A 2 Year CD (certificate of deposit) is a time deposit with a fixed rate for the entirety of the 24 month term. Upon maturity of the certificate you can withdraw the balance without penalty. 2 year CD’s are FDIC insured for up to $250,000. A penalty will typically be enforced for early withdraw of funds.
Banks offer daily, monthly and quarterly compounding rates. The yield on a 2 year bank CD is higher than the rate because the yield factors in compounding interest over the term of the certificate. Many financial institutions require a minimum deposit for 2 year CD accounts, some require no minimum deposit.
Best 2 Year CD Rates
| Bank Rank | Name of Bank | Investment Type | Term | Rate | Compounded | Min. Deposit |
|---|---|---|---|---|---|---|
| 1 | Melrose Credit Union | Bank CD | 2 yr | 1.66% | Daily | $5,000 |
| 2 | MetLife | Bank CD | 2 yr | 1.55% | Daily | $25,000 |
| 3 | USAA | Bank CD | 2 yr | 1.50% | Monthly | $1,000 |
| 4 | Aurora Bank | Bank CD | 2 yr | 1.48% | Daily | $1,000 |
| 5 | Ally Bank | Bank CD | 2 yr | 1.44% | Daily | $0 |
Comparing our best 2 year CD rates above, and also reviewing our local market CD Rates section is going to help you find the best 2 year CD for your needs.
Finding the best 2 Year CD
When selecting a 2 year CD there are many factors besides rate you need to consider. You need to keep in mind minimum deposit amounts, interest earning withdraw guidelines, whether the financial institution is FDIC or NCUA insured and APY (Annual Percentage Yield).
The 2 year CD is a great investment when you need a moderate level of flexibility and can leave that money untouched for the duration of the 24 month term. The length of a 2 year CD is not so long that it becomes extremely risky, and the rates, which most of the time are better then the 6 and 12 month CDs, are often high.
