Review
Updated
Fact Checked
Nathan Alderman
18-month CD rates can be significantly higher than the rates you'll find from savings accounts and longer-term CDs. They can be an ideal choice for people who can commit to keeping their money deposited for more than a year, but who don't want the commitment involved with a 3-year or 5-year CD.
Here's a look at the best 18-month CD rates right now, as well as some things you should keep in mind before you decide which is the best choice for you.
Rates as of April 25, 2024
| Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
|---|---|---|---|---|
Member FDIC.
| APY: 4.40% | Term: 1.5 Year | Min. Deposit: $2,500 | |
Member FDIC.
| APY: 4.50% | Term: 1.5 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 5.00% | Term: 1.5 Year | Min. Deposit: $2,500 | |
| APY: 4.90% | Term: 1.5 Year | Min. Deposit: $2,500 | |
Member FDIC.
| APY: 4.45% | Term: 1.5 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.90% | Term: 1.5 Year | Min. Deposit: $1,000 | |
Member FDIC.
| APY: 4.45% | Term: 1.5 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.60% | Term: 1.5 Year | Min. Deposit: $500 | |
Member FDIC.
| APY: 4.50% | Term: 1.5 Year | Min. Deposit: $0 |
Sorry, we didn't find any CDs that meet those criteria.
How to choose the best 18-month CD rates
Curious about the top CD rates? Take a look at what all the best 18-month CDs should offer:
- High APY. Keep an eye out for the highest APYs to earn the best returns on your investment.
- Zero fees. Nothing takes away from your profits like fees! Avoid CDs that charge these unnecessarily.
- Compounding. CDs compound daily, weekly, or monthly. The more frequent that compounding occurs, the better your return.
- FDIC insured. Make sure your 18-month CD is insured by the FDIC or NCUA so your investment is protected (up to $250,000).
A deeper dive into our best 18-month CD rates
Discover® Bank CD
Bottom Line
Discover has a higher minimum balance requirement than some of its competitors, but its rates are competitive and you don't have to worry about getting hit with any fees unless you withdraw funds via wire transfer or choose to withdraw from your CD before it reaches its maturity date. It also offers some unique term lengths, including CDs as short as three months and as long as 10 years.
Minimum Deposit $2,500
| 3 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 30 Mo. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY | 7 Yr. APY | 10 Yr. APY |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2.00% | 4.25% | 4.25% | 4.70% | 4.40% | 4.00% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% |
APY = Annual Percentage Yield
Barclays Online CD
Bottom Line
Barclays offers competitive rates on most common CD terms with no minimum balance requirements. There are no monthly fees, so you likely won't lose money unless you try to withdraw your funds early. The only common CD term missing is a six-month CD -- in fact, there's no CD term less than one year, but those interested in building longer-term CD ladders will find plenty to like here.
Minimum Deposit $0
| 6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|
| 5.00% | 5.00% | 4.50% | 4.00% | 3.50% | 3.50% | 3.75% |
APY = Annual Percentage Yield
LendingClub CD
Bottom Line
LendingClub CDs don't skimp on interest, offering competitive APYs for all six of their CD terms, from six months to five years. They're also FDIC insured. One downside is that you'll need to commit at least $2,500 to open an account.
Minimum Deposit $2,500
| 6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|
| 5.00% | 5.15% | 5.00% | 4.50% | 4.30% | 4.00% |
APY = Annual Percentage Yield
Sallie Mae CD
Bottom Line
Sallie Mae may not be well-known for its banking services, but it offers CDs with competitive rates and the typically available terms. But the $2,500 required minimum deposit to open one will make them out of reach for many savers.
Minimum Deposit $2,500
| 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|
| 5.10% | 5.15% | 5.25% | 4.90% | 4.50% | 4.00% | 4.00% |
APY = Annual Percentage Yield
Capital One 360 CD
Bottom Line
Backed by Capital One's well-known brand, the Capital One 360 CDs offer competitive rates across many common terms, though they're stronger in durations of a year or longer. There's no minimum deposit, so savers can benefit even if they don't have a large sum to deposit. Check Capital One's web site for the most up-to-date rates.
Minimum Deposit $0
| 6 Mo. APY | 9 Mo. APY | 10 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|---|---|
| 4.25% | 4.25% | 5.10% | 4.80% | 4.45% | 4.00% | 4.00% | 3.95% | 3.90% |
APY = Annual Percentage Yield
Alliant CD
Bottom Line
Alliant offers CD rates across common terms that stack up well with other banks on this list. The credit union's rates hold up better than most though over the longer terms, so for savers interested in locking in rates for multiple years, Alliant could be a good home for your money. Note that the minimum of $1,000 is on the higher end for this list.
Minimum Deposit $1,000
| 6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|
| 4.75% | 5.15% | 4.90% | 4.30% | 4.20% | 4.05% | 4.00% |
APY = Annual Percentage Yield
Ally High Yield CD
Bottom Line
Ally High Yield CDs are notable for saver-friendly features like no minimum deposits and lower-than-average withdrawal penalties (though you're still better off holding through your CD term!). The rates are generally not at the very top of the market, but they tend to not be far off.
Minimum Deposit $0
| 3 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 3 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|
| 3.00% | 4.40% | 4.45% | 4.65% | 4.45% | 4.00% | 3.90% |
APY = Annual Percentage Yield
Marcus by Goldman Sachs High Yield CD
Bottom Line
Savers have the potential to create effective CD ladders through Marcus, as it provides competitive rates through the most common CD terms. The minimum deposit is $500 and withdrawal penalties are moderate compared with competitive banks.
Minimum Deposit $500
| 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY | 6 Yr. APY |
|---|---|---|---|---|---|---|---|---|
| 4.80% | 4.90% | 4.90% | 4.60% | 4.20% | 4.15% | 4.05% | 4.00% | 3.90% |
APY = Annual Percentage Yield
Synchrony Online CD
Bottom Line
Perhaps one of the lesser-known names on the list, Synchrony is a full-line bank with a 90-year history. Synchrony's CDs are notable for competitive rates at most term lengths, plus low or no minimum deposits.
Minimum Deposit $0
| 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|---|
| 4.80% | 5.25% | 4.80% | 4.50% | 4.20% | 4.15% | 4.00% | 4.00% |
APY = Annual Percentage Yield
What is an 18-month CD?
An 18-month CD is a bank account that gives you a guaranteed interest rate for 1.5 years in exchange for limited access to your deposit. Unless it's a no-penalty CD, you typically can't withdraw your deposit without consequences until the 18-month CD matures, although some allow you to withdraw interest after it's credited to your account.
How to compare the best 18-month CD rates
18-month CDs often have very attractive APYs, especially when compared to savings accounts.
However, it's important to mention that APY is only one thing you should consider when shopping for an 18-month CD. Not all of these factors will matter to all people reading this, but here are some things you might want to take into consideration:
- Minimum deposit: Some banks will allow you to open a CD with as little as $1, while others require $1,000 or more to get started.
- Early withdrawal penalty: Unless it's specifically called a no-penalty CD, virtually all CDs have early withdrawal penalties. If there's even a small chance you'll need your money before the CD matures, it's important to be aware of the penalties, and to factor this into your comparison shopping.
- Interest payments: Some CDs give you the option of having interest payments made directly to you, or being added to the CD balance. Others only allow you to have the money put into the account.
- Automatic renewal: Most CDs automatically renew for another term of the same length unless you specify otherwise. You'll typically have a grace period, which can range from a few days to a few weeks around the maturity date, during which you can withdraw some or all of your money from the account.
Will 18-month CD rates increase in 2024?
CD rates increased significantly in 2022 and 2023, but it's unlikely they'll continue rising in 2024. On the contrary, it's more likely rates will fall before the year is over.
We would likely see an increase in CD rates if annual inflation rose significantly followed by the Federal Reserve hiking the federal funds rate to combat it. This was what happened between 2022 and 2023, which brought the fed rate to a range of 5.25% to 5.50%. Although annual inflation has not fallen into the Fed's desired range of 2%, the central bank has kept its fed rate steady since its July 2023 meeting on the basis of improved annual inflation data.
Once the Fed believes it has a grip on inflation, it will start dropping its fed rate, which will have an impact on CD rates. In fact, many CD rates, including some 18-month CDs, have already started to drop, as CD providers anticipate rate cuts in the near future. All in all, if you're in the market for an 18-month CD, now might be the time to lock in.
Pros and cons of an 18-month CD
An 18-month CD can be a great way to lock in a guaranteed APY for a year and a half, but like most financial products, it isn't the best fit for everyone.
Pros
- Guaranteed APY: If a CD advertises a certain APY, that's what you'll get for the entire term. This is a big advantage over high-yield savings accounts, whose APYs can rise or fall at any time at the bank's discretion.
- Higher APY than savings account: You can typically find higher yields with 18-month CDs than you can with most savings accounts. Banks tend to compensate you for your willingness to commit to leaving your money deposited for a certain amount of time.
- FDIC insured: Unlike certain other types of fixed-income investment vehicles, CDs are FDIC insured to a maximum of $250,000 per person, per institution. Some banks even use innovative technologies to partner with other institutions to offer even more FDIC coverage.
Cons
- Early withdrawal penalty: If you need to access your money before the end of the term, you'll have to pay a penalty, usually equal to a few months' worth of interest. Before you get an 18-month CD, you need to be reasonably sure you can leave your money in the account for the entire term.
- No benefit from rising rates: The guaranteed APY feature of a CD works both ways. Sure, it's great to have an 18-month CD with an APY of 5.00% if market interest rates fall to 3.00%. On the other hand, if interest rates spike higher, you're stuck with a 5.00% yield.
Who is an 18-month CD right for?
An 18-month CD can be a great choice for people who want a guaranteed APY for well over a year, but who don't want to commit to leaving their money in an account for three or five (or more) years. They can be excellent choices for money you don't need right away, but may need a few years down the road.
Alternatives to an 18-month CD
An 18-month CD can be a great compromise between a guaranteed APY for a period and not keeping your money tied up for too long. However, they aren't a good option for everyone.
18-month CD vs. a high-yield savings account
There are some excellent financial institutions that offer savings accounts with high yields that in many cases can be on-par with or higher than what you'll find from an 18-month CD. The main advantage is that your money won't be tied up for any specific length of time, but the drawback is that your APY isn't guaranteed and can rise or fall at any time. If you're not planning on needing access to your money regularly, but still want it readily available in case an unforeseen expense comes up, a high-yield savings account could be the better option for you.
18-month CD vs. a money market account
A money market account combines some of the best features of high-yield saving accounts and checking accounts. You can find money market accounts with APYs that are close to what high-yield saving accounts and CDs offer, but you don't have any time commitment and you can usually access your money through an ATM or write checks on the account.
18-month CD vs. Treasury bonds
If you're looking for an investment with a guaranteed return, Treasury bonds can be a good alternative to CDs. You can usually buy Treasuries through a brokerage account, or you can open an account directly with the United States Treasury. Treasury bonds (technically, they're called bills, bonds, and notes depending on the maturity length) are offered with terms from a few days through 30 years, so there is more flexibility than with CDs, which typically come in a handful of term lengths.
The Best 18-Month CD Rates
| Offer | APY | Min. Deposit |
|---|---|---|
| 4.40% - 1.5 Yr. | $2,500 | |
| 4.50% - 1.5 Yr. | $0 | |
| 5.00% - 1.5 Yr. | $2,500 | |
| 4.90% - 1.5 Yr. | $2,500 | |
| 4.45% - 1.5 Yr. | $0 | |
| 4.90% - 1.5 Yr. | $1,000 | |
| 4.45% - 1.5 Yr. | $0 | |
| 4.60% - 1.5 Yr. | $500 | |
| 4.50% - 1.5 Yr. | $0 |
APY = Annual Percentage Yield
Other CD lengths to consider
Our CDs methodology
At The Motley Fool Ascent, certificates of deposit (CDs) are rated on a scale of one to five stars, primarily focusing on annual percentage yield (APY) and early withdrawal penalty fees. Our highest-rated CDs generally include competitive APYs without complex qualification tiers, low withdrawal fees, reliable brand trust and reputation, and ease of use.
The Ascent tracks just standard CDs, not IRA, bump up, callable, and other less popular CD accounts. CD rates displayed on this Best 18-Month CD Rates pages are comprised of both the highest CD rates in The Ascent’s universe of tracked rates and featured placements from advertisers. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list.
See our full Ratings Methodology here.
Banks we monitor
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Here are the 100+ financial institutions we've evaluated in our research:
Alliant, Ally, All America Bank, American First Credit Union, American Express® National Bank, Arvest Bank, Aspiration, Axos Bank, B2 Bank, Bank of America, Bank5 Connect, Bank7, Barclays, Bask Bank, Betterment, Bluevine, BMO, Bread Financial, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIT, Citibank, Citizens Bank, Citizens Savings Bank, Columbia Bank, Connexus Credit Union, Consumers Credit Union, Copper, Cross River Bank, Customers Bank, Discover® Bank, E*TRADEEdward Jones, EverBank, Fidelity, Fifth Third Bank, First Foundation Bank, First Internet Bank of Indiana, First National Bank, First Tech Federal Credit Union, Flushing Bank, Freedom Bank, Generations Bank, GN Bank, Golden 1 Credit Union, Greenlight, Harborstone Credit Union, HSBC, Huntington Bank, Ivella, Kabbage by American Express, KeyBank, Laurel Road, LendingClub, Liberty Bank, Liberty Federal Credit Union, Marcus by Goldman Sachs, Mercury, Municipal Credit Union, Mutual of Omaha, NASA Federal Credit Union, Nationwide Bank, Navy Federal Credit Union, NBKC Bank, New York Community Bank, Northpointe Bank, Novo, OceanFirst Bank, Old National Bank, ONE Finance, OneUnited Bank, Oxygen, Pacific Western Bank, PNC Bank, Ponce Bank, Popular Direct, Presidential Bank, Prime Alliance Bank, Quontic, Radius, Raisin, Redneck Bank, Regions Bank, Relay, Republic Bank of Chicago, Revolut, Salem Five Bank, Sallie Mae, Santander Bank, SchoolsFirst Federal Credit Union, Simple, SoFi, Synchrony Bank, Tab Bank, TD Bank, Third Federal, Truist Bank, U.S. Bank, UFB, Upgrade, USAA, Valley Bank, Vanguard, Varo Bank, Vio Bank, Wealthfront, Wells Fargo, Western Alliance Bank, and Zeta.
FAQs
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You should consider an 18-month CD if you want to lock in a competitive APY but you don't want the time commitment of a longer-term CD. 18-month CDs often offer higher APYs than savings accounts or longer-term CDs, and can be great options if you're worried about interest rates falling in the near future.
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An 18-month CD can be worthwhile for your savings if you want to lock in a competitive APY for a year and a half, and are reasonably sure you aren't going to need access to your money for at least that long.
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An 18-month CD starts by opening an account with a bank or credit union. You'll deposit an initial sum, which you won't touch for 1.5 years, then let it grow by your CD's interest rate. When your CD matures, you can renew your 18-month contract, open another CD with different terms, or transfer your money to another bank account.
Our Banking Experts
Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.
Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.
Fact Checked
Nathan Alderman
Nathan Alderman has worked with The Motley Fool since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As The Ascent's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.
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