Best 2-year CD rates for January 2025

Note: Annual percentage yields (APYs) shown were updated between Jan. 13 and Jan. 19. 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.

When a bank issues a two-year CD, that typically means your money is locked in for two years, often in exchange for a higher annual percentage yield (APY) than you’d find on a savings account. But unlike a savings account with a variable 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. Most CDs charge an early withdrawal penalty if you need access to the funds before the maturity date.

The best two-year CD rates pay far more than the national average of 1.5 percent APY, according to Bankrate’s national index survey of banks and thrifts on Jan. 20, 2025. Compare the top widely available two-year CD rates on this page, and also calculate how much interest you could earn when your CD matures.

“If you’re looking to generate income without risking the principal or have a specific cash need a couple of years down the road, the prospect of locking in a two-year CD return that should comfortably outpace inflation for those two years is pretty compelling,” says Greg McBride, CFA, Bankrate chief financial analyst.

McBride stresses the importance of being sure you can part with the principal for two full years before locking the funds into a two-year CD. “If not, yields on shorter maturities are actually higher than what you’d get on a two-year CD. If you need to cash in that two-year CD early, you could give back six months’ worth of interest, which is even further behind where you would’ve been had you gone with a shorter maturity.”

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.