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As of October 2022, the average 18-month CD pays 0.69% APY, according to data company S&P Global. However, online banks and credit unions have more competitive interest rates than the average CD. The most competitive 18-month CDs offer at least 3.75% APY.
If you prioritize a low-risk savings option and don’t need immediate access to your money, an 18-month CD might be worth considering. Here are our top picks for 18-month CDs.
CIT Bank Term Certificate of Deposits (CD)
Annual Percentage Yield (APY)
0.30% to 4.00%
Minimum Deposit Amount
$1,000
CIT Bank Term Certificate of Deposits (CD)
Annual Percentage Yield (APY)
0.30% to 4.00%
Minimum Deposit Amount
$1,000
Details
Annual Percentage Yield (APY)
0.30% to 4.00%
Minimum Deposit Amount
$1,000
Pros & Cons
Highlights
Additional Reading
CFG Bank Certificate of Deposit
Annual Percentage Yield (APY)
4.10%
Minimum Deposit Amount
$500
CFG Bank Certificate of Deposit
Annual Percentage Yield (APY)
4.10%
Minimum Deposit Amount
$500
Details
Annual Percentage Yield (APY)
4.10%
Minimum Deposit Amount
$500
Pros & Cons
Highlights
Additional Reading
First Internet Bank of Indiana Certificate of Deposit
Annual Percentage Yield (APY)
1.00% to 4.02%
Minimum Deposit Amount
$1,000
First Internet Bank of Indiana Certificate of Deposit
Annual Percentage Yield (APY)
1.00% to 4.02%
Minimum Deposit Amount
$1,000
On First Internet Bank of Indiana’s website
Details
Annual Percentage Yield (APY)
1.00% to 4.02%
Minimum Deposit Amount
$1,000
Pros & Cons
Highlights
Additional Reading
Annual Percentage Yield (APY)
0.50% to 4.25%
Minimum Deposit Amount
$1,000
Annual Percentage Yield (APY)
0.50% to 4.25%
Minimum Deposit Amount
$1,000
On Crescent Bank’s website
Details
Annual Percentage Yield (APY)
0.50% to 4.25%
Minimum Deposit Amount
$1,000
Pros & Cons
Highlights
Annual Percentage Yield (APY)
2.00% to 4.01%
Minimum Deposit Amount
$0
Annual Percentage Yield (APY)
2.00% to 4.01%
Minimum Deposit Amount
$0
Details
Annual Percentage Yield (APY)
2.00% to 4.01%
Minimum Deposit Amount
$0
Pros & Cons
Highlights
Additional Reading
Citi Fixed Rate Certificates of Deposit
Annual Percentage Yield (APY)
0.05% to 3.75%
Minimum Deposit Amount
$500
Citi Fixed Rate Certificates of Deposit
Annual Percentage Yield (APY)
0.05% to 3.75%
Minimum Deposit Amount
$500
Details
Annual Percentage Yield (APY)
0.05% to 3.75%
Minimum Deposit Amount
$500
Pros & Cons
Highlights
Additional Reading
Comparing our picks for 18-month CDs
CIT Bank Certificate of Deposit (jump to CIT Bank account details »)
Why it stands out: CIT Bank pays a much higher interest rate on its 18-month CD than many brick-and-mortar and online banks.
Interest for an 18-month CD: 4.00% APY
18-month CD early withdrawal penalty: 180 days of months of interest
What to look out for: You can find lower minimum deposits elsewhere. If you prefer to open an account with less than $1,000, you might consider one of our other picks.
CFG Bank Certificate of Deposit (jump to CFG Bank account details »)
Why it stands out: CFG Bank has a high interest rate on its 1-year CD, and you’ll only need $500 upfront to open one.
Interest for an 18-month CD: 4.10% APY
18-month CD early withdrawal penalty: 180 days of interest
What to look out for: CFG Bank doesn’t have many CD terms to choose from — there are only 12-month, 13-month, 18-month, 36-month, or 60-month CDs. If you’re looking for more CD options, you might prefer another institution.
First Internet Bank of Indiana Certificate of Deposit (jump to First Internet Bank of Indiana account details »)
Why it stands out: First Internet Bank of Indiana offers a high interest rate on its 18-month CD.
Interest for an 18-month CD: 3.92% APY
18-month CD early withdrawal penalty: 180 days of interest
What to look out for: You’ll need at least $1,000 to open a CD at First Internet Bank of Indiana. Some of our other top picks let you open a CD with less money upfront.
Crescent Bank CD (jump to Crescent Bank account details »)
Why it stands out: Crescent Bank has online CDs with competitive interest rates. It also has a good selection of CD variety.
Interest for an 18-month CD: 3.90% APY
18-month CD early withdrawal penalty: 180 days of interest
What to look out for: Crescent Bank has a $1,000 minimum opening deposit. Some of our other top picks let you open a CD with less money upfront.
Synchrony CD (jump to Synchrony account details »)
Why it stands out: Synchrony is offering one of the highest rates on 18-month CD rights now. There’s also a $0 minimum opening deposit.
Interest for an 18-month CD: 3.81% APY
18-month CD early withdrawal penalty: 180 days of interest
What to look out for: You’ll want to consider whether you have a preference on how you’ll withdraw money from a CD. At Synchrony, you must call customer service to cash out your CD.
Citi Fixed Rate Certificate of Deposit (jump to Citi account details »)
Why it stands out: Citi offers a high interest rate on its 18-month CD. You’ll also only need $500 to open a CD.
Interest for an 18-month CD: 3.75% APY
18-month CD early withdrawal penalty: 180 days of interest
What to look out for: If you’re considering opening different types of bank accounts, keep in mind your options may depend on where you live. The bank has branches in California, Connecticut, Florida, Illinois, Maryland, Nevada, New Jersey, New York, South Dakota, Virginia, Washington DC, and Puerto Rico. If you don’t live in one of these states you’ll have to be comfortable with an online-only banking experience.
Other 18-month CDs we considered
- Bask Bank Certificate of Deposit: Bask Bank offers competitive interest rates on CDs, but our top picks have either more competitive interest rates or lower minimum opening deposits. Read the full review of Bask Bank here.
- LendingClub Certificate of Deposit: LendingClub pays competitive interest rates on CDs, but you’ll need at least $2,500 to get a CD. Read the full review of LendingClub here.
- Popular Direct Popular Direct Certificate of Deposit: Popular Direct has competitive CD rates, but it has a steep minimum opening deposit. You’ll need at least $10,000 to open a CD. Read the full review of Popular Direct here.
- Ally High Yield Certificate of Deposit: Ally has a low minimum opening deposit, but our top picks pay higher interest rates. Read the full review of Ally here.
- Alliant Certificate Alliant offers solid interest rates on CDs, but our top picks offer higher interest rates right now. Read the full review of Alliant here.
- Live Oak Bank Certificate of Deposit: Live Oak CDs require at least $2,500. Our top picks have lower minimum opening deposits and higher interest rates. Read the full review of Live Oak Bank here.
- Capital One 360 Certificate of Deposit®: Capital One has an impressive $0 minimum opening deposit, but our top picks have higher interest rates right now. Read the full review of Capital One 360 here.
- Bethpage Federal Credit Union Certificate Account: Bethpage offers a high interest rate on CDs, but our top picks have even higher rates. Read the full review of Bethpage Credit Union here.
- Nationwide CD: Nationwide offers a solid interest rate on its 18-month CD, but our top picks pay higher interest rates. Read the full review of Nationwide banking here.
- Marcus by Goldman Sachs High-Yield CD: Marcus pays high interest rates, but our top picks either pay even higher rates or have lower minimum opening deposits. Read the full review of Marcus here.
- Pentagon Federal Credit Union Money Market Certificate: Pentagon Federal Credit Union pays high interest rates, but our top picks offer even higher rates right now. The early withdrawal penalties may also be a bit high for some terms. Read the full review of Pentagon Federal Credit Union here.
- TIAA Basic Certificate of Deposit: TIAA offers a good interest rate, but our top picks offer even higher rates. Read the full review of TIAA Bank here. Read the full review of TIAA Bank here.
- Discover CD: Discover pays a high interest rate, but you’ll need a minimum of $2,500 to open a CD. Our top picks have lower minimum opening deposits. Read the full review of Discover Bank here.
- Sallie Mae Certificate of Deposit: Sallie Mae CDs offer high interest rates, but you’ll need at least $2,500 to open an account. Read the full review of Sallie Mae here.
- American Express® Certificate of Deposit: American Express has a low minimum opening deposit, but our top picks pay higher interest rates. Read the full review of American Express National Bank here.
- Bank5 Connect High-Yield Certificate of Deposit: Bank5 Connect has solid CD rates, but our top picks have even higher rates right now. Read the full review of Bank5 Connect here.
- Navy Federal Credit Union Standard Certificate: Navy Federal Credit Union has solid interest rates, but our top picks have higher interest rates. Read the full review of Navy Federal Credit Union here.
- Charles Schwab Bank Certificate of Deposit: 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. Read the full review of Charles Schwab here.
- Barclays Online Certificate of Deposit: Barclays offers high interest rates, but our top picks have even higher interest rates or stronger mobile app ratings. Read the full review of Barclays here.
- TAB Bank TAB Certificate of Deposit: TAB Bank has a solid interest rate, but our top picks offer even higher rates. Read the full review of TAB Bank here.
- Quorum Federal Credit Union Term Savings: Quorum Federal Credit Union’s 18-month CD isn’t as competitive as some of its other terms.
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. Here is each company’s score:
The BBB gave CIT Bank an A- rating and CFG Bank a C+ rating because it hasn’t responded to one customer complaint on the BBB website. Citi has an F rating because it has a high volume of unresolved customer issues and has had government action taken against the bank.
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.
Of our top picks for 18-month CDs, CIT Bank and Citi have been involved in recent public scandals.
In 2019, the Department of Housing and Urban Development sided with the California Reinvestment Coalition in its allegations against a division of CIT Bank called OneWest Bank. The CRC claimed that OneWest discriminated against Latinx and Black people in Los Angeles. Although OneWest never admitted to the discrimination, the bank did agree to pay over $7 million to homeownership programs for racial minorities in LA.
Citi has been in the following public scandals:
- In 2019, the bank accidentally sent $900 million to customers.
- In 2020, the bank was required to pay $400 million in a settlement with the Comptroller of the Currency. The OCC stated the bank had inefficient banking practices.
Why trust our recommendations?
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 research extensively to make sure you know the standout features and limitations of a financial institution.
Methodology: How did we select the best 18-month CDs?
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.
Frequently asked questions
An 18-month CD is a type of savings account. You make a one-time deposit and keep money in the account for 18 months. In return, banks offer a fixed interest rate so you can earn a little extra on your savings. You’ll have the option to renew your CD at the end of the 18-month period or close the account and pocket the money.
CDs do not charge monthly service fees, but you may have to pay an early withdrawal penalty if you decide to take out money before the end of your term. You also typically won’t be able to deposit more money before the CD matures.
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 3.75% APY. You’ll earn 3.75% 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.
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. For instance, you might open 6-month, 18-month, and 5-year CDs at the same time, which means you’ll get some of your money back in six months, then more in 18 months, then more in five years.
Choosing between an 18-month CD or a high-yield savings account may ultimately depend on your goals and preferences.
You may prefer a high-yield saving account over a CD if you want quick access to your money. If you need access to money from your 18-month CD before it matures, then you’ll usually have to pay a fee. In comparison, you should be able to access funds from your savings account regularly.
A CD also locks in your rate for the entire term. If rates are dropping, this could make the CD a better choice, because the interest rate on your saving account could decrease over the next few months. If rates are rising, the savings account might be a better fit, because your rate could go up. Either way, there’s a good chance rates will fluctuate over an 18-month period.
Like with a high-yield savings account, you may prefer a money market account over a CD if you want quick access to your money. Money market accounts often come with debit cards or paper checks so you can use your account for spending. With a traditional CD, you usually face a penalty if you want to take out money from an account before the end of its term.
Money market account rates also fluctuate, so you may prefer a money market account if rates are rising, but a CD if rates are dropping. Still, remember that rates will likely go up or down over a 6-month term.
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. One way to do this is through tax-advantaged retirement accounts, like a 401(k) or IRA, which grows your money over decades. Another is through brokerage accounts, which are useful tools to build long-term wealth, but can’t guarantee a given return like a CD can.
Expert advice on choosing the best CD
To learn more about what makes a good CD and how to choose the best fit, four experts weighed in:
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, CFP:
“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.”
Laura Grace Tarpley, Personal Finance Insider:
“I would look for the bank that charges you the least in fees. This means either no monthly fees, or you qualify to waive the monthly fees. If you never overdraw from your account, then a bank’s overdraft fees won’t matter much to you. But if you occasionally overdraw, then I’d look at the fees or overdraft protection options.”
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.”
Laura Grace Tarpley, Personal Finance Insider:
“I would use a high-yield savings account or money market account for short-term goals or an emergency fund. You’ll probably want to choose whichever has a higher rate, but money market accounts can be good for emergency savings because they often come with a debit card or paper checks, making it easy to access money quickly. Then use CDs for longer-term goals, like buying a home in a few years.”
