6 2-year CDs offering at least 5% interest
A certificate of deposit (CD) is an easy and safe way for savers to earn strong interest without putting any of their principal at risk. With a CD, you put money into the account for a predetermined length of time and earn a preset interest rate for the entire term. Even if the interest rates offered at your bank go way down during the term, you'll still earn whatever rate you signed up for.
The catch is that you have to keep your money in the CD for the entire term. Most CDs have significant penalties for early withdrawals. If you want easy access to your money, consider a high-yield savings account instead. If you're confident that you have money you don't need for at least two years, though, consider putting some into one of the following 2-year CDs offering at least 5% interest.
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6 2-year CDs offering at least 5% interest
If you have a chunk of money you know you won't need to use for at least 2 years, the following CDs will earn you at least 5% APY if you open the account now – even if interest rates fall during your CD's term. With many expecting that rates will fall in 2024 – especially if inflation continues to go down and the Federal Reserve responds by lowering the federal funds rate – now is a good time to take advantage of the current interest rate environment, before anything changes.
Shop around and find the best CD for you right now.
Popular Direct: 5.30%
Popular Direct is a full-service bank offering myriad savings products. The bank's 2-year CD is currently offering a 5.30% rate. There is a minimum deposit of $10,000, so you'd need to be comfortable parting with that much money for two years in order to avoid a penalty.
Sallie Mae: 5.25%
Sallie Mae is a government-backed corporation most known for its role in the mortgage market, but it also offers savings products. It currently offers a rate of 5.25% for a 2-year CD, and the minimum deposit is just $2,500, making it accessible to more savers.
Barclays Bank: 5%
Barclays, a major international investment bank, is offering returns of 5% for a 2-year CD right now. Best of all, there is no minimum deposit requirement, so no matter how much – or how little – money you want to lock away, they will be happy to work with you.
USAA Bank: 5%
USAA Bank is generally only open to members of the military or those who have been honorably discharged from the military. It is also available for some family members of military members and veterans. USAA is offering a 5% yield for a 2-year CD, with a minimum deposit of $1,000.
TAB Bank: 5%
TAB Bank is currently offering returns of 5% on its 2-year CDs, with a minimum deposit of $1,000. Overall, TAB offers CDs at eight different terms, from six months to five years.
Bread Savings: 5%
Bread Savings is a product of Comenity Capital Bank, and is currently offering 5% yield for a 2-year CD. The minimum deposit is $1,500 and there are no monthly fees.
The bottom line
A 2-year CD is a great option for savers who want to earn high yields and can safely stash their money away for a couple of years. If you're interested in using a 2-year CD, now might be the perfect time to act as CD rates could start dropping in 2024. That means new CDs will offer lower rates, but if you open an account today your rate will be locked in and will not change, allowing you to earn today's elevated rate for years to come.
