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2-year CD rates at the largest US banks
As of August 2022, the national average APY on a 2-year CD is 0.43%, according to the FDIC.
BankAPYNext stepsCitibank1.01%Citibank Citibank Fixed Rate Certificates of Deposit (CDs)Capital One2.60%Capital One Capital One 360 CDs®PNC Bank0.01% to 0.04%PNC Bank PNC Fixed Rate Certificate of DepositTD Bank0.05%TD Bank TD Bank Choice Promotional Certificate of DepositBank of America0.03%Bank of America Bank of America Standard Term Certificate of DepositChase Bank0.01% to 0.05%Chase Chase Certificate of Deposit (CD)US Bank0.05%US Bank US Bank Certificate of Deposit
Right now, the best 2-year CD rates are at least 2%. You can snag a higher APY with longer CD terms, but 2-year CDs have their perks. Two-year terms serve as an in-between option between long-term CDs and short-term CDs.
You also may be able to switch up for a higher rate if rates go up after two years. Interest rates on savings accounts are expected to slowly rise over the course of the year. Here are our top picks for 2-year CDs.
Ally High Yield Certificate of Deposit
Why it stands out: A Raise Your Rate CD allows you to increase your APY once during a 2-year term should Ally’s rates go up. Ally doesn’t require a minimum deposit, and it charges low early withdrawal penalties.
Interest for 2-year CD: Ally Raise Your Rate CD
2-year CD early withdrawal penalty: 60 days of interest
What to look out for: The Raise Your Rate CD is the only Ally CD with a 2-year term. But Ally also offers regular term CDs and no-penalty CDs, so consider whether you’d prefer one of those types rather than a Raise Your Rate CD.
Bread Savings High-Yield CD
Why it stands out: Bread Savings pays high rates on CDs and charges reasonable early withdrawal penalties.
APY for 2-year CD: Bread Savings High-Yield CD
2-year CD early withdrawal penalty: 180 days simple interest
What to look out for: Bread Savings requires at least $1,500 to open a CD. This is a bit higher than what most banks would typically require.
First Internet Bank of Indiana Certificate of Deposit
Why it stands out: First Internet Bank of Indiana pays a good rate for 2-year CDs, and contrary to what the bank’s name may lead you to believe, this online bank is available to residents of all US states.
2-year CD early withdrawal penalty: 365 days interest
APY for 2-year CD: First Internet Bank of Indiana Certificate of Deposit
What to look out for: First Internet Bank of Indiana compounds your interest monthly, not daily, so you’ll earn less in the long run. 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.
Capital One 360 Certificate of Deposit®
Why it stands out: Capital One is offering an especially high interest rate for 2-year CDs. There’s also no minimum opening deposit required.
APY for 2-year CD: Capital One 360 Certificate of Deposit®
2-year CD early withdrawal penalty: 6 months of interest
What to look out for: Your banking experience may vary depending on where you live. The bank has branches in Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington, DC. If you don’t live nearby any of these areas, your banking experience will be completely online.
Synchrony CD
Why it stands out: Synchrony is offering one of the highest rates on 2-year CD rights now. There’s also a $0 minimum opening deposit.
APY for 2-year CD: Synchrony CD
2-year CD early withdrawal penalty: 180 days of simple interest
What to look out for: Synchrony is an online-only institution so you may not have easy access to your account.
First National Bank of America Certificate of Deposit
Why it stands out: First National Bank of America’s main strength is its competitive interest rates.
APY for 2-year CD: First National Bank of America Certificate of Deposit
2-year CD early withdrawal penalty: 360 days interest
What to look out for: Some of our other top picks charge less to take out funds before your CD matures. If you’re worried about needing to withdraw money early, consider one of the options on our list or a no-penalty CD.
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.
Connexus Credit Union Share CertificateAmerican Express CDsTIAA Yield Pledge® Certificate of DepositNavy Federal Credit Union Standard CertificateNBKC CDDiscover CD (Member FDIC)CIT Bank CDBrioDirect High-Yield CDGolden 1 Credit Union Certificate of DepositSallie Mae CDSignature Federal Credit Union Certificate
Which bank is the most trustworthy?
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. Here is each company’s score:
InstitutionBBB gradeAllyC-Bread SavingsA+First Internet Bank of IndianaA+Capital One 360A-SynchronyA+First National Bank of AmericaA+
Ally and Capital One are the only institutions that don’t have an A+ rating from the BBB.
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.
Capital One is the only institution on our list that has been involved in recent public controversies.
In 2020, The Office of the Comptroller of Currency required Capital One to pay $80 million in a settlement that said the bank had inefficient security practices, which comprised personal information of bank credit cardholders.
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.
Frequently asked questions
What is a CD?
A CD, or certificate of deposit, is a time-sensitive savings account that usually holds your money at a fixed interest rate for a specified period of time. If you don’t need immediate access to your savings, a CD can guarantee a return on your money since you lock in a fixed APY for the term of the CD.
With most banks, you typically won’t be able to deposit more money or access your funds before the CD matures without paying a penalty.
You will, however, earn interest on the amount and have the option to collect those payments monthly or reinvest them into your CD. Most banks offer varying rates for different terms and deposit amounts — in many cases, the longer the term, the higher the rate.
At the CD’s maturity date, you’ll typically have a 10- to 14-day grace period in which you can withdraw your money and close the account or renew the term.
What is a 2-year CD?
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.
How do CD rates work?
Most CDs lock in your rate for the entire term. For example, if you open a 2-year CD at a 0.60% APY, you’ll earn 0.60% 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.
What is the best CD term length?
Most banks offer CD terms up to five years. Your choice will likely depend on how soon you plan to need the money and which term pays the highest rate. For the most part, longer terms pay higher rates — but that isn’t always the case.
Also, going for a shorter term gives you the opportunity to snag a better APY if rates are up in a year. 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.
See Insider’s picks for the best CD rates »
Which is better, a 2-year CD or a high-yield savings account?
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.
But 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.
See Insider’s picks for the best high-yield savings accounts »
Which is better, a 2-year CD or a money market account?
Like with a high-yield savings account, you may prefer a money market account over a CD if you want quick access to your money. Money market account rates also fluctuate, so you may prefer a money market account if rates are rising, but a CD if rates are dropping.
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.
See Insider’s picks for the best money market accounts »
Which is better, a 2-year CD or another investment account?
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 year 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 tax-advantaged retirement accounts, like a 401(k) or IRA, which grows your money over decades. Another 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.