We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. Right now, the best 18-month CD rate is 5.65% from Hyperion Bank. To find you the best CD rates nationwide, we review CD rates from hundreds of banks and credit unions every weekday morning. The top CD rates in our rankings typically pay three to five times as much as the national average—or even more. Below are the top CD rates available from our partners, followed by the best 18-month CD rates that we've found fromour researchthat are available to U.S. customers everywhere. CD rates reached higher in 2023 than we’d seen in more than 20 years, pushed up by the Federal Reserve’s rate-hike campaign that began in March 2022 to tame decades-high inflation. For its last three meetings, however, the Fed has held the federal funds rate steady, and in its Dec. 13 rate announcement, Fed Chair Jerome Powell indicated the committee’s rate-hike cycle ismost likely complete. Further, most Fed members project that two to four rate cuts will occur by the end of 2024. Because CD rates closely follow the fed funds rate, the Fed’s current holding pattern already has caused CD rates to soften, andfurther declines are likelyover the coming weeks and months. Where more than one institution pays the same top rate, our rankings prioritize CDs by the shortest term, then the CD requiring the smallest minimum deposit. If there is still a tie, we then rank alphabetically by institution name. Detailed information on these top-paying nationally available 18-month CDs is provided below, including specifics about minimum deposits and early withdrawal penalties. For credit union CDs, information is also provided on how to easily join thecredit unions offering them. Investopedia collects thousands of CD rates from hundreds ofbanksandcredit unionsevery weekday. Whenranking CD rates, we look at factors like term, early withdrawal penalty, and minimum opening deposit. We also research banks and credit unions to provide unbiased, comprehensive reviews to ensure our readers make the right decisions for their needs. Investopedia launched in 1999 and has been helping readers find the best CD rates since 2019. The CDs we recommend must be available nationwide and these certificates typically pay three to five times as much as the national average—or even more. To be eligible for our rankings, each CD's minimum opening deposit requirement cannot exceed $25,000 and must be offered by an FDIC-insured bank or NCUA-insured credit union (which covers up to $250,000 per depositor). When asked in December if they were choosing more or less of certain investments during recent market events,28% of Investopedia readers saidthey were leaning into CDs—just one percentage point behind the leading choice of money market funds. Additionally, 11% of readers said they would open a CD if they had an extra $10,000 to invest, in third place behind individual stocks and ETFs. Pros Offers a guaranteed rate for 18 months May pay a higher APY than other terms Pays reliable and predictable earnings Is safe and virtually risk-free Can deter the temptation to spend since funds are tied up Cons Incurs a penalty if you withdraw early Allows only one deposit amount If rates fall, you may wish you'd opted for a longer term If rates rise, you'll be locked at a lower rate until maturity Though consumers tend to think about CD maturity terms in nice round numbers, be sure to consider odd-term CDs, such as 15-month, 18-month, or 21-month certificates. It's not uncommon for promotional rate CDs to have unusual durations, so don't limit yourself to only the conventional terms. When choosing a CD, consider the following factors: Once you choose a CD, open the account, and deposit your money to start earning interest. "When choosing an 18-month CD, be sure to review the early withdrawal penalty. If you think you might need to withdraw your money before the CD matures, look for a CD with a lower penalty so that you end up with the most money possible when you withdraw. If you are positive that you won't touch the money in the CD until maturity, you may feel comfortable opening a CD with a more expensive penalty." -Hilarey Gould, Editorial Director for Financial Products and Services at Investopedia Anytime you're choosing a CD, a decision on the length of term is one of the most critical considerations. You'll want to select a term that you feel reasonably confident you can stick with, so that you won't incur a penalty for withdrawing early. Instead of an 18-month CD, you could choose a shorter certificate to limit the amount of time your funds are tied up, but you may have to settle for a slightly lower rate. The same is true if you go with a longer-term CD: rates could be lower than what you can earn on 18 months. It all depends on the current rate environment, so it's important that you shop around. For example, if rates are higher now than you think they will be in the future, locking in one of today's rates for as long as possible can be a smart move, so that you'll retain your APY for a longer period than if you chose a shorter-term CD. Instead of locking up your money in an 18-month CD, you can instead keep it in one of several types of liquid accounts. Keeping it in a checking account is one option, providing ultimate convenience and flexibility. But since checking accounts generally pay zero interest, it's a poor choice for your savings. Opening a top-paying high-yield savings account or a money market account is a better option, enabling you to earn a competitive return on your funds. The downside compared to a CD, however, is that savings and money market accounts pay a variable rate, which means that if interest rates go down in the future, so will the rate you're earning in these accounts. The same is true for cash reserve and money market funds at brokerage firms. Many of these pay much lower rates than you can earn with a high-yield savings account at a top-paying bank. But even when the APY on a brokerage cash account is competitive, it too is a variable rate that you can't lock in like you can with a CD. You could alternatively put your funds in U.S. savings bonds or Treasuries. The U.S. government offers two types of savings bonds: EE bonds and I bonds. EE bonds offer a fixed interest rate that you'll know at the time of making your deposit decision, while I bonds offer a rate that changes every six months based on current inflation levels (hence, the name I bonds). These investments are exceptionally safe, but they do not allow a withdrawal within the first 12 months for any reason. You can also lend money to the U.S. government by purchasing Treasury bonds. These are called T-bills for durations of four weeks to one year, and Treasury notes for durations of two to 10 years. Treasuries are considered one of the safest investments in the world, but their rates are not always as high as the best CDs or high-yield savings accounts. CD rates took off in 2023. In 2024, there's no sure answer as to what CD rates will do. CD rates are closely tied to the fed funds rate. In December 2023, theFederal Reserveheld interest rates steady, keeping it at a 22-year high for the third meeting in a row. The Fed's December 2023dot plotshows that no members of the rate-setting committee predict another rate increase in 2024. Instead, expectations are for three rate cuts in 2024, for a total drop of 0.75%. If those rate cuts happen, then CD rates will likely follow suit. Of course, nothing is certain. But in anticipation, CD rates softened in December 2023, and so there may be more rate drops in 2024. Certificates of deposit (CDs) are bank or credit union accounts in which you agree to hold your funds on deposit without withdrawals for a prearranged period. Thus, an 18-month CD requires you to keep the funds untouched for a year and a half. In exchange for giving up access to your funds, you'll generally be rewarded with a higher interest rate than the bank pays on savings and money market accounts that allow flexible withdrawals. When opening a CD, you deposit a lump sum of funds into the account at or above the minimum required deposit for that CD. The funds will then sit in the account for 18 months, earning interest along the way. When the CD hits its maturity date, you can take the funds plus their earned interest out of the account with no penalty. When you open a CD, you know the precise date that the funds will be ready for penalty-free withdrawal. But sometimes emergencies crop up, or your financial situation changes. If you find you need funds from your CD, the good news is that withdrawing your money is almost always possible. The catch is that doing so before maturity will trigger the institution's early-withdrawal penalty. Each bank and credit union has a policy for how that penalty is calculated, and the most common method is for the bank to keep a certain number of months' worth of interest. For instance, if you break an 18-month CD early, you will typically lose three to six months of the interest you earned. An 18-month CD is a suitable option for money you won't need in the coming year or longer. For those with a specific plan for the money, such as a down payment on a house or paying college tuition bills for a child, an 18-month CD might provide just the time frame you need to keep funds safe and reliably earning interest. Another appeal of 18-month CDs is to provide one rung of a shortened CD ladder. A CD ladder is a strategy for investing your funds in five CDs of differing terms rather than all at once. For a yearly ladder, you would own a one-year, two-year, three-year, four-year, and five-year CD. But you can also create a shorter ladder, with six-month increments between the CDs (e.g., six-month, 12-month, 18-month, etc.). Many of the highest deposit rates, whether for CDs, savings accounts, or money market accounts, are offered by online banks. Some of these are online-only banks, meaning they operate solely on the Internet, while others are brick-and-mortar banks with a separate online banking arm. Sometimes the online operations of physical banks even have an entirely different name and brand identity. Though you may feel nervous depositing your funds into an Internet bank instead of at a physical branch, online accounts and institutions are just as safe as their more traditional counterparts. That's because FDIC insurance doesn't discriminate—the $250,000 in deposit insurance it provides consumers in case of bank failure applies equally to online and brick-and-mortar banks. Generally speaking, the shorter the CD term, the lower the interest rate paid by the bank, and vice versa. That's because the bank recognizes you need to be rewarded more substantially the longer you're being asked to leave the money on deposit. However, not all institutions use a perfectly linear scale of interest rates that increase with the CD terms. A common strategy is offering one or more promotional CDs that pay a significantly higher interest rate to entice customers to the institution. To limit how long the bank is paying the boosted rate, promotional CDs are often shorter in duration, such as less than two years. Another factor is that banks and credit unions decide their CD yields based on where they think the federal funds rate will be in the future. So when it's expected that future interest rates will be lower than today's rates, it's common to see short- or mid-term CDs paying the best rates. ACD ladderenables you to access the higher rates typically offered on 5-year CDs, but with the twist that a portion of your money becomes available every year, rather than every five years. Here's how to do it. We researched and reviewed over 250 banks, credit unions, and financial institutions to find the best CD rates you see above on this list. While we write individual reviews for most, we do not always write reviews for those we would not recommend. Below are the banks, credit unions, and financial institutions we researched along with links to individual company reviews to help you learn more before making a decision: 1st Source Bank, 5star Bank, ableBanking, Abound Credit Union, Achieva Credit Union, Affinity Federal Credit Union, Affinity Plus Federal Credit Union, Air Force Federal Credit Union, Alabama Credit Union, Allegacy Federal Credit Union, Alliant Credit Union,Ally Bank, Amerant Bank, American 1 Credit Union, American Express, American Heritage Credit Union, Andrews Federal Credit Union, Apple Federal Credit Union, Banco do Brasil Americas, Banesco USA, Bank of Baroda, Bank5 Connect, Bank7, Texas Capital Bank, bankESB (Easthampton Savings Bank), BankUnitedDirect,Barclays, BBVA Bank, Bellco Credit Union, Blue Federal Credit Union,BMO, BMO Alto,BrioDirect, Cadets Federal Credit Union, California Coast Credit Union,Capital One, Capitol Federal Savings Bank, CD Bank, CFG Bank,Chase Bank, Chevron Federal Credit Union, CIBC (Agility Banking),CIT Bank,Citibank, Citizens Access, Citizens Trust Bank, Colorado Federal Savings Bank,Bread Savings, Communitywide Federal Credit Union, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Corporate America Federal Credit Union (CAFCU), Credit Union of Denver, Credit Union of the Rockies, Digital, Federal Credit Union,Discover Bank, DollarSavingsDirect, Dover Federal Credit Union, Dow Credit Union, Evergreen Bank Group, RocklandTrust Bank, Elements Financial, EmigrantDirect.com, Liberty Federal Credit Union,Fidelity Investments, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Financial Credit Union, First Financial Northwest Bank, First Internet Bank, First National Bank of America, First Technology Federal Credit Union, Fort Bragg Federal Credit Union, Garden Savings Federal Credit Union, Georgia Banking Company, Georgia's Own Credit Union, GreenState Credit Union, Greenwood Credit Union, Grow Financial Federal Credit Union, GTE Financial, Gulf Coast Bank & Trust Company, Hanscom Federal Credit Union, Heritage Bank, Hiway Federal Credit Union, Home Loan Investment Bank, Home Savings Bank, Hope Credit Union, HSBC Direct, Hughes Federal Credit Union, Hyperion Bank, Ideal Credit Union, iGObanking, Interior Federal Credit Union, Justice Federal Credit Union, Kinecta Federal Credit Union, KS State Bank, La Capitol Federal Credit Union, Lafayette Federal Credit Union, Lake Michigan Credit Union, Langley Federal Credit Union, Latino Community Credit Union, Limelight Bank, Live Oak Bank, Luther Burbank Savings, MYSB Direct, MAC Federal Credit Union, Main Street Bank, MainStreet Bank, MapleMark Bank, Marcus by Goldman Sachs, Market USA Federal Credit Union, Matadors Community Credit Union, MECU Credit Union, Merrick Bank, Michigan State University Federal Credit Union, Mills42 Federal Credit Union, Mountain America Credit Union, MTC Federal Credit Union, MutualOne Bank, My Banking Direct, My eBanc, My Savings Direct, NASA Federal Credit Union, Nationwide byAxos Bank,Navy Federal Credit Union, nbkc, NexBank, North Country Savings Bank, Northern Bank Direct, Northfield Bank, Northpointe Bank, Nuvision Federal Credit Union, Oklahoma Central Credit Union, One American Bank, OneUnited Bank, Pacific National Bank, Paramount Bank, PARDA Federal Credit Union, Partner Colorado Credit Union, Patelco Credit Union, Pen Air Federal Credit Union,PenFed Credit Union, People's Credit Union, First Service Credit Union, Pinnacle Federal Credit Union,Popular Direct, Premier America Credit Union, Presidential Bank, FSB, Prime Alliance Bank, PSECU (Pennsylvania State Employees Credit Union), Quontic Bank, Quorum Federal Credit Union, Rising Bank, Merrimack Valley Credit Union, Salal Credit Union,Sallie Mae Bank, Santa Clara County Federal Credit Union, Signature Federal Credit Union, Spectrum Credit Union, SRP Federal Credit Union, State Bank of India Chicago, State Bank of India New York, State Bank of Texas, State Department Federal Credit Union, Summit Credit Union, Sun East Federal Credit Union, Superior Choice Credit Union,Synchrony Bank, TAB Bank, Teachers Federal Credit Union, Technology Credit Union, The Federal Savings Bank,Third Federal Savings & Loan,EverBank, TotalDirectBank, Transportation Federal Credit Union, TruStone Financial Credit Union, UNIFY Financial Credit Union, Expedition Credit Union, United States Senate Federal Credit Union, United Texas Bank, University Federal Credit Union,US Bank, USAlliance Financial, USPS Federal Credit Union, Velocity Credit Union, VeraBank,Vio Bank, Virtual Bank, WebBank, Webster Bank,Wells Fargo, Western Vista Credit Union, Wings Financial Credit Union, XCEL Federal Credit Union, BankPurely, Umbrella Bank, giantbank.com, CapEd Credit Union, Zeal Credit Union, Finworth, Coastal1 Credit Union, Service Credit Union, National Cooperative Bank, Premier Members Credit Union,Bank of America, Flagstar Bank, 1st MidAmerica Credit Union, INOVA Federal Credit Union, Genisys Credit Union, Ivy Bank, Heartland Credit Union, Luana Savings Bank, Spectra Credit Union, Workers Credit Union, Credit Human, EFCU Financial, Poppy Bank, Credit One Bank, Vibrant Credit Union, CFBank, Department of Commerce Federal Credit Union, Seattle Bank, Crescent Bank, Pima Federal Credit Union, Cross River Bank,USAA, Great River Federal Credit Union, Brilliant Bank, Merchants Bank of Indiana,LendingClub, Chartway Credit Union, First Central Savings Bank, AgFed Credit Union, North American Savings Bank, Pelican State Credit Union, First Community Credit Union, Bask Bank, Skyla Credit Union, SkyOne Federal Credit Union, 3Rivers Federal Credit Union, Utah First Credit Union, Pasadena Federal Credit Union, Magnifi Financial, AloStar, Primis Bank, Farmers Insurance Federal Credit Union, Tampa Bay Federal Credit Union, Veridian Credit Union, Republic Bank, Salem Five Direct, All In Credit Union, Bethpage Federal Credit Union, Self-Help Federal Credit Union, Forbright Bank, Jovia Financial Credit Union, Sun Canyon Bank, Fortera Credit Union, Partners 1st Federal Credit Union, SouthEast Bank, American Bank, Newtek Bank, CBC Federal Credit Union,Vanguard, All America Bank, Amalgamated Bank, Citizens State Bank, AmBoy Direct, Republic Bank of Chicago, Oklahoma Community Credit Union, BluPeak Credit Union, Valley Direct, Bayer Heritage Federal Credit Union, First Harvest Credit Union, Orion Federal Credit Union, Wellby Financial, FedChoice Federal Credit Union, CoVantage Credit Union, Choice First Bank, Sandia Area Federal Credit Union, OMB Bank, Minnequa Works Credit Union, Securityplus Federal Credit Union, Bank of South Texas Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide, and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the CD's minimum initial deposit must not exceed $25,000. Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.In the News
Best 18-Month CD Rates
Why You Can Trust Our Expert Recommendations for the Best 18-Month CD Rates
Hyperion Bank – 5.65% APY
Expedition Credit Union – 5.51% APY
Synchrony Bank – 5.50% APY
Veridian Credit Union – 5.50% APY
NASA Federal Credit Union – 5.45% APY
XCEL Federal Credit Union – 5.45% APY
nbkc bank – 5.40% APY
Digital Federal Credit Union – 5.39% APY
Fortera Credit Union – 5.35% APY
Alliant Credit Union – 5.30% APY
Sallie Mae Bank – 5.30% APY
Quorum Federal Credit Union – 5.25% APY
MTC Federal Credit Union – 5.25% APY
Technology Credit Union – 5.25% APY
Barclays – 5.25% APY
Fast Fact
Pros and Cons of 18-Month CDs
Pros Explained
Cons Explained
Important
Factors to Consider When Choosing a CD
Alternatives to 18-Month CDs
18-Month CDs vs. Other CD Terms
CDs vs. Savings and Money Market Accounts
CDs vs. U.S. Savings Bonds & Treasuries
Where Are CD Rates Headed in 2024?
Frequently Asked Questions
What Is an 18-Month CD and How Does It Work?
What if I Need My Money Before the CD Matures?
When Is an 18-Month CD a Good Choice?
Are Online Bank CDs Safe?
Why Do Shorter CDs Sometimes Pay More Than Longer CDs?
How Do You Build a CD Ladder?
Financial Institutions We Reviewed
How We Find the Best 18-Month CD Rates
Your Guide to CDs
:max_bytes(150000):strip_icc()/Best18-MonthCDRates-6737e50e30144698a1d36393c30e9879.jpg "Best 18-Month CD Rates for January 2024 (1)")
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
Hyperion Bank. "Our History."
Expedition Credit Union. "About Us."
Synchrony Bank. "Our History."
Veridian Credit Union. "Veridian History."
NASA FCU. "About Us."
XCEL Federal Credit Union. "Our Story."
nbkc. "About Us."
Digital Federal Credit Union. "Our Story."
Fortera Credit Union. "About Us."
Alliant Credit Union. "A Financial Institution Created by Members, for Members."
Sallie Mae Bank. "Our Story."
Quorum Federal Credit Union. "Why Quorum."
MTC Federal Credit Union. "Our Story."
National Credit Union Administration. "Credit Union Details."
Barclays. "Who We Are."
Federal Reserve Board. "Federal Reserve Issues FOMC Statement, Dec. 13, 2023."
Federal Reserve Board. "Economic Projections From the Dec. 12-13 FOMC Meeting."
FDIC. "Deposit Insurance."
