Best 2-year CD Rates of November 2024
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Best 2-year CD Rates for November 2024

  • Some two-year CDs offer APYs up to 10 times the national average of savings account interest rates.
  • A two-year CD can be a good choice if you believe CD rates will fall, have an established emergency fund and won’t need access to your money for 24 months.
  • Our top picks for the banks with the best two-year CD rates include Barclays and Quontic.
  • If you desire liquidity or higher returns than a two-year CD offers, consider alternatives like a money market account, a high-yield savings account or an investment account.

Our top picks for CDs

Our top picks for banks with the best 2-year CD rates

Advertiser Disclosure

Barclays 2-year CD
LEARN MORE on Barclay's secure website
APY
3.00%
Term Length
2 years
Minimum Opening Deposit
$0.00
Why We Like It

Editor's take

Why we like it Barclays offers a two-year online CD with no minimum balance requirement and is fully FDIC-insured up to $250,000. It has a fixed annual percentage yield (APY) of 3.0%, and interest is compounded daily.

This CD is an excellent option for individuals with a substantial emergency fund and looking to set aside further funds for two years. It offers a higher interest rate than many traditional brick-and-mortar savings accounts while ensuring the security and reliability of your savings.

PROS

  • Competitive interest rates
  • No minimum deposit required
  • Insured by the FDIC

CONS

  • Early-withdrawal penalty
  • No physical branch locations

Quontic 2-year CD

LEARN MORE
on Quontic's secure website
APY
apy
Term Length
2 years
Minimum Opening Deposit
min_deposit
Why We Like It

Editor's take

Quontic offers a 24-month CD with a fixed APY of 4.5%, significantly higher than the national average. It has a low minimum deposit requirement of $500, making it accessible to a broader range of people.

Although the 24-month term doesn’t offer the highest APY compared to Quontic’s other CD terms, it could still be an attractive choice if you are concerned about fluctuating market rates over the next two years. With this two-year CD, you can securely store your funds while enjoying a competitive APY.

PROS

  • Insured by the FDIC
  • No monthly service fee
  • Takes less than 3 minutes to open an account

CONS

  • $500 minimum deposit
  • No physical branches
  • Doesn’t accept cash deposits

What is a 2-year CD?

A two-year CD is a certificate of deposit with a term of 24 months. Unlike regular savings and checking accounts, CDs are illiquid. In exchange for a fixed, higher APY than a savings account, by opening a CD, you are agreeing not to withdraw any money for the account’s term, which in this case would be two years. 

When a two-year CD reaches its term, it matures. At this time, you can withdraw your principal and the interest it earned during the term. You can also choose to renew the CD for another two-year term or invest your money in a different CD.

You will likely incur early withdrawal penalties if you withdraw the principal before the CD’s term ends. Financial institutions set early withdrawal penalties for CDs, and they can be substantial. You might forfeit three months or more of interest up to the total amount for the term.

Current 2-year CD rates

The best CD rates on 24-month terms are much higher than the national average for two-year CD rates, which currently stands at 1.55% APY, according to the FDIC. They also surpass the national average savings account rate of 0.46%. 

For example, Quontic’s 4.5% APY two-year CD is almost three times higher than the national average two-year CD rate and a whopping 10 times higher than the national average savings account rate. However, the current market environment makes two-year CD rates lower than the best rates for short-term CDs.

How do 2-year CD rates work?

Two-year CD rates are expressed in terms of APY, and unlike the variable interest rate of a traditional savings account, two-year certificate of deposit rates are fixed for the entire term. This means you will enjoy guaranteed earnings if you keep your money in the CD for two years. 

However, if you withdraw your money before your CD matures, you will likely incur early withdrawal penalties. These are assessed by banks, credit unions and brokerages when people withdraw their principal before the end of the CD’s term.

The federal government sets a minimum penalty of seven days’ interest, but there is no legal maximum. As a result, financial institutions often set early withdrawal penalties significantly higher than the federal minimum.

Pros and cons of 2-year CDs

Pros
  • Fixed interest rate for 24 months
  • Higher APY than savings accounts
  • Predictable earnings
  • Safe and virtually risk-free
Cons
  • Locked in at a lower rate even if CD rates rise
  • Can only make one deposit
  • Early withdrawal penalties if the principal is withdrawn before maturity
  • May wish you’d opted for a longer term if CD rates fall

Pros explained

Cons explained

How do 2-year CD rates compare to other terms?

While long-term CD rates have traditionally been higher than those offered by short-term CDs, that is not the case currently. For example, the FDIC reports the current national average rate for a six-month CD as 1.82% and 1.85% for a one-year CD, compared to the national average rate of 1.58% for a two-year CD.

Similarly, banks offering the highest 24-month CD rates also offer higher APYs for CDs with shorter terms. For example, Quontic’s highest rate is 4.60% for its six-month CD.

However, CD APYs are slowly beginning to decline since the Feds cuts its bench rate in September 2024. This might mean it’s a good time to purchase a two-year CD at the current CD interest rates.

How to find the best 2-year CD rates

If you plan to open a two-year CD, shopping around to find the best APY is essential. Avoid simply depositing money in a CD at the bank where you have your checking account without searching for the best rates. 

Online CDs offered through banks, credit unions and brokerages may offer significantly higher APYs because they do not have the overhead of traditional banks.

When you’re shopping around and comparing offers, consider the following important features:

When is the best time to get a 2-year CD?

The best time to get a two-year CD is when you expect rates to fall and continue to be lower for two or more years. The Federal Reserve cut its benchmark in September 2024, and CD rates are already starting to decline nationally.

However, the right time to open a two-year CD depends on your circumstances. You’ll need to meet the bank’s minimum deposit requirements and have other money set aside for emergencies so you won’t be forced to make early withdrawals.

How to open a 2-year CD

Depending on the financial institution, you can usually open a two-year CD online or in person using the following steps:

  1. Compare offers and decide which type of CD to open: Choose the CD with the highest APY and minimum deposit requirements you can afford. Decide whether you want to open a single-owner or joint-owner CD account.
  2. Decide whether you’ll apply online or in-person: Some banks encourage people to apply online, and the process is fast and straightforward.
  3. Gather your documents: You’ll need to provide the bank with a copy of a valid, government-issued ID, proof of your U.S. residential address and contact information.
  4. Decide how to handle the interest: You can typically choose to either receive interest payments during the CD’s term or to keep the money in your CD account. It’s best to leave the interest in the account for compounding purposes.
  5. Submit the application and make your deposit: Complete the application and make your opening deposit. You can do this by transferring funds from your existing bank.

Are 2-year CDs worth it?

Whether a two-year CD is worthwhile depends on a few factors. Opening a CD account could make sense if you already have fully funded your emergency fund and can afford to leave your money in a CD for two years.

A 24-month CD can also be an excellent way to reduce risk in your overall investment portfolio or to save money safely if you are nearing retirement or are otherwise risk-averse. However, there are alternatives to a two-year CD that could provide higher returns or provide more liquidity.

Alternatives to a 2-year CD

Other CD terms

Instead of depositing funds in a two-year CD, you could choose a shorter or longer term. Short-term CDs currently pay higher APYs than two-year CDs, while longer-term CDs pay slightly less.

The advantages of opening a short-term CD include having your money tied up for a shorter time and enjoying higher returns for your money. 

However, CD APYs may continue to drop if the Federal Reserve cuts its federal benchmark, so it might make sense to park your money in a CD with a term of two or more years if you anticipate rates to fall.

Savings accounts

Savings accounts offered by brick-and-mortar banks offer convenience and liquidity but also pay very low variable interest rates. A traditional savings account is a good option if you are saving for an emergency fund and need access to your money, but there are better options if you want to realize net gains.

Another option is to open a high-yield savings account online. Many of these accounts offer competitive APYs similar to those provided by CDs. Online savings accounts are also liquid and allow you to transfer funds to your bank when needed.

However, high-yield savings accounts have variable interest rates, so your returns won’t be guaranteed. The interest rate could fall, leaving you earning less money than you initially thought.

Money market accounts

Money market accounts have higher interest rates than traditional savings accounts but much lower rates than CDs. However, they allow you to withdraw funds when needed, make regular deposits and write checks. By contrast, a two-year CD offers a higher APY at a fixed rate but does not allow you to add deposits or withdraw money early.

Investing accounts

Opening an investment account with a brokerage is another option for your money. Investing in stocks and bonds can provide significantly higher returns than a two-year CD but also carries some risk.

If you choose to open an investing account, make sure to fully diversify your portfolio to reduce risk. You’ll need to research stocks before you invest and keep current with market trends. Investing accounts typically come with brokerage fees, so you’ll need to be prepared for that.

FAQ: Best 2-year CD rates

Which bank has the highest paying 2-year CD right now?

Out of the banks we reviewed, Quontic offers the highest two-year CD APY at 4.5%.

Where can I get 7% interest on my money?

Earning 7% interest on your money is no small feat. However, some 7% savings account options are available, such as the Landmark Credit Union checking account at 7.50% APY and the OnPath Credit Union checking account at 7% APY.

Can you get 6% on a CD?

No banks are currently offering 6% APY on a two-year CD. However, you can find 6% CDs with shorter terms through credit unions and other financial institutions.

Who is offering a 5% CD rate?

Many financial institutions are offering 5% CD rates. Although Quontic doesn’t offer 5% on its two-year CD, it does offer 5.10% APY for its six-month CD.

What is the best CD rate for $100,000?

The best CD rate for $100,000 would be one offered by a jumbo CD, as these tend to have higher APYs. For example, Alliant Credit Union offers 4.10% APY on their 12-month jumbo CD, compared to 4.00% APY on their standard CD.

Are 2-year CDs worth it?

A two-year CD might be worthwhile if you already have an established emergency fund, can afford to leave your money in the account for 24 months, are nearing retirement, have a conservative risk profile or are saving for a mid-term financial goal.

A two-year CD might not be a good idea if you need access to your funds in the next two years, you believe that CD rates will increase, or you want to earn higher returns than those CDs offer.

About the Author

Christy Montour
Christy Montour Personal Finance and Investment

Christy Montour is a seasoned finance writer with extensive experience in explaining a wide range of investment types, retirement accounts, and insurance products. With a background in taxation from law school, Christy possesses a deep knowledge of tax strategies and the tax code. 

Christy has written thousands of blogs for clients on finance and investment topics. She covers a wide range of subjects, from the Offshore Voluntary Disclosure Program to IRS installment plans, offers-in-compromise, tax liens, levies, and criminal tax issues such as tax evasion and fraud. Christy’s expertise allows her to break down complex financial topics into clear, accessible content for her readers.

About the Reviewer

Blake Esken
Blake Esken Los Angeles Times

Blake Esken has over 15 years of experience in product management and has been a member of the Los Angeles Times staff for over five years.

As part of his role at the Los Angeles Times Commerce Team, Blake acts as the in-house reviewer and fact checker for LA Times Compare. He supervises all content for compliance and accuracy and puts to use skills he has honed through years of experience managing high-stakes projects for a range of industry-leading companies.

He has a strong background in data analysis, compliance, and communication, which allows him to support LA Times Compare through fact-checking in an effort to provide up-to-date and factual information across our content.

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