Offer good for the initial term only. CD is automatically renewed for the same term. The rate is determined based on the published rate for the CD, excluding CD Specials, that is closest to but not exceeding the term of the CD. Advertised rate.

• Two emergency Fed rate cuts in March, and decreasing Treasurys, are reasons many high-yield CDs decreased in 2020. If you’re concerned about rates potentially.
• With our 10 Month CD, you'll know exactly how much you'll earn over a fixed term. Better rates available for Platinum and Platinum Plus Checking customers. This 25-Month CD allows for a longer period of investment with the same fixed rate and peace of mind over a fixed term.

Getting a 24 Month CD

When it comes to CD options, 2-year CDs are available from many top online banks or brick and mortar financial institutions. The best 24-month CDs offer competitive rates and have low or no minimum requirements to open an account.

6 best 2-year CD rates of 2020

• CIT Bank — 1.00% APY; $1,000 minimum deposit
• Synchrony — 1.00% APY; $2,000 minimum deposit
• Capital One — 0.75% APY; $0 minimum deposit
• Marcus —1.10% APY; $500 minimum deposit
• TIAA Bank — 1.10% APY; $5,000 minimum deposit
• Navy Federal — 1.10% APY, $1,000 minimum deposit

CIT Bank — Best online CD

CIT Bank, headquartered in Pasadena, California, offers fixed-term CDs up to five years in length, with a minimum deposit of $1,000. While several no-minimum CD options exist, the minimum deposit of $1,000 required by CIT Bank is still fairly reasonable. CIT CDs can be funded through electronic transfers, mailed checks or bank wires.

The APY rate on a CIT 2-year CD is higher than most brick and mortar banks and a little lower than some of the other online banking options. Still, at 1.00%, it is an attractive rate.

Synchrony Bank — Best customer perks

Founded in 1988, Synchrony Bank started many as a wholly-owned subsidiary of General Electric. Over time, the company expanded operations to offer a host of products, including certificates of deposit with attractive rates.

While Synchrony’s minimum deposit requirement of $2,000 is higher than some banks, which may be a deterrent for some people. Still, the 1.00% APY is a decent rate for 2-year CDs — plus Synchrony customers get access to unique travel and leisure discounts that may be beneficial to you.

Capital One — Best mobile app

Known for its credit cards and impressive mobile app, Capital One also offers 2-year CDs for investors who want a guaranteed rate of return. CDs through Capital One are available with no minimum deposit, no fees, and high interest rates, regardless of how much is invested.

The bank offers CDs with terms from 6 months to five years, with the highest rates on 48-month and 60-month CDs. People interested in a 2-year Capital One CD might want to consider a longer-term option, as it will offer a better APY rate.

Marcus – Best rate guarantee

If you’re looking for a financial institution steeped in history, you’ll find it at Marcus Goldman Sachs. It was started in 1869 by founder, Marcus Goldman and has thrived in its goal of sharing its financial expertise and grown to become the multinational investment bank that it is today. Goldman Sachs offers many investing products from loans to high-yield savings and CDs and more.

Marcus Goldman Sachs has an interesting setup that sets them apart from many of their competitors. Not only can you open a CD with a minimum deposit of $500, but the bank gives you 30 days to fully fund your CD account. They also have guaranteed rates, which is common among other top banks but isn’t always the case. So, it’s nice to have that assurance when looking for the best 24-month CD rates and which institutions to consider.

One of the interesting things about this pick for best 24-month CD rates is that the institution will give you the highest published interest rate and APY during the first 10 days from the time you open your account. This only applies to Marcus branded CDs with at least $500 deposited during that period.

TIAA Bank – Best IRA compatibility

TIIA Bank has a 5-star BauerFinancial rating, which speaks for itself since BauerFinancial ratings are unbiased, independent ratings. Considering TIIA also offers no monthly account maintenance fees and industry-competitive yields, TIIA CD offerings might be worth a try. Here’s the breakdown.

TIIA has a minimum deposit requirement of $5,000 to get started, which is larger than many other banks and you also have to be an existing TIIA Bank client who is also eligible for online check deposit enrollment. However, you can access your account anytime using its Apple mobile app. It also has an interesting take on the best 2-year CD rates by backing its annual percentage yield with a promise to always provide you with one of the highest rates from among the top 5% of its competitors. Finally, TIIA also offers you CDs that are IRA eligible, which can help boost your retirement savings plan.

Navy Federal – Best for military and dependents

Navy Federal offers two-year CDs with an APY rate of 1.20% for accounts of $99,999 or lower. If you open a CD with over $100,000, that rate increases to 1.25%. These rates are competitive, but you will need to be a member of the military, a veteran or a dependent of someone who has served to join this credit union. Account minimums for Navy Federal CD’s start at $1,000. You can apply for a CD through the website or at one of 247 branch locations across the country.

Compare the 6 best 2-year CDs of 2020

*Rates accurate as of July 10, 2020

What is a 2-year CD?

A certificate of deposit is a product offered by most financial institutions. In essence, it is an agreement between you and your bank. You agree to leave a specific lump-sum deposit for a predetermined amount of time in the bank. In exchange, the bank offers a premium rate for your deposit, which matures at the end of its term.

There are advantages and disadvantages to investing in CDs. One of the biggest advantages is the premium rates offered. However, rates can change and they differ by term and institution. So, always ask or research the current rates before you invest.

A disadvantage is an early withdrawal. You can withdraw your money early, but doing so usually incurs a penalty — often a percentage or even all of the interest you earned. Overall, CDs are a great way to earn more on your money and increase your wealth. Here’s how CDs compare to other savings accounts.

Who is a 2-year CD good for?

A 2-year CD is a great short-to-medium length investment for people who are more risk-averse or are looking for guaranteed returns. The return rates on many of the top 2-year CDs are better than you’ll find with any savings account. While the return may not be as good as some stocks and bonds, it is still a guaranteed return — no matter how the market fluctuates.

If you’re not planning to need the money you invest for the next 24 months, a 2-year CD could be the ideal savings and investment tool. If you’ll need the funds prior to that two-year mark, you may want to choose a savings account or money market account to avoid early withdrawal penalties.

The current average interest rate on a savings account is just 0.06%, according to the FDIC. It’s no surprise, then, that people often seek another low-risk way to get a larger return on their money. A great alternative to savings accounts is a 1-year certificate of deposit (CD). A CD is much like a savings account, except you lock your money into this account for a minimum of 1 year. After the 12 months is over you can withdraw your money and the interest or roll it over into another year.

8 Best 1-Year CD Interest Rates for September 2020

Rates data as of 8/26/2020

Is now a good time to save?

Certificates of deposit, or CDs, are a savings deposit that assures your money will grow and gain interest. Due to the Federal Reserve rate cuts in March 2020, many banks dropped the rates they’re offering on their CD products. Credit unions and online banks still yield the best bang for the savings buck.

The average interest rate right now is 0.42% for a 1-year CD. A 5-year CD averages 0.60%. Depositing your money in a bank for a fixed period means you will receive a fixed interest rate. While the rate you earn won’t be as high as it has been at some points in recent history, it’s still a good time to help your money grow via that earned interest.

The rate offered on CDs is often higher than the interest earned on most savings accounts, and that includes high-yield savings accounts. It’s a good way to save and earn if you can stow away that money for one year — provided you won’t need access to that money right now.

Ally – 0.75% APY

Cd Rates 2020 Predictions

Ally’s 12-month high-yield CD not only offers a competitive interest rate, but it comes with the company’s “Ten Day Best Rate Guarantee,” which states as long as you fund your CD within the first ten days of opening your account, you’re guaranteed to be given the best 12-month CD rate Ally offers for your term and balance tier, even if it goes up. You’ll also be given compounding interest on your balance, and the account doesn’t come with any pesky monthly maintenance fees.

Barclays – 0.40% APY

Beginning investors, or those who don’t have a ton of money to store away, may be interested inBarclays CDs — specifically its online options. Their 1-year CD option comes with a healthy annual percentage yield and there is no minimum amount required to open the account, which means that you’re free to put away as much or as little as you wish. In addition, though the CD itself only lasts for one year, Barclays also offers a ladder option, which allows you to free up or choose to reinvest your earnings as the CD matures.

Capital One – 0.50% APY

Though the annual percentage yield isn’t as high forCapital One’s 1-year CD, it’s worth noting that this choice offers more flexibility than some of the other best 12-month CD rates that are currently on the market. With Capital One, you can choose how you want your interest to be paid out, whether it’s at the end of the term, on a monthly basis or annually. You can also rest easy knowing that all of Capital One’s CDs are FDIC-insured up to the allowable limit of $250,000.

Charles Schwab – 0.15% APY

Charles Schwab does its CDs a little bit differently than most of the other financial institutions on the market. Rather than offering CDs in year-long installments, they offer the flexibility to go month-to-month. Though we’re talking about the best 12-month CD rates, it’s worth noting that you have the option to renew your CD for anywhere from one month to 20 years. That said, Charles Schwab accounts do come with a minimum balance requirement of $1,000.

Discover – 0.80% APY

A big selling point behind Discover’s product is not only it’scompetitive 12-month CD rate, but also the amount of transparency that the company has online. Not only does Discover’s online presence list the benefits of opening an account with Discover — such as not having any monthly maintenance fees or having a calculator that lets you see exactly how much interest your deposit will earn over the term of the CD — but it also shows you the potential downsides of opening the account. For example, its website lists how much interest you’ll be charged if you withdraw from your account early, allowing you to make a fully informed decision about where to put your money.

Marcus – 0.85% APY

Marcus by Goldman Sachs CD’s minimum amount required to open an account is lower than the usual. Its 1-year CD minimum deposit is just $500, which is roughly half as much as some of the other high-yield CD options on this list. CDs through Marcus by Goldman Sachs are only available online (as of writing), which could be a drawback for some who prefer a more hands-on approach to their money. Marcus by Goldman Sachs does offer a 10-day CD rate guarantee, an online calculator to see how much you’ll earn, and a US-based customer service center that is open every day.

Synchrony – 0.75% APY

Cd Rates 2020 Bank Of America

Synchrony Bank has CDs available for a minimum deposit of $2,000, which is much higher than the usual minimum deposit, sometimes as low as $500. However, Synchrony does have a 15-day best rate guarantee and an online calculator. At Synchrony, you might fare better with a high-yield savings account where you’ll earn 1.05% APY and have no minimum balance.

TIAA Bank – 0.60% APY

Requiring a $5,000 deposit in order to open the account definitely guarantees TIAA bank the award for the highest minimum deposit requirement on the list. However, if you have the funds, it may be worth the investment.TIAA Bank offers a few features that set it apart from its competitors, including a 20-day maturity alert, which will give you enough time to plan to free up your funds, if needed. Plus, CD accounts with TIAA are IRA-eligible.

Compare the 8 Best 1-Year CD Rates for September 2020

• Ally: 0.75% APY, $0 minimum deposit
• Barclays: 0.40% APY, $0 minimum deposit
• Capital One: 0.50% APY, $0 minimum deposit
• Charles Schwab: 0.15% APY, $1,000 minimum deposit
• Discover: 0.80% APY, $2,500 minimum deposit
• Marcus: 0.85% APY, $500 minimum deposit
• Synchrony: 0.75% APY, $2,000 minimum deposit
• TIAA Bank: 0.60% APY, $5,000 minimum deposit

What is a 1-Year CD?

A 1-year CD is simply a short-term certificate of deposit. Like other CDs, this financial product promises to provide investors with higher-than-normal interest rates, provided that they keep the money in the CD for its entire term.

This 12-month CD investment could be useful if you have a lump-sum of cash that you won’t need to access for at least a year, such as a work bonus or a cash gift. While certificates of deposits can offer a great return on investment, you’ll likely be subject to penalties if you decide to pull the money out before the term of the CD is over. You can use our CD interest rate calculator to see how much interest you’ll earn over the course of a year or longer.

CDs vs. Other Accounts

1-Year CDs vs Savings Accounts

Put simply, the rates savings accounts offer are not usually as high as what you might find with a CD or when compared to a 1-year CD. However, in return for those lower rates in traditional savings accounts, you do get some added flexibility. While there may be limits on how many withdrawals you can make per month, there are no penalties for withdrawing your money from a savings account. This may be a better option if you’re worried that you may have to pull money out at a certain point in time.

1-Year CDs vs Money Market Accounts

Money market accounts (MMAs) are similar to savings accounts in that, while there are limits on the amount of withdrawals you can make per month, as long as you stay within those limits, there are no penalties for accessing your money. Money market accounts also usually have a marginally higher yield than high-yield savings accounts. Plus, some accounts come with the ability to write checks or access your money via a debit card. However, their minimum balances tend to be slightly higher as well, and MMA holders may see penalties or fees for falling below those minimum balances.

1-Year CDs vs 3-Year CDs

The decision between a 1-year versus a 3-year CD boils down to how long you have to put your money away. A 3-year CD will offer better earnings, and usually, a higher interest rate. The longer you can put your money away, the higher the interest rate will be. You’ll get a good return upon maturity of the CD.

The Impact of 0.1% Change on $1,000

When you’re comparing rates between CDs and savings accounts, you may notice that CD rates only promise a marginally higher percentage than a traditional or high-yield savings account. You’re left wondering if locking your money in a CD is really worth it. Believe it or not, even a 0.1% increase in APY rate could have a noticeable impact over the term of your CD. Let’s say you have a 12-month CD worth $1,000 that garners 2.4% APY. In the first year, the value of your CD will increase to $1,024. Now imagine you were able to get a 12-month CD rate of 2.5% APY. At the end of the year, your CD will be worth $1,025. That’s not that great of a difference, but if you have a CD worth several thousand dollars, you can begin to imagine how quickly a few extra percentage points can add up to real cash — especially if you renew the CD.

The final word

Investing your money in a 1-year CD is a good option if you can lock away that money for the duration of the CD. It’s an excellent low-risk way to save and earn, but you’ll lose some or all of the interest you earn if you withdraw the money you deposited before the CD matures.

You can choose the best CD option for you based on the minimum deposit, interest rate, fees and whether the bank offers a 10-day rate guarantee. The best 1-year CDs have better interest rates than traditional savings accounts, and since CD rates are fixed, you can learn exactly how much you will get in return when the CD matures.