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.
Think of a CD as a higher-paying savings account that’s 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.
Though 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 two-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 July 2022
- Bread Savings (formerly Comenity Direct): 3.00% APY; $1,500 minimum deposit
- Popular Direct: 2.75% APY; $10,000 minimum deposit
- First Internet Bank of Indiana: 2.63%; $1,000 minimum deposit
- Quontic Bank: 2.51% APY; $500 minimum deposit
- Pentagon Federal Credit Union: 2.50% APY; $1,000 minimum deposit
- LendingClub Bank: 2.50% APY; $2,500 minimum deposit
- Live Oak Bank: 2.50% APY; $2,500 minimum deposit
- Sallie Mae Bank: 2.50% APY; $2,500 minimum deposit
- Synchrony Bank: 2.40% APY; $0 minimum deposit
- BMO Harris: 2.40% APY; $1,000 minimum deposit*
- Alliant Credit Union: 2.35% APY; $1,000 minimum deposit
- Bethpage Federal Credit Union: 2.30% APY; $50 minimum deposit
- BrioDirect: 2.30%; $500 minimum deposit
- TAB Bank: 2.30%; $1,000 minimum deposit
- American Express National Bank: 2.25% APY; $0 minimum deposit
- Barclays: 2.25% APY; $0 minimum deposit
- Capital One: 2.25% APY; $0 minimum deposit
- Marcus by Goldman Sachs: 2.25% APY; $500 minimum deposit
- HSBC Direct: 2.25% APY; $1,000 minimum deposit
- Discover Bank: 2.25% APY; $2,500 minimum deposit
- Citizens Access: 2.25% APY; $5,000 minimum deposit
- TIAA Bank: 2.20% APY; $1,000 minimum deposit
- Amerant Bank: 2.20% APY; $10,000 minimum deposit
Note: Annual percentage yields (APYs) shown are as of July 12, 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.
*APY is unavailable in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.
Interest rates are often higher on CDs because, in addition to the normal deposit rate, banks pay CD account holders a liquidity premium, which is the additional return an investor expects for giving up the ability to liquidate their investment quickly.
The best two-year CD rates pay far more than the national average of 0.55 percent APY, according to Bankrate’s national index survey of banks and thrifts from July 6, 2022.
Today’s top widely available two-year CD pays 3 percent APY, which may be a good place to invest for midterm 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 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.
Best 2-year CD rates of July 2022
Bread Savings (formerly Comenity Direct): 3.00% 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.
Popular Direct: 2.75% APY; $10,000 minimum deposit
Popular Direct, an online bank, is a subsidiary of Popular Inc., a financial-services company that is more than 120 years old. Popular Direct was previously known as Banco Popular North America.
Popular Direct offers CDs in eight terms, from three months to five years, with a minimum $10,000 opening deposit and interest that compounds daily.
Popular Direct also offers a savings account with a competitive yield.
First Internet Bank of Indiana: 2.63% APY; $1,000 minimum deposit
First Internet Bank of Indiana opened in February 1999 and was the first FDIC-insured financial institution to operate entirely online, according to the bank’s website. Its products are available in all 50 U.S. 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.
Quontic Bank: 2.51% APY; $500 minimum deposit
Quontic Bank was established in 2005 and is based in New York. It offers five terms of CDs, ranging from six months to three years, which can be opened with as little as $500.
In addition to its CDs, Quontic Bank also offers money market, high-yield savings and checking accounts.
Pentagon Federal Credit Union: 2.50% APY; $1,000 minimum deposit
Pentagon Federal Credit Union was established in 1935. It has more than 2 million members and is based in McLean, Virginia. PenFed has nine terms of CDs, ranging from six months to seven years.
LendingClub Bank: 2.50% APY; $2,500 minimum deposit
LendingClub Bank offers fixed-term CDs, a high-yield savings account and a checking account. LendingClub Bank is a subsidiary of LendingClub Corp.
LendingClub Bank’s two-year CD requires at least $2,500 to open the CD.
Live Oak Bank: 2.50% APY; $2,500 minimum deposit
Live Oak Bank was founded in 2008 and is based in Wilmington, North Carolina. 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 offers seven terms of CDs.
Sallie Mae Bank: 2.50% 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 standalone consumer-banking business.
Synchrony Bank: 2.40% APY; $0 minimum deposit
Synchrony Bank offers competitive yields across 14 regular CD terms.
The bank also offers a savings account, a money market account, a no-penalty CD and a bump-up CD. The latter two accounts were introduced in May 2022.
BMO Harris: 2.40%* APY; $1,000 minimum deposit
BMO Harris offers online CDs with terms ranging from three months to five years, each requiring a minimum $1,000 deposit to open. It also offers several CD specials with very competitive rates.
BMO Harris operates more than 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin. It’s based in Chicago. The competitive rates offered on CDs with terms six months and longer are unavailable to residents of states where BMO has branches.
Alliant Credit Union: 2.35%* APY; $1,000 minimum deposit
Alliant Credit Union was founded in 1935 as United Airlines Employees’ Credit Union. It has about 600,000 members nationwide.
Alliant offers competitive APYs with reasonable minimum balance requirements for CDs. Alliant also has traditional individual retirement account (IRA) CDs, Roth IRA CDs and SEP IRA CDs.
Bethpage Federal Credit Union: 2.30% APY; $50 minimum deposit
Bethpage Federal Credit Union was founded in 1941 for employees of aircraft-maker Grumman.
The credit union is based in Bethpage, New York, and has more than 400,000 members. Bethpage offers nine terms of CDs, ranging from three months to five years. A 39-month bump-up CD is also available.
BrioDirect: 2.30% APY; $500 minimum deposit
BrioDirect is an online subsidiary of Webster Bank. It was announced in April 2021 that BrioDirect – and Sterling Bancorp – would combine with Webster Bank.
Besides its two-year CD, BrioDirect also offers CDs with terms ranging from 30 days to five years. All of these CDs require at least a $500 deposit to open them.
TAB Bank: 2.30% APY; $1,000 minimum deposit
TAB Bank was established in 1998 in Ogden, Utah, as a banking service inside truck stops. TAB (Transportation Alliance Bank) serves businesses and individual customers.
It offers several checking accounts, a couple of savings account options, a money market account and CDs in eight terms, ranging from six months to five years.
American Express National Bank: 2.25% APY; $0 minimum deposit
American Express is best known for its credit cards, but the FDIC-insured bank also offers deposit products like savings accounts and CDs. Its CD rates are often competitive. AmEx CDs require no minimum balance and terms range from six months to five years.
American Express offers a high-yield savings account with a yield that’s well above the national average, and it doesn’t require a minimum deposit or charge a monthly fee.
Barclays: 2.25% APY; $0 minimum deposit
Barclays is a global bank founded in London more than 300 years ago. It introduced the first ATM machine 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.
Capital One: 2.25% APY; $0 minimum deposit
Capital One is an online bank that also has branches. It is based in McLean, Virginia.
Capital One offers nine competitive terms of regular CDs. Capital One’s CDs and 360 Performance Savings account have no minimum balance requirements.
Marcus by Goldman Sachs: 2.25% APY; $500 minimum deposit
Marcus is Goldman Sachs’ consumer bank and debuted in 2016. It 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, and also offers personal loans, as well as those for debt consolidation and home improvement.
HSBC Direct: 2.25% APY; $1,000 minimum deposit
HSBC Direct offers three terms of fixed-rate CDs, as well as a savings account and checking account. 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.
Discover Bank: 2.25% APY; $2,500 minimum deposit
Discover Bank is widely known for credit cards, but it also offers other personal banking products, including 12 CD terms, a money market account, savings account and checking account. Discover Bank’s products tend to offer competitive APYs.
Citizens Access: 2.25% APY; $5,000 minimum deposit
Citizens Access is the online division of Citizens Bank. It launched in July 2018 with a savings account and CDs.
The bank offers five CD terms and an 11-month no-penalty CD. Yields are competitive. Its CDs and savings accounts all require a $5,000 minimum deposit.
TIAA Bank: 2.20% APY; $1,000 minimum deposit
TIAA Bank is a division of TIAA FSB and has 10 branches, all in Florida. TIAA Bank offers Basic CDs with terms ranging from three months to five years. It also offers a 42-month bump-up CD, as well as checking and money market accounts, and other products.
Amerant Bank: 2.20% APY; $10,000 minimum deposit
Amerant Bank maintains 17 branches in Florida and seven in Texas. CDs can be opened online by residents in every state, but rates offered in Florida and Texas are much less competitive than those offered in the other 48 states.
The bank offers six CDs with terms ranging from one to five years, as well as a savings account, a money market account and three checking accounts.
Finding the best 2-year CD rates
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. 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.
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.
Best CD rates by term
In general, you’ll find the best CD rates on longer-term CDs. With a five-year CD, for example, you usually end up with a higher yield than what’s available for a two-year CD. Also, as with most certificates of deposit, if you withdraw money from a five-year CD, before the term matures, you’ll likely incur a penalty.
Building a CD ladder
In addition to helping you meet your midterm 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 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 July 2022
|Institution||APY||Minimum to earn APY|
|Bread Savings (formerly Comenity Direct)||3.00%||$1,500|
|First Internet Bank of Indiana||2.63%||$1,000|
|Pentagon Federal Credit Union||2.50%||$1,000|
|Live Oak Bank||2.50%||$2,500|
|Sallie Mae Bank||2.50%||$2,500|
|Alliant Credit Union||2.35%||$1,000|
|Bethpage Federal Credit Union||2.30%||$50|
|American Express National Bank||2.25%||$0|
|Marcus by Goldman Sachs||2.25%||$500|