Best 18-Month CD Rates of August 2024
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Eighteen-month CDs offer competitive rates without tying up funds long-term. Thatโs important because most impose early withdrawal penalties. However, rates often differ significantly and it makes sense to do your research and choose the institution that offers the best CD rates.
If you think thereโs a risk you might need your money sooner, note the differences between institutions on the penalties that might be imposed. Or look into no-penalty CDs, though you may not be able to find one with an 18-month term.
Institution | APY* | Min. deposit | Early withdrawal penalty |
---|---|---|---|
Alliant Credit Union | 5.15% | $1,000 | Up to 120 days interest |
Live Oak | 3.00% | $2,500 | 90 days interest |
Popular Direct | 5.06% | $10,000 | Up to 730 days interest |
Marcus | 4.80% | $500 | 180 days interest |
CIT Bank | 3.00% | $1,000 | Six months interest |
Discover | 4.25% | $2,500 | Six months interest |
Barclays | 3.25% | $0 | 90 days interest |
Penfed Credit Union | 4.50% | $1,000 | 365 days interest or 30% of the gross interest amount at maturity |
Synchrony | 4.50% | $0 | 180 days interest |
Ally | 4.45% | $0 | 60 days interest |
If you're looking for high-yield interest rates, Alliant Credit Union is worth checking out. The online credit union offers competitive rates on all of its CDs, including its 18-month CD. You can open a CD through Aliiant for as little as $1,000, but you need to be a member of the credit union to do so. To qualify for membership, you must either work for an eligible employer, live in certain parts of Illinois, join Foster Care to Success, or be closely related to a current member.
3.00%
Live Oak Bank is known for its small business services, but its CDs are among the best. The bankโs 18-month CD pays an APY of
3.00%
% and can be opened with a minimum deposit of $2,500. There is also a maximum amount that can be deposited, which is $250,000 per account.Popular Direct offers one of the top rates for 18-month CDs. The online bank is known for its competitive CD rates as well as its high-yield savings account. You'll need to deposit at least $10,000 to open a CD with Popular Direct, which is a subsidiary of Popular Bank.
Marcus by Goldman Sachs has nine CD terms ranging from six months to six years. The 18-month CD offers an APY of 4.80%% and only requires a $500 minimum deposit. Marcus offers a 10-day rate guarantee. This means if the rate on your selected term goes up within the first 10 days of account opening, you'll get the new rate.
CIT Bank offers high-yield interest rates on some of its CD term offerings. You need a $1,000 minimum deposit to open a CD through CIT Bank, which is also home to several savings and money market accounts and an online checking account.
4.25%
You're probably familiar with Discover credit cards, but the online bank is a great place to look for high-yield CDs. The Discover 18-Month CD Account, which requires a $2,500 minimum deposit to open an online CD, offers 12 CD terms ranging from three months to ten years and some of the highest rates on the market.
Barclays is an industry leader when it comes to high-yield CDs. The bank offers online CDs with terms ranging from 12 months to five years. There's no minimum deposit required to open a Barclays CD, and interest compounds daily and is credited monthly.
PenFedโs 18-month CD offers a competitive annual percentage yield (APY) of 4.50%% and only requires a $1,000 minimum deposit. Like other credit unions, PenFed only makes its products available to members. However, accessibility shouldnโt be a problem for most peopleโmembership is open to all citizens and permanent residents of the U.S. If you qualify, PenFed is among the best in the nation for full-service banking and financial services.
Synchrony Bank is a top spot for CDs. The online bank offers CD terms ranging from three months to five years. Synchrony offers all of its CDs at competitive rates, especially compared to traditional banks. There's no minimum deposit requirement, either.
Ally Bank is a popular online bank known for its full-service banking and savings and checking accounts. It offers seven CD terms ranging from three months to five years. Like a few banks on our list, Ally doesn't require a minimum deposit to open a CD. In addition to high-yield CDs, Ally offers raise-your-rate and no-penalty CDs.
To determine the best 18-month CDs, we employed a comprehensive approach. Firstly, we completed a thorough comparison of interest rates across various banks and credit unions, prioritizing those offering the highest APY for our chosen term.
In addition to rates, we considered factors such as:
Ease of use and processes for opening an account were also considered, giving preference to CD accounts that could be opened online.
When determining the ideal CD for your needs, consider the following factors:
Most banks and credit unions don't charge a monthly maintenance fee for their CD accounts. However, if you withdraw money before your term ends, you'll have to pay a penalty. This is known as an early withdrawal penalty. Banks offer higher rates on CDs to compensate savers for not having free access to their deposited funds.
The penalty for taking your money out early is often based on how long the CD term is. In most cases, longer terms mean higher penalties.
CDs offer guaranteed returns, but they aren't the only option to consider when building savings.
High-yield savings accounts (HYSAs) are mainly offered by online banks and pay interest rates that are similar to CDs. One of the main advantages of HYSAs is their low or nonexistent monthly fees. In some cases, these accounts earn higher rates than CDs.
Money market accounts often require larger deposits but also come with competitive rates and can include helpful checking features such as check-writing privileges or a debit card and ATM access.
While riskier than CDs, investing in dividend-paying stocks can lead to higher returns. These companies have a track record of distributing a portion of their profits to shareholders and regularly increasing their dividends. The income they pay, on top of potential capital appreciation, potentially means earning more money. Remember that any stock market investment carries risk. Your principal is not guaranteed, nor are your returns. Most investors should only invest in dividend stocks with a long-term mindset.
Eighteen-month CDs sit in that middle ground between short- and long-term CDs. Opening an 18-month CD gives you an opportunity to access a competitive rate for more than one year without tying up your funds too long. Consider your financial needs and compare banks and credit unions to find the best CD for your needs.
*APY is subject to change. APYs are updated as of Mar. 1st, 2024.
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