Best 2-year CD rates for May 2024

Written by

Matthew Goldberg

Edited by

Marc Wojno

Reviewed by

Robert R. Johnson

Best available rates across different account types for Tuesday, May 14, 2024

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What To Know First

A two-year certificate of deposit (CD) can be a useful financial tool for those looking to secure a higher interest rate on their savings without committing to locking up their money long term. It may also pay a higher rate of return than a high-yield savings account.

Bankrate’s picks for the top 2-year CD rates

TAB Bank — 4.80% APY, $1,000 minimum deposit
First Internet Bank of Indiana — 4.76% APY, $1,000 minimum deposit
Popular Direct — 4.70% APY, $10,000 minimum deposit
Bread Savings — 4.65% APY, $1,500 minimum deposit
America First Credit Union — 4.50% APY, $500 minimum deposit
Quontic Bank — 4.50% APY, $500 minimum deposit
Bask Bank — 4.50% APY, $1,000 minimum deposit
EverBank (formerly TIAA Bank) — 4.50% APY, $1,000 minimum deposit
Sallie Mae Bank — 4.50% APY, $2,500 minimum deposit
LendingClub Bank — 4.50% APY, $2,500 minimum deposit

Note: Annual percentage yields (APYs) shown were updated between May 7, 2024 and May 13, 2024. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

Bankrate's picks for the top 2-year CD rates

TAB Bank

4.6

Overview

Transportation Alliance Bank (TAB Bank) offers eight terms of CDs. Those CD terms range from six months to 5 years. You’ll need at least $1,000 to open one of these CDs.

In addition to these CDs, TAB Bank also offers two checking accounts, a savings account and a money market account.

Serving both individuals and businesses, TAB Bank was established in 1998 in Ogden, Utah, as a banking service inside truck stops.

Read Bankrate's Expert TAB Bank Review

4.80% APY

$1,000 minimum deposit

First Internet Bank of Indiana

4.6

Overview

First Internet Bank of Indiana is an FDIC-insured financial institution that operates online and has no branches. It opened in 1999 and offers products in all 50 states.

First Internet Bank offers eight terms of CDs, a money market savings account with a competitive yield, a savings account and two checking accounts.

Read Bankrate's Expert First Internet Bank of Indiana Review

4.76% APY

$1,000 minimum deposit

Popular Direct

4.0

Overview

Popular Direct CDs are for established savers, since the CDs have a $10,000 minimum deposit requirement. The CDs are offered in eight fixed terms, from three months to five years. Popular Direct’s High-Rise savings account offers a competitive yield and requires a $5,000 minimum deposit.

All Popular Direct deposit accounts are opened through Popular Bank.

Read Bankrate's Expert Popular Direct Review

4.70% APY

$10,000 minimum deposit

Bread Savings

4.0

Overview

Bread Savings, formerly Comenity Direct, is an online bank that offers high-yield savings products and five terms of CDs ranging from one to five years.

Bread Savings is part of Comenity Capital Bank, which is a unit of Bread Financial.

Read Bankrate's Expert Bread Savings Review

4.65% APY

$1,500 minimum deposit

America First Credit Union

5.0

Overview

America First Credit Union was founded in 1939 in Salt Lake City. It has CDs with terms ranging from three months to five years. The minimum opening deposit for CDs is $500.

It also offers a variety of checking and savings accounts.

Read Bankrate's Expert America First Credit Union Review

4.50% APY

$500 minimum deposit

Quontic Bank

3.8

Overview

Quontic Bank is an online bank that offers CDs as well as savings, money market and checking accounts.

A $500 minimum deposit is required to open a Quontic Bank CD and five terms are offered, ranging from six months to five years.

Read Bankrate's Expert Quontic Bank Review

4.50% APY

$500 minimum deposit

Bask Bank

4.4

Overview

Bask Bank began offering CDs in 2022, and its four CD terms range from six months to two years. The bank also offers a savings account with a competitive APY and another savings account that earns American Airlines miles.

Bask Bank has been around since 2020 and is a division of Texas Capital Bank.

Read Bankrate's Expert Bask Bank Review

4.50% APY

$1,000 minimum deposit

EverBank (formerly TIAA Bank)

4.6

Overview

EverBank offers CD terms ranging from three months to five years. It also offers a bump-rate CD, which allows a one-time rate bump should rates go higher. EverBank offers a service for customers with deposits that exceed the FDIC insurance limit of $250,000. Funds are spread around to different federally insured banks to expand insurance coverage.

Read Bankrate's Expert EverBank (formerly TIAA Bank) Review

4.50% APY

$1,000 minimum deposit

Sallie Mae Bank

4.4

Overview

Sallie Mae Bank offers 11 terms of CDs as well as a savings account and a money market account with no minimum balance requirements or monthly fees. All of these products offer competitive yields.

Sallie Mae Bank was established in 2005 and has its headquarters in Salt Lake City. In 2014, Sallie Mae became a stand-alone consumer banking business.

Read Bankrate's Expert Sallie Mae Bank Review

4.50% APY

$2,500 minimum deposit

LendingClub Bank

4.3

Overview

LendingClub is an online bank that offers six terms of CDs ranging from six months to five years. A $2,500 minimum deposit is required.

In addition to CDs, LendingClub offers a high-yield savings account and a rewards checking account.

Read Bankrate's Expert LendingClub Bank Review

4.50% APY

$2,500 minimum deposit

What is a 2-year CD?

Think of a CD as a higher-paying savings account stashed in a safe with a time lock. But unlike a savings account with a variable annual percentage yield (APY), the yield on a CD is fixed and won’t change during the term. At the end of the term, you can renew the CD or shop around for another one, potentially with a higher yield, if the interest rate environment has improved. After a CD’s maturity date, it likely will renew automatically after a grace period, typically within seven to 10 days.

The best two-year CD rates pay far more than the national average of 1.52 percent APY, according to Bankrate’s national index survey of banks and thrifts on May. 14, 2024. Here are some of the top widely available two-year CD rates. Compare these offers, then calculate how much interest you could earn when your CD matures.

2-year CD FAQs

In addition to helping you meet your mid-term financial goals, two-year CDs can be used as a rung when you’re building a CD ladder.

Done correctly, laddering allows you to benefit from high rates on longer maturities while still getting regular infusions of cash to spend or reinvest.

With a CD ladder, you divide your deposit amount into CDs with different terms. For example, you could open a three-rung ladder made up of a one-, two- and three-year CD. The one- and two-year CD rates are generally lower than the three-year CD rates, but you might not want all of your money tied up for three years.

A laddering strategy allows you to take advantage of the higher interest rates you earn on longer-term CDs while still allowing you access to some of your money at regular intervals. As your one-year and two-year CDs mature, you can access that money for spending or investing in higher-yield assets. Or you can put them in another three-year CD, and it would become the longest-term rung on your CD ladder.

Carefully consider how a two-year CD can fit into a ladder strategy that combines the benefits of a higher overall yield with still allowing you some access to a portion of your funds when the shorter-term CDs mature.
When looking for a two-year CD, it might be tempting to just sign up with the bank that handles your checking account. But if you want to get the best rate, it pays to shop around and not just accept what your current bank offers.

“Brick-and-mortar banks have a lot of overhead to cover, plus they have a lot of competition from online banks,” says Sheryl Garrett, CFP and founder of the Garrett Planning Network. “Don’t just settle for the first CD rate that’s offered by your bank. Focus on the fact that it’s your money.”

No matter the size of the bank that’s offering the best terms, as long as it’s a member of the Federal Deposit Insurance Corp. (FDIC) you can feel secure parking your money there. Consumer deposits at all FDIC-insured banks are backed by the full faith and credit of the U.S. government up to $250,000 per depositor, per account ownership category.

Credit unions chartered by the National Credit Union Administration (NCUA) credit unions have a standard share insurance amount of $250,000 per share owner for each account ownership category.

Research methodology

At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers and our content is thoroughly fact-checked to ensure accuracy.

Bankrate regularly surveys around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.

To find the best CDs, our editorial team analyzes various factors, such as: annual percentage yield, the minimum needed to earn that APY (or to open the CD) and whether or not it is broadly available. All of the accounts on this page are insured by the Federal Deposit Insurance Corp. (FDIC) or by the National Credit Union Share Insurance Fund (NCUSIF).

When selecting the best CD for you, consider the purpose of the money and when you’ll need access to these funds to help you avoid early withdrawal penalties.

These financial institutions are featured in our CD rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank5 Connect, Bank of America, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Financial (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, Morgan Stanley Private Bank, Huntington National Bank, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, PurePoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Synchrony Bank, TD Bank, TIAA Bank, Truist Bank, UFB Direct, U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.

Best 2-year CD rates for May 2024

What To Know First

Bankrate’s picks for the top 2-year CD rates

On This Page

Bankrate's picks for the top 2-year CD rates

TAB Bank

Overview

First Internet Bank of Indiana

Overview

Popular Direct

Overview

Bread Savings

Overview

America First Credit Union

Overview

Quontic Bank

Overview

Bask Bank

Overview

EverBank (formerly TIAA Bank)

Overview

Sallie Mae Bank

Overview

LendingClub Bank

Overview

What is a 2-year CD?

2-year CD FAQs

How do I use a 2-year CD in a CD ladder?

Where can I find the best 2-year CD rates?

Research methodology

Banks we monitor