July 2023’s Best 2-Year CD Rates (Up to 5.00%)

July 2023's Best 2-Year CD Rates (Up to 5.00%)

The Best 2-Year CDs: Expert Picks and Insights

Investing in a certificate of deposit (CD) can be a great way to grow your savings. CDs offer higher interest rates compared to traditional savings accounts, making them an attractive option for those looking to earn more from their investments. In this article, we will provide you with a comprehensive list of the best 2-year CDs, along with insights from banking and financial experts to help you make an informed decision.

The Best 2-Year CDs

When it comes to 2-year CDs, there are several banks and credit unions offering competitive rates. Here are our top picks:

  • Bread Savings 2 Year High-Yield CD: 5.00% APY
  • Delta Community Credit Union 2 Year CD: 5.00% APY
  • Crescent Bank 2 Year CD: 5.00% APY
  • First Internet Bank of Indiana 2 Year CD: 4.85% APY
  • Popular Direct 2 Year CD: 4.80% APY
  • CIBC Agility 2 Year CD: 4.75% to 4.80% APY
  • Vio Bank 2 Year CD: 4.75% APY
  • Gulf Coast Federal Credit Union 2 Year Share Certificate: 4.75% APY

These financial institutions offer competitive rates for 2-year CDs, ensuring you maximize your returns on your investment. It’s important to note that all our top picks are protected by FDIC or NCUA insurance, providing added security for your deposits.

How to Choose a 2-Year CD: Expert Insights

To help you choose the best 2-year CD for your needs, we sought advice from banking and financial planning experts. Here’s what they had to say:

1. Choosing the Right Financial Institution: Tania Brown, a certified financial planner at SaverLife, suggests looking for an institution that is FDIC-insured (or NCUA-insured for credit unions). Beyond that, consider your personal preferences and banking needs. Do you prefer an in-person banking experience or a high-tech mobile app? Are you looking for a high interest rate or the ability to write checks? Finding a bank that aligns with your priorities is crucial.

2. Selecting the Term Length: When it comes to choosing the term length for your CD, Sophia Acevedo, a certified educator in personal finance, emphasizes the importance of having a plan for your money. Determine when you will need the funds and match that with the corresponding CD term that offers the best interest rate. This way, you can optimize your returns while ensuring the money is available when you require it.

3. CD vs. High-Yield Savings Account vs. Money Market Account: Mykail James, a certified financial education instructor, advises considering how you plan to interact with your money over time. While all three options (CDs, high-yield savings accounts, and money market accounts) offer similar rates, they differ in terms of accessibility. If you need immediate access to your funds, a high-yield savings account or money market account may be more suitable. However, if you can leave your money untouched for the duration of the CD term, a CD offers a higher interest rate.

By considering these expert insights, you can make a more informed decision when selecting the right 2-year CD for your financial goals.

Methodology: How We Selected the Best 2-Year CDs

At Personal Finance Insider, our team conducted extensive research to identify the best 2-year CDs available. We analyzed over two dozen banks and credit unions offering 2-year CDs, comparing factors such as minimum opening deposits, early withdrawal penalties, and interest rates. Additionally, we assessed the overall banking experience, including customer support availability, mobile app ratings, and ethics.

Our goal is to provide you with comprehensive and unbiased reviews to help you make informed financial decisions. Each individual has unique preferences and requirements, which is why we offer a range of options to suit different needs. We strive to empower you with the information necessary to choose the most suitable financial product or account.

Frequently Asked Questions About 2-Year CDs

Here are some common questions about 2-year CDs:

Q: Are the top 2-year CDs mentioned in this article insured?

A: Yes, all our top picks for 2-year CDs are protected by FDIC or NCUA insurance. This ensures that your deposits are secure and up to $250,000 per depositor is guaranteed in a bank account.

Q: Are there any other 2-year CDs that were considered but didn’t make the top picks?

A: Yes, we also evaluated several other 2-year CDs. While they didn’t make our top picks due to factors such as lower interest rates, higher minimum opening deposits, or more substantial early withdrawal penalties, they may still be suitable depending on individual preferences. Some of these options include CDs from Signature Federal Credit Union, Connexus Credit Union, Sallie Mae, Quorum Federal Credit Union, and more.

For a comprehensive list of other options and details, please refer to the full article.

Bank Trustworthiness and BBB Ratings

When choosing a financial institution, it’s important to consider its trustworthiness and BBB ratings. While a good BBB rating doesn’t guarantee a perfect relationship with the bank, it can provide some insights into their business practices and customer satisfaction. Here are the BBB ratings of some of the banks mentioned:

  • Bread Savings’ partner bank: No rating (under evaluation by the BBB)
  • Gulf Coast Federal Credit Union: No rating (insufficient information for a rating)
  • CIBC Bank USA: A+ rating (strong rating for this specific division)
  • CIBC (parent company): F rating (due to unresolved complaints)

It’s worth noting that Bread Savings and CIBC Bank have been involved in recent public controversies. Bread Savings’ partner bank, Comenity Capital Bank, is currently being evaluated by the BBB due to a pattern of complaints. On the other hand, CIBC settled a case in 2021 regarding the misrepresentation of financial information.

While BBB ratings provide some insights, it’s essential to conduct further research and consider customer reviews to assess the overall reputation and reliability of a financial institution.

In conclusion, investing in a 2-year CD can be a smart choice to grow your savings. By considering the insights from experts and exploring our top picks, you can make an informed decision that aligns with your financial goals. Remember to thoroughly research each financial institution, and take into account factors such as interest rates, withdrawal penalties, and the overall banking experience.