Best 2-year CD rates - June 2023
Matthew Goldberg is a consumer banking reporter at Bankrate. Matthew has been in financial services for more than a decade, in banking and insurance.
Nell McPherson is the banking editor at Bankrate, where she leads a team of reporters dedicated to helping readers make the best decisions about their savings and checking accounts, CDs and money market accounts.
Robert R. Johnson, Ph.D., CFA, CAIA, is a professor of finance at Creighton University and chairman and CEO of Economic Index Associates, LLC.
Best available rates across different account types for Wednesday, June 07, 2023
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What To Know First
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.
Bankrate’s picks for the top 2-year CD rates
- Delta Community Credit Union: 5.00% APY; $1,000 minimum deposit
- Bread Savings: 5.00% APY; $1,500 minimum deposit
- CIBC Bank: 4.80% APY; $25,000 minimum to earn APY
- First Internet Bank of Indiana: 4.70% APY; $1,000 minimum deposit
- Suncoast Credit Union: 4.65% APY, $500 minimum deposit for APY
- Sallie Mae Bank: 4.65% APY; $2,500 minimum deposit
- Popular Direct: 4.65% APY; $10,000 minimum deposit
- America First Credit Union: 4.50% APY; $500 minimum deposit
- Bask Bank: 4.50% APY, $1,000 minimum deposit
- BMO Harris – 4.50% APY, $1,000 minimum deposit
- Barclays: 4.40% APY; $0 minimum deposit
Note: Annual percentage yields (APYs) shown are as of May 31, 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.
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Bankrate's picks for the top 2-year CD rates
Delta Community Credit Union: 5.00% 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.
Anyone living or working in metro Atlanta and employees of more than 150 businesses are welcome at Delta Community Credit Union. Delta Air Lines, Chick-fil-A and UPS are some of the eligible businesses.
Bread Savings: 5.00% 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.
CIBC Bank: 4.80% APY; $25,000 minimum to earn APY
CIBC Bank USA, formerly The PrivateBank and Trust Co., was founded in 1991 and is based in Chicago. It was rebranded as CIBC Bank USA.
CIBC has 12 CD terms, ranging from 30 days to five years. The minimum deposit to open a CD is $1,000. Also offered are a savings account, a money market account and three checking accounts.
First Internet Bank of Indiana: 4.70% 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.
Suncoast Credit Union: 4.65% APY, $500 minimum deposit for APY
Suncoast Credit Union was started in 1934 as Hillsborough County Teachers Credit Union. Suncoast Credit Union is the largest credit union in Florida and in early 2022 it surpassed one million members. Suncoast offers seven terms of CDs ranging from six months to five years. Higher rates are earned on CDs with a balance of $100,000 or more.
People who attend school, live, work or worship in a county in Florida that Suncoast Credit Union serves are welcome to join. In addition to meeting that requirement, you’ll also need to deposit at least $5 in a Suncoast savings account to become a member.
Sallie Mae Bank: 4.65% 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.
Popular Direct: 4.65% APY; $10,000 minimum deposit
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.
America First Federal Credit Union: 4.50% 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.
Bask Bank: 4.50% APY, $1,000 minimum deposit
Bask Bank began offering CDs in 2022, and its four CD terms range from six months to two years. The bank also offers a savings account with a competitive APY and another savings account that earns American Airlines miles.
Bask Bank has been around since 2020 and is a division of Texas Capital Bank.
BMO Harris: 4.50%* APY, $1,000 minimum deposit
BMO Harris is a regional bank that also offers online accounts. It’s based in Chicago and has more than 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.
BMO Harris offers CDs with terms ranging from one month to five years, each requiring a minimum $1,000 opening deposit.
*APY is unavailable in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.
Barclays: 4.40% 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.
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 1.42 percent APY, according to Bankrate’s national index survey of banks and thrifts from March 29, 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.
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 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, 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 the 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, Bank5 Connect, Bank of America, Bank of the West, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Financial (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover 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, Morgan Stanley Private Bank, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, 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, Synchrony Bank, TD Bank, TIAA Bank, Truist Bank, UFB Direct, Union Bank (California), U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.