Best 2-Year CD Rates of June 2024: Secure Returns for Your Savings (2024)

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The national average APY (Annual Percentage Yield) on a 2-year CD is 1.57% APY, but many banks pay significantly higher rates.

The best rate on a 2-year CD available nationwide is 4.90% APY available at Crescent Bank.

We check rates daily to find the best 2-year CD rates today. Read below for our top picks to compare 2-year CD rates.

The Best 2-Year CDs

• Crescent Bank 2 Year CD: 4.90% APY
• MYSB Direct 2 Year CD: 4.85% APY
• Lafayette Federal Credit Union 2 Year Certificate: 4.78% APY
• First Internet Bank of Indiana 2 Year CD: 4.76% APY
• Credit Human 2 Year Share Certificate: 4.75% APY
• First National Bank of America 2 Year CD: 4.75% APY
• Bask Bank 2 Year CD: 4.75% APY
• TAB Bank 2 Year CD: 4.70% APY
• Popular Direct 2 Year CD: 4.70% APY
• BMO Alto 2 Year High Yield CD: 4.65% APY
• Quorum Federal Credit Union 2 Year Term Savings: 4.50% (on balances of $1,000 - $99,999) to 4.60% (on balances of $100,000 or more) APY

Calculate Your Estimated 2-Year CD Earnings

Compare the Best 2-Year CDs

Our top picks for 2-year CDs include several online banks and credit unions. The online banks and credit unions we've listed have competitive rates that are available nationwide.

Two-Year CD Reviews

Choosing a CD term will likely depend on the timeline of your goals. A 2-year CD might be a good choice if you can keep money in an account for at least two years. If you're also interested in other CD terms, check out our overall best CD rates guide.

These are our picks for the best 2-year CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. If you are worried about abank failing, 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.

Crescent Bank 2 Year CD

Crescent Bank offers a strong rate on its 2-year CDs. While it offers online banking, it also has physical branches in Louisiana. If you live in Louisiana and want to bank in-person, Crescent Bank might be a good choice for you.

Crescent Bank doesn't have any CDs with term lengths under 1 year. If you're interested in opening a short-term CD, you might want to go with another bank.

Interest for an 2-year CD: 4.90% APY

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

Crescent CD Review

MYSB Direct 2 Year CD

The MYSB Direct 2-year CD might be a good choice if you're comfortable with a fully online banking experience. MYSB Direct has a variety of CDs with high interest rates so if you're interested in opening multiple CDs, it may be a good choice for you. It also has a low minimum opening deposit of $500

The bank compounds interest monthly, not daily. Depending on how much money you plan to keep in a CD, this may or may not make a significant difference.

Interest for a 2-year CD: 4.85% APY

2-year CD early withdrawal penalty: 90days of interest

Lafayette Federal Credit Union 2 Year Certificate

Lafayette Federal Credit Union pays a competitive interest rate on a 2-year term.

You may join Lafayette Federal Credit Union regardless of where you live in the United States by becoming a member of the Home Ownership Financial Literacy Council. You're also eligible for membership if you live, work, or worship in Potomac, Maryland, or parts of Washington, DC; work at a Select Employer Group; become a member of the American Consumer Council and live in Maryland, Virginia, or Washington, DC, or have a family member with credit union membership.

APY for 2-year CD: 4.78% APY

2-year CD early withdrawal penalty: 270 days of interest

First Internet Bank of Indiana 2 Year CD

A 2-year First Internet Bank of Indiana CD 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.

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.

APY for 2-year CD: 4.76% APY

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

First Internet Bank of Indiana Review

Credit Human 2 Year Share Certificate

Credit Human Federal Credit Union has competitive CD rates overall, especially on its 2-year term.

You must become a credit union member before opening a share certificate. You may join Credit Human from anywhere in the U.S. if you become a member of the American Consumer Council. Credit Human also has other ways to become a member: You'll be eligible to join if you live in a service area in San Antonio, Texas, or New Orleans, Louisiana, or if you work for a partner employer or organization.

APY for 2-year CD: 4.75% APY

2-year CD early withdrawal penalty: Credit Human does not list early withdrawal penalties for its 2-year terms online.

First National Bank of America 2 Year CD

First National Bank of America CDs are available online from anywhere in the United States. You also might like First National Bank of America if you live in Lansing, Grand Rapids, or Traverse City, Michigan. It has branches in these cities.

The bank offers one of the best 5-year CD rates along with its high rate for a 2-year CD.

First National Bank of America has steep early withdrawal penalties for most terms. You might prefer one of the other options on our list if you are worried about CD early withdrawal penalties.

APY for 2-year CD: 4.75% APY

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

First National Bank of America Review

Bask Bank 2 Year CD

Bask Bank offers good CD rates overall, including its 2-year term. You also might like Bask Bank if you're interested in a high-yield savings account.

Bask Bank has limited CD terms. If you're looking to open a CD with a term over 2 years, you might prefer another institution.

APY for 2-year CD: 4.75% APY

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

Bask Bank Review

TAB Bank 2 Year CD

A TAB Bank CD is a great option if you're searching for a high rate on a 2-year term. TAB also offers one of the best 6-month CD rates and is among the best high-yield savings rates.

If you're interested in opening CDs with terms that are 3 years or longer, you might consider other online banks. TAB Bank long-term CD rates aren't as competitive as its short-term options.

APY for 2-year CD: 4.70% APY

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

TAB Bank Review

Popular Direct 2 Year CD

Popular Direct CDs pay a solid interest rate for a 2-year term. Its other terms also pay well above average CD rates.

You'll need at least $10,000, though. This is steep compared to other banks on our list.

APY for 2-year CD: 4.70% APY

2-year CD early withdrawal penalty: 270 days of interest

Popular Direct Review

BMO Alto 2 Year High Yield CD

BMO Alto is a good choice if you're looking for competitive interest rates on long-term CDs. It pays the best 5-year CD rate nationally, as well as strong 2-year and 4-year CD rates.

BMO Alto CDs have a $0 minimum deposit, while many banks require around $1,000.

BMO Alto doesn't have a mobile app, though. Also, you can't go to a BMO Bank location to get customer support for BMO Alto accounts. That said, customer service for BMO Alto is available 24/7 by phone.

APY for 2-year CD: 4.65% APY

2-year CD early withdrawal penalty: 180 days of interest only on the amount you withdraw

BMO Alto Savings and CD Accounts

Quorum Federal Credit Union 2 Year Term Savings

Quorum has strong rates for its 2-year CD, which it calls a term savings account. It also offers a strong high-yield savings account, so if you're interested in opening a CD along with a savings account at the same bank, this might be a good choice for you.

Quorum compounds your interest monthly, as opposed to weekly or daily. Depending on how much money you have in the account, this could make a difference in how much you earn.

APY for 2-year CD: 4.50% (on balances of $1,000 - $99,999) to 4.60% (on balances of $100,000 or more) APY

2-year CD early withdrawal penalty: 2% of amount withdrawn, never to exceed original principal balance

Quorum Federal Credit Union Review

Bank Trustworthiness and BBB Ratings

We review the ethics of each company, so you can see if a specific financial institution aligns with your values.

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. A good BBB rating doesn't necessarily mean that your relationship with the bank will be perfect.

We also include the settlement history of the last three years so you're aware of any recent public controversies involving the bank.

Here is each company's score:

MYSB Direct doesn't have a BBB page at all. Its parent bank, M.Y.Safra Bank, has an NR rating from the BBB because the BBB doesn't have enough information about it.

Credit Human received an A rating from the BBB because it has a few customer complaints that haven't been resolved.

Bask Bank has a B rating from the BBB because of the number of customer complaints against the bank.

The Better Business Bureau gives TAB Bank an A rating because government action has been taken against the bank.

In 2022, TAB Bank entered an Assurance of Discontinuance with the State of Iowa. According to the settlement, the State of Iowa accused TAB Bank of charging Iowa residents more than the permitted maximum APR for consumer installment loans. The bank has stopped making consumer installment loans to Iowa residents and can resume if it provides a 30-day notice to the state and follow the state code.

In 2023, the Federal Reserve Board required Popular Bank to pay a $2.3 million fine, claiming it processed Payment Protection Program loans even though potential instances of fraud were detected and not reporting the potential fraud in a timely manner.

In 2022, the US Department of Treasury's Office of Foreign Assets Control also required Banco Popular de Puerto Rico — the Popular Bank's Puerto Rico locations — to pay over $255,000 in a settlement that accused the bank of violating Venezuela Sanctions Regulations when processing transactions with two Venezuelan government employees.

In 2022, a Minnesota jury ordered BMO to pay $564 million for its role in a Ponzi scheme. The court claimed that the bank had ignored multiple problems with a client who was using his accounts at the bank to run a Ponzi scheme. However, it's worth noting that the client's operations took place in 2008 with Marshall & Ilsley (M&I Bank), and BMO did not merge with M&I Bank until 2011.

What Influences the Best 2-Year CD Rates

Economic Conditions

Banks and credit unionshave to respond to market fluctuations when setting their rates. For example, if rates are raising, banks will have to raise their rates as well in order to stay competitive. And when rates lower, banks can lower their own rates and still make a profit.

Fed Actions and Interest Rate Outlook

If you're wondering what the Federal Reserve is, also called "the Fed," it's the central banking system of the U.S. Multiple times a year, the Fed meets to set its own interest rates. When it announces the changes it makes, most financial institutions follow suit.

Individual Institution Rates

What rate you can get differs from bank to bank and credit union to credit union. The worst banks for CDs will offer rates as low as 0.01%, while the best banks for CDs can go over 5% annual percentage yield. When shopping for 2-year CDs, make sure to compare banks' rates and look for 2-year CD specials.

Should You Invest in a 2-Year CD?

Whether you should invest in a 2-year CD or not largely depends on what you're hoping to get from a CD. If you're purely interested in the highest interest rate, short-term CDs are offering better rates than long-term CDs right now.

If you're interested in locking in a high rate for a while without committing to a five-year CD, a 2-year CD might be a good choice for you. You also might like a 2-year CD if you're saving up for something that you know will happen in two years, such as if you're planning on buying a house in two years.

2-Year CD FAQs

Why You Should Trust Us: 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.

• Tania Brown, CFP, vice president of coaching strategy at OfColor
• Sophia Acevedo, banking editor, Business Insider
• Roger Ma, certified financial planner with lifelaidout® and author of "Work Your Money, Not Your Life"
• Mykail James, MBA, certified financial education instructor, BoujieBudgets.com

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 Business 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 »