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Two-year CDs typically earn a competitive annual percentage yield, so they may be a good option for someone saving money for an event or purchase that’s two years out, like a down payment for a house or maybe a wedding.
We review more than 150 banks and credit unions to find the best rates available nationwide for 2-year CDs. We track APYs and re-order and re-evaluate the list every weekday. All accounts are available to the public and are insured by either the Federal Deposit Insurance Corp. or the National Credit Union Administration.
For this list, we considered products that lock in deposits for 21 to 29 months and chose the best. Our rankings are based primarily on the best APY, but in the case of a tie, we look at the CD with the shortest term, and then the lowest minimum deposit required to earn the APY. From there, we compare the penalties for early withdrawal. Here are the best CD rates for 2-year terms as of Sept. 23, 2022.
Best 2-Year CD Rates
|Bank or Credit Union||APY||Minimum Deposit||Early Withdrawal Penalty|
|Merrick Bank||3.70%||$25,000||6 months of interest|
|ConnectOne Bank (23 months)||3.60%||$500||12 months of interest|
|Quorum Federal Credit Union||3.60%||$1,000||6 months of interest|
|La Capitol Federal Credit Union (26 months)||3.59%||$1,000||6 months of interest|
|Merchants Bank of Indiana||3.56%||$1,000||Contact bank for terms|
|Connexus Credit Union||3.56%||$5,000||6 months of interest|
|Rising Bank||3.55%||$1,000||6 months of interest|
|Bread Savings||3.50%||$1,500||6 months of interest|
|Elements Financial Credit Union (26 months)||3.45%||$1,000||6 months of interest|
|USAlliance Financial||3.40%||$500||12 months of interest|
Merrick Bank has been around since 1997 and specializes primarily as a major issuer of Visa credit cards. The bank also provides personal loans and loans for boats and other recreational vehicles.
As far as CDs go, terms range from six months to two years.
ConnectOne Bank first opened its doors in Englewood Cliffs, New Jersey, in 2005 and has grown to more than 25 branches across New Jersey and New York. In addition to CDs, which it refers to as time deposits, it offers checking, savings, and money market accounts as personal banking options. It also offers a variety of loan options in addition to business banking.
Even if you don't live near one of its branches, accounts are available nationwide through online banking, ConnectOne's mobile app on Apple and Android devices, and the AllPoint ATM network.
Quorum Federal Credit Union
Quorum Federal Credit Union began in Chicago in 1934 as Kraft Employees Credit Union. In 2005, it took the name Quorum Federal Credit Union and expanded membership to additional employee groups, and in 2014, it launched its online banking services.
It has one service center at its headquarters in Purchase, NY, and another in Deerfield, Illinois. Additionally, customers have access to more than 85,000 ATMs nationwide and an online banking app.
Membership is available to employees of KraftHeinz, Mastercard, Philip Morris, and dozens of others. Those not employed by one of the partner groups still can join by becoming a member of the American Consumer Council.
La Capitol Federal Credit Union
La Capitol Federal Credit Union got its start in 1961 in Louisiana’s state capitol building. Today, it boasts branches across the state, from Ouachita to Tangipahoa. It offers a wide range of products, including checking and savings accounts, loans, CDs with terms ranging from 91 days to five years, and business accounts.
If you don’t qualify for membership based on your location, school, or affiliation with a current member, join the credit union by becoming a member of the Louisiana Association for Personal Financial Achievement, which will cost you $20 for the first year and $5 per year afterward. You’ll also need to open a savings account and deposit $5.
Merchants Bank of Indiana
Founded in 1923 as Greensfork Township State Bank, Merchants Bank has six locations in central and eastern Indiana. It acquired Symphony Bank in 2009 and took its current name a few months later. The bank is a subsidiary of Merchants Bancorp, headquartered in Carmel, Indiana, which also includes Merchants Capital Corp., Farmers-Merchants Bank of Illinois, and Merchants Capital Servicing LLC.
In addition to CDs, Merchants Bank offers an array of personal and business banking products. It offers home loans through its Merchants Mortgage division. Those who don’t live near one of its branches can open and manage accounts online or via an app available for Android and Apple devices.
Connexus Credit Union
Connexus Credit Union serves members nationwide through online banking and as a member of the CO-OP shared network. CO-OP and MoneyPass ATMs also are surcharge-free for members. The credit union is based in Wisconsin and has branches there as well as in Minnesota, Ohio, and New Hampshire.
Membership is available to residents of several communities in Minnesota, Wisconsin, and Ohio, and to anyone affiliated with one of multiple organizations, employers, or schools, including the Connexus Association, which anyone can join for $5.
Rising Bank is the online banking division of Midwest BankCentre, based in St. Louis. Its history dates back to 1906 when Midwest was known as Lemay Ferry Bank. In 2000, it changed its name to Midwest Bank Centre, and Rising Bank was launched in 2018. Rising Bank specializes in checking and savings accounts and CDs of varying terms. Checking and savings accounts require $1,000 to open and aim to offer interest rates competitive with other online banks.
Bread Savings is part of Bread Financial, an FDIC-insured institution formerly known as Alliance Data Systems. Bread Savings offers savings accounts and CDs, while Bread Financial also offers lending options under the name Bread Loans in addition to multiple credit cards.
Bread has no brick-and-mortar locations, but customers can manage their accounts online or via a mobile app for Android and Apple devices.
Elements Financial Credit Union
USAlliance Financial began in 1966 by serving employees of IBM, but it has since expanded eligibility to employees of American Express and PepsiCo as well as to members of many organizations such as the American Society of Composers, Authors, and Publishers, the Aircraft Owners and Pilots Association, the New York Historical Society, and Tread Lightly.
Additionally, the credit union serves multiple neighborhoods and communities throughout New York, Massachusetts, Connecticut, and New Jersey, along with members and employees of many houses of worship, colleges, and universities.
Membership is available nationwide by joining one of several national organizations provided as options on the membership application. USAFCU will cover the cost of joining. You’ll also need to open either a checking or savings account and deposit at least $1.
What Is a 2-Year CD?
If you’re looking for a fixed interest rate product to help grow your savings, a certificate of deposit (CD)—also known as a share certificate at credit unions—can provide more favorable and predictable earnings than you’d get in a regular savings account. The catch is that account holders have to make the deposit and leave it untouched for a set term. With a 2-year CD, you must leave your deposit untouched for two years. At the end of the term, the full interest that accrued is added to the original deposit. You may then make a withdrawal within a specified window or decide to renew or open a new CD.
If you don’t want to tie up your money for a full 24 months, you may be able to select a shorter-term CD or certificate product at another bank or credit union. Terms may range from 21 to 29 months, which may better suit your financial goals.
Who Is a 2-Year CD Best For?
A 2-year CD is appropriate for anyone who wants to put a chunk of savings to work for them. Since the APY is fixed and can be higher than what you’d get with a savings account, you can calculate exactly how much you’ll earn.
Be mindful that you can’t touch that money for the full 2-year term without being penalized and losing part of the interest you’ve earned.
Some scenarios that might be a good fit for a 2-year CD include if you’re saving up for a large purchase like a home or bucket-list trip. The CD may help ensure that you won’t spend that money, plus give you a few more bucks on top of the principal balance.
While longer-term CDs usually have higher APYs, a 2-year term offers a sweet spot in which you’re earning good rates but don’t have to give up access to your funds for a longer period of time. It’s also a product to consider if you’re using a CD ladder strategy, in which you purchase CDs of varying lengths so as not to lock down all of your money in a single long-term account.
What Are the Alternatives to a 2-Year CD?
For a short-term savings strategy, a 2-year CD may be a good solution (assuming two years isn’t too far off for you). Before opening any type of account that essentially ties up your assets, it’s smart to consider your personal finance goals and whether you can live without access to those funds for a set period of time.
If you’re leaning toward a CD, look at APYs and other terms to decide if a shorter or longer-term might work better for you. Shorter-term CDs allow you to touch your money again sooner but may not earn as much as their long-term siblings.
If the thought of tying up your money stresses you out, an online savings account may be a better fit. Some APYs are in line or close to what you’ll find among 2-year CD APYs. However, just note that savings account rates are variable, so you don’t have that fixed-rate assurance. On the other hand, if you don’t have the discipline to stay away from dipping into a savings account, a CD might help.
If you prefer instant account access, we have partnered with the following banks to bring you the high-yield savings and money market account offers displayed in the table.