. It offers a wide range of account types which can be opened online.
Based out of Smithtown, New York, Teachers Federal Credit Union has 32 branches throughout Long Island, Queens, and Manhattan. Membership is available to anyone in the U.S., and account access is available via online and mobile banking in addition to Credit Union Service Centers, available nationwide, or ATMs in the Allpoint network.
In addition to CDs, personal banking accounts offered include checking, savings, and money market. Credit cards, personal lending, and business banking also are available.
The grand-sounding First National Bank of America is actually based in small-town America. Specifically, it calls East Lansing, Michigan, home, and it operates only two branches in the smaller towns of Grand Rapids and Traverse City. It’s relatively small as far as banks go, with only $1.6 billion in deposits. Still, you easily can open an account there online.
What Is a 2-Year CD?
If you’re looking for a fixed interest rate product to help grow your savings, a certificate of deposit (CD)—also known as a share certificate at credit unions—can provide more favorable and predictable earnings than you’d get in a regular savings account. The catch is that account holders have to make the deposit and leave it untouched for a set term. With a 2-year CD, you must leave your deposit untouched for two years. At the end of the term, the full interest that accrued is added to the original deposit. You may then make a withdrawal within a specified window or decide to renew or open a new CD.
If you don’t want to tie up your money for a full 24 months, you may be able to select a shorter-term CD or certificate product at another bank or credit union. Terms may range from 21 to 29 months, which may better suit your financial goals.
Who Is a 2-Year CD Best For?
A 2-year CD is appropriate for anyone who wants to put a chunk of savings to work for them. Since the APY is fixed and can be higher than what you’d get with a savings account, you can calculate exactly how much you’ll earn.
Be mindful that you can’t touch that money for the full 2-year term without being penalized and losing part of the interest you’ve earned.
Some scenarios that might be a good fit for a 2-year CD include if you’re saving up for a large purchase like a home or bucket-list trip. The CD may help ensure that you won’t spend that money, plus give you a few more bucks on top of the principal balance.
While longer-term CDs usually have higher APYs, a 2-year term offers a sweet spot in which you’re earning good rates but don’t have to give up access to your funds for a longer period of time. It’s also a product to consider if you’re using a CD ladder strategy, in which you purchase CDs of varying lengths so as not to lock down all of your money in a single long-term account.
What Are the Alternatives to a 2-Year CD?
For a short-term savings strategy, a 2-year CD may be a good solution (assuming two years isn’t too far off for you). Before opening any type of account that essentially ties up your assets, it’s smart to consider your personal finance goals and whether you can live without access to those funds for a set period of time.
If you’re leaning toward a CD, look at APYs and other terms to decide if a shorter or longer-term might work better for you. Shorter-term CDs allow you to touch your money again sooner but may not earn as much as their long-term siblings.
If the thought of tying up your money stresses you out, an online savings account may be a better fit. Some APYs are in line or close to what you’ll find among 2-year CD APYs. However, just note that savings account rates are variable, so you don’t have that fixed-rate assurance. On the other hand, if you don’t have the discipline to stay away from dipping into a savings account, a CD might help.
If you prefer instant account access, we have partnered with the following banks to bring you the high-yield savings and money market account offers displayed in the table.