Best 2-Year CD Rates for May 2025

Online financial institutions tend to have the best 2-year CD rates. These banks and credit unions can offer rates far above the average APY (Annual Percentage Yield) on a 2-year CD, which is 1.48% APY.

The best 2-year CD rate available nationwide is 4.45% APY from EagleBank.

At Business Insider, we monitor national banks and credit unions daily to find the best 2-year CD rates currently offered. Now's a good time to open CD; the Federal Reserve held interest rates steady at its last meeting, but it might lower rates in the future.

If you're also interested in other CD terms, check out our overall best CD rates.

Featured Nationally Available Deposit Rates

The Best 2-Year CDs

• EagleBank 2 Year CD: 4.45% APY
• Lafayette Federal Credit Union 2 Year Certificate: 4.28% APY
• Newtek Bank 2 Year CD: 4.20% APY
• Popular Direct 2 Year CD: 4.15% APY
• USALLIANCE Financial 2 Year Certificate: 4.10% APY
• America First Credit Union 2 Year Certificate: 4.10% APY
• Pelican State Credit Union 2 Year Share Certificate: 4.07% APY
• TAB Bank 2 Year CD: 4.06% APY

Calculate Your Estimated 2-Year CD Earnings

Compare the Best 2-Year CDs

Our top picks for 2-year CDs include some online banks and credit unions. The online banks and credit unions we've listed have competitive rates that are available nationwide.

We check rates daily to find the best 2-year CD rates today. Read below for our top picks to compare 2-year CD rates.

Two-Year CD Reviews

Choosing a CD term will likely depend on the timeline of your goals. A 2-year CD might be a good choice if you can keep money in an account for at least two years. 

These are our picks for the best 2-year CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. If you are worried about a bank failing, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.

EagleBank 2 Year CD

EagleBank offers a strong interest rate for its 2-year CD. It also offers other CDs with high interest rates, such as its 1-year and 18-month CDs. It has some in-person branches in Maryland, Virginia, and Washington, D.C., which could make it a good choice if you live in those areas.

Eaglebank has a limited online selection of CDs; only terms from 6 months to 2 years can be opened online. You'll need to call or visit to open the others.

APY for 2-year CD: 4.45% APY

2-year CD early withdrawal penalty: 90 days of interest

Lafayette Federal Credit Union 2 Year Certificate

Lafayette Federal Credit Union pays a competitive interest rate on a 2-year term. It also has good interest rates on its 5-year CD.

Lafayette Federal Credit Union is a credit union anyone can join regardless of where you live in the United States by becoming a member of the Home Ownership Financial Literacy Council. You're also eligible for membership if you live, work, or worship in Potomac, Maryland, or parts of Washington, DC; work at a Select Employer Group; become a member of the American Consumer Council and live in Maryland, Virginia, or Washington, DC, or have a family member with credit union membership.

APY for 2-year CD: 4.28% APY

2-year CD early withdrawal penalty: 270 days of interest

Newtek Bank 2 Year CD

Newtek Bank pays high CD rates for 2-year terms. It also offers one of the best 18-month CD rates, so it could be a good choice if you're interested in opening multiple CDs.

It charges standard early withdrawal penalties for these terms. However, you'll need at least $2,500 to open a CD with Newtek. Other banks have more lenient opening requirements for CDs.

APY for 2-year CD: 4.20% APY

2-year CD early withdrawal penalty: 180 days of simple interest

Newtek Bank Savings Review

Popular Direct 2 Year CD

Popular Direct is one of the best banks for 2-year CD rates. It's an online-only financial institution, so it might be a good choice if you are comfortable with online and mobile banking.

However, you need at least $10,000 to open a CD. If you'd rather open a CD with less money, one of our other top picks are likely more suitable.

APY for 2-year CD: 4.15% APY

2-year CD early withdrawal penalty: 270 days of simple interest

Popular Direct Review

USALLIANCE Financial 2 Year Certificate

A 2-year USALLIANCE Financial certificate is a solid choice if you want a share certificate from a credit union. It pays a high 2-year CD rate and has a low minimum opening deposit.

You can join USALLIANCE Financial if you 1) live in a select area in Massachusetts, Connecticut, New Jersey, or New York, 2) work for a select employment group, or 3) become a member of the American Consumer Council, Arco of Westchester, Tread Lightly!, or the Council of Community Services.

The early withdrawal penalties at USALLIANCE Financial are a bit higher than other financial institutions. You can also only open a CD if you qualify for membership at the credit union.

APY for 2-year CD: 4.10% APY

2-year CD early withdrawal penalty: 360 days of interest

America First Credit Union 2 Year Certificate

America First Credit Union offers one of the best rates for a 1-year CD along with its great 2-year CD. The America First Credit Union Certificate may be worthwhile if you're searching for a financial institution with branches in Arizona, Idaho, Nevada, New Mexico, Oregon, and Utah. America First Credit Union has a variety of terms with high interest rates.

Credit unions require membership to open bank accounts. You may join America First Credit Union if you live, work, worship, or volunteer in an Arizona, Idaho, Nevada, New Mexico, Oregon, or Utah county on this list. If you have a family member or spouse who's a current member, you're also eligible.

To become a member, you must also open an America First Credit Union Share Savings Account.

APY for a 2-year term: 4.10% APY

2-year CD early withdrawal penalty: 180 days of interest

America First Credit Union Review

Pelican State Credit Union 2 Year Share Certificate

The Pelican State Credit Union 2 Year Share Certificate has a low minimum opening deposit of $500.

Pelican State Credit Union is a financial institution based in Louisiana, but you don't have to live in the state to become a member and open a certificate.

Pelican State Credit Union has steep early withdrawal penalties. Also, make sure you qualify for membership at the credit union. The easiest way to join is to become a member of Arc Baton Rouge ($5 membership fee), the Parents Association of Northwest Support and Services ($5 membership fee), or the Pinecrest Parents Association ($20 membership fee).

APY for 2-year CD: 4.07% APY

2-year CD early withdrawal penalty: 40% of the total dividend that would have been earned on your account

TAB Bank 2 Year CD

A TAB Bank CD is a great option if you're searching for a high rate on a 2-year term.

Other banks have lower minimum opening deposit requirements, so if that's important to you, consider one of our other top picks.

APY for 2-year CD: 4.06% APY

2-year CD early withdrawal penalty: 180 days of interest

TAB Bank Review

Bank Trustworthiness and BBB Ratings

We review the ethics of each company so you can see if a specific financial institution aligns with your values.

We've compared each bank's Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. A good BBB rating doesn't necessarily mean that your relationship with the bank will be perfect.

We also include the settlement history of the last three years so you're aware of any recent public controversies involving the bank.

Here is each company's score:

USALLIANCE Financial has a D- rating from the BBB due to several complaints it hasn't responded to.

EagleBank has been involved in a recent public controversy. In 2022, EagleBank paid a civil penalty of $10 million in a settlement with the Securities and Exchange Commission. According to the settlement, the SEC accused the bank and former CEO and chairman Ronald D. Paul of making false and misleading statements about party loans relating to Paul's family trusts.

In 2023, the Federal Reserve Board fined Popular Direct's parent bank, Popular Bank, $2.3 million. The Federal Reserve Board said the fine was because Popular Bank processed six Paycheck Protection Program loans that had significant signs of potential fraud.

In 2022, TAB bank entered an Assurance of Discontinuance with the State of Iowa. According to the settlement, the State of Iowa said TAB Bank charged Iowa residents more than the permitted maximum APR for consumer installment loans. The bank has stopped making consumer installment loans to Iowa residents and can resume if they provide a 30-day notice to the state and follow the state code.

What Influences the Best 2-Year CD Rates

Economic Conditions

Banks and credit unions have to respond to market fluctuations when setting their rates. For example, if rates are rising, banks will have to raise their rates as well in order to stay competitive. And when rates lower, banks can lower their own rates and still make a profit.

Fed Actions and Interest Rate Outlook

If you're wondering what the Federal Reserve is, also called "the Fed," it's the central banking system of the U.S. Multiple times a year, the Fed meets to set its own interest rates. When it announces the changes it makes, most financial institutions follow suit.

Individual Institution Rates

What rate you can get differs from bank to bank and credit union to credit union. The worst banks for CDs will offer rates as low as 0.01%, while the best banks for CDs can go over 5% annual percentage yield. When shopping for 2-year CDs, make sure to compare banks' rates and look for 2-year CD specials.

Should You Invest in a 2-Year CD?

Whether you should invest in a 2-year CD or not largely depends on what you're hoping to get from a CD. If you're purely interested in the highest interest rate, short-term CDs are offering better rates than long-term CDs right now.

If you're interested in locking in a high rate for a while without committing to a 5-year CD, a 2-year CD might be a good choice for you. You also might like a 2-year CD if you're saving up for something that you know will happen in two years, such as if you're planning on buying a house in two years.

2-Year CD FAQs

Why You Should Trust Us: Experts' Advice on Choosing the Best 2-Year CD

We consulted four banking and financial planning experts to inform these picks and provide their advice on finding the best place to keep your money.

BI

• Tania Brown, CFP® professional and vice president of coaching strategy at OfColor
• Sophia Acevedo, banking editor, Business Insider
• Roger Ma, CFP® professional and author of "Work Your Money, Not Your Life"
• Mykail James, MBA, certified financial education instructor, BoujieBudgets.com

Here's their insight about CDs.

How can someone choose between all of the available banks and credit unions?

First of all, you want a bank that is FDIC-insured (or a credit union that is NCUA-insured). Then, consider your own priorities: Are you looking for an in-person banking experience? Do you need a high-tech mobile app? Do you write checks? Are you looking for a high interest rate? Will you meet the requirements to waive any monthly maintenance fees?

There are plenty of banks and credit unions that offer good rates and useful products, but the best one for you will come down to how it fits your needs.

How should you choose a term length for a CD?

When you put money in a CD, you want to have two things: a plan for how you will use that money, and a timeline for when you'll do it. Once you know when you'll spend it, take a look at rates for terms that are near your planned timeline, and choose the CD with the best rate.

When you can put money in high-yield savings account, money market account, or CD, how do you choose between them?

While all three options pay somewhat similar rates, the difference comes down to how you plan to interact with that money over time. If you need access to it in the next few months or years, that means you can't use a CD (or at least not one that spans however many months or years). Money market accounts tend to offer more account accessibility — several offer paper checks, ATM cards, or debit cards — while high-yield savings accounts are a good place to leave your money alone, knowing you can access it if needed.

Methodology: How We Selected the Best 2-Year CDs

At Business Insider, we aim to create helpful reviews, guides, and explainers so that you can make smart money decisions. We know that every person has distinct preferences, so we provide ample options to help you find the best match for you.

Our team is editorially independent — our business team does not decide how we cover products or what we write about. Our editorial standards page dives into how we review and choose products.

Business Insider's personal finance team researched over 60 banks and credit unions that offered the best 2-year CD rates. Then, we reviewed each institution to find the most well-rounded banking options.

For each account, we compared the minimum opening deposits, early withdrawal penalties, miscellaneous features, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, security, and ethics.

Using bank account methodology we score each of these features from 0 to 5, although some features have a larger weight percentage than others. We add up these scores and calculate the weighted average to determine the account's total rating.

All our bank accounts have a scale of one to five stars. A one-star rating is a low score. It shows the product needs significant improvement. A five-star rating is the highest rating possible. It indicates the product is a superior choice.