Editorial Note: We earn a commission from partner links on Doughroller. Commissions do not affect our authors’ or editors’ opinions or evaluations. Learn more here.
A 2-year CD may be ideal for those with short-term cash needs. It may also be suited for those who do not want to take on the interest rate risk of longer-term CDs and other fixed-income investments. Below we list the best 2-year CD rates in our database, ordered from highest APY to lowest.
Note that you may find better rates with alternative account types. For example, online savings accounts or no-penalty CDs may offer higher yields.
Editor’s Pick
While it doesn’t have a full two-year term, the Discover® Bank, Member FDIC 18-Month CD offers a strong APY of 4.40%. Discover Bank requires a $2,500 minimum deposit (which is reasonable) and also offers other deposit products with competitive interest rates.
- Current APY – 4.40%
- Minimum Deposit Requirement – $2,500
- Early Withdrawal Penalty – 6 months of simple interest
The Rest of the Best 2-Year CD Rates
1. Credit Human
Certificate of Deposit
Member NCUA
APY
5.30%
Term
18-23 Months
Min. Deposit
$500
Our Rating: 4.6
2. Skyla Credit Union
Certificate of Deposit
Member NCUA
APY
4.30%
Term
24 Months
Min. Deposit
$500
Our Rating: 4.5
3. American First Credit Union via Raisin
Certificate of Deposit
Member NCUA
APY
4.50%
Term
24 Months
Min. Deposit
$1
Our Rating: 4.6
4. Prime Alliance Bank
Certificate of Deposit
Member FDIC
APY
4.50%
Term
24 Months
Min. Deposit
$500
Our Rating: 4.7
5. Marcus by Goldman Sachs
Certificate of Deposit
Member FDIC
APY
4.20%
Term
24 Months
Min. Deposit
$500
Our Rating: 4.5
Highest 2-Year CD Rates by APY
In addition to the CDs we’ve highlighted above, we also track more than 100 other 2-year CD rates. Below you will find them listed in order of highest to lowest.
127 Results
How We Chose the Best 2-Year CDs
When comparing CDs, there are three important things to consider before making your deposit.
- Interest Rate (APY) – First and foremost, before opening a CD, you must take into consideration the interest rate. Every CD on our featured list offers an interest rate that falls in the top 5% of all 2-year CDs nationwide. Depending on the amount of money you play to deposit, there may be no tangible difference between a 5.00% APY and a 4.85% APY so there are two additional things we’ve considered.
- Early Withdrawal Penalty – 2-year CDs with similar interest rates could differ greatly in their early withdrawal penalties. We’ve considered these penalties when creating our list and made sure that all featured CDs charge equal to or less than one year’s worth of simple interest if you close the CD early.
- Minimum Deposit Requirement – Last but not least, we’ve looked at CDs that require a small deposit minimum. It can be frustrating to find a two-year CD with an excellent rate only to learn you need $50,000 to deposit. The smaller the minimum deposit requirement, the better.
Banks we included in our review are as follows: Affirm, Alaska USA Federal Credit Union, All America Bank, Alliant Credit Union, Ally Bank, Amalgamated Bank, America First Credit Union, American Express National Bank, Andrews Federal Credit Union, Associated Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Bank7, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, BMO Alto, Boeing Employees Credit Union, Bread Savings, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, City First Bank, Climate First Bank, Commerce Bank, Community First Credit Union of Florida, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Credit Human Federal Credit Union, Current, Delta Community Credit Union, Discover Bank, E*TRADE, EverBank (formerly TIAA Bank), Fifth Third Bank, First Foundation, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, GO2bank, GreenState Credit Union, Golden 1 Credit Union, Greenwood, Hope Credit Union, Huntington Bank, Industrial Bank, Ivy Bank, KeyBank, Lake Michigan Credit Union, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, mph.Bank, Nationwide (by Axos), Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Ponce Bank, Popular Direct, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Securityplus Federal Credit Union, Self-Help Credit Union, Service Credit Union, Skyla Credit Union, SoFi, State Employees’ Credit Union of North Carolina, Suncoast Credit Union, Synchrony Bank, TAB Bank, TD Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo, Western Alliance Bank and Zynlo Bank.
Frequently Asked Questions (FAQ)
Is a 2-year CD a Smart Investment?
Adding a two-year CD to your portfolio is almost always a smart idea. This length of CD normally offers a higher APY than that of a savings or money market account. It’s also risk-free with a guaranteed rate so long as you stay under the FDIC insurance maximum.
A two-year CD isn’t a smart investment if you find yourself closing the CD early. If you have any doubt about being able to keep your money locked for two years, find a high-yield savings account that offers liquidity.
Can I Open Multiple CDs at the Same Bank?
Yes. You can choose to open as many CDs as you wish and deposit as much as you want (making sure you always meet the deposit minimum). However, standard FDIC insurance only covers a depositor for up to $250,000 per bank.
If you open a 2-year CD, 4-year CD, and 5-year CD with a bank for $100,000 each, you risk having $50,000 lost should the bank fold. When you plan to open multiple CDs that go over the FDIC insurance limit, make sure you spread the money across banks to keep yourself fully insured.
Final Thought on the Best 2-Year CDs
When I open a CD, I almost always choose one-year and two-year terms. CDs of this length have the benefit of having slightly higher interest rates than savings accounts and your money is not locked up for a very long time.
A two-year CD is a smart investment in most financial situations. Pay close attention to both the interest rate and the early withdrawal penalty, as those two factors are what distinguish good CDs from bad ones.