Business Insider's personal finance team checks the best nationwide banks and credit unions each day to find the ones that offer the highest 18-month CD rates. The Federal Reserve kept interest rates steady at its last meeting, but it might lower rates in the future. If you want to lock in a good rate before rates drop, now's the time to open a CD.
The best 18-month CD rate is 4.45% APY from Credit Human Federal Credit Union.
The best 18-month CDs can generally be found at online banks and credit unions. These institutions have much higher interest rates than the average CD. The best rates are at least 4.15% APY.
To see how 18-month CDs compare to CDs with other term lengths, check out our overall best CD rates guide.
Best 18-Month CDs
- Credit Human 18 Month Share Certificate: 4.45% APY
- Dow Credit Union 18 Month Simple CD: 4.35% APY
- EagleBank 18 Month CD: 4.25% APY
- USALLIANCE Financial 18 Month Certificate: 4.20% APY
- MYSB Direct 18 Month CD: 4.20% APY
- Newtek Bank 18 Month CD: 4.20% APY
- TAB Bank 18 Month CD: 4.16% APY
- Affinity Plus Federal Credit Union 18 Month Basic Certificate: 4.15% APY
Compare the Best 18-Month CDs
The best 18-month CDs are primarily available at online banks and credit unions. These institutions offer the most competitive offerings for 18-month terms, and you can open accounts regardless of where you live in the United States.
When choosing a CD, you should review early withdrawal penalties and opening requirements in addition to interest rates.
You might also want to choose an eco-friendly bank or a community development financial institution. Both of these types of financial institutions use the money you put in for a good cause; eco-friendly banks help the environment, while CDFIs provide financial services to underserved populations. By using one of these banks, you can support a cause you care about.
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.
Credit Human 18 Month Share Certificate
Credit Human Share Certificates have a $500 minimum opening deposit. This credit union notably offers a high 18-month share certificate rate.
To open a Credit Human Share Certificate, you'll have to qualify for membership. You may join from anywhere in the U.S. if you become a member of the American Consumer Council. Credit Human Federal Credit Union also has other ways to become a member: You'll be eligible to join if you live in a service area in San Antonio, Texas, or New Orleans, Louisiana, or if you work for a partner employer or organization.
APY for an 18-month CD: 4.45% APY
18-month CD early withdrawal penalty: $50 or 270 days of interest (whichever is greater)
Dow Credit Union 18 Month Simple CD
Dow Credit Union has a good rate for its 18-month Simple CD. It also has good rates on several of its other Simple CDs. If you want to open a CD ladder with CDs from the same financial institution, Dow Credit Union might be a good choice.
The easiest way to join Dow Credit Union is to make a $10 donation to the Midland Area Community Foundation. You can also join by being an employee for a company in Dow's Select Employer Group or by having a family member who's a part of the union.
APY for 18-month CD: 4.35% APY
18-month CD early withdrawal penalty: 9 months of interest
EagleBank 18 Month CD
EagleBank CDs offers a high 18-month CD rate. It also pays a great 1-year CD rate.
EagleBank has locations in Maryland, Virginia, and Washington, DC, so it can be a great local banking option if you live in these areas. You can also open online CDs ranging from 6 months to 18 months if you don't live near a branch.
You'll only be able to deposit a maximum of $500,000 into a CD. Another downside to banking with EagleBank is that its mobile banking app has lackluster ratings in both the Google Play and Apple stores.
APY for an 18-month CD: 4.25% APY
18-month CD early withdrawal penalty: 3 months 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.
Interest for an 18-month CD: 4.20% APY
18-month CD early withdrawal penalty: 360 days of interest
MYSB Direct 18 Month CD
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.
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.
APY for an 18-month CD: 4.20% APY
18-month CD early withdrawal penalty: 90 days of interest or all of the interest you've earned to that point, whichever is greater
Newtek Bank 18 Month CD
Newtek Bank pays high CD rates for 18-month and 2-year terms, so it could be a good choice if you're interested in opening multiple CDs. It also charges standard early withdrawal penalties for these terms.
You'll need at least $2,500 to open a CD with Newtek. Consider one of our other top picks if you'd rather open a CD that has a lower minimum opening deposit requirement.
APY for 18-month CD: 4.20% APY
18-month CD early withdrawal penalty: 180 days of simple interest
TAB Bank 18 Month CD
TAB Bank has a strong rate for its 18-month CD. It also offers a high-yield checking account; if you're interested in opening both types of account with the same bank, TAB Bank might be a good choice for you.
TAB Bank has a minimum opening deposit of $1,000, which is fairly standard for CDs. Still, if you're hoping to open a CD with less money, many CDs offer lower minimum opening deposits.
APY for an 18-month CD: 4.16% APY
18-month CD early withdrawal penalty: 180 days of interest
Affinity Plus Federal Credit Union 18 Month Basic Certificate
Affinity Plus Federal Credit Union offers a good rate on its 18-month certificate. It also has a low minimum opening deposit of $500. If you're planning on opening a CD with less than $1,000, this might be a good choice for you.
Affinity Plus Federal Credit Union is a credit union anyone can join by making a one-time payment of $25 to the Affinity Plus Foundation. You can also join by living, working, or worshipping in certain parts of Minnesota. Other membership eligibility options are working for a select employer group, going to school at a Minnesota state college or university, or having a relative or household member who's either eligible or a current member of the credit union.
APY for an 18-month CD: 4.15% APY
18-month CD early withdrawal penalty: 180 days of interest
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.
| Institution | BBB rating |
| Credit Human | A- |
| Dow Credit Union | C+ |
| EagleBank | A+ |
| USALLIANCE Financial | D- |
| MYSB Direct | NR (rating for its parent bank, M.Y.Safra Bank) |
| Newtek Bank | A+ |
| TAB Bank | A+ |
| Affinity Plus Federal Credit Union | A+ |
Credit Human has an A- rating from the BBB because of a few unresolved complaints.
Dow Credit Union has a C+ rating from the BBB because it hasn't responded to a complaint filed against it.
EagleBank has been involved in a recent public controversy. In 2022, EagleBank paid a civil penalty of $10 million in a settlement with the Securities and Exchange Commission. According to the settlement, the SEC accused the bank and former CEO and chairman Ronald D. Paul of making false and misleading statements about party loans relating to Paul's family trusts.
USALLIANCE Financial has a D- rating from the BBB because it hasn't responded to several complaints.
MYSB Direct's parent bank, M.Y.Safra Bank, has an NR rating from the BBB because the BBB does not have enough information about the bank.
On December 2022, TAB Bank entered into an Assurance of Discontinuance with Iowa. According to the settlement, the State of Iowa accused TAB Bank of charging Iowa residents more than the permitted maximum APR for consumer installment loans. The bank has stopped making consumer installment loans to Iowa residents and can resume if they provide a 30-day notice to the state and follow the state code.
What Influences the Best 18-Month CD Rates
Role of the Federal Reserve
The Federal Open Market Committee consists of all the Board of Governors members, the Federal Reserve Bank of New York president, and four other Reserve Bank presidents. They manage monetary policy by assessing economic conditions.
When monetary policy changes, banks will often change bank interest rates. For CDs specifically, CD rates will increase during rate increases, and CD rates will decline during rate drops.
Economic Projections
Experts anticipate that CD rates will drop in 2025. The Fed cut interest rates for the first time in four years in September and then again in November and December, which will impact CD rates and stir declines at many banks. That said, the rate at which bank account rates decline varies by bank and you can still lock in a high rate before rates fall more.
Institution Specific Rates
Banks also have their own specific criteria for adjusting CD rates. You might occasionally see that banks pay the highest rates for 18-month terms or offer special promotional CDs for certain customers.
If you're interested in CD promotions, be mindful of the requirements necessary to earn the special rate. Sometimes, there are limitations on how much money you can deposit, or you have to deposit "new money." Each bank will define what "new money" is, but generally, it means you have to deposit money from another bank.
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
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Should You Open an 18-Month CD?
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 2025 anyway.
Although the best 18-month CD rates are similar to the many 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 18-Month 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 pay 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.
18-Month CD FAQs
Credit Human Federal Credit Union has the highest CD rates for an 18-month term that pays 4.45% APY.
An 18-month CD may be a better fit than a 1-year or 2-year term if you're saving for something that has a timeline of 18 months.
Many financial institutions offer 18-month terms, so you can likely find many brick-and-mortar and online options.
The best 18-month CD rates can change at any time. CD rates are impacted by the Fed's decisions, economic projections, and bank's individual criteria.
An 18-month term can be a good "starter" CD if it aligns with your goals. 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.
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, CFP® professional and vice president of coaching strategy at OfColor:
"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, banking editor, Business 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, CFP® professional 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® professional:
"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, Business 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 Business 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.
Our team is editorially independent — our business team does not decide how we cover products or what we write about. You can learn more about how we choose and review products by seeing our editorial standards page.
Business Insider's personal finance team monitors CD rates at over 160 banks, credit unions, and banking platforms to find the best 18-month CD rates. We've reviewed each institution to find the most-well rounded banking options.
When we rate a bank account, we use a scale of one to five stars. A one-star rating is a low score that indicates the product needs significant improvement. A five-star rating is the highest rating possible and indicates the product is a superior choice.
We analyze specific features of CDs. We compare the minimum opening deposits, early withdrawal penalties, miscellaneous features, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, security, and ethics.
Each feature is scored from 0 to 5, although some features have a larger weight percentage than others. We add up these scores and calculate the weighted average to determine the account's total rating.
See our bank account rating methodology to learn more about how we rate bank accounts.
