If you’re tired of low interest rates on some savings accounts and you won’t need to access your money for a while, it might be time to branch out and explore 2-year CDs.
With a fixed-rate CD, you receive a guaranteed interest rate for a set period of time. At the end of the term, you have the ability to renew the CD or shop around for another CD, potentially with an even higher yield if the interest rate environment has improved. After a CD’s maturity date, it often automatically renews after a grace period. This grace period is usually around seven to 10 days long.
You can think of CDs as a higher-paying savings account that’s stashed in a safe with a time lock. But unlike a savings account with a variable APY, a CD with a fixed APY won’t change during the term.
While you may be able to withdraw the interest before the end of the term, you usually can’t touch the principal without incurring an early withdrawal penalty.
Here are some of the top widely available 2-year CD rates. Compare these offers, then calculate how much interest you could earn when your CD matures.
The best 2-year CD rates for April 2021
- Delta Community Credit Union: 0.80% APY; $1,000 minimum deposit
- Comenity Direct: 0.75% APY; $1,500 minimum deposit
- Quontic Bank: 0.70% APY; $500 minimum deposit
- First Internet Bank of Indiana: 0.70% APY; $1,000 minimum deposit
- Live Oak Bank: 0.70% APY; $2,500 minimum deposit
- Golden 1 Credit Union: 0.65% APY; $500 minimum deposit
- SchoolsFirst Federal Credit Union: 0.65% APY; $20,000 minimum deposit for APY
- Synchrony Bank: 0.60% APY; $0 minimum deposit
- VyStar Credit Union: 0.60% APY; $500 minimum deposit
- TIAA Bank: 0.60% APY; $1,000 minimum deposit
- Amerant Bank: 0.60% APY; $10,000 minimum deposit
- Salem Five Direct: 0.60% APY; $10,000 minimum deposit
Note: The APYs (Annual Percentage Yield) shown are as of April 1, 2021. Bankrate’s editorial team updates this information regularly. APYs may have changed since they were last updated. The APYs for some products may vary by region. The APY noted for TIAA Bank is a CD renewal rate.
Interest rates are often higher on CDs because banks pay CD account holders a liquidity premium — the additional return an investor expects in exchange for giving up the ability to liquidate their investment quickly — in addition to their normal deposit rate.
The best 2-year CD rates pay nearly three times the national average of 0.24 percent APY, according to Bankrate’s most recent national index survey of banks and thrifts.
Today’s top widely available 2-year CD pays 0.95 percent APY. This may be a good place to invest for mid-term financial obligations, like paying off credit card debt.
Bankrate’s guide to choosing the right CD rate
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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 around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.
To find the best CDs, our editorial team analyzes various factors, such as: annual percentage yield (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.
Best 2-year CD rates of April 2021
Delta Community Credit Union: 0.80% APY; $1,000 minimum deposit
Delta Community Credit Union began as the Delta Employees Credit Union in 1940. It was started by eight Delta Air Lines employees. Delta Community Credit Union has more than 400,000 members and has 26 branches in metro Atlanta and three branches outside of Georgia.
Comenity Direct: 0.75% APY; $1,500 minimum deposit
Comenity Direct launched in April 2019. It’s an online-only bank that offers high-yield savings products and CDs.
Comenity Direct offers five terms of CDs. Comenity Direct is a brand of Comenity Capital Bank, which has existed for more than 30 years. Comenity is a bank behind many branded credit cards.
Quontic Bank: 0.70% APY; $500 minimum deposit
Quontic Bank was established in 2005 and has its headquarters in New York. Quontic Bank calls itself the Adaptive Digital Bank.
You only need $500 to open a Quontic Bank CD. Quontic Bank offers five terms of CDs, ranging from one year to five years.
In addition to its CDs, Quontic Bank also has a money market account, a high-yield savings account and two checking accounts.
First Internet Bank of Indiana: 0.70% APY; $1,000 minimum deposit
First Internet Bank of Indiana was the first FDIC-insured financial institution to operate entirely online, according to the bank’s website. First Internet Bank of Indiana opened in 1999 and is available 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.
Live Oak Bank: 0.70% APY; $2,500 minimum deposit
Live Oak Bank was founded in 2008. The online bank offers a competitive yield on its savings account. Like most online banks, Live Oak Bank’s Online Savings account doesn’t have a monthly service fee. It also doesn’t require you to keep a minimum balance.
In addition to its savings account, Live Oak Bank also offers seven terms of CDs. Live Oak Bank has its headquarters in Wilmington, North Carolina.
Golden 1 Credit Union: 0.65% APY; $500 minimum deposit
Golden 1 Credit Union is headquartered in Sacramento, California. It has at least 1 million members and over $16 billion in assets. Golden 1 Credit Union has 72 branches in California and was founded in 1933. Membership to Golden 1 Credit Union is open to all Californians.
Non-Californians can join Golden 1 Credit Union if they are a registered domestic partner or family member of a member. They can also join if they’re a member of one of the select employee groups.
In addition to CDs, Golden 1 Credit Union also offers a money market account, checking and savings accounts. The credit union also has credit cards and loans.
SchoolsFirst Federal Credit Union: 0.65% APY; $20,000 minimum deposit for APY
SchoolsFirst Federal Credit Union was formed during the Great Depression in 1934. The credit union, created by school employees, has 50 branches.
SchoolsFirst Federal Credit Union has low minimum balances and CD terms from as short as 30 days to as long as five years. CDs at this credit union have four balance tiers: $500, $20,000, $50,000 or $100,000.
Synchrony Bank: 0.60% APY; $0 minimum deposit
Synchrony Bank offers competitive yields across 12 terms. All standard CD terms typically offered by banks and credit unions are available. The bank also offers a savings account and a money market account. The savings account has a competitive APY and has no minimum balance requirement.
The bank is an online-only financial institution that’s part of a company that also issues credit cards. The bank’s relatively new mobile app makes it possible to transfer funds and check account balances at any time from anywhere.
VyStar Credit Union: 0.60% APY; $500 minimum deposit
VyStar Credit Union was founded in 1952. It was originally called Jax Navy Federal Credit Union and it was chartered at Naval Air Station in Jacksonville, Florida.
Membership at VyStar Credit Union is open to anyone who works or lives in the 49 Florida counties or the four Georgia counties listed on its website.
VyStar Credit Union offers 10 CDs terms ranging from three months to five years. It also offers a one-year CD for Kid’s, VyTeen, Bravo and Achieve members only.
TIAA Bank: 0.60% APY; $1,000 minimum deposit
TIAA Bank is a division of TIAA, FSB. TIAA Bank has 10 financial centers, all located in Florida. TIAA Bank offers CD terms ranging from 3 months to 5 years. Several types of CDs are available, including a basic CD and a bump-up CD.
Besides CDs, TIAA Bank offers a checking account, money market account and other products. TIAA Bank also offers IRA-eligible CDs.
Amerant Bank: 0.60% APY; $10,000 minimum deposit
Amerant Bank has 26 banking centers – 18 in South Florida and 8 in Houston. The Amerant Bank CD yields mentioned here are available only online and not at the bank’s branches in Florida and Texas.
Amerant Bank requires a $10,000 minimum deposit to earn this APY on a CD.
Salem Five Direct: 0.60% APY; $10,000 minimum deposit
Salem Five Direct is an online division of Salem Five, which was founded in 1855 in Salem, Massachusetts. Salem Five Direct offers products not available through the Salem Five branch network.
Salem Five Direct has three terms of CDs: 12-month, 24-month and 36-month. Minimum deposit to open a CD at Salem Five Direct is $10,000.
2-year CD yields offered by popular banks – April 2021
- Marcus by Goldman Sachs: 0.55% APY; $500 minimum deposit
- Discover Bank: 0.50% APY; $2,500 minimum deposit
- Sallie Mae: 0.45% APY; $2,500 minimum deposit
Marcus by Goldman Sachs – 0.55% APY; $500 minimum deposit
Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA. Marcus offers a variety of CDs, three no-penalty CD terms and a savings account. Marcus also offers lending options with its debt consolidation loans, home improvement loans and personal loans.
Marcus offers competitive yields on its savings accounts and CDs. Marcus made its debut in October 2016 with just unsecured personal loans before it began offering a savings account and CDs under the Marcus by Goldman Sachs brand in November 2017.
Discover Bank – 0.50% APY; $2,500 minimum deposit
Discover Bank may be known for its credit cards, but it also offers a wide selection of banking products. It has been offering deposit products online since 2007.
Discover Bank offers CDs ranging in terms from 3 months to 10 years.
It also offers a checking account, money market account and a savings account.
Sallie Mae Bank – 0.45% APY; $2,500 minimum deposit
Sallie Mae Bank offers CDs, a savings account, money market account, credit cards and private student loans. Sallie Mae Bank offers competitive yields on both CDs and savings accounts.
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.
Finding the best 2-year CD rates
When looking for a 2-year CD, it might be easier to just sign up with the bank that handles your checking account. But if you want to get the best rate, you’re more likely to do so if you cast a wide net than to 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 professional 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., or FDIC, you can feel secure parking your money there. That’s because consumer deposits at all FDIC-insured banks are backed by the full faith and credit of the U.S. government up to $250,000.
National Credit Union Administration, or NCUA, credit unions, have a standard share insurance amount of $250,0000 per share owner, for each account ownership category.
Best CD rates by term
In general, you’ll find the best CD rates on longer-term CDs. Banks reward consumers for committing their money for deposit. With a five-year CD, for example, you usually end up with a higher yield than what’s available for a two-year CD.
However, when you get a five-year CD, you’re locking that money up for five years. If you access the money before the maturity date, you’ll probably pay an early-withdrawal penalty, making the CD less valuable. Only purchase a longer-term CD if you’re sure you won’t need the money before the term ends.
CD laddering can help you take advantage of higher rates while also ensuring earlier access to some of your money. You can also determine whether it makes sense to get a higher yield in return for reducing your liquidity.
Building a CD ladder
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-year CD, a two-year CD and a three-year CD. The one-year 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 while still allowing you some access to a portion of your funds when the shorter-term CDs mature.
The best 2-year CD rates in April 2021
| Institution | APY | Minimum to earn APY |
|---|---|---|
| Delta Community Credit Union | 0.80% | $1,000 |
| Comenity Bank | 0.75% | $1,500 |
| Quontic Bank | 0.70% | $500 |
| First Internet Bank of Indiana | 0.70% | $1,000 |
| Live Oak Bank | 0.70% | $2,500 |
| Golden 1 Credit Union | 0.65% | $500 |
| SchoolsFirst Federal Credit Union | 0.65% | $20,000 |
| Synchrony Bank | 0.60% | $0 |
| VyStar Credit Union | 0.60% | $500 |
| TIAA Bank | 0.60% | $1,000 |
| Amerant Bank | 0.60% | $10,000 |
| Salem Five Direct | 0.60% | $10,000 |
Learn more about other CD terms:
Learn more about CDs:
- What is a certificate of deposit?
- Which CD account is best for you?
- See how CD safety can boost your portfolio returns
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