Best 18-month CD rates for December 2025

For the most part, as long as your money is deposited at an insured institution, you won’t lose money. Double-check that your CD is in an FDIC-insured bank or in a National Credit Union Administration (NCUA) credit union. NCUA credit unions are insured by the National Credit Union Share Insurance Fund (NCUSIF). These entities insure bank deposits against failure, protecting your money for typically up to $250,000.

Because CDs are cash deposit accounts, your principal, or initial deposit amount, is safe, as long as it's within insurance limits. You don’t have to worry about losing money to market crashes, either. However, your account could lose value due to inflation. Depending on the situation, the yield you earn in a CD might not keep up with inflation, resulting in a loss of spending power.

Also, if you withdraw money out of a CD before it matures, you will likely have to pay a fee, such as a few months’ worth of interest — and it’s possible for an early withdrawal penalty to also eat into a CD’s principal. If you’re looking to protect your principal from bank failures, though, your money is safe in a CD if you’re within federal insurance limits and guidelines.

An 18-month CD is a relatively short-term investment. While your money is locked up for a year and a half, you’ll have access to it — plus interest — when the term expires. When comparing your savings options, it’s important to take into account liquidity as well as yield.

18-month vs. shorter-term CDs

These days, competitive short-term CDs commonly earn higher APYs than their longer-term counterparts. This may make shorter terms — of six or 12 months, for instance — more attractive to some savers who prefer access to their funds sooner than in 18 months. However, those who prefer to lock their funds in a lower-yielding CD for 18 months (or longer) may ultimately earn a greater amount of interest, thanks to the effects of compound interest over time.

18-month vs. longer-term CDs

When considering an 18-month CD, compare it to longer-term accounts. While longer-term CDs have traditionally earned higher APYs than shorter ones, you’ll currently find that yields on shorter terms often outearn those of longer terms. Before making a decision about what type of CD you want, consider your financial needs. Think about when you might need to access the money and weigh it against the yield you receive.

When you choose money market or savings accounts, you have to be aware of the fact that your rate could drop at any time. With a CD, you lock in a rate, so you don’t have to worry about falling rates. The flip side, though, is that rates could go up, and if your money is in a CD, you can’t take advantage of the higher rate until after the term expires.

Consider a high-yield savings account: You can find high-yield savings accounts that pay rates similar to top-yielding shorter-term CDs. However, with a savings account, you have more immediate access to the money, and you typically won’t be penalized for making withdrawals. If you have short-term goals you’re saving for, or if you want a more accessible emergency fund, a savings account can be a smart choice.

Consider money market accounts with high yields: Another possibility, especially if you want check-writing privileges, is a money market account. There are money market accounts with much higher yields than traditional savings accounts, as well as quick, easy access to your money when you need it. With a top-yielding money market account, you might find a similar yield compared with top-yielding 18-month CDs. However, if you’re looking for penalty-free liquidity and accessibility, a money market account can be a good choice.