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The national average APY (Annual Percentage Yield) on a 2-year CD is 1.50% APY. However, the best CD rate on a 2-year CD is
We check rates daily to find the best rates for 2-year terms. Read below for our top picks for 2-year CDs.
The Best 2-Year CDs
Market Leader
You must qualify for membership to open a Gulf Coast Federal Credit Union share certificate. Membership is open to anyone who lives in lives, works, worships, or goes to school in Nueces, San Patricio, or Jim Well Counties in Texas. You may also be eligible for membership if you have an immediate family member who is a member.
Top CD Rates
Newtek Bank 2 Year CD - Product Name Only :Newtek Bank 2 Year CD - APY APYCrescent Bank 2 Year CD - Product Name Only :Crescent Bank 2 Year CD - APY APYPopular Direct 2 Year CD - Product Name Only :Popular Direct 2 Year CD - APY APYPelican State Credit Union 2 Year Share Certificate - Product Name Only :Pelican State Credit Union 2 Year Share Certificate - APY APYSignature Federal Credit Union 2 Year Certificate - Product Name Only :Signature Federal Credit Union 2 Year Certificate - APY APYBread Savings 2 Year High-Yield CD - Product Name Only :Bread Savings 2 Year High-Yield CD - APY APYUS Senate Federal Credit Union 2 Year Smart Share Certificate - Product Name Only :US Senate Federal Credit Union 2 Year Smart Share Certificate - APY APY
These are our picks for the best 2-year CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. If you are worried about a bank failing, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
Compare the Best 2-Year CDs
2-Year CD FAQs
Who has the highest 2-year CD rate?
Gulf Coast Federal Credit Union has the highest-paying 2-year CD right now. A 2-year CD special at the credit union pays
Are 2-year CDs worth it?
A 2-year CD may be worthwhile if you have a specific savings goal with a timeframe of 2 years and you do not need immediate access to your money. Some 2-year CD rates are above 5% APY. Keep in mind that traditional CDs and variable-rate CDs do not allow additional deposits and involve a penalty if you take out any money before a CD term ends.
What is a 2-year CD?
A 2-year traditional CD is a savings vehicle offered by banks and credit unions that typically pays a fixed rate over time. You cannot access your money before the 24 months is up without paying a penalty. You have the option to renew your CD at the end of the 2-year period, or close the account and pocket the money.
What is the best CD term length?
The best CD term length will likely depend on how soon you plan to need the money and which term pays the highest rate. A shorter term gives you the opportunity to get a better APY if rates are up in a year or two. 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, which involves opening multiple CDs with different term lengths to take advantage of higher rates with longer terms, but also access some of your money earlier.
Which is better, a 2-year CD or a money market account?
You may prefer a money market account over a 2-year CD if you want quick access to your money. With a CD, withdrawing money before the term ends means you'll usually face an early withdrawal penalty. Money market accounts do not have early withdrawal penalties, but many banks require higher deposits for money market accounts than CDs. Remember that you can add more funds to your money market account over time, while a CD typically only allows an opening deposit.
2-Year CD Reviews
Choosing a CD term will likely depend on the timeline of your goals. A 2-year CD might be a good choice if you can keep money in an account for at least two years. If you're also interested in other CD terms, check out our overall best CD rates guide.
Gulf Coast Federal Credit Union 2 Year Share Certificate Special - Product Name Only
The Gulf Coast Federal Credit Union Share Certificate Special offers the highest 2-year CD rate on our list. The 2-year term specifically requires new deposits to obtain
Membership is open to anyone who lives in lives, works, worships, or goes to school in Nueces, San Patricio, or Jim Well Counties in Texas. You may also be eligible for membership if you have an immediate family member who is a member.
APY for 2-year CD:
2-year CD early withdrawal penalty: Must contact your nearest branch for information about early withdrawal penalties
Gulf Coast Federal Credit Union Review
Newtek Bank 2 Year CD - Product Name Only
Newtek Bank CDs might be a good option if you're looking for a variety of terms with high interest rates. The 2-year term has the highest rate at the online bank.
Newtek Bank also has a 24-month variable rate CD offering
The CD requires a minimum opening deposit of
APY for 2-year CD:
2-year CD early withdrawal penalty: 180 days of interest
Crescent Bank 2 Year CD - Product Name Only
The Crescent Bank 2 Year CD offers a high interest rate. You can also find a variety of other terms with competitive rates.
To open the
Crescent Bank CDs will automatically renew at the end of each term unless you call customer service to cash out your CD.
APY for 2-year CD:
2-year CD early withdrawal penalty: 180 days of interest
Popular Direct 2 Year CD - Product Name Only
A 2-year
Popular Direct also might be appealing if you're looking for a high-yield savings account.
Popular Direct CDs have a
APY for 2-year CD:
2-year CD early withdrawal penalty: 730 days of interest
Pelican State Credit Union 2 Year Share Certificate - Product Name Only
The Pelican State Credit Union 2 Year Share Certificate has a low minimum opening deposit of
Pelican State Credit Union is a financial institution based in Louisiana, but you don't have to live in the state to become a member and open a certificate.
Pelican State Credit Union has steep early withdrawal penalties. Also, make sure you qualify for membership at the credit union. The easiest way to join is to become a member of ARC Baton Rouge ($5 membership fee), the Parents Association of Northwest Support and Services ($5 membership fee), or the Pinecrest Parents Association ($20 membership fee).
APY for 2-year CD:
2-year CD early withdrawal penalty: 270 days of interest
Signature Federal Credit Union 2 Year Certificate - Product Name Only
The
APY for 2-year CD:
2-year CD early withdrawal penalty: 180 days of interest
What to look out for: Credit unions require membership to open an account. The easiest way to become a member is to enroll in the American Consumer Council. Then you'll just need to open a savings account.
Signature Federal Credit Union Review
Bread Savings 2 Year High-Yield CD - Product Name Only
The Bread Savings 2 Year CD pays a higher CD rate 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.
The minimum opening deposit for Bread Savings CDs is
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.
APY for 2-year CD:
2-year CD early withdrawal penalty: 180 days of interest
US Senate Federal Credit Union 2 Year Smart Share Certificate - Product Name Only
The United States Senate Federal Credit Union 2 Year Smart Share Certificate pays a high interest rate. The bank also has jumbo ($100,000 minimum opening deposit) and plus jumbo CDs ($200,000 minimum opening deposit) with even higher rates.
Although the credit union is called the United States Senate Federal Credit Union, the credit union's eligibility requirements aren't limited to occupation. To join USSFCU, you may work for a Select Employee Group; have a family member that's a current member; or become a member of the United States Capital Historical Society or the American Consumer Council.
APY for 2-year CD:
2-year CD early withdrawal penalty: 120 days of interest
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.
Rising Bank CD - Product Name Only : Rising Bank has an 2-year term with a high interest rate, but our top picks have even higher rates right now.Connexus Credit Union Share Certificate - Product Name Only : Connexus has a high interest rate on a variety of terms. Our top picks offer even more competitive CD rates, and the credit union requires a high initial deposit ofConnexus Credit Union Share Certificate - Minimum Deposit for share certificates.Barclays Online CD - Product Name Only : Barclays lets you open a CD withBarclays Online CD - Minimum Deposit , but our top picks have higher rates right now.BMO Alto High Yield CD - Product Name Only : BMO Alto's 2-year term isn't as competitive as our top picks. However, the online bank offers competitive 4-year and 5-year terms.Delta Community Credit Union CD - Product Name Only : Delta Community Credit Union's 2-year CD rate recently dropped, and now it's lower than our top picks.First Internet Bank of Indiana CD - Product Name Only : First Internet Bank of Indiana's 2-Year CD paysFirst Internet Bank of Indiana 2 Year CD - APY APY, but our top pick offer higher rates right now.CIBC Agility CD - Product Name Only : CIBC Bank USA paysCIBC Agility 2 Year CD - APY APY on its 2-year term, which is less than our top options.Sallie Mae CD - Product Name Only : Sallie Mae has a 2-year CD that offersSallie Mae 2 Year CD - APY APY, but our top picks have higher interest rates right now. You'll also need a minimum ofSallie Mae CD - Minimum Deposit to open an account.Quorum Federal Credit Union Term Savings - Product Name Only : Quorum Federal Credit Union paysQuorum Federal Credit Union 2 Year Term Savings - APY APY. There are financial institutions with higher CD rates on 2-year terms available.First National Bank of America CD - Product Name Only : First National Bank of America has a variety of CD terms and pays good rates. However, the rates on its CDs don't compete with any of the banks on our list.Alliant Certificate : Alliant's 2-year certificate pays a lower interest rate than our top picks.Marcus by Goldman Sachs 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 Certificate of Deposit® : Capital One 360 might be worth considering if you'd like to open a CD with aCapital One 360 Certificate of Deposit® initial deposit. But, its CD rates aren't as competitive as our top picks.Bask Bank Certificate of Deposit : 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 Certificate of Deposit : Our top picks have lower minimum opening deposits. You'll need at leastLendingClub Certificate of Deposit to open a LendingClub CD.Ally Raise Your Rate CD : Ally has aAlly Raise Your Rate CD minimum opening deposit, but some of our top picks offer higher interest rates.American Express CDs : American Express offers a good interest rate, but our top picks offer even higher rates.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 leastDiscover CD to get a CD.CIT Bank 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.
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.
Signature Federal Credit Union does not have a profile with the Bureau yet, so there are no complaints or reviews to use for evaluating the company's business practices.
Here is each company's score:
| Institution | BBB grade |
| Gulf Coast Federal Credit Union | A+ |
| Newtek Bank | A+ |
| Crescent Bank | A+ |
| Popular Direct | A+ (Rating for its parent bank, Popular Bank) |
| Pelican State Credit Union | A+ |
| Bread Savings | A+ (rating for Comenity Capital Bank, Bread Savings' partner bank) |
| United States Senate Federal Credit Union | A- |
United States Senate Federal Credit Union received an A- rating from the BBB because it has received one customer complaint on the BBB website.
According to a note on the BBB website, the BBB may publish one out of every four complaints it receives on Comenity Bank as of April 23, 2023, because it has received a high volume of customer complaints.
Why You Should Trust Us: Experts' Advice on Choosing the Best 2-Year CD
We consulted four banking and financial planning experts to inform these picks and provide their advice on finding the best place to keep your money.
Insider
- Tania Brown, certified financial planner at SaverLife
- Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider
- Roger Ma, certified financial planner with lifelaidout® and author of "Work Your Money, Not Your Life"
- Mykail James, MBA, certified financial education instructor, BoujieBudgets.com
Here's their insight about CDs.
How can someone choose between all of the available banks and credit unions?
First of all, you want a bank that is FDIC-insured (or a credit union that is NCUA-insured). Then, consider your own priorities: Are you looking for an in-person banking experience? Do you need a high-tech mobile app? Do you write checks? Are you looking for a high interest rate? Will you meet the requirements to waive any monthly maintenance fees?
There are plenty of banks and credit unions that offer good rates and useful products, but the best one for you will come down to how it fits your needs.
How should you choose a term length for a CD?
When you put money in a CD, you want to have two things: a plan for how you will use that money, and a timeline for when you'll do it. Once you know when you'll spend it, take a look at rates for terms that are near your planned timeline, and choose the CD with the best rate.
When you can put money in high-yield savings account, money market account, or CD, how do you choose between them?
While all three options pay somewhat similar rates, the difference comes down to how you plan to interact with that money over time. If you need access to it in the next few months or years, that means you can't use a CD (or at least not one that spans however many months or years). Money market accounts tend to offer more account accessibility — several offer paper checks, ATM cards, or debit cards — while high-yield savings accounts are a good place to leave your money alone, knowing you can access it if needed.
Methodology: How Did We Select the Best 2-Year CDs?
At Personal Finance Insider, our goal is to create helpful reviews, guides, and explainers so that you can make good decisions about your money. We recognize every person has distinct preferences, so we provide ample options to help you find the most suitable financial product or account.
First, we researched to find over two dozen banks and credit unions that offered 2-year CDs. Then, we reviewed each institution to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.
See our full ratings methodology for certificates of deposit »