The Best 2-Year CD Rates of 2023

Annuity.org’s independent editorial team evaluated CD products from the country’s 30 largest banks and 10 largest credit unions, selected based on consolidated assets as reported by the U.S. Federal Reserve or National Credit Union Administration, to determine the qualifying institutions for their rankings.

Out of the 19 qualifying banks and credit unions falling under the criteria outlined above, only 11 offered CDs with 2-year terms. However, two banks that did not structure their terms by 1-year increments offered terms near two years with high interest rates, and we included them in our review.

The staff further narrowed the selection to only those offering more than 3.00% APY for their final comparisons, resulting in a shortlist of eight institutions.

Final selections were based on evaluating APY, minimum deposits, early withdrawal penalties and any bonuses or promotions offered by the institution.

Learn more about our broader Editorial Guidelines.

Among the other institutions Annuity.org considered, we found four banks that offered competitive choices among rates, minimum deposits and early withdrawal penalties.

Compared to shorter-term CDs, which are considered less risky by banks and credit unions, 2-year CDs generally offer higher interest rates — but lower rates than longer-term CDs.

Locking in funds for longer periods of time, such as with 5-year or 10-year CDs, typically results in higher interest rates but also carries more risk for the depositor.

It’s important to note that these are not strict guidelines, as rates can vary widely between institutions and even within a single bank or credit union. So, it’s important to compare different institutions and CD terms when shopping for a certificate of deposit.

A 2-year CD may be a good choice if you’re looking for a balance between earning a relatively high rate of return while still keeping some flexibility in your investment strategy.

It’s important to consider your personal financial goals and needs when choosing the length of your CD term. It’s also important to consider circumstances that may arise requiring you to tap your savings. Early withdrawal penalties can eat away at your earnings.

You may choose to consider alternative options as well, such as high-yield savings accounts, to determine what saving or other personal finance strategies work best for you.