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 1.16 percent APY, according to Bankrate’s national index survey of banks and thrifts from Nov. 23, 2022. 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 Nov. 30, 2022, 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

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.

HSBC Direct: 4.50% APY; $1,000 minimum deposit

HSBC Direct offers a savings account, a checking account and three terms of fixed-rate CDs. Its products are offered in the U.S. by HSBC Bank USA.

Online CD accounts at HSBC Direct are available only to customers in the U.S. with an HSBC Premier checking account. HSBC Direct CDs require $1,000 to open and can’t be made up of funds that were deposits and investments held by any members of the HSBC Group in the U.S.

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.

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.

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.

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.

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.

Marcus by Goldman Sachs: 4.25% 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.

Alliant Credit Union: 4.25% APY; $1,000 minimum deposit

Alliant Credit Union was founded in 1935 as United Airlines Employees’ Credit Union. Today, it has about 600,000 members nationwide.

Alliant offers competitive APYs with low minimum balance requirements for CDs. Alliant also has a variety of individual retirement account (IRA) CDs.

Quontic Bank: 4.15% 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. Five terms are offered, ranging from six months to five years.

In addition to its CDs, Quontic Bank also offers a money market account, a High Yield Savings account and three checking accounts.

2-year CD FAQs

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.