With the Fed going so far as to say rates may sit at these levels throughout 2013, many deposit investors have been flocking to lock in 2 year CD’s so that their maturities are up at the precise time key rates may begin to rise again. This is, of course, speculation and rates could remain this low for a significantly loner time or begin to rise in the nearer future if economic conditions make a turn for the better.
Here at BankVibe.com, we’ve seen an increase in interest amongst these products lately (in both 2012 and towards the end of 2011). With search queries for the highest two year deposit rates seeing more activity than previously seen in recent memory.
As of 2012, we have a new leader in 2 year CD rates (CiT Bank) which features a 1.26% APY based on a 1.25% interest that is compounded daily. The minimum deposit is rather steep at $25,000, however, you should always check with your local credit union to see if they can at least match the interest rate and perhaps be a little more lenient on minimum deposit requirements.
One more thing to note before hopping into one of these products is that the interest rate you’d receive from even the best two year CD’s is still barley above the interest rate you’d receive from some of the top 12 month CD rates or even liquid money market rates. So don’t feel the need to lock your funds away for 24 months if you feel there may be a more productive opportunity for your savings in the near future.
Other 2 year CD rates topping our charts (view complete list here):
- Virtual Bank featuring a 2 year CD yielding 1.21% APY with a minimum deposit requirement of $10,000.
- USAA Bank featuring a 2 year CD yielding 1.20% APY with a minimum deposit requirement of $1,000.
- Discover Bank featuring a 2 year CD yielding 1.20% APY with a minimum deposit requirement of $2,500.