Best 2-Year CD Rates of June 2023 (Earn up to 5.00%)

Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

The national average APY (Annual Percentage Yield) on a 2-year CD is 1.45% APY. However, select online banks and credit unions pay up to 5.00% APY on 2-year CDs. Read below for our top picks for 2-year CDs.

When you open a CD, your rate is locked in for the entire term length. You have the option to take out money before the term ends — but you’ll pay an early withdrawal penalty, and the institution usually makes you withdraw all your money in one lump some, rather than leaving some in the account. 

The Best 2-year CDs

These are our picks for the best 2-year CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. Although Silicon Valley Bank, Signature Bank, and First Republic Bank have recently been shut down, keep in mind money is safe at a federally insured financial institution.  When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.

Compare the Best 2-year CDs

Experts’ Advice on Choosing the Best 2-year CD

We consulted four banking and financial planning experts to inform these picks and provide their advice on finding the best place to keep your money.

Insider

Here’s their insight about CDs. 

How can someone choose between all of the available banks and credit unions?

First of all, you want a bank that is FDIC-insured (or a credit union that is NCUA-insured). Then, consider your own priorities: Are you looking for an in-person banking experience? Do you need a high-tech mobile app? Do you write checks? Are you looking for a high interest rate? Will you meet the requirements to waive any monthly maintenance fees?

There are plenty of banks and credit unions that offer good rates and useful products, but the best one for you will come down to how it fits your needs.

How should you choose a term length for a CD?

When you put money in a CD, you want to have two things: a plan for how you will use that money, and a timeline for when you’ll do it. Once you know when you’ll spend it, take a look at rates for terms that are near your planned timeline, and choose the CD with the best rate.

When you can put money in high-yield savings account, money market account, or CD, how do you choose between them?

While all three options pay somewhat similar rates, the difference comes down to how you plan to interact with that money over time. If you need access to it in the next few months or years, that means you can’t use a CD (or at least not one that spans however many months or years). Money market accounts tend to offer more account accessibility — several offer paper checks, ATM cards, or debit cards — while high-yield savings accounts are a good place to leave your money alone, knowing you can access it if needed.

Methodology: How Did We Select the Best 2-year CDs?

At Personal Finance Insider, our goal is to create helpful reviews, guides, and explainers so that you can make good decisions about your money. We recognize every person has distinct preferences, so we provide ample options to help you find the most suitable financial product or account.

First, we researched to find over two dozen banks and credit unions that offered 2-year CDs. Then, we reviewed each institution to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.

See our full ratings methodology for certificates of deposit » 

2-year CD Frequently Asked Questions

Bread Savings 2 Year High-Yield CD

Why it stands out: Bread Savings pays higher CD rates than what you would earn at many brick-and-mortar banks or online banks. Bread Savings also could be a good choice if you’re looking to open a high-yield savings account as well.

APY for 2-year CD: 5.00% APY

2-year CD early withdrawal penalty: 180 days of interest

What to look out for: The minimum opening deposit for Bread Savings CDs is $1,500, which is a bit steep compared to other institutions.

Bread Savings is also an online-only bank with a high-yield savings account and CDs. It doesn’t have a checking account or ATM network. 

Bread Savings Review

Why it stands out: You might Delta Community Credit Union if you prefer credit unions over banks. Delta Community Credit Union offers a high interest rate on a 2-year term and has standard early withdrawal penalties.

APY for 2-year CD: 5.00% APY

2-year CD early withdrawal penalty: 180 days of interest

What to look out for: You must qualify for membership to open a bank account at Delta Community Credit Union. You are eligible for membership if you live or work in an eligible county in Georgia; are an employee/former employee/retiree of dozens of businesses, or a member of several associations; you have a family member that is eligible for membership; or you are a non-US citizen working full-time for Delta Air Lines and live in one of several foreign countries (You may only open a savings account, though.)

Delta Community Credit Union Review

Signature Federal Credit Union 2 Year Certificate

Why it stands out: Signature Federal Credit Union is another solid choice if you prioritize banking with a credit union. The Signature Federal Credit Union Certificate has a $500 minimum opening deposit. 

APY for 2-year CD: 4.85% APY

2-year CD early withdrawal penalty: 180 days of interest

What to look out for: Credit unions require membership to open an account. The easiest way to become a member is to enroll in the American Consumer Council. Then you’ll just need to open a savings account.

CIBC Agility 2 Year CD

Why it stands out: CIBC Bank USA is the US division of the Toronto-based bank Canadian Imperial Bank of Commerce. It has competitive CD rates on 1-year, 18-month, and 2-year terms. You’ll earn a higher rate if you deposit $25,000 or more with an 18-month or 2-year term.

CIBC Agility CDs also have low early withdrawal penalties compared to other banks.

APY for 2-year CD: 4.75% to 4.80% APY

2-year CD early withdrawal penalty: 30 days of interest

What to look out for: CIBC Bank USA has an online savings account and CDs that you can open anywhere in the US. To open a checking account or money market account in the US, you must live in a state that has a banking center. Banking centers are only located in Illinois, Michigan, Missouri, and Wisconsin. 

CIBC Bank USA Review

Crescent Bank 2 Year CD

Why it stands out: Crescent Bank has high interest rates on a variety of online CDs.

APY for 2-year CD: 4.75%

2-year CD early withdrawal penalty: 180 days of interest

What to look out for: To open the Crescent Bank CD, you’ll need to deposit at least $1,000 in new money. New money means funds that haven’t already been deposited into a Crescent Bank account.

Crescent Bank CDs will automatically renew at the end of each term unless you call customer service to cash out your CD. 

Crescent Bank CD Review

First Internet Bank of Indiana 2 Year CD

Why it stands out: A 2-year First Internet Bank of Indiana Certificate of Deposit pays a higher interest rate than most brick-and-mortar and online banks.

First Internet Bank of Indiana also might be appealing if you’re looking for a money market account.

APY for 2-year CD: 4.70% APY

2-year CD early withdrawal penalty: 360 days of interest

What to look out for: First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference. You can also find a bank that charges less for an early withdrawal from a 2-year CD.

First Internet Bank of Indiana Review

Sallie Mae 2 Year CD

Why it stands out: Sallie Mae pays higher CD rates than most brick-and-mortar and online banks. Sallie Mae has a variety of short-term CDs and is also featured in our guide to the best money market accounts.

APY for 2-year CD: 4.65% APY

2-year CD early withdrawal penalty: 180 days of interest

What to look out for: At Sallie Mae, an initial deposit of $2,500 is required to open a CD. Other banks on our list let you open a CD with $1,000 or less. 

Sallie Mae Bank Review

Quorum Federal Credit Union 2 Year Term Savings

Why it stands out: Quorum Federal Credit Union is an online financial institution with one branch in New York. It offers term accounts, which are similar to high-yield CDs — you’ll earn a fixed interest rate for a specific term. The 2-year term account pays the highest interest rate out of all its term accounts. 

APY for 2-year CD: 4.60% (on balances $1,000 – $99,999) or 4.70% (on balances of $100,000 or more) APY

2-year CD early withdrawal penalty: 2% of the amount withdrawn 

What to look out for: Credit unions require membership to open accounts. At Quorum, you or a family member have to work for a Select Employee Group on this list, or you must join the American Consumer Council or Select Savers Club.

Other 2-year CDs We Considered

We looked at the following 2-year CDs as well. These CDs ultimately weren’t chosen among our top picks because they may have lower rates than our winners, higher minimum opening deposits, or more substantial early withdrawal penalties.

You might find some of these options appealing though, depending on your preferences.

• Pentagon Federal Credit Union Money Market Certificate: PenFed pays a good interest rate on a 2-year certificate, but our top picks have even higher rates right now.
• First National Bank of America CD: First National Bank of America has a variety of CD terms and pays good rates. However, the rates on its CDs don’t compete with any of the banks on our list.  
• Alliant Certificate: Alliant’s 2-year certificate pays a lower interest rate than our top picks.
• Marcus High-Yield CD: A 2-year Marcus CD is the online institution’s most appealing option, but the banks on our list stand out for their higher interest rates or lower minimum opening deposits.
• Synchrony CD: Synchrony has a variety of CD terms and pays good interest rates. However, our top picks have higher interest rates for 2-year CDs.
• Capital One 360 CD: Capital One 360 might be worth considering if you’d like to open a CD with a $0 initial deposit. But, its CD rates aren’t as competitive as our top picks.
• Bask Bank CD: Bask Bank only has a few CD terms to choose from. While its CDs offer higher interest rates than the average CD, its rates aren’t as appealing as banks and credit unions on our list.
• LendingClub CD: Our top picks have lower minimum opening deposits. You’ll need at least $2,500 to open a LendingClub CD. 
• Popular Direct CD: You need at least $10,000 to open a CD at Popular Direct. In comparison, financial institutions usually require $1,000 for an initial deposit on a CD. 
• Barclays Online CD: Our top picks have even higher interest rates or stronger mobile app ratings. You might consider Barclays worthwhile if you’d like to open accounts with a low minimum opening deposit, though.
• Ally Raise Your Rate CD: Ally has a $0 minimum opening deposit, but some of our top picks offer higher interest rates.
• Connexus Credit Union Share Certificate: While Connexus offers competitive interest rates on CDs, you’ll need at least $5,000 to open a CD.
• American Express CD: American Express offers a good interest rate, but our top picks offer even higher rates.
• TIAA Bank Basic CD: TIAA has a variety of CDs, but other online banks and credit unions pay higher interest rates on CDs right now.
• Navy Federal Credit Union Standard Certificate: Navy Federal Credit Union has a variety of CD terms, but its 1-year CD rate isn’t as strong as the institutions we’ve chosen.
• NBKC CD: NBKC offers competitive interest rates on long-term CDs, but its short-term CDs aren’t as strong. 
• Discover (Member FDIC): Discover has competitive interest rates on long-term CDs, but you must have at least $2,500 to get a CD.
• CIT Bank Term CD: Other institutions on our list offer higher interest rates right now.
• BrioDirect High-Yield CD: BrioDirect has a variety of CD terms, but its 1-year CD rate isn’t as strong as our top picks. 
• Golden 1 Credit Union CD: Golden 1 Credit Union offers competitive rates, but you must live in California to join.

Bank Trustworthiness and BBB Ratings

We’ve compared each bank’s Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. All of our top picks have BBB ratings with the exception of Signature Federal Credit Union. 

A good BBB rating doesn’t necessarily mean that your relationship with the bank will be perfect. Talk to current customers or read online customer reviews to get a more well-rounded perspective about whether the bank may be ideal for you.

Here is each company’s score:

The BBB gave CIBC Bank USA an A+ rating. However, its parent company CIBC has an F rating because the BBB has received numerous complaints, and the bank hasn’t responded to or resolved some complaints. 

Bread Savings’ partner bank also has an NR “No Rating” because the BBB is evaluating a pattern of complaints before giving a rating.

Bread Savings and CIBC Bank have been involved in a recent public controversies. 

According to a note on the BBB website about Comenity Capital Bank (Bread Savings’ partner bank), there has been a pattern of complaints and reviews received by the BBB between October 15, 2022, and November 14, 2022. The complaints claim that customers have experienced billing inaccuracies, customer service deficiencies, and inaccurate reporting to credit bureaus. Comenity agreed to meet with the BBB on March 2, 2023.

As of April 23, 2023, Comenity stated it is taking the following steps: 1) investigating complaints, disputes, and fraud concerns; 2) adding staff and more training for customer service agents; and 3) reporting accurate and timely information to credit bureaus. The BBB will provide updates as needed.

In 2021, CIBC agreed to pay $125 million in a settlement when accused of misrepresenting financial information regarding CIBC investments and US residential mortgage-backed securities.

Sophia Acevedo, CEPF

Banking Reporter

Evelyn He

Compliance Associate

Evelyn He is a compliance associate at Insider who supports the Personal Finance Insider team. Personal Finance Insider is Insider’s personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Insider readers already know and love.
The compliance team’s mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.
Before joining Insider, she served in various legal and compliance roles in different industries, including the legal and pharmaceutical industries.   
Evelyn obtained her M.S. degree in Marketing at Boston University in 2022. Prior to combining and consolidating her knowledge of law and business, she spent one year finishing 1L courses at Suffolk University Law School to further her legal knowledge. She has also completed MBA business law courses while working on her Bachelor of Business Administration in Management at the University of Massachusetts, Amherst. 
Outside of work, she enjoys spending time with her 14-year-old Shih Tzu named Money, and her 4-year-old Bichon named Tibber.

Read more
Read less