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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 available at Limelight Bank.
We check rates daily to find the best rates for 18-month terms. Here are our top picks.
These are our picks for the best 18-month CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. Although Silicon Valley Bank, Signature Bank, and First Republic Bank have recently been shut down, 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.
On Limelight Bank's website. Limelight Bank, FDIC Insured.
Details
Annual Percentage Yield (APY)
5.35%
Minimum Deposit Amount
$1,000
Editor's Rating
3.75/5
3.75 out of
5 Stars
Pros & Cons
Pros
Competitive interest rate
Standard-to-low early withdrawal penalties
Cons
$1,000 minimum opening deposit
Limited online CD terms
Highlights
More Information
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
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
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.
Details
Annual Percentage Yield (APY)
5.30%
Minimum Deposit Amount
$500
Editor's Rating
3.5/5
3.5 out of
5 Stars
Pros & Cons
Pros
High interest rate
Low minimum opening deposit
Variety of CD terms available at the financial institution
Cons
Standard-to-high early withdrawal penalties
Highlights
More Information
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
Signature Federal Credit Union 18 Month Certificate
Sallie Mae CD rates are some of the highest out there, and they're great picks if you're comfortable with online banking. Sallie Mae also offers more CD terms than most banks, so you have plenty of options when opening a CD.
Details
Annual Percentage Yield (APY)
5.15%
Minimum Deposit Amount
$2,500
Editor's Rating
3.75/5
3.75 out of
5 Stars
Pros & Cons
Pros
Competitive APY
Low-to-standard early withdrawal penalties
Cons
$2,500 minimum deposit
No terms under 6 months or over 5 years
Highlights
More Information
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
Limelight Bank has the highest CD rates for 18-month terms. An 18-month Limelight Bank CD pays 5.35% APY.
Is an 18-month CD worth it?
An 18-month CD might be worthwhile 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.
How does an 18-month CD work?
Traditional CDs lock in your rate for a specific term. Let's say, for example, you want to open an 18-month CD that pays 5.00% APY. You'll earn 5.00% 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.
Which is better: a short-term CD or a long-term CD?
Typically, your choice will likely depend on how soon you plan to need the money. For example, if you want the money to buy a house in less than a year, a longer term isn't the best idea. If you don't need access to your money soon and you're searching for a low-risk option, a CD might be a worthwhile option. Many experts recommend CD laddering. With this strategy, you open multiple CDs with different term lengths so you can take advantage of higher rates with longer terms, but also access some of your money earlier.
Is an 18-month CD a good investment?
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.
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.
APY for 18-month CD: 5.35% APY
18-month CD early withdrawal penalty: 90 days of interest
What to look out for: 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.
USAlliance Financial Share Certificates offer a high rate for an 18-month term. Certificates at USAlliance Financial also have low minimum opening deposit requirements.
Interest for an 18-month CD: 5.30% APY
18-month CD early withdrawal penalty: 360 days of interest
What to look out for: 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 1) live in a select area in Massachusetts, Connecticut, New Jersey, or New York 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.
Signature Federal Credit Union is another good choice if you prioritize banking with a credit union.
Interest for an 18-month CD: 5.25% APY
18-month CD early withdrawal penalty: 180 days of interest
What to look out for: Credit unions require membership to open an account. The easiest way to become a member is to enroll in the American Consumer Council. Then you'll just need to open a savings account.
The MYSB Direct CD might be a good choice if you're comfortable with a fully online banking experience. MYSB Direct has a variety of CDs with high interest rates. It also has low early withdrawal penalties.
Interest for an 18-month CD: 5.20% APY
18-month CD early withdrawal penalty: 90 days of interest
What to look out for: The bank compounds interest monthly, not daily. Depending on how much money you plan to keep in a CD, this may or may not make a significant difference.
CIBC Agility CDs have low early withdrawal penalties compared to other banks.
CIBC Bank USA, the US division of the Toronto-based bank Canadian Imperial Bank of Commerce, has competitive CD rates on 1-year, 18-month, and 2-year terms. With the 18-month and 2-year term, you'll also earn a higher rate if you deposit $25,000 or more.
Interest for an 18-month CD: 5.17% APY
18-month CD early withdrawal penalty: 30 days of interest
What to look out for: CIBC Bank USA has an online savings account and CDs that you can open anywhere in the US. To open a checking account or money market account in the US, you must live in a state that has a banking center. Banking centers are only located in Illinois, Michigan, Missouri, and Wisconsin.
Capital One 360 CDs may be worthwhile if you prioritize banking with a national brand or opening an account with a low amount, since it has a $0 minimum deposit.
Interest for an 18-month CD: 5.15% APY
18-month CD early withdrawal penalty: Six months of interest
What to look out for: Other financial institutions may offer more competitive CD rates right now.
Sallie Mae CDs offer good interest rates. It's also a worthwhile option if you want to open other types of savings accounts, as it pays high rates on its savings and money market accounts.
Interest for an 18-month CD: 5.15% APY
18-month CD early withdrawal penalty: 180 days simple interest
What to look out for: Sallie Mae's $2,500 minimum deposit for CDs is pretty steep.
First Internet Bank of Indiana CD: First Internet Bank of Indiana has an 18-month term that pays 5.07% APY, but our top picks have higher CD rates right now.
Alliant Certificate: Alliant Credit Union pays 5.05% APY on an 18-month certificate, but it is just short of the rates on our list.
Synchrony Bank CD: Synchrony has an 18-month term paying 5.00% APY, but our top picks have higher rates right now.
Discover CD: Discover's 18-month term pays 5.00% APY, but you'll need at least $2,500 to open an account. Our top picks offer higher CD rates or a lower minimum opening deposit.
LendingClub CD: LendingClub offers an 18-month CD that pays 5.00% APY, but our top picks have lower minimum opening deposit requirements or even higher rates.
CIT Bank Term CD: CIT Bank has variety of CD terms, but our top picks have higher interest rates for an 18-month term.
Citi Fixed Rate CD: Citi CDs have a $500 minimum opening deposit. But if you're strictly searching for a high rate, our top picks might be a better choice.
Bask Bank CD: Bask Bank has fewer term options than most of our top picks. Its CD rates are also lower than our top picks.
Live Oak Bank CD: Live Oak CDs require at least $2,500. Our top picks have lower minimum opening deposits.
Charles Schwab Bank CD: Charles Schwab has brokered CDs, meaning Charles Schwab doesn't actually own the CD. Instead, Charles Schwab acts as the middleman for you and the bank that owns the CD. Depending on your preferences, you may prefer open a CD directly with the financial institution.
TAB Bank CD: TAB Bank's 18-month CD offers a lower interest rate than our top picks.
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 does not have a profile with the Bureau yet, so there are no complaints or reviews to use for evaluating the company's business practices.
MYSB Direct has an NR ("No Rating") grade because the BBB doesn't have enough information to provide a rating yet. CFG Bank currently doesn't have a BBB rating because its profile is being updated.
USAlliance Financial received a D- rating from the BBB because it has failed to respond to five customer complaints on the BBB website.
The BBB gave 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.
A good BBB rating doesn't necessarily mean that your relationship with the bank will be perfect. Talk to current customers or read online customer reviews to get a more well-rounded perspective about whether the bank may be ideal for you.
CIBC Bank has been involved in a recent public controversy. 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.
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:
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."
"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."
"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.
First, we researched to find over two dozen banks and credit unions that offered 18-month CDs. Then, we reviewed each institution to find the most-well rounded banking options. For each account, 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.
Sophia Acevedo is a banking reporter at Insider. She covers bank reviews, banking guides, and banking and savings articles for Personal Finance Insider. She is also a Certified Educator in Personal Finance (CEPF).Sophia joined Insider in July 2021 and is an alumna of California State University Fullerton where she studied journalism and minored in political science. She is based in Los Angeles. You can reach out to her on Twitter at @sophieacvdo or email sacevedo@insider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services >>Below are links to some of her most popular stories:
Evelyn He is a compliance associate at Insider who supports the Personal Finance Insider team. Personal Finance Insider is Insider's personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Insider readers already know and love.The compliance team's mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.Before joining Insider, she served in various legal and compliance roles in different industries, including the legal and pharmaceutical industries. Evelyn obtained her M.S. degree in Marketing at Boston University in 2022. Prior to combining and consolidating her knowledge of law and business, she spent one year finishing 1L courses at Suffolk University Law School to further her legal knowledge. She has also completed MBA business law courses while working on her Bachelor of Business Administration in Management at the University of Massachusetts, Amherst. Outside of work, she enjoys spending time with her 14-year-old Shih Tzu named Money, and her 5-year-old Bichon named Tibber.
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*The annual percentage yield (APY) on the deposit balances in Betterment Cash Reserve (Cash Reserve) is 4.75% and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the Program Banks) and is current as of August 1, 2023. This APY is variable and subject to change daily. Deposit balances are not allocated equally among the participating Program Banks. A minimum deposit of $10 is required, but there is no minimum balance required to be maintained. The APY available to a customer may be lower if that customer designates a bank or banks as ineligible to receive deposits. APY applies only to Cash Reserve and does not apply to checking accounts held through Betterment Checking. Cash Reserve and Betterment Checking are separate offerings and are not linked accounts.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
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