The Best 2-Year CD Rates in 2022

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Updated on Monday, January 10, 2022

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 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 2022

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

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 list. You’ll need a $1,000 minimum balance to get started. Making an early withdrawal from this account will result in a loss of the greater of $50 or 180 days’ dividends. 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 four organizations.


on Hughes Federal Credit Union’s secure website

NCUA Insured

2. Quontic Bank — 0.95% APY, $500 minimum deposit to earn APY

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.


on Quontic Bank’s secure website

Member FDIC

3. Lafayette Federal Credit Union — 0.90% APY, $500 minimum deposit to earn APY

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.


on Lafayette Federal Credit Union’s secure website

NCUA Insured

4. Credit Human (24–35 months) — 0.85% APY, $500 minimum deposit to earn APY

Credit Human offers their CDs in ranges, so you have two options: For the APY we’ve listed, opt for a certificate of 24 to 35 months; if you need to cut that down a bit, CDs of 18 to 23 months still earn a rate that would make our list. Interest compounds and is paid monthly. If you withdraw funds early, you’ll pay $50 or 270 days’ dividends (whichever is greater).

Based in San Antonio, Texas, Credit Human membership is open to people who live, work, worship or attend school in the area; active and retired members of the U.S. Armed Forces or National Guard; employees and members of partner organizations and schools; and family members of current members of the credit union. If you don’t meet any of these eligibility requirements, you can sign up by joining the American Consumer Council; Credit Human will enroll you and pay the fee. You’ll also need to keep $5 in a share savings account to maintain membership.


on Credit Human’s secure website

NCUA Insured

5. PenFed Credit Union — 0.85% APY, $1,000 minimum deposit to earn APY

PenFed’s money market certificate can be opened with $1,000 or more. Dividends are posted monthly on the account. Their penalty works a little differently than most on this list. If you withdraw money within 365 days of opening the CD, the penalty will equal the last 365 days of dividends earned; after 365 days, the penalty will be 30% of the gross amount of dividends that would have been earned if the certificate had reached maturity. Speaking of which, you can choose your maturity option when you open your CD and change it anytime. Your options are to transfer the funds to another PenFed account, roll the funds over into a new certificate or have the money paid to you via mailed check or ACH transfer.

Virginia-based Pentagon Federal Credit Union, which is the second largest credit union in America, was established in 1935. Membership is open to anyone just by opening a savings account with them with at least $5.


on PenFed Credit Union’s secure website

NCUA Insured

6. Interior Federal Credit Union — 0.81%, $500 minimum deposit to earn APY

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.


on Interior Federal Credit Union’s secure website

NCUA Insured

7. First National Bank of America — 0.80% APY, $1,000 minimum deposit to earn APY

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.


on First National Bank Of America’s secure website

Member FDIC

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

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 is as easy as making a $5 donation to the Mater Dei Friends and Alumni Association.


on Evansville Teachers Federal Credit Union’s secure website

NCUA Insured

9. CommunityWide Federal Credit Union — 0.80% APY, $1,000 minimum deposit to earn APY

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.


on Communitywide Federal Credit Union’s secure website

NCUA Insured

10. Merrick Bank — 0.80% APY, $25,000 minimum deposit to earn APY

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.


on Merrick 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 0.42% APY, as of January 2022.

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 $42 in interest. Boost that APY to 1.00%, and your earned interest grows to $100, 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. Depending on the prevailing interest rates, deposit amount and term, it could mean the difference of a couple of dollars or enough to sway you toward a CD with more frequent compounding.