Should I choose a 2-year CD or two 1-year CDs?

A 2-year CD fixes today's 2-year rate; two consecutive 1-year CDs expose you to whatever 1-year rates are a year from now. Neither is guaranteed to come out ahead.

What is a callable CD?

A callable CD can be redeemed by the issuer before maturity, typically when rates fall. You receive your principal and accrued interest but lose the remaining fixed rate.

Are 2-year CDs FDIC-insured?

Eligible deposits at FDIC-insured banks are covered up to applicable limits regardless of term.

24-month certificates of deposit

24-Month CDs: What to Know Before You Choose

A two-year CD locks in a rate across multiple tax years and is a common building block for CD ladders.

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Locking a rate for two years

A 24-month CD fixes your rate for two years. If market rates fall, you keep your rate; if they rise, you'll be locked in until maturity unless you pay a penalty to withdraw. The right choice depends on your view of rates and how certain you are about not needing the money.

Building a CD ladder

A simple ladder might split savings evenly between 6-, 12-, 18- and 24-month CDs. As each matures, you can reinvest at the longest rung, so a portion of your money becomes available every six months while the rest earns longer-term rates.

Brokered 2-year CDs

Two-year terms are widely available as brokered CDs. These can be sold before maturity on a secondary market instead of paying a penalty, but the price you receive depends on prevailing rates and may be below your original principal. Some brokered CDs are 'callable', meaning the issuer can redeem them early.

May suit savers who…

Are confident funds won't be needed for two years
Are building or extending a CD ladder
Value rate certainty across multiple years

Things to check

Early withdrawal penalty — often larger on multi-year terms
Call features on brokered CDs
Interest taxed annually even if not withdrawn

24-month CD questions

Rates, minimums and penalties are set by each provider and can change at any time. CDRateWise does not display unverified rates. FDIC insurance applies to eligible deposits at FDIC-insured banks up to applicable limits. This page is general information, not financial advice.

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