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Advertiser Disclosure Some institutions listed may have a business relationship with MonitorBankRates. Our proprietary systems independently track and verify all rates. Advertiser relationships do not influence our Safety Ratings, Star Ratings, or the rates shown.
Written by
Brian McKay Brian McKay
Brian McKay

Brian McKay

Co-Founder & Lead Data Architect
Expertise
  • Automated Online Rate Data Aggregation
  • Location-Based Rate Tables
  • Bank & Credit Union Health Safety Ratings
  • Bank & Credit Union Star Ratings
  • Finance Calculators
Brian is the Co-Founder of MonitorBankRates.com. For over 18 years, he has utilized his background in enterprise infrastructure to engineer proprietary systems that track rates from over 8,000 financial institutions.
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| iEditorial Disclosure
Editorial Disclosure The rates and data displayed are actual, verified figures sourced directly from financial institutions. Our editorial content is independent of any advertiser relationships.
| ✓Fact Checked | Published: June 1, 2012 | Updated: May 17, 2018

Current 2 Year CD Rates – Best Rate at 1.25% APY

Let’s face it, the best CD rates aren’t that high but still considerably better than 2 year bond yields. The highest CD rates on 2 year CDs are around 1.24 percent. 2 year bond yields are paying only 0.27 percent. Compare both products and 2 year CD rates look a lot better.

Recent weak economic news will also keep a lid on CD rates and probably will drive rates even lower. 10 year bond yields touched a record low of 1.53 percent yesterday and closed at 1.58 percent. This month alone 10 year yields fell 36 basis points and 84 basis points in 2012.

Considering how fast rates are dropping it might be a good idea to lock in a 2 year CD rate. Two banks on our rate list are tied for having the highest 2 year CD rate, CIT Bank and Barclays Bank. Both banks are offering 2 year CD interest rates at 1.24 percent with an APY of 1.25 percent.

Two year rates are not that higher than current 1 year rates, in fact CIT Bank is offering a 1 year CD rate at 1.09 percent with an APY of 1.10 percent. Since rates are dropping on bond yields it won’t be long before banks follow suit and drop rates on CD products so it might make sense to lock in a 2 year rate.

Other banks on our rate list offering the best rates include AloStar Bank of Commerce and Metropolitan National Bank offering 24 month rates at 1.15 percent with an APY of 1.16 percent.

Discover Bank and Doral Bank are right behind offering 2 year rates at 1.14 percent with an APY of 1.15 percent. The fifth best rate on our list belongs to three different banks, USAA, Colorado Federal Savings Bank and California First National Bank are all offering 2 year interest rates at 1.09 percent with an APY of 1.10 percent.

2 year Ally Bank CD rates are right behind at 1.08 percent with an APY of 1.09 percent. Ally Bank’s 2 year CD offers you the ability to increase the CD rate once during the CD term. Ally refer’s to this CD as their Raise Your Rate CD. 

Ally also offers a 4 year Raise Your Rate CD which gives you the ability to raise the rate twice during the four year term. Rates have to move higher in order for you to be able to raise the rate.

I’ve listed our top 5 2 year CD rates on our rate list which are all well above the FDIC’s current 2 year national average rate of 0.48 percent. There are many other banks on our table that have rates higher than the average. You’ll also find some banks offer rates lower than the average.

In addition to 2 year rates you can search and compare many other CD rates and terms on our list.