Lock in the highest rates

If you’re looking for a way to lock in a competitive return without tying up your savings for too long, a 2-year certificate of deposit (CD) could strike the right balance. With interest rates still relatively elevated compared to historical averages — but potentially headed lower in the near future — a 2-year CD could help you secure a predictable rate over the next 24 months.

Our team evaluated dozens of accounts to determine the best 2-year CDs available today. Here’s a look at the accounts that made our top 10 (see our full methodology here).

The following is a snapshot of our picks for the best 2-year CDs available today. Keep reading for more details about these accounts.

Prime Alliance Bank’s 24-month CD offers 3.8% APY with a minimum opening deposit of $500. Interest on this CD is compounded and credited monthly.

Read our full review of Prime Alliance Bank

The Marcus by Goldman Sachs 24-month CD offers 3.95% APY — nearly three times the national average. Interest compounds daily. You must deposit a minimum of $500 to open an account.

The penalty for making an early withdrawal from this account is 180 days’ interest on the original principal balance at the interest rate in effect for the account.

Read our full review of Marcus by Goldman Sachs

Synchrony Bank’s 24-month CD boasts 3.5% APY with no monthly maintenance fees or minimum balance requirements. Interest on this account is compounded daily and credited monthly.

The penalty for making an early withdrawal from this CD is equal to 180 days’ simple interest at the current rate.

Read our full review of Synchrony Bank

Depositors who prefer a credit union over a traditional bank may be interested in America First Credit Union’s 24-month CD. This account offers 4.05% APY with a minimum opening deposit of $500 required.

To become a member of America First Credit Union, you’ll need to submit an online application and meet certain eligibility requirements.

Read our full review of America First Credit Union

American Express doesn’t just offer credit cards. The banking arm of American Express offers a number of banking products and services. This includes high-yield CDs; its 24-month CD offers 3% APY with no minimum deposit required. Interest compounds daily.

Read our full review of American Express National Bank

Quontic’s 24-month CD currently provides 3.35% APY with a minimum deposit of $500 required. Interest compounds daily and is credited monthly. There are no monthly service fees.

One major drawback of this CD: The penalty for making an early withdrawal is equal to the interest for the full length of the term.

Read our full review of Quontic Bank

Bank5Connect is an online-only bank offering competitive rates on its deposit products. The current rate for its 24-month CD is 3.2% APY, and a minimum of $500 is needed to open an account. Interest compounds monthly.

The penalty for early withdrawals is equal to six months’ interest on the amount withdrawn.

Read our full review of Bank5 Connect

Bask Bank’s 24-month CD has a higher minimum opening deposit at $1,000. So, this account may not be the best option if you’re still working on building up your savings.

Those who do qualify benefit from 3.65% APY and daily interest compounding. The penalty for making a withdrawal before your CD hits maturity is 180 days’ simple interest based on the principal amount withdrawn.

Read our full review of Bask Bank

TAB Bank offers a 2-year CD that earns an impressive 3.82% APY. There is a $1,000 minimum opening deposit requirement. Interest is compounded daily and credited monthly.

Read our full review of TAB Bank

Bread Savings’ 24-month CD offers a competitive 3.75% APY, though the minimum opening deposit for this account is the highest on our list at $1,500. Interest is compounded daily and credited monthly.

Read our full review of Bread Savings

Whether a 2-year CD is “worth it” depends on your goals, where rates are now, and what alternatives you’re considering. Choosing this term length allows you to lock in a competitive interest rate for two years, which can be beneficial if rates are falling. However, it’s important to consider whether you’re able to keep your money tied up for two years — making a withdrawal before maturity will result in an early withdrawal penalty, which can wipe out some or all of your interest earnings.

The average interest rate for a 2-year CD is currently 1.41%. However, several banks and credit unions offer rates well above this average — as high as 4% in some cases.

Right now, the highest 2-year CD rate is offered by America First Credit Union. This account boasts 4.05% APY.

Explore additional CD terms:

Our grading system, collected and carefully reviewed by our personal finance experts, comprised over 300 data points for federally insured CDs with 2-year terms. We used this data to develop our list of the best CDs.

We evaluated these accounts according to several key metrics, including annual percentage yield, minimum opening deposit, compounding frequency, and more.

The accounts on our list could earn a maximum of 25 points across all metrics. Here’s a closer look at the categories we considered:

Annual percentage yield (APY): Accounts with higher APYs were rewarded with more points than those with lower APYs. Note that rates on our list are current at the time of publishing, but are subject to change at any time.

Minimum opening deposit: Many CDs require a minimum deposit to open an account. Accounts with no or low minimum deposit requirements ranked more favorably than those with higher opening deposit requirements.

Compounding frequency: Compounding can occur daily, monthly, quarterly, or even annually. We awarded more points to accounts that compound interest frequently.

Customer service contact methods: Our team awarded one point for every contact method available to customers (phone, email, chat).