A certificate of deposit (CD) account offers consumers a fantastic way to grow money in a secured environment. Though they are deemed investments because they offer high dividends, they are indeed bank accounts.
One feature of the CD that makes it unique when compared to other bank accounts is its terms. Most financial institutions offer CDs with terms ranging from 30 days to five years.
If you are interested in opening a CD, you might be wondering which term is right for you. Those who enjoy earning high interest without being connected to a long-term commitment could benefit from opening 2-year CD accounts.
Features of 2-Year CD Accounts
So what makes opening 2-year CD accounts more enticing than accounts offering lower or higher terms? Well, really, it’s a matter of personal preference. Aside from the length of time your money is secured, primary features are typically similar:
- FDIC insurance: Most banks insure deposit accounts for up to $250,000 through the FDIC (credit unions insure through the NCUA).
- Higher interest: CDs are known for offering higher interest rates than other interest-bearing accounts. Among CDs, you can typically expect to earn higher rates for longer terms.
It’s good to know that a 2-year CD would require you to deposit funds in an account for 24 months. If you withdraw your principal funds prior to maturity (the end of your term), you could be financially penalized.
Locate fantastic deals on 2-year CD accounts by exploring rates below, or via our GOBankingRates CD rates table.