How MagnifyMoney Gets Paid

Advertiser Disclosure

Best of

The Best Savings Account Bonus Offers in October 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

Reviewed By

To attract new customers, banks occasionally offer promotions related to opening accounts. While the bonuses for checking accounts are generally higher and more common, you can sometimes earn bonuses for opening a new savings account. There are usually requirements to earn those bonuses. Read on for the best bonus offers available now when opening a new savings account.

Why trust us: MagnifyMoney has been covering deposit accounts and other topics related to the financial space since 2014, and our team’s work is consistently featured by some of the leading news outlets in the U.S.

Best bank bonuses for savings accounts in October 2021

TD Bank Beyond Savings or Simple Savings — $200

TD Bank — $200 bonus with deposits of at least $20,000 from  TD Bank
  • Expiration date: 11/30/2021
  • How to earn bonus: Earn $200 when you deposit at least $20,000 into a TD Beyond Savings or TD Simple Savings account within 20 days of opening the account and maintain at least that balance for 90 days.
  • Who’s eligible: Available nationwide for those who do not currently have a TD Bank savings or money market account.
  • Account information: The TD Bank Beyond Savings account has no ATM fees for non-TD Bank ATMs, but it has a higher monthly fee than a Simple Savings account. Both accounts bear interest.
  • Monthly maintenance fees: $15 for Beyond Savings, waived with a $20,000 minimum daily balance or a linked TD Beyond Checking account; $5 for Simple Savings, waived with a $300 minimum daily balance, a link to a checking account, at least $25 in recurring transfers or if you’re younger than 18 or older than 62.

Alliant Credit Union Ultimate Opportunity Savings — $100

Ultimate Opportunity Savings Account - $100 bonus from Alliant Credit Union
  • Expiration date: 12/31/2021
  • How to earn bonus: Earn $100 when you deposit at least $100 a month for 12 consecutive months after account opening.
  • Who’s eligible: New Alliant members can earn the bonus. Alliant has broad-based membership eligibility through donations to a nonprofit called Foster Care to Success.
  • Account information: There are no monthly fees or minimum balance fees for the Alliant Ultimate Opportunity Savings account. Alliant offers online and mobile banking and a large ATM network.
  • Monthly maintenance fees: $1, waived if you elect eStatements.

Regions Bank LifeGreen Savings — Up to $100

Lifegreen Savings from Regions Bank
  • Expiration date: N/A
  • How to earn bonus: Complete an automatic transfer of funds from a Regions Bank checking account to your LifeGreen Savings account for at least 10 of the first 12 months of the account to receive a 1% savings bonus up to $100. The bonus applies to your average monthly balance for the account’s first year
  • Who’s eligible: Available for residents of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Texas or Virginia who are Regions Bank checking customers.
  • Account information: The Regions LifeGreen Savings account has no monthly fees or minimum balance requirements. The account bears interest on different balance tiers in addition to the annual bonus.
  • Monthly maintenance fees: $0

SEE DETAILS Secured

on Regions Bank’s secure website

Member FDIC

BMO Harris Statement Savings — Up to $60

BMO Harris Statement Savings — Up to $60 from BMO Harris Bank
  • Expiration date: 10/29/2021
  • How to earn bonus: Earn $5 for every month you add at least $200 to your account balance in the first 12 months after opening an account.
  • Who’s eligible: Those who live in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri or Wisconsin and open a new BMO Harris savings account.
  • Account information: The BMO Harris Statement Savings account bears interest and has just a $25 minimum opening deposit.
  • Monthly maintenance fees: $0

Summary of top savings account bonuses in October 2021

Methodology for choosing the best savings account bonus offers

Using information from DepositAccounts and other sources, MagnifyMoney reviewed savings account bonuses from financial institutions — in order to be considered, banks need to be insured by the Federal Deposit Insurance Corporation (FDIC) and credit unions need to be insured by the National Credit Union Administration (NCUA). The accounts must be available in several states.

We only considered accounts with a reasonable deposit requirement to earn the bonus (at most $25,000) and low monthly maintenance fees (at most $25). Likewise, the minimum deposit to open an account had to be $100 or less.

Advantages of savings accounts

A savings account is a simple deposit account that allows people to deposit and store money safely in a financial institution with FDIC or NCUA insurance. These accounts aren’t designed for everyday banking transactions — and Federal Regulation D typically limits account holders to six free withdrawals per month. This rule was suspended during the COVID-19 pandemic, and now the Federal Reserve leaves it up to financial institutions whether they enforce the limit.

Savings accounts often bear interest. Interest rates can be determined by broader monetary policy and banking trends, but financial institutions tend to incentivize a savings account by paying some interest on the balance. Some banks advertise high-yield savings accounts that are especially geared toward providing the best possible interest rate; some online banks and credit unions pare down their overhead costs to maximize the interest their accounts bear.

Savings accounts are a good choice for emergency funds or saving up for big expenses. They have more liquidity than a certificate of deposit (CD) — which have predetermined terms, often from six months to five years long, and have higher interest rates but carry penalties for early withdrawals. Money tends to grow faster in a savings account than a checking account as well, although money market accounts can offer competitive rates.

Savings accounts: FAQs

Multiple banks offer promotions for signing up for a savings account. MagnifyMoney chose accounts from TD Bank, Alliant Credit Union, Regions Bank and BMO Harris.

Right now, TD Bank has the highest available bonus for savings accounts at $200 for their Beyond Savings or Simple Savings accounts.

Many banks offer options for opening accounts online, over the phone or at a physical branch. Typically, you’ll need information including a Social Security number, mailing address, driver’s license and birth date to open a savings account.

How MagnifyMoney Gets Paid

Advertiser Disclosure

Best of

The Best Business Checking Accounts in October 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

Reviewed By

In order to operate a business, you’ll need a bank account. A business checking account allows companies to complete basic financial transactions, including depositing money from customer purchases and paying employees their wages. The best business checking accounts tend to offer interest, low fees and unlimited transactions.

Why trust us: MagnifyMoney is an independent outlet covering deposit accounts and other banking topics. Our team of experts has dozens of years of combined experience covering the financial space, and our work has been featured in prominent publications nationwide.

Summary of best business bank accounts in October 2021

Best for earning interest: BlueVine Business Checking

Minimum opening depositMonthly feesAnnual percentage yield (APY)ATM accessTransaction limits
NoneNone1.00% on balances up to $100,00038,000 MoneyPass locationsUnlimited

BlueVine Business Checking BlueVine is an online-only financial services company that offers a business checking account through Coastal Community Bank. BlueVine is built to serve the needs of small businesses, and it specializes in business checking accounts as part of its limited suite of services.

There are low fees, no minimum deposit or balance requirements and BlueVine provides access to the MoneyPass ATM network. Most importantly, the account offers a relatively high interest rate for deposits — 1.00% APY on balances up to $100,000. Mobile banking is easy with BlueVine, which allows mobile check deposits.

Bottom line: Overall, BlueVine is a strong choice for business banking due to its low fees, and the 1.00%APY paid on the account (which could total up to $1,000 a year, depending on the account balance) is a nice bonus.

SEE DETAILS Secured

on BlueVine’s secure website

Best for scaling your business: Chase Business checking accounts

Chase offers three different types of business checking accounts built for different sizes of companies: Business Complete Banking, Performance Business Checking and Platinum Business Checking.

Chase Business Complete Banking

Minimum opening depositMonthly feesAPYATM accessTransaction limits
N/A online$15 — can be waivedNot interest-bearing16,000+ ATMs in the Chase network20 free transactions per month

Chase Business Complete Banking Chase is currently offering a $300 bonus that can be earned by opening an account, depositing at least $2,000 in new money within 30 days, maintaining a balance of at least $2,000 for 60 days and completing five qualifying transactions within 90 days of coupon enrollment.

In order to waive the monthly fee, you must complete any of the following: a $2,000 minimum daily balance, $2,000 in purchases on your Chase Business card, $2,000 in deposits from eligible Chase Merchant Services or a link to a Chase Private Client Checking account.

Chase does charge fees on transactions and cash deposits beyond the monthly limits of 20 transactions and $5,000 of deposits — a drawback for the Business Complete Banking account. There are unlimited mobile deposits.

Chase Performance Business Checking

Performance Business Checking offers higher limits on transactions and cash deposits, but also comes with a higher monthly fee (that can likewise be waived with a higher account balance). Unlike the Business Complete Banking account, the Performance Business Checking account waives fees for transactions at non-Chase ATMs.

Chase Platinum Business Checking

The Platinum Business Checking account offers many of the same features as the other accounts, but it has higher limits on no-fee banking services. Ultimately, it’s the best choice for larger businesses that keep significant deposits and process large amounts of transactions.

Bottom line: Some small businesses eventually grow into bigger companies and need more comprehensive banking solutions. Chase is a solid choice for businesses that are expected to scale up their operations because of the depth of their services beyond business checking accounts.

SEE DETAILS Secured

on Chase Bank’s secure website

Member FDIC

Best for ATM use: LendingClub Tailored Checking

Minimum opening depositMonthly feesAPYATM accessTransaction limits
$100$10 with balances less than $5,0000.10% on balances of at least $5,000Refunds all ATM feesUnlimited

Tailored Checking (Business) LendingClub is a bank with a mostly online presence, and their Tailored Checking account is designed for small businesses. With the Tailored Checking account, it’s important to maintain a balance of at least $5,000: if you do, you avoid the monthly service fee and earn a little bit of interest on your deposits. There’s also cash back for certain kinds of debit transactions.

The LendingClub Tailored Checking account aims to keep fees low. There are no penalties or fees on debit card transactions, checks or ATM deposits, and LendingClub pays any fees associated with ATM withdrawals worldwide.

Like many banks oriented around online services, LendingClub has strong online and mobile banking platforms, but customers who want access to a physical branch might be better off with another bank.

Bottom line: LendingClub offers an especially strong business checking account, and Tailored Checking is best for those who make frequent transactions at different ATMs.

SEE DETAILS Secured

on LendingClub’s secure website

Member FDIC

Best for low fees: nbkc Business Checking

Minimum opening depositMonthly feesAPYATM accessTransaction limits
NoneNoneNot interest-bearing37,000 MoneyPass locationsUnlimited

Business Account Headquartered in the Kansas City area, nbkc offers online banking throughout the country. Their Business Checking account keeps fees low: there are no minimum balance requirements to open or maintain an account, as well as other standard no-fee services like mobile banking, mobile check deposits, eStatements and a debit card. Unlike with most banks, there are also no overdraft fees or stop payment orders with nbkc.

Otherwise, nbkc offers fairly standard banking services with their Business Checking account. Notably, no interest is borne on the account balance.

Bottom line: If you’re looking to keep your fees low, nbkc offers a decent suite of services with very few fees — the lack of a minimum balance requirement in particular is a nice feature.

SEE DETAILS Secured

on nbkc bank’s secure website

Member FDIC

Best for online merchants: Novo Business Checking

Minimum opening depositMonthly feesAPYATM accessTransaction limits
NoneNoneNot interest-bearingRefunds all ATM feesSome daily thresholds for certain transactions (but can request higher limits)

Novo Business Checking Novo is an online banking platform that offers account services through Middlesex Federal Savings. Its business checking account has no minimum opening deposit or monthly fees, and includes free ACH transfers, checks and incoming wires.

Novo specializes in business banking services and offers integrations with other platforms, most notably payment processing programs Shopify and Stripe. Novo also integrates with Zapier, so business owners have the capability to build more complicated custom integrations with numerous online services.

Beyond the capacity for integrating with various platforms, Novo offers customers quite a few perks when working with partner vendors, including Salesforce, Google Ads, Snapchat, HubSpot and QuickBooks.

Bottom line: Novo offers the best integrative capabilities of any business checking account, and there are virtually endless possibilities for savvier business owners through Zapier.

Best for nonprofits: U.S. Bank Nonprofit Checking Account

Minimum opening depositMonthly feesAPYATM accessTransaction limits
$100None0.01% APY on all balancesU.S. Bank ATM network125 free transactions per month

Non-Profit Checking The Nonprofit Checking Account offered by U.S. Bank has a few notable features: there are up to 1,800 free transactions annually and 300 free cash deposits annually. Like many accounts, there’s also online and mobile banking, as well as mobile check deposits.

U.S. Bank also offers other types of business bank accounts: the Silver, Gold and Platinum Business Checking Account Packages and the Premium Business Checking Account. The Business Checking Account Packages are tiered for different levels of business activity and have monthly fees that can be waived. The Premium account is designed for more complex banking needs.

Bottom line: U.S. Bank is a large bank with branches in several states, so most nonprofits can use in-person banking services in addition to the solid account features available online.

SEE DETAILS Secured

on US Bank’s secure website

Member FDIC

Best for credit union banking: Bethpage Federal Credit Union Free Business Checking

Minimum opening depositMonthly feesAPYATM accessTransaction limits
$5None0.20% APY on all balances30,000 CO-OP ATMsUnlimited

Business Free Checking with Interest Bethpage Federal Credit Union is headquartered in New York and offers banking services nationwide to those who complete a $5 deposit to attain membership. Those broad eligibility requirements allow many business owners to utilize Bethpage’s suite of business banking services for small businesses.

Bethpage offers a Cash Rewards Business Card (that has a 3% rebate on all purchases for the first three months but also has transaction limits), Merchant Services and a Free Business Checking account, which has no deposit fees or balance requirements. There are also no transaction limits.

Bottom line: Few credit unions can offer a business checking account that bears interest and has no monthly fees or transaction limits — plus Bethpage is widely available.

SEE DETAILS Secured

on Bethpage Federal Credit Union’s secure website

NCUA Insured

Methodology for choosing the best business checking accounts

MagnifyMoney reviewed several business accounts to determine which accounts best suited the specific needs of small businesses. While some of the selections feature accounts designed for bigger companies that handle a significant number of transactions, most accounts are built to keep costs low for business owners with more modest needs.

Some of the criteria for selection included maintenance fees and how easily they’re waived, whether the account bears interest, how accessible ATMs are and whether there are fees related to specific kinds of transactions and their limits. Categories were chosen on the basis of key business checking aspects for small businesses.

How to open a business checking account

Opening a business bank account is very much like opening a personal bank account, although financial institutions tend to ask for more documentation when you apply for a business checking account. Some banks have geographic restrictions or don’t allow certain types of businesses to bank with them, so the first step toward opening an account is determining if your business is eligible for one.

If you’re eligible, you’ll need to provide certain documentation over the phone, in person or online to open your account.

Documents needed to open a business checking account

These requirements vary by the bank, but there are a few common documents you’ll probably need in order to open your business checking account.

  • Business documentation: For limited liability companies (LLCs), banks will often require articles of organization; for corporations, they’ll often require Articles of Incorporation. You may also need to provide the “doing business as” (DBA) name, any business licenses you may have and your employer identification number (EIN).
  • Personal ID: You’ll need to provide types of identification like a driver’s license, Social Security card, passport or other government ID to be able to open an account. Some banks require more than one form of ID. You may need to separately provide your Social Security number (SSN).

Why are business bank accounts different?

There are significant differences between personal and business checking accounts, particularly because they’re designed for different reasons: personal checking accounts are built for everyday household banking transactions, while business accounts are equipped to handle the various financial aspects of running a company.

Businesses tend to process transactions much more frequently than individuals, so business checking accounts often allow high limits (or no limits) on transactions. Merchant services and payroll processing are two key operational functions that are better accomplished with a business account, for example. Frequently depositing and withdrawing cash is also a key aspect of the services provided with business checking accounts.

Plus there’s the added benefit, at least for small businesses, of separating an owner’s business and personal finances for tax and bookkeeping purposes. Even for sole proprietor LLCs, a business checking account is prudent for keeping your finances in order.

Key factors in choosing an account

You should consider several factors when you’re choosing a business checking account. Some of those may be more particular to your business, while others — like monthly maintenance fees — are more universal. Here are some of the most important differentiators between accounts:

Some of those may not be relevant to your business, but you should know what your financial institution offers across those categories before opening an account.

Business checking accounts: FAQs

It depends on what you’re looking for. Credit unions tend to offer lower fees and higher interest rates, but interest paid on business checking accounts is typically low at any institution. Banks may have fees associated with their accounts, but they tend to offer more comprehensive services.

Business checking accounts sometimes have a monthly service fee that can be waived with certain minimum balance requirements. Some financial institutions also levy fees on transactions over monthly limits. The costs to maintain a business bank account are generally low.

How MagnifyMoney Gets Paid

Advertiser Disclosure

Best of

The Best 2-Year CD Rates in October 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

When it comes to saving and growing your money, you want to make sure you’re doing it efficiently. This is especially true if you’re building a CD ladder, where every component should be optimized for your savings goals. CD ladders are typically built from accounts that mature within a year of each other. For many savers, that means finding the best 1-year CD rates, the best 2-year CD rates, the best 3-year CD rates – and so on.

To help you find the best CD rates on 2-year accounts, we sifted through data from DepositAccounts.com. To start, we sorted by highest APY on 2-year CDs APY. We also took into consideration the minimum deposit requirement for each account.

The 10 best 2-year CD rates in October 2021

1. Hughes Federal Credit Union (29-month) — 1.01% APY, $1,000 minimum deposit

You can get this number-one-spot rate from Hughes Federal Credit Union by waiting just a bit longer for your 29-Month Certificate to mature. If you opt for a traditional 24-month CD, you’ll earn an APY that would still make our top 3. You’ll need a $1,000 minimum balance to get started. Making an early withdrawal from this account will result in a loss of $50 or 180 days’ dividends on a term. Hughes FCU does not allow partial withdrawals, either, so you’ll have to withdraw all your funds and pay the penalty.

Founded in 1952, Hughes Federal Credit Union is based in Tucson, Ariz. Originally founded to serve Hughes Aircraft Company employees and their families, Hughes Federal Credit Union now opens membership up to select employee groups and anyone who lives, works, worships or attends school in Tucson as well as to anyone who makes a minimum $10 donation to one of five organizations.

SEE DETAILS Secured

on Hughes Federal Credit Union’s secure website

NCUA Insured

2. Lafayette Federal Credit Union — 0.90% APY, $500 minimum deposit

Lafayette Federal Credit Union offers a handful of certificates, including its 2-Year Fixed Rate Certificate, which requires $500 to open. Interest is compounded and paid quarterly. An early withdrawal from this account will trigger a penalty equal to 270 days’ worth of dividends.

Chartered in 1935, Lafayette is headquartered in Rockville, Md. It has branches in Maryland, Virginia and the District of Columbia, in addition to CO-OP Shared Branches throughout the country. Membership is open to those who live or work in its serviced areas, are employed by approved agencies or companies or are an immediate family member of a current member. You can also join Lafayette if you are an existing member of or become a member of the Home Ownership Financial Literacy Council.

SEE DETAILS Secured

on Lafayette Federal Credit Union’s secure website

NCUA Insured

3. Interior Federal Credit Union — 0.81%, $500 minimum deposit

You can take advantage of this 2-year CD rate when you open an Interior FCU Certificate with a minimum deposit of just $500. Early withdrawal penalties from this 24-month account will depend on how much you’re taking out and how far along in the term you are.

Interior Federal Credit Union was founded in 1935. Interior FCU membership is open to Department of the Interior employees, contractors and volunteers; National Parks volunteers; and employees and volunteers of select groups. You may also join through the New Mexico Wildlife Federation.

SEE DETAILS Secured

on Interior Federal Credit Union’s secure website

NCUA Insured

4. Evansville Teachers Federal Credit Union — 0.80% APY, $1,000 minimum deposit

This 2-year certificate from Evansville Teachers Federal Credit Union offers a high APY at a relatively low minimum opening deposit. As with all the credit union certificates, this is a fixed rate for the length of the term.

Evansville Teachers Federal Credit Union was started by a group of Evansville, Ind., teachers in 1936 as a way of generating loans for fellow teachers post-Depression. You no longer need to be an educator in the district to take advantage of the credit union; joining the credit union is as easy as making a $5 donation to the Mater Dei Friends and Alumni Association.

SEE DETAILS Secured

on Evansville Teachers Federal Credit Union’s secure website

NCUA Insured

5. CommunityWide Federal Credit Union — 0.80% APY, $1,000 minimum deposit

CommunityWide Federal Credit Union offers a 0.80% APY on its 24-month term share certificate. You’ll need at least $1,000 to get started. CommunityWide term share certificates do not renew automatically. Withdrawing any part of the principal amount before maturity will trigger a penalty equal to the amount of the withdrawal times the remaining term (in days) of this certificate at the rate of two times the current APR (divided by 365) paid on this certificate. The penalty amount will be deducted from the amount withdrawn.

CommunityWide Federal Credit Union was founded in 1967 as the West Washington Association Federal Credit Union, assuming its current name in 1985. CommunityWide is based in South Bend, Ind., and opens up membership to members, employees and retirees of select organizations; spouses of persons who died while within the credit union’s field of membership; and immediate family household members. Members of three charities — Michiana Goodwill Boosters, Marine Corps League of St. Joseph Valley, and Habitat for Humanity Helpers — are also eligible.

SEE DETAILS Secured

on Communitywide Federal Credit Union’s secure website

NCUA Insured

6. Merrick Bank — 0.80% APY, $25,000 minimum deposit

Merrick Bank’s 24-month CD earns a competitive rate, but it requires a hefty minimum investment of $25,000, which must be deposited in a single transaction. Interest is compounded daily and credited monthly. Making an early withdrawal from this account will trigger a penalty equal to 180 days’ interest. There’s a 10-day grace period at maturity where you can decide to cash out your CD or change any terms or amount before it automatically renews.

Merrick Bank was founded in 1997. They are headquartered in Draper, Utah.

SEE DETAILS Secured

on Merrick Bank’s secure website

Member FDIC

7. Quontic Bank — 0.75% APY, $500 minimum deposit

You’ll need to fund this CD with a minimum of $500 and also maintain that amount to earn this rate. A penalty of two years’ worth of interest will be assessed if you make a withdrawal before the CD matures, so make sure you fund this with money you can afford to not touch for two years. If you haven’t accrued enough interest to cover the penalty, the rest will come out of your principal.

Founded in 2005, Quontic is a largely digital bank with headquarters in New York City and a few branches in New York and Florida. Quontic Bank is a designated Community Development Financial Institution (CDFI), which means it serves low-income communities and receives federal funding to continue providing banking products and services to those communities.

SEE DETAILS Secured

on Quontic Bank’s secure website

Member FDIC

8. USALLIANCE Financial — 0.75% APY, $500 minimum deposit

Among USALLIANCE Financial’s wide spread of account options is this high-rate, low-deposit 24-month CD. Dividends are compounded daily and credited monthly, and you only need $500 to open an account. But try not to make an early withdrawal from this account, as it’ll cost you 360 days of interest on the amount withdrawn.

USALLIANCE Financial was founded in 1966 by IBM employees. Today, USALLIANCE Financial membership depends on your employer, residence, place of worship, school or organizational membership. You also qualify for membership if you join an organization out of the few they offer, which is free for you and set up by USALLIANCE.

SEE DETAILS Secured

on USALLIANCE Financial’s secure website

NCUA Insured

9. First National Bank of America — 0.75% APY, $1,000 minimum deposit

First National Bank of America offers a wide range of CD terms from one to 84 months, each with a competitive rate. These CDs require a starting minimum deposit of $1,000. Interest is compounded quarterly, but withdrawing any money before maturity will result in a penalty of 360 days’ interest.

First National Bank of America first opened in 1955 and is based in Michigan, with three branches in the state in addition to its headquarters.

SEE DETAILS Secured

on First National Bank Of America’s secure website

Member FDIC

10. Live Oak Bank — 0.75% APY, $2,500 minimum deposit

Among Live Oak Bank’s high-yield short- and long-term certificates, the 2-year CD offers a great rate on midterm savings goals. Live Oak Certificates of Deposit can only be opened online and need at least $2,500 to open. The penalty for an early withdrawal equals 180 days of simple interest.

Live Oak Bank was founded in 2008 and has only one office — its headquarters — in Wilmington, North Carolina.

SEE DETAILS Secured

on Live Oak Bank’s secure website

Member FDIC

The best 2-year CD rates vs. the national average 2-year CD rate

As we’ve said, the key to maximizing your savings is finding the right accounts for stashing your money with the highest CD rates. Luckily, the best 2-year CD rates above all earn at substantially higher interest rates than the average 2-year CD rate. On average, 2-year CD rates earn just 0.43% APY, as of October 2021.

Let’s say you deposit $5,000 into a CD earning at the national average. At the end of your 24-month CD, you’ll have earned $74 in interest. Boost that APY to 3.00%, and your earned interest grows to $305, a much better return on your cash.

It’s also helpful to check out how often a bank compounds interest. Most often, you’ll see CDs with monthly or daily compounding interest. In basic terms, compounded interest is the interest you earn on already-earned interest. For example, with daily compounding, your balance earns interest today. Then tomorrow, that new, higher balance will earn even more interest, and so on. It’s a simple change that can grow your savings a little bit more efficiently.

Using the above example, a $5,000 deposit into a 24-month CD at 3% APY grows by $309 with interest compounded daily. If you compound it monthly, you’ll earn $308 instead, while quarterly compounding drops that amount by nearly another dollar, and so on. While that might not seem like much, it can prove useful if you’re looking to maximize your savings down to every last dollar.