The 8 Best Two-Year CD Rates of 2019
A great way to reach your savings goals
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If you have one or more savings goals you’re working towards, there are some great reasons to consider putting your money into a certificate of deposit in place of a regular savings or money market account. With a CD, you can earn a competitive annual percentage yield (APY) to help your money grow. Typically, you won’t pay any monthly fees with a CD the way you might with some savings or money market accounts. Most importantly, CDs are a safe place to save for both short- and long-term goals.
As time deposits, CDs are unique in that they must mature before you can collect your initial deposit, along with any interest earned. Withdrawing money from a CD before its maturity date is possible, but it can result in a penalty. Fortunately, CDs can come with terms as short as 30 days or as long as 10 years so you can choose the one that best fits your needs. As a general rule, the longer the term you choose, the better your APY will be, which means more interest earned.
When your savings plans include large-scale goals, like setting aside money to buy a home, a two-year CD can be a great option. It gives you plenty of time to earn interest on your savings without tying it up indefinitely. And if you decide that you don’t need your savings when the CD matures, you can always roll it over into a new two-year term for continued growth.
Finding the right two-year CD means comparing the minimum deposit requirement, fees and of course, the APY. With that in mind, these eight two-year CD options currently offer the best rates for savers.
Best CD With No Minimum Deposit: Capital One 360
If you’re just getting started with saving, you may not have a lot of money to add to a CD yet. Capital One 360’s 24-month CD has no minimum deposit requirement and you can take advantage of a 2.80% APY.
These CDs are designed for virtually any savings need, whether you’re planning for your kids’ college costs, saving for a vacation, or prepping to buy a home. Your deposits are FDIC-insured and there is zero market risk.
It only takes minutes to open a two-year CD account with Capital One online, and just a few days for your initial deposit to be credited. From there, you can begin earning interest. Interest is paid out monthly, annually, or at the end of the CD term, depending on your preference.
Best CD for a $1,000 Minimum Deposit: First Internet Bank of Indiana
First Internet Bank of Indiana is a branchless bank that offers a full suite of banking products, including CDs. You can open a two-year CD with just $1,000 and earn a stellar 2.94% APY, regardless of whether you’re an Indiana resident.
You can apply and open your account online. Your CD interest is compounded and credited to your account monthly.
You can also monitor your account online, as First Internet Bank of Indiana doesn’t issue monthly statements for CD accounts. And if you need more than just a CD, you can also open an online savings or checking account here as well.
Best CD for a $2,500 Minimum Deposit: Sallie Mae
When you hear Sallie Mae, you may automatically think of student loans. But you can also find banking products here also, including CDs. Sallie Mae’s two-year CD requires a $2,500 minimum deposit to open and you can land a great APY of 3.0%.
You don’t need to be a Sallie Mae borrower to open a CD account and it’s easy to open one online. These CDs are FDIC-insured and have an automatic renewal option to keep things simple.
There’s no monthly fee at all, but a $5 fee applies for returned deposits.
Best CD for a $10,000 Minimum Deposit: Popular Direct
Popular Direct is another internet-only bank that offers a slew of savings options. The two-year CD is particularly attractive if you have a more long-term goal you’re trying to reach. With a two-year CD from Popular Direct, you’ll earn a 3.05% APY which can quickly add up given the $10,000 minimum deposit.
Interest compounds daily and is credited to your account monthly. Renewals are automatic unless you opt to close your CD account at maturity. There are no monthly maintenance fees, although there is an early withdrawal penalty.
You can ladder Popular Direct CDs with varying terms, but keep in mind that you’ll need to offer the same $10,000 minimum deposit for each one you open.
Best Jumbo CD for a $100,000 Deposit: KS State Bank
If you have $100,000 or more to set aside in a CD, you want to make sure you’re getting the very highest rate you can. KS State Bank offers an internet-only two-year CD special for jumbo CDs.
The current APY is 3.10%, second only to the rate you could get at Connexus Credit Union (below). Interest on your CD compounds daily, allowing for quick and steady growth of your savings over the entirety of the CD term.
Unfortunately, you can’t open these jumbo CDs with an IRA option. But KS State Bank does offer both traditional and Roth IRA CDs if you’re interested in using one of those to help fund your retirement savings.
Best Credit Union CD: Connexus Credit Union
As you’re comparing two-year CD rates, don’t forget about credit unions. Credit unions can offer very competitive rates on CDs for their members. Membership is typically based on work, school, church or military affiliation, or where you live, although some credit unions have more flexible membership requirements.
Connexus Credit Union gives you several ways to qualify for membership, but the easiest is to join the Connexus Association. It's open to anyone and requires just a $5 donation. Once you’re a member, you can open a two-year CD account with a 3.00% APY, which is one of the highest CD rates available overall and the best on this list.
This CD requires a $5,000 minimum deposit to open, and you can rest assured that your money is safe. Like other credit union deposit accounts, Connexus CDs are insured and protected by the National Credit Union Association (NCUA). This is the credit union equivalent of FDIC insurance.
Best for Stepping Up Your Rate: Ally Raise Your Rate CD
Ally is a good option for CD savers thanks to their low minimum deposit requirements, minimal fees, and competitive rates. The two-year Raise Your Rate CD from Ally is an especially appealing option if you’re looking for a way to bump up your rate over time.
You start off with a 2.60% APY at account opening. You then have the option to raise your rate once over the 2-year term. If interest rates rise in connection with an increase in the federal funds rate, you can reap the benefits by raising your rate accordingly.
You can open a two-year Raise Your Rate CD with as little as $1 and there are no hidden fees. Interest is compounded daily as opposed to monthly or annually, allowing you to grow your money even faster.
Best CD for a $500 Minimum Deposit: Marcus by Goldman Sachs
Marcus by Goldman Sachs is an online-only bank that offers both high-yield savings accounts and high-yield CDs. If you have at least $500 to stash in a CD, it's worth considering the two-year CD Marcus offers, which currently has a 2.55% APY.
Again, your deposits are FDIC-insured and returns are guaranteed. You’re also guaranteed to receive the highest APY offered by Marcus for a two-year CD when you open an account and make your initial deposit within 10 days. You have up to 30 days after opening your account to fully fund your CD if needed.
You can’t add to your CD after that initial 30-day window, but you can build a ladder with multiple CDs. There are no monthly fees at all but Marcus does charge an early withdrawal penalty if you tap into your CD principal ahead of its maturity date.
Want to learn more? Check out our full review of Marcus by Goldman Sachs.