A two-year CD can be a useful financial tool for those looking to secure a higher interest rate on their savings without committing to locking up their money long term. It may also pay a higher rate of return than a high-yield savings account.

What is a 2-year CD?

Think of a CD as a higher-paying savings account stashed in a safe with a time lock. But unlike a savings account with a variable annual percentage yield (APY), the yield on a CD is fixed and won’t change during the term. At the end of the term, you can renew the CD or shop around for another one, potentially with a higher yield, if the interest rate environment has improved. After a CD’s maturity date, it likely will renew automatically after a grace period, typically within seven to 10 days.

The best two-year CD rates pay far more than the national average of 1.32 percent APY, according to Bankrate’s national index survey of banks and thrifts from Jan. 11, 2023. Here are some of the top widely available two-year CD rates. Compare these offers, then calculate how much interest you could earn when your CD matures.

Bankrate’s picks for the top 2-year CD rates

Note: Annual percentage yields (APYs) shown are as of Jan. 18, 2023, and may vary by region for some products. Bankrate’s editorial team regularly updates this information. Some APYs may have changed since they were last updated.

*Rate is not available in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.

A closer look at the top 2-year CD rates

Randolph-Brooks Federal Credit Union: 4.70% APY; $20,000 minimum to earn APY

Randolph-Brooks Federal Credit Union is headquartered in Live Oak, Texas, and operates more than 60 branches serving four major markets in the state: Austin, Corpus Christi, Dallas-Fort Worth and San Antonio. It has more than 1 million members.

Randolph-Brooks Federal Credit Union has CDs with terms ranging from six months to seven years. It also offers a Really Free Checking account that requires no minimum balance and charges no monthly fee.

America First Federal Credit Union: 4.65% APY; $500 minimum deposit

America First Credit Union was founded in 1939 in Salt Lake City. It has CDs with terms ranging from three months to five years. The minimum opening deposit for CDs is $500.

It also offers a variety of checking and savings accounts.

Popular Direct CDs are for established savers, since the CDs have a $10,000 minimum deposit requirement. The CDs are offered in eight fixed terms, from three months to five years. Popular Direct’s High-Rise savings account offers a competitive yield and requires a $5,000 minimum deposit.

All Popular Direct deposit accounts are opened through Popular Bank.

Bethpage Federal Credit Union: 4.50% APY; $500 minimum deposit

Bethpage Federal Credit Union was founded in 1941 for employees of aircraft-maker Grumman. The Bethpage, New York-based credit union has more than 400,000 members.

Bethpage FCU offers nine terms of CDs, ranging from three months to five years, along with a 39-month bump-up CD. It also offers checking and savings accounts, loans and other financial products.

BMO Harris: 4.50% APY; $1,000 minimum deposit

BMO Harris offers online accounts and operates more than 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.

BMO Harris offers 10 CD terms ranging from three months to five years, each requiring a minimum $1,000 deposit to open. It also offers several online CDs with competitive yields, although these rates are unavailable to residents of states where it maintains branches.

Bread Savings: 4.50% APY; $1,500 minimum deposit

Bread Savings, formerly Comenity Direct, is an online bank that offers high-yield savings products and five terms of CDs ranging from one to five years.

Bread Savings is part of Comenity Capital Bank, which is a unit of Bread Financial.

First Internet Bank of Indiana: 4.49% APY; $1,000 minimum deposit to open

First Internet Bank of Indiana is an FDIC-insured financial institution that operates online and has no branches. It opened in 1999 and offers products in all 50 states.

First Internet Bank offers eight terms of CDs, a money market savings account with a competitive yield, a savings account and two checking accounts.

Sallie Mae Bank: 4.40% APY; $2,500 minimum deposit

Sallie Mae Bank offers 11 terms of CDs as well as a savings account and a money market account with no minimum balance requirements or monthly fees. All of these products offer competitive yields.

Sallie Mae Bank was established in 2005 and has its headquarters in Salt Lake City. In 2014, Sallie Mae became a stand-alone consumer banking business.

Barclays: 4.35% APY; $0 minimum deposit

Barclays is a global bank founded in London more than 300 years ago. It introduced the first ATM to the world in 1967. Barclays has no minimum balance requirements to open an online CD. It offers nine CD terms ranging from three months to 60 months.

Marcus by Goldman Sachs: 4.35% APY; $500 minimum deposit

Marcus is Goldman Sachs’ consumer bank. It debuted in 2016 and offers a variety of CDs, three terms of no-penalty CDs and a savings account. Marcus features competitive yields on its savings accounts and CDs.

It also offers personal loans as well as loans for debt consolidation and home improvement.

Pentagon Federal Credit Union: 4.35% APY; $1,000 minimum deposit

Pentagon Federal Credit Union (PenFed) was established in 1935. It has more than 2 million members and has its main office in McLean, Virginia.

PenFed has nine terms of CDs. They range from a six-month CD to a seven-year CD. It also offers two checking accounts, two savings accounts and a money market account.

Capital One: 4.30% APY; $0 minimum deposit

Capital One, based in McLean, Virginia, is an online bank that also has branches.

Capital One offers nine competitive terms of regular CDs. Capital One’s CDs and 360 Performance Savings account don’t have minimum balance requirements.

Synchrony Bank: 4.30% APY; $0 minimum deposit

Synchrony Bank offers competitive yields across 14 CD terms. Synchrony promises that CDs funded within 15 days of opening will pay a higher yield if rates increase during that period.

The bank also offers a money market account and a savings account. Both offer a competitive APY and have no minimum balance requirement.

2-year CD FAQs

  • In addition to helping you meet your mid-term financial goals, two-year CDs can be used as a rung when you’re building a CD ladder.

    Done correctly, laddering allows you to benefit from high rates on longer maturities while still getting regular infusions of cash to spend or reinvest.

    With a CD ladder, you divide your deposit amount into CDs with different terms. For example, you could open a three-rung ladder made up of a one-, two- and three-year CD. The one- and two-year CD rates are generally lower than the three-year CD rates, but you might not want all of your money tied up for three years.

    A laddering strategy allows you to take advantage of the higher interest rates you earn on longer-term CDs while still allowing you access to some of your money at regular intervals. As your one-year and two-year CDs mature, you can access that money for spending or investing in higher-yield assets. Or you can put them in another three-year CD, and it would become the longest-term rung on your CD ladder.

    Carefully consider how a two-year CD can fit into a ladder strategy that combines the benefits of a higher overall yield with still allowing you some access to a portion of your funds when the shorter-term CDs mature.
  • When looking for a two-year CD, it might be tempting to just sign up with the bank that handles your checking account. But if you want to get the best rate, it pays to shop around and not just accept what your current bank offers.

    “Brick-and-mortar banks have a lot of overhead to cover, plus they have a lot of competition from online banks,” says Sheryl Garrett, CFP and founder of the Garrett Planning Network. “Don’t just settle for the first CD rate that’s offered by your bank. Focus on the fact that it’s your money.”

    No matter the size of the bank that’s offering the best terms, as long as it’s a member of the Federal Deposit Insurance Corp. (FDIC) you can feel secure parking your money there. Consumer deposits at all FDIC-insured banks are backed by the full faith and credit of the U.S. government up to $250,000 per depositor, per account ownership category.

    Credit unions chartered by the National Credit Union Administration (NCUA) credit unions have a standard share insurance amount of $250,0000 per share owner for each account ownership category.

Methodology for Bankrate’s Best CD Rates

At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers and our content is thoroughly fact-checked to ensure accuracy.

Bankrate regularly surveys some 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as several popular online banks.

To find the best CDs, our editorial team analyzes various factors, such as: APY, the minimum needed to earn that APY (or to open the CD) and whether or not it is broadly available. All of the accounts on this page are insured by Federal Deposit Insurance Corp. (FDIC) or by the National Credit Union Share Insurance Fund (NCUSIF).

When selecting the best CD for you, consider the purpose of the money and when you’ll need access to these funds to help you avoid early withdrawal penalties.

Banks we monitor

These financial institutions are featured in our CD rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank 5 Connect, Bank of America, Bank of the West, Barclays, Bask Bank, BB&T, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens Access, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, E-Trade Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, LegacyTexas Bank, Limelight Bank, Live Oak Bank, M&T Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, Purepoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Suntrust Bank, Synchrony Bank, TD Bank, TIAA Bank, UFB Direct, Union Bank (California), U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.