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Online banks and credit unions have higher interest rates than the average CD. The most competitive 18-month CDs offer more than 5% APY.
The best 18-month CD rate is 5.35% APY from Pentagon Federal Credit Union. If you are looking for additional CD options, there are other financial institutions with high 18-month CD rates, too.
We check rates daily to find the best rates for 18-month terms. Here are our top picks.
Best 18-Month CDs
Compare the Best 18-month CDs
PenFed Credit Union 18 Month Money Market Certificate
Annual Percentage Yield (APY)
5.35%
Minimum Deposit Amount
$1,000
- Competitive APY
- Terms up to 7 years
- $1,000 opening deposit
- High early withdrawal penalties
- 6-month certificates earn simple interest, not compounded interest
Product Details
- Many ways to join PenFed, the easiest being to open a savings account with $5
- Branches in US and on military bases in Guam, Puerto Rico, and Japan
- Terms ranging from 6 months to 7 years
- 90 days interest early withdrawal penalty for 6-month CDs
- For longer terms, you’ll lose all interest earned if you make an early withdrawal within 1 year of opening the certificate
- If you make an early withdrawal after the 1-year mark, the penalty is 30% of the gross dividends you would have earned if the certificate had matured
- Federally insured by the NCUA
Alliant 18 Month CDs
Annual Percentage Yield (APY)
5.30%
Minimum Deposit Amount
$1,000
- Competitive APY
- Low-to-standard early withdrawal penalties
- Interest compounded monthly, not daily
- $1,000 minimum deposit
- No terms over 5 years
Product Details
- Several ways to become a member; the easiest is to join Foster Care to Success (Alliant will cover your $5 membership fee)
- Terms ranging from 3 months to 5 years
- Early withdrawal penalty is dividends for the number of days the certificate is open. Up to 90 days dividends for terms of 17 months or less; up to 120 days dividends for terms of 18-23 months; up to 180 days interest for terms of 24 months or more; 7 days dividends if you withdraw during the 7-day grace period, even though no interest has accumulated yet
- Interest compounded monthly
- Federally insured by the NCUA
Popular Direct 18 Month CD
Annual Percentage Yield (APY)
5.26%
Minimum Deposit Amount
$10,000
- Competitive rates for certain term lengths
- Compounds interest daily
- $10,000 minimum deposit
- Standard-to-high early withdrawal penalties
Product Details
- Terms ranging from 3 months to 5 years
- Early withdrawal penalties: 89 days simple interest for terms under 91 days; 120 days simple interest for terms of 91 days to less than 12 months; 270 days simple interest for terms of 12 months to less than 36 months; 365 days simple interest for terms of 36 months to less than 60 months; 730 days simple interest for terms of 60 months or more
- Interest compounded daily, paid monthly
- FDIC insured
CIBC Agility 18 Month CD
Start saving
Annual Percentage Yield (APY)
5.26%
Minimum Deposit Amount
$1,000
- High interest rates, especially if deposit $25,000 or more
- Standard-to-low early withdrawal penalties
- $1,000 minimum opening deposit
- Limited CD terms
Product Details
- Earn a higher interest rate if you deposit $25,000 or more
- Terms range from 9 months to 30 months
- Early withdrawal penalty: 30 day of interest if you withdraw before the end of your term
- Interest compounded and deposited monthly
- Member FDIC
Synchrony 18 Month CD
Annual Percentage Yield (APY)
5.25%
Minimum Deposit Amount
$0
- Competitive APY
- Variety of term lengths
- No minimum deposit
- No terms over 5 years
- Standard-to-high early withdrawal penalties
Product Details
- Terms ranging from 3 months to 5 years
- Early withdrawal penalty of 90 days simple interest for terms of 12 months or less; 180 days simple interest for terms over 12 months but under 48 months; 365 days interest for terms of 48+ months
- When you’re ready to cash out your CD, you must call Synchrony
- Interest compounded daily, paid monthly
- FDIC insured
Marcus 18 Month CD
Annual Percentage Yield (APY)
5.25%
Minimum Deposit Amount
$500
- Competitive APY
- Variety of term lengths
- $500 initial deposit
- Easy-to-use mobile app
- Standard early withdrawal penalties
- No physical branch locations
Product Details
- Terms ranging from 6 months to 6 years
- 90 days interest early withdrawal penalty for a CD term of under 12 months, 180 days interest penalty for a CD term of 12 months to 5 years, 270 days interest penalty for a CD term of more than 5 years
- Compounding interest to maximize your earnings
- No monthly maintenance fees
- FDIC insured
Barclays 18 Month Online CD
Annual Percentage Yield (APY)
5.25%
Minimum Deposit Amount
$0
- No minimum deposit
- High interest rate
- Low-to-standard early withdrawal penalties
- Other online banks pay even higher CD rates
Product Details
- Terms range from 3 months to 5 years
- Early withdrawal penalties are as follows: 90 days interest for terms of 24 months or less, 180 days interest for terms of more than 24 months
- Interest compounds daily to maximize earnings
- FDIC insured
Signature Federal Credit Union 18 Month Certificate
Annual Percentage Yield (APY)
5.25%
Minimum Deposit Amount
$500
- Competitive APY
- $500 opening deposit
- Standard early withdrawal penalties
- Interest compounded monthly, not daily
- No terms over 5 years
Product Details
- Become a Signature FCU member by depositing $5 in a Signature savings account
- Terms ranging from 3 months to 5 years
- 45 days to 900 days interest early withdrawal penalty
- Interest compounded monthly and paid monthly
Sallie Mae 18 Month CD
Annual Percentage Yield (APY)
5.25%
Minimum Deposit Amount
$2,500
- Competitive APY
- Low-to-standard early withdrawal penalties
- $2,500 minimum deposit
- No terms under 6 months or over 5 years
Product Details
- Terms ranging from 6 months to 5 years
- Early withdrawal penalties: Terms of 12 months or less are charged 90 days simple interest; terms of over 12 months are charged 180 days simple interest
- Interest compounded daily, paid monthly
Limelight Bank 18 Month Online CD
Annual Percentage Yield (APY)
5.20%
Minimum Deposit Amount
$1,000
- Competitive interest rate
- Standard-to-low early withdrawal penalties
- $1,000 minimum opening deposit
- Limited online CD terms
Product Details
- Early withdrawal penalties: for terms between 6 months and 18 months, the early withdrawal penalty is 90 days of interest; for terms of 36 month term, the penalty is 180 days of interest
- Compounded daily and deposited monthly
- FDIC insured
USALLIANCE Financial 18 Month Certificate
Annual Percentage Yield (APY)
5.20%
Minimum Deposit Amount
$500
- High interest rate
- Low minimum opening deposit
- Variety of CD terms available at the financial institution
- Standard-to-high early withdrawal penalties
Insider’s Take
USALLIANCE Financial offers the most-competitive interest rate on an 18-month term right now. It also pays a great interest rate on a 1-year share certificate.
Product Details
- 9 branches in MA, CT, NY and NJ
- To join USALLIANCE Financial you must 1) live in a select area in MA, CT, NJ, or NY 2) work for a select employment group or 3) become a member of the American Consumer Council, Arco of Westchester, Tread Lightly! or the Council of Community Services
- Terms range from 3 months to 60 months
- Interest compounded daily and deposited monthly
- Federally insured by the NCUA
18-Month CD FAQs
Pentagon Federal Credit Union has the highest CD rate for an 18-month term. It pays 5.35% APY.
An 18-month CD might be a good idea if you can keep money in an account for at least 18 months. When choosing a CD, you also want to be mindful of opening requirements and early withdrawal penalties.
An 18-month CD works by locking in your rate for a specific term. Let’s say, for example, you want to open an 18-month CD that pays 5.50% APY. You’ll earn 5.50% APY for 18 months — the rate won’t fluctuate until your term ends. If you choose the renew your CD after it matures, you’ll earn the new rate that is currently offered by your bank.
An 18-month CD can be a good investment, even though that money is not actually invested in the stock market. CDs are generally viewed as a savings account. CDs are a low-risk option since you’re guaranteed fixed returns as long as you keep your money in an account for an entire time. Your potential gains, however, are limited. If you’re comfortable parting with your money for longer and want to take more risk with your money, then you may want to invest in the stock market.
18-Month CD Reviews
These are our picks for the best 18-month CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. If you are worried about banks failing, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
PenFed Credit Union 18 Month Money Market Certificate
PenFed Credit Union Money Market Certificate has competitive interest rates for a variety of terms.
PenFed has a variety of CD terms, ranging from six month to seven years. The credit union is also one of the best banks and credit unions for military members.
The easiest way to join PenFed is by opening up a savings account. You may also be eligible for membership at the credit union if you are a member of the military, employee of an eligible association or business, employee of certain U.S. government agencies, worker or volunteer at the American Red Cross, resident of certain areas, or family member of anyone who falls into one of these groups.
Keep in mind PenFed charges steep early withdrawal penalties on certificates. If you are worried about withdrawing money early, you might consider one of the other options on our list or one of the best no-penalty CDs.
APY for 18-month CD: 5.35% APY
18-month CD early withdrawal penalty: All interest earned if withdrawal is within the first year of account opening OR 30% of the interest you would have earned if the certificate reached maturity
Pentagon Federal Credit Union Review
Alliant 18 Month CDs
Alliant Certificates are a solid option if you’re searching for a competitive interest rate on an 18-month term. Alliant also has reasonable early withdrawal penalties.
Credit unions require you to become a member to open an account. The easiest way to become a member regardless of where you live in the U.S. is to join Foster Care to Success, and Alliant will cover your $5 joining fee.
APY for 18-month CD: 5.30% APY
18-month CD early withdrawal penalty: Up to 120 days of interest
Alliant Credit Union Review
Popular Direct 18 Month CD
Popular Direct CDs have high interest rates, and compound interest daily.
You’ll need at least $10,000 to open a Popular Direct CD. The early withdrawal penalty is also fairly high.
APY for 18-month CD: 5.26% APY
18-month CD early withdrawal penalty: 270 days of simple interest
Popular Direct Review
CIBC Agility 18 Month CD
Why it stands out: CIBC Bank USA, the U.S. division of the Toronto-based bank Canadian Imperial Bank of Commerce, has competitive CD rates on 1-year and 18-month terms.
CIBC USA also has a CIBC Agility Online Savings Account, a few checking account options, and a money market account. The savings account can also be opened from anywhere in the U.S., but the checking and money market accounts are primarily available in select counties in the Midwest.
APY for 18-month CD: 5.26%APY
18-month CD early withdrawal penalty: 30 days of interest
CIBC Bank USA Review
Synchrony 18 Month CD
Synchrony CDs may be appealing if you want to bank with a well-known online financial institution. Synchrony CD rates pay well above the national average for a variety of terms.
They’re also great if you want a CD with easy opening requirements. You may open an account with $0, which is less than then $1,000 standard deposit many other financial institutions require.
APY for 18-month CD: 5.25% APY
18-month CD early withdrawal penalty: 180 days of interest
Synchrony Bank Review
Marcus 18 Month CD
Marcus by Goldman Sachs only requires $500 to open a CD, which is less than what you’ll need with many banks. Marcus also has a variety of CDs, so it’s a good option if you want to open other CDs along with your 18-month term.
Marcus doesn’t have any physical locations, so you’ll need to be comfortable banking online.
APY for 18-month CD: 5.25% APY
18-month CD early withdrawal penalty: 180 days of interest
Marcus Bank Review
Barclays 18 Month Online CD
Barclays Online CDs may be a good choice if you’re looking for an account that’s easy to open. Barclays lets you open CDs with $0. This account also has low early withdrawal penalties for an 18-month term.
Keep in mind other financial institutions may offer higher CD rates right now.
APY for 18-month CD: 5.25% APY
18-month CD early withdrawal penalty: 90 days of simple interest
Barclays Bank Review
Signature Federal Credit Union 18 Month Certificate
Signature Federal Credit Union pays high rates on CDs, and you only need $500 to open an account. However, it compounds interest monthly rather than daily. Depending on how much money is in your CD, this may or may not make a significant difference.
Because Signature FCU is a credit union, you must become a member before you can open a CD. There are many ways to become a member, but the easiest way is to join the American Consumer Council for $8 per year.
APY for 18-month CD: 5.25% APY
18-month CD early withdrawal penalty: 180 days of interest
Signature Federal Credit Union Review
Sallie Mae 18 Month CD
Sallie Mae has a great interest rate on an 18-month term. It’s also a good choice if you want to open other types of savings accounts, as it pays high rates on its savings and money market accounts.
You do need $2,500 to open a Sallie Mae CD. If you don’t have that much money to get started, you’re better off with one of our other top picks with a lower minimum deposit.
APY for 18-month CD: 5.25% APY
18-month CD early withdrawal penalty: 180 days of simple interest
Sallie Mae Bank Review
Limelight Bank 18 Month Online CD
The Limelight Bank Online CD pays a high interest rate on its 18-month term. Limelight Bank, an online division of CCBank, is also included in our best 1-year CD rates guide.
You’ll need at least $1,000 to open a CD. Some of our other picks let you open an account with $500 or less.
APY for 18-month CD: 5.20% APY
18-month CD early withdrawal penalty: 90 days of interest
USALLIANCE Financial 18 Month Certificate
USALLIANCE Financial Share Certificates offer a high rate for an 18-month term. Certificates at USALLIANCE Financial also have low minimum opening deposit requirements.
USALLIANCE Financial has steep early withdrawal penalties. Also, to open a bank account at the credit union, you must become a member.
You may join USALLIANCE Financial if you live in a select area in Massachusetts, Connecticut, New Jersey, or New York; work for a select employment group; or become a member of the American Consumer Council, Arco of Westchester, Tread Lightly!, or Council of Community Services.
APY 18-month CD: 5.20% APY
18-month CD early withdrawal penalty: 360 days of interest
How to Find the Best 18-Month CD for You
Interest rates are always important when choosing an 18-month CD, but there are other factors to consider, too. Look at the CD’s minimum opening deposit. If you don’t have enough money to open the 18-month CD with the highest rate, it’s probably still worth opening one that has a minimum deposit requirement you can afford, even if it pays a little less.
You should also look at the bank’s early withdrawal penalty for 18-month terms. A high penalty for withdrawing money early could cancel out any interest you’ve already earned. If you’re worried about needing money early, search for a bank that charges lower penalties. Or it might be better to put your money in a shorter-term CD, no-penalty CD, or high-yield savings account instead.
Pros and Cons of 18-Month CDs
You can earn a great rate on an 18-month CD right now, and you’ll lock in that rate for the entire term. This means your rate is fixed, so it won’t increase or decrease even if the bank changes its 18-month rates. This can be a disadvantage if the bank raises rates, but it’s unlikely that CD rates will go up in 2024 anyway.
Although the best 18-month CD rates are similar to the best high-yield savings rates right now, CDs come with less flexibility than savings accounts. Most banks don’t allow you to put more money into your CD after the initial deposit, and they charge you a penalty for taking out money before the term ends.
CDs offer a guaranteed rate of return, which means they’re much less risky than investing your money in the stock market. You could earn more with the stock market, but the market is unpredictable, so you could actually end up losing money over that 18 months instead. Because 18 months is a relatively short amount of time, you may want to put the money in a CD instead to be on the safe side.
Alternatives to a 1-Year CD
18-Month CD vs. Shorter-Term CD
It’s common for banks to offer 6-month and 1-year CDs, and many even have 3-month terms. These are great options if you can’t part with your money for the full 18 months. Also, 6-month CD rates and 1-year CD rates are comparable to — and often higher than — 18-month rates right now.
Because rates on 6-month, 1-year, and 18-month CDs are especially high at this point, you might be interested in building a CD ladder. This involves dividing your money between several CD terms so you can access it at different times. For example, you could open a 6-month, 1-year, and 18-month CD, and you’d have access to your money and earned interest after six, 12, and 18 months.
This strategy helps you avoid some risk. If you put all of your money into an 18-month CD with plans to put it back into another 18-month CD after the term ends, rates may be lower by then. By building a ladder, though, you lock in high rates now before they potentially drop later.
18-Month CD vs. Longer-Term CD
You may want to put money into a longer CD term if you know you won’t need it for more than 18 months. Plenty of online institutions are paying great rates on terms up to five years. However, the best rates on 18-month CDs and shorter terms are higher than rates on longer terms right now.
18-Month CD vs. High-Yield Savings Account
The best high-yield savings accounts are paying similar rates to the best 18-month CDs. But you still might prefer a high-yield savings account over a CD for two reasons: You can deposit money at any time, and you can often withdraw money without paying a penalty. CDs and savings accounts are both great tools for saving money, so there’s no reason you can’t open both.
18-Month CD vs. Money Market Account
Money market accounts are similar to savings accounts, except most include perks you’d normally get with checking accounts, such as ATM cards, debit cards, or paper checks. Money market accounts make it much easier to access your savings than CDs. The best money market accounts pay great rates right now, but they’re still not as high as the best 18-month CD rates. A money market account could be a good fit if you want easier access to your savings, while an 18-month CD might be better if you want help resisting the temptation to spend your savings.
Bank Trustworthiness and BBB Ratings
We’ve compared each company’s Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices.
Signature Federal Credit Union is the only institution on our list that hasn’t been rated by the BBB yet. Here is the score for each of our other top picks:
The BBB gives CIBC Bank USA an A+ rating. However, its parent company CIBC has an F rating because the BBB has received numerous complaints, and the bank hasn’t responded to or resolved some complaints.
The BBB gives USALLIANCE Financial a D- rating because it hasn’t responded to several customer complaints on the BBB website.
In 2021, CIBC agreed to pay $125 million in a settlement when accused of misrepresenting financial information regarding CIBC investments and US residential mortgage-backed securities.
Barclays has been involved in one recent public controversy. In 2022, the Securities and Exchange Commission required Barclays to pay $361 million in a settlement that accused the bank of having unregistered sales of securities.
Synchrony has also been involved in a couple of recent public controversies. In 2023, Synchrony was required to pay $2.6 million in a settlement when accused of calling customers about bank accounts they didn’t have. In 2021, the bank also was required to pay $3.5 million in a settlement when accused of making unreasonable phone calls to debtors living in California.
Why You Should Trust Us: Expert Advice on Choosing the Best 18-Month CD
To learn more about what makes a good CD and how to choose the best fit, four experts weighed in:
Business Insider
Here’s what they had to say about CDs. (Some text may be lightly edited for clarity.)
How can someone determine whether a bank is the right fit for them?
Tania Brown, certified financial planner at SaverLife:
“Obviously, you want to make sure it’s FDIC insured. Also, your banking experience — do you like walking into a bank? Well, then you need someone local. Do you just not care if you ever see your bank? Then you’re okay online. Do you write checks? Do you not write checks? So it’s thinking through how your experience with it is going to be before you make that decision.”
Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider:
“I would create a list of what I prioritize most in a bank account. For example, some banks have accounts that charge monthly service fees. I would look to see what the requirements are for waiving the monthly service fee and whether I think I could feasibly meet those requirements each month. If I’m searching for an interest-earning bank account I’ll pay attention to interest rates. I would make sure the account pays a higher interest rate than the average bank account.”
How should someone choose a CD term length?
Roger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”:
“I would think about when you need the money and then compare that with what the prevailing CD rates are, and then what makes sense from a financial perspective, but also from your own personal timing perspective.”
Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:
“I believe in having a plan for whatever the funds are. If it’s supposed to be a house fund, and you want to wait for another two years to buy a house, that’s what you should be thinking of when you want to have this money.”
How should someone decide whether to put their money in a high-yield savings account, money market account, or CD?
Tania Brown, CFP:
“So I guess we’ll start off with how much money you want to put in and … the level of transactions you want to have. If you want to have any transactions, that automatically takes out CDs. Then you’re stuck between the high-yield savings and the money market account.”
Sophia Acevedo, Personal Finance Insider:
“Generally, I think a high-yield savings account or money market account could be good options for an emergency fund or short-term savings goals. A high-yield savings account offers a higher interest rate than traditional savings accounts at brick-and-mortar banks. Meanwhile, money market accounts might be worth considering if you want more account accessibility — several offer paper checks, ATM cards, or debit cards. CDs could be worthwhile if you don’t need access to some of your money, since they have a fixed interest rate for a specific term.”
Methodology: How we Chose the Best 18-Month CD Rates
At Personal Finance Insider, our goal is to create helpful reviews, guides, and explainers so that you can make good decisions about your money. We recognize every person has distinct preferences, so we provide ample options to help you find the most suitable financial product or account.
We monitor CD rates at over 60 banks, credit unions, and banking platforms. We’ve also reviewed each institution to find the most-well rounded banking options. For CD, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics. Read more about how we rate CDs.
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