Best 18-Month CD Rates for October 2024

shapecharge / iStock.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Over 18 months, your financial situation can change significantly. Instead of leaving your funds in a checking or savings account that offers minimal or no interest, investing in an 18-month CD could be a more strategic choice for growing your savings. Although committing to a CD locks your funds for over a year, the potential for earning competitive interest rates makes it worthwhile.

Many attractive annual percentage yields (APYs) are available when selecting an 18-month CD. However, before making a decision, it’s important to carefully review all the terms and conditions of the CD, including any associated fees and penalties for early withdrawal.

Best 18-Month CD Rates

• Alliant Credit Union 18-month CD: 4.25% APY
• Sallie Mae Bank 18-month CD: 3.80% APY
• Limelight Bank 18-month Online CD: 4.15% APY
• Marcus by Goldman Sachs 18-month CD: 4.10% APY
• Barclays 18-month Online CD: 3.25% APY
• Synchrony Bank 18-month CD: 4.25% APY
• CIBC Agility 18-month CD: 3.76% APY
• PenFed Credit Union 18-month Money Market Certificate: 3.90% APY
• America First Credit Union 18-23 Month Certificate: 4.10%

Alliant Credit Union 18-Month CD

• Rate: Up to 4.30% to APY
• Account minimum: $75,000 for top APY
• Early withdrawal penalty: Up to 120 days’ worth of interest

Alliant Credit Union offers an 18-month jumbo CD with a 4.30% APY for savers who deposit a minimum balance of at least $75,000. If you can deposit between $1,000 and $74,999 to deposit, you’ll snag a 4.25% APY on an 18-month CD. This offers a competitive opportunity for both savers at most levels.

Like all credit unions, you must become a member to open a CD. For those in the U.S., the simplest way to join the credit union is to join the Alliant Credit Union Foundation. It costs $5 to join, but Alliant will cover the cost. Once you are a member, you can open the CD.

Sallie Mae Bank 18-Month CD

• Rate: 3.80% APY
• Account minimum: $2,500
• Early withdrawal penalty: 180 days’ worth of simple interest

Sallie Mae might be best known for its role in the student loan space. But Sallie Mae Bank also offers a worthwhile selection of savings products, including an 18-month CD with a competitive APY.

Savers will need to make an opening deposit of at least $2,500 to get started. Like most other CDs, an early withdrawal will cost you. With Sallie Mae, it will cost 180 days’ worth of simple interest.

Make your money work for you

Get the latest news on investing, money, and more with our free newsletter.

Submit

By subscribing, you agree to our Terms of Use and Privacy Policy. Unsubscribe at any time.

Thanks!

You're now subscribed to our newsletter. Check your inbox for more details.

Limelight Bank 18-Month Online CD

• Rate: 4.15% APY
• Account minimum: $1,000
• Early withdrawal penalty: 90 days’ worth of interest

If you have at least $1,000 to tuck into a CD, Limelight Bank offers a worthwhile CD rate of 4.15%. Although there is an early withdrawal penalty attached, it’s a bit lower than many of the other CDs on this list. It’s a great place to stash your savings for the future.

Marcus by Goldman Sachs 18-Month CD

• Rate: 4.10% APY
• Account minimum: $500
• Early withdrawal penalty: 180 days’ worth of interest

Marcus by Goldman Sachs, Member FDIC, offers an 18-month CD with a minimum deposit requirement of just $500. While that’s not $0, it’s a more attainable requirement for many savers. If you choose to work with Marcus, the process will be entirely online.

Barclays 18-Month Online CD

• Rate: 3.25% APY
• Account minimum: $0
• Early withdrawal penalty: 90 days’ worth of simple interest

Barclays offers Online CDs with a minimum balance requirement of $0. The larger your deposit, the more you stand to earn in interest over the CD term. It’s worth noting that the 18-month CD offered by Barclays has one of the more forgiving early withdrawal penalties on this list.

Synchrony Bank 18-Month CD

• Rate: 4.25% APY
• Account minimum: No minimum balance
• Early withdrawal penalty: 180 days’ worth of simple interest

Synchrony Bank offers savers an 18-month CD with an APY. You can open an account without making a minimum opening deposit. If you withdraw from the principal early, you’ll incur a penalty of 180 days’ worth of simple interest.

CIBC Agility 18-Month CD

• Rate: 3.76% APY
• Account minimum: $1,000
• Early withdrawal penalty: 30 days’ worth of interest

CIBC is a Toronto-based bank that operates a U.S. division. If you choose to work with CIBC, you can lock in an 18-month CD term with an APY. You’ll need to make an opening deposit of at least $1,000.

However, the relatively low early withdrawal penalty and an attractive rate, make CIBC Agility CDs a worthwhile choice.

Pentagon Federal Credit Union 18-Month Money Market Certificate

• Rate: 3.90% APY
• Account minimum: $1,000
• Early withdrawal penalty: If an early withdrawal is within the first year of account opening, you’ll forfeit all of the interest earned. If the withdrawal is after the one-year mark, the penalty is worth 30% of the interest you would have earned if you had allowed the CD to reach maturity.

When you join Pentagon Federal Credit Union, also known as PenFed Credit Union, you’ll be required to start with a savings account. From there, you can open a certificate.

The $1,000 minimum requirement may be a barrier to entry for some savers looking to work with PenFed. But the steep early withdrawal penalty is more of an issue. If you are concerned you might withdraw your funds early, this CD might not be the right fit for you.

America First Credit Union 18-23 Month Certificate

• Rate: 4.10% APY
• Account minimum: $500
• Early withdrawal penalty: The minimum penalty for an early withdrawal is $5.00, and you’ll lose 180 days of the earned dividend if you withdraw early.

If you live, work, attend church, volunteer, or go to school in select counties in Utah, Arizona, New Mexico, Nevada, Oregon or Idaho, you can join America First Credit Union and take advantage of one of the top rates we’ve found for an 18-month CD.

The 4.10% APY applies to certificate accounts with terms from 18 to 24 months, which gives you some flexibility for planning your savings.

How To Find the Best 18-Month CD Rates

If you want to open an 18-month CD, it’s important to shop around. While you could choose to open a CD with the financial institution you already work with, that choice could mean you’ll miss out on the top rates available.

The good news is that we’ve made it easy to shop around. You can find banks that offer some of the top CD rates through GOBankingRates’ regularly updated roundup of top CD accounts.

How To Choose an 18-Month CD

A competitive APY is an important consideration for choosing a CD. But it’s not the only detail to keep in mind. Below are some of the other aspects to consider as you hunt for the perfect CD for your needs:

• Minimum Balance Requirement: When you sign up for an 18-month CD, you are committing to leaving your funds untouched for an entire year and a half. If you have to touch the funds, you’ll likely be stuck paying an early withdrawal penalty. With that, it’s important to only stash what you can reasonably part with for a year and a half. For example, you shouldn’t tuck away all of your savings into this CD. Instead, hold a portion of your savings in a high-yield savings account.
• Withdrawal Penalty: Early withdrawal penalties tied to CDs vary from bank to bank. If you need to tap into the funds early, a CD with a relatively low withdrawal penalty is ideal.
• Fees: As with all banking products, CDs come with fees to keep in mind. While the early withdrawal penalty is one of the most critical fees, it’s important to consider what other fees could eat into your savings.
• Insurance: It’s important to work with a financial institution that has the proper insurance for your deposits. Both FDIC and NCUA insurance protect your funds for up to $250,000.
• Compound Interest: To maximize your interest-earning potential, find a CD account that compounds interest daily.

Is an 18-Month CD Worth It?

An 18-month CD is one of many ways to save money, but it’s not necessarily the right fit for everyone. If you are confident you won’t need to access the funds within the 18-month term, this type of CD could suit your needs.

But if there is any doubt in your mind about tapping into the funds for a planned purchase, then consider another type of savings investment.

You may also find a great checking account that offers interest or offers other benefits that suit you.

Alternatives to an 18-Month CD

An 18-month CD isn’t the only savings product available. Consider the following alternatives:

• High-Yield Savings Account: A high-yield savings account can help you tap into a competitive APY for your funds without giving up access. You can find some high-yield savings accounts with APYs over the 5% mark [50, 51]. The best part is that you can access your funds at any time without a penalty. This option is usually the right move for savers stashing an emergency fund or who want to have flexible access to their hard-earned dollars.
• Money Market Account: Money market accounts offer another relatively flexible solution. Like high-yield savings accounts, you can often find attractive APYs without giving up ready access to your funds. Many money market accounts offer the opportunity to spend funds directly from the account through a debit card or check-writing privileges. If you prefer to have immediate access to your funds, a money market account might be the right fit. Before opening an account, take time to compare the top money market account rates today.
• Treasury Bills: Treasury bills are bonds issued by the U.S. Treasury, which come with some level of risk, unlike CDs or savings accounts. However, these bonds are backed by the U.S. government, which is worth something. When you purchase one, you can earn money through interest accumulation.

Savers can choose to build a well-balanced spreadsheet. In general, this means that savers who choose to open a CD already have a high-yield savings account or money market account. With both of these on hand, you can keep emergency funds easily accessible so that you never have to touch funds held within a CD early.

Final Take

An 18-month certificate of deposit can be a smart way to grow your savings with competitive interest rates while securing your funds for the term. Though you’ll need to commit your money for a year and a half, this option provides a stable return, especially if you don’t need immediate access to your funds.

Be sure to compare rates, terms, and penalties before choosing a CD, and consider alternatives like high-yield savings or money market accounts if flexibility is a priority. 

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Oct. 11, 2024.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

Share This Article: