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Best 2-year CD rates - September 2022
January 10, 2023
Verified by
Quinanna Patterson
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A two-year CD can be a useful financial tool for those seeking a higher interest rate on their savings without committing to locking in their money for the long term. It can also offer a higher rate of return than a high-yield savings account.
What is a 2-year CD?
Think of a CD as a high-yield savings account placed in a safe with a lock-in period. Unlike a savings account, where the annual percentage yield (APY) is variable, the yield on a CD is fixed and does not vary over the term. At the end of the term, you can renew the CD or seek another CD with a potentially higher yield if the interest rate environment has improved. After a CD's maturity date, it is likely to be automatically renewed after a grace period, usually within seven to ten days.
The best two-year CD rates pay much more than the national average of 0.74 percent per year, according to Empire Finance Pro's September 7, 2022 survey of the National Banking and Savings Index. Here are some of the best two-year CD rates widely available. Compare these offers and calculate the interest you could get at CD maturity.
Empire Finance Pro's picks for the best two-year CD rates
- Bread Savings (formerly Comenity Direct): 3.50% per year; minimum deposit of $1,500.
- LendingClub: 3.25 percent per year; minimum deposit of $2,500.
- First Internet Bank of Indiana: 3.20%; minimum deposit $1,000.
- Pentagon Federal Credit Union: 3.10% per year; minimum deposit $1,000.
- Popular Direct: 3.10% per year; minimum deposit $10,000.
- Bethpage Federal Credit Union: 3.05% per year; minimum deposit $50.
- Alliant Credit Union: 3.05% per year; minimum deposit $1,000.
- Sallie Mae Bank: 3.05% per year; minimum deposit $2,500.
- Barclays Bank: 3.00% per year; minimum deposit $0.
- Capital One: 3.00% per year; minimum deposit $0.
- Synchrony Bank: 3.00% per year; minimum deposit $0.
- Marcus by Goldman Sachs: 3.00% per annum; minimum deposit $500.
- BMO Harris: 3.00% per year; minimum deposit $1,000*.
Note: Annual rates of return (AIR) shown are as of September 13, 2022 and may vary by region for some products. Empire Finance Pro regularly updates this information. Some annual percentage yields may have changed since the last update.
*Annual returns are not available in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri, and Wisconsin.
A close look at the best 2-year CD rates
Bread Savings (formerly Comenity Direct): 3.50 percent per year; minimum deposit $1,500.
Bread Savings, formerly Comenity Direct, is an online bank that offers high-yield savings products and five CDs with terms ranging from one to five years.
Bread Savings is part of Comenity Capital Bank, which is a unit of Bread Financial.
LendingClub Bank: 3.25 percent annually, minimum deposit $2,500.
LendingClub Bank is a digital financial company that offers banking products to individuals and businesses. It acquired Radius Bank in early 2021. LendingClub Bank offers five CD terms, a high-yield savings account with a competitive yield, and a cash refund checking account.
First Internet Bank of Indiana: 3.20 percent annual yield; minimum deposit of $1,000.
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 United States.
First Internet Bank offers eight CDs, a money market savings account with a competitive yield, a savings account and two checking accounts.
Pentagon Federal Credit Union: 3.10 percent annual yield; minimum deposit of $1,000.
Pentagon Federal Credit Union was founded in 1935. It has more than 2 million members and is headquartered in McLean, Virginia. PenFed offers nine CD durations, from six months to seven years.
Popular Direct: 3.10 percent annual yield; minimum deposit of $10,000.
Popular Direct CDs appeal to established investors because they require a minimum deposit of $10,000. CDs are offered in eight fixed maturities, from three months to five years. Popular Direct's High-Rise savings account offers a competitive yield and requires a minimum deposit of $5,000.
All Popular Direct accounts are opened through Popular Bank.
Bethpage Federal Credit Union: 3.05 percent annual yield; $50 minimum deposit.
Bethpage Federal Credit Union was founded in 1941 for Grumman workers. It is headquartered in Bethpage, New York, and has over 400,000 members.
It offers nine CD terms ranging from three months to five years. Bethpage also offers a 39-month bonus CD. In addition, Bethpage offers checking accounts, savings accounts, loans, and other financial products.
Alliant Credit Union: 3.05 percent annual yield; minimum deposit of $1,000.
Alliant Credit Union was founded in 1935 as United Airlines Employees' Credit Union. It is one of the largest credit unions in Illinois and has 600,000 members nationwide.
Alliant offers six CD terms with competitive annual interest rates and a reasonable minimum deposit. It also offers CD IRAs, a high-yield savings account, and a high-yield checking account.
Sallie Mae Bank: 3.05 percent annual yield; minimum deposit of $2,500.
Sallie Mae Bank offers 11 CD terms, as well as a savings account and a money market account with no minimum balance requirements and no monthly fee. All of these products offer competitive returns.
Sallie Mae Bank was founded in 2005 and is headquartered in Salt Lake City. In 2014, Sallie Mae became an independent consumer banking company.
Barclays: 3.00% annual yield; no minimum deposit
Barclays Bank does not require a minimum balance to open its CDs, making it a good option for savers of all levels. The bank offers nine CD terms and competitive yields.
Barclays also offers a savings account with a competitive annual yield.
The bank is based in London and has a worldwide presence.
Capital One: 3.00% annual yield; $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 for regular CDs. CDs and Capital One's 360 Performance Savings Account have no minimum balance requirements.
Synchrony Bank: 3.00% annual return; no minimum deposit
Synchrony Bank offers competitive returns on 14 regular CDs. It also offers a penalty-free CD and a premium CD, introduced in May 2022.
Synchrony offers a savings account and a money market account.
Marcus by Goldman Sachs: 3.00% annual return; minimum deposit USD 500
Marcus is the consumer bank of Goldman Sachs. It debuted in 2016 and offers a variety of CDs, three penalty-free CD terms, and a savings account. Marcus offers competitive returns on its savings and CD accounts.
It also offers personal loans, as well as debt consolidation and home improvement loans.
BMO Harris: 3.00% annual yield; minimum deposit of $1,000*.
BMO Harris offers online CDs with terms ranging from three months to five years, each of which requires a minimum deposit of $1,000 to open. It also offers several CD specials at very competitive rates.
BMO Harris has more than 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri, and Wisconsin. It is headquartered in Chicago. Competitive rates on CDs with terms of six months or more are not available to residents of states where BMO has branches.
Frequently asked questions about 2-year CDs
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How are 2-year CDs used on a CD ladder?
In addition to helping you achieve your medium-term financial goals, two-year CDs can be used as a ladder to build a ladder of CDs. When set up correctly, laddering allows you to benefit from higher rates over longer maturities and receive regular injections of cash to spend or reinvest. With a CD ladder, you divide the deposit amount into CDs of different maturities. For example, you can open a three-tiered ladder with one-, two-, and three-year CDs. The rates of one- and two-year CDs are usually lower than those of three-year CDs, but you may not want to tie up all your money for three years. A laddering strategy allows you to take advantage of the higher interest rates of long-term CDs while still allowing you to access some of your money at regular intervals. When the one- or two-year CDs come to maturity, you can access the money to spend it or invest it in higher-yielding assets. You can also invest it in another three-year CD, which will become the longest rung on your CD ladder. Think carefully about how to incorporate a two-year CD into a laddering strategy that combines the benefits of higher total return and allows you to access some of your funds at the maturity of shorter-term CDs. -
Finding the best rates for 2-year CDs.
When looking for a two-year CD, you may be tempted to sign a contract with the bank that manages your checking account. But if you want to get the best rate, it's worth shopping around and not limiting yourself to your current bank. "Traditional banks have a lot of overhead to cover, and online banks are competing with them," says Sheryl Garrett, CFP and founder of Garrett Planning Network. "Don't settle for the first CD rate offered by your bank. Focus on the fact that it is your money." Regardless of the size of the bank offering the best terms, as long as it is a member of the Federal Deposit Insurance Corp. (FDIC), you can safely deposit your money there. Consumer deposits at all FDIC-insured banks are backed by the faith and credit of the U.S. government up to $250,000 per depositor, per account ownership category. Credit unions licensed by the National Credit Union Administration (NCUA) have a standard insurance amount of $250,000 per shareholder, per account ownership category.
Empire Finance Pro's methodology for finding the best rates on CDs.
At Empire Finance Pro, we are committed to helping you make better 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 carefully vetted for accuracy.
Empire Finance Pro regularly surveys about 70 leading financial institutions, including all major banks and credit unions, as well as several popular online banks.
To find the best CDs, our editorial staff analyzes several factors, such as: the annual return, the minimum required to earn that annual return (or to open the CD), and the wide availability. All accounts presented on this page are insured by the Federal Deposit Insurance Corp (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF).
When choosing the best CD for you, consider the purpose of the money and when you will need to access it to avoid early withdrawal penalties.
