Best 18-Month CD Rates of August 2024: Smart Savings, In-Between Term (2024)

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If you're looking for the best rate for 18-month CDs, you'll probably want to go with an online bank or credit union. Online banks and credit unions have higher interest rates than the average CD, with the highest rates going over 5% APY.

The best 18-month CD rate is 5.00% APY from LendingClub. 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

• LendingClub 18 Month CD: 5.00% APY
• Limelight Bank 18 Month Online CD: 4.90% APY
• Bask Bank 18 Month CD: 4.90% APY
• TAB Bank 18 Month CD: 4.85% APY
• MYSB Direct 18 Month CD: 4.85% APY
• First Internet Bank of Indiana 18 Month CD: 4.83% APY
• Credit Human 18 Month Share Certificate: 4.80% APY
• Northern Bank Direct 18 Month CD: 4.75% APY
• EagleBank 18 Month CD: 4.71% 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.

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.

LendingClub 18 Month CD

LendingClub pays a good 18-month CD rate and has reasonable early withdrawal penalties.

LendingClub CDs require a $2,500 minimum deposit. Other banks may let you open a CD with $1,000 or less.

APY for 18-month CD: 5.00% APY

18-month CD early withdrawal penalty: 180 days of interest

LendingClub Bank Review

Limelight Bank 18 Month Online CD

Limelight Bank offers a strong rate on its 18-month CDs. It also offers one of the best 1-year CD rates, so if you're interested in opening both types of CDs with the same bank, Limelight Bank might be a good choice for you.

Limelight Bank doesn't offer any CDs with term lengths longer than 3 years. If you're interested in opening a long-term CD, you might want to look elsewhere.

Interest for an 18-month CD: 4.90% APY

18-month CD early withdrawal penalty: 90 days of interest

Bask Bank 18 Month CD

Bask Bank is an excellent option if you'd like to earn a high interest rate on a CD. All of its terms have great interest rates, so this bank might be interesting to you if you're interested in opening multiple short-term CDs at the same bank.

Bask Bank has limited CD terms. You might prefer another institution for long-term CDs.

APY for 18-month CD: 4.90% APY

18-month CD early withdrawal penalty: 180 days simple interest

Bask Bank Review

TAB Bank 18 Month CD

A TAB Bank CD is a great option if you're searching for a good rate on an 18-month term.

TAB Bank CDs have a $1,000 minimum opening deposit, but some of our other top picks let you open a CD with $500 upfront.

Interest for an 18-month CD: 4.85% APY

18-month CD early withdrawal penalty: 180 days of interest

TAB Bank Review

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. It also has low early withdrawal penalties.

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.

Interest for an 18-month CD: 4.85% APY

18-month CD early withdrawal penalty: 90 days of interest

First Internet Bank of Indiana 18 Month CD

First Internet Bank of Indiana pays a good CD rate on an 18-month term. The bank also offers one of the best money market accounts.

First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference.

Interest for an 18-month CD: 4.83% APY

18-month CD early withdrawal penalty: 180 days of interest

First Internet Bank of Indiana Review

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.

Interest for an 18-month CD: 4.80% APY

18-month CD early withdrawal penalty: $50 or 365 days of interest (whichever is greater)

Northern Bank Direct 18 Month CD

Northern Bank Direct offers an 18-month CD with a great rate. It also has a lower-than-average minimum opening deposit of $500.

Northern Bank Direct charges high early withdrawal penalties for its 18-month CD. If you think there's a chance you'll need to withdraw your money before the term length is over, you might want to go with another bank.

APY for a 18-month CD: 4.75% APY

18-month CD early withdrawal penalty: 12 months of interest, plus an additional $25 if the account is closed within the first 120 days

Northern Bank Direct Review

EagleBank 18 Month CD

EagleBank CDs offers some of the best CD rates overall for terms between 6 months and 18 months, so it could be a good option if your goal is to build a CD ladder.

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.

Interest for an 18-month CD: 4.71% APY

18-month CD early withdrawal penalty: 3 monthsof 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.

Bask Bank currently has a B rating from the BBB because of the number of customer complaints against the bank.

The BBB gave TAB Bank an A rating because government action has been taken against the bank.

M.Y. Safra Bank has an NR (No Rating) from the BBB because there isn't enough information to provide a rating.

Credit Human received an A rating because it has received several customer complaints on the BBB website.

TAB Bank has been involved in one recent public settlement. In 2022, TAB Bank entered an Assurance of Discontinuance with the State of 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 it provides a 30-day notice to the state and follows the state code.

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.

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 2024, but it isn't certain when exactly rate cuts will take place. In the meantime, banks are offering short-term CD rates with higher rates than long-term CDs. An 18-month CD falls in-between short-term CDs and long-term ones, and so do its rates.

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 for 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

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 2024anyway.

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 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 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.

18-Month CD FAQs

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 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, 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, 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.

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.