Can you lose money in a CD?

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. 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. If you’re looking to protect your principal, though, your money is safe in a CD if you’re within FDIC insurance limits and guidelines.

How do 18-month CDs compare to other accounts?

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 When you get a 12-month CD, you’re likely to see a smaller yield than an 18-month CD. Because a 12-month CD doesn’t lock your money away for as long, the yields are often a little lower. However, with the shorter-term CD, you can access your money six months earlier. So, if you think you want penalty-free access to your money before an 18-month CD matures, it makes sense to take the lower yield in return for slightly better liquidity. 18-month vs. longer term CDs When considering an 18-month CD, compare it to longer-term accounts. There are CDs that will lock up your money for two years or more, but they also pay higher yields. If you’re willing to avoid touching your money for a longer period of time, you could take advantage of yields that provide you with much better returns than an 18-month CD. In fact, a five-year CD often has better yields, and your money remains safe. There are even 10-year CDs, sometimes designed to be held in an IRA, that can provide you with safe yields. Before making a decision about what type of CD you want, consider your financial needs and situation. Think about when you might need to access the money and weigh it against the yield you receive.

What are the alternatives to 18-month CDs?

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, like those with terms of 12-18 months. 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.

Best 18-month CD rates - October 2023

Written by

Karen Bennett

Edited by

Nell McPherson

Reviewed by

Robert R. Johnson

Best available rates across different account types for Monday, October 02, 2023

The Bankrate promise

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for . Learn more about who we are and our promise to guide you through life’s financial journey.

What To Know First

Deciding where to stick your savings can be tricky. Savings accounts and money market accounts are highly liquid but don’t usually offer the best rate of return.

Long-term CDs offer better rates, but your funds are locked in for years unless you’re willing to pay a big penalty to withdraw your money early.

An 18-month CD offers the best of both worlds: a higher yield than a standard savings account and a relatively brief term.

Bankrate’s picks for the top 18-month CD rates

Popular Direct —5.45% APY, $10,000 minimum deposit
Limelight Bank —5.35% APY, $1,000 minimum deposit
Capital One —5.25% APY, no minimum deposit
CIBC Bank USA —5.17% APY, $1,000 minimum deposit
Ally Bank —5.15% APY, no minimum deposit
Sallie Mae Bank —5.15% APY, $2,500 minimum deposit
First Internet Bank of Indiana —5.07% APY, $1,000 minimum deposit
Alliant Credit Union —5.05% APY, $1,000 minimum deposit
Barclays Bank —5.00% APY, no minimum deposit
Discover Bank —5.00% APY, $2,500 minimum deposit
LendingClub Bank —5.00% APY, $2,500 minimum deposit

Note: Annual percentage yields (APYs) shown are as of Sept. 22, 2023, and may vary by region for some products.

Today’s top, widely available 18-month CD pays 5.60 percent APY. An 18-month CD might be a suitable term for saving for a down payment on a house or a new car.

Bankrate’s picks for the top 18-month CD rates

Popular Direct

4.0

Overview

Popular Direct CDs are for established savers, since the CDs have a $10,000 minimum deposit requirement. The CDs come in eight fixed terms, ranging from three months to five years.

Popular Direct’s High-Rise savings account offers a competitive yield and requires a $5,000 minimum deposit. All Popular Direct deposit accounts are opened through Popular Bank.

Read Bankrate's Expert Popular Direct Review

5.45% APY

$10,000 minimum deposit

Limelight Bank

4.4

Overview

Limelight Bank is an online-only bank that’s a division of Capital Community Bank. It’s known for supporting eco-friendly causes such as solar initiatives.

The bank offers four CD terms ranging from six months to three years. A minimum deposit of $1,000 is required. Limelight doesn’t offer any types of bank accounts other than CDs.

Read Bankrate's Expert Limelight Bank Review

5.35% APY

$1,000 minimum deposit

Capital One

4.9

Overview

Capital One, based in McLean, Virginia, is an online bank that also has hundreds of branches.

Capital One offers nine competitive terms of regular CDs. Capital One’s CDs and 360 Performance Savings account don’t have minimum balance requirements.

Read Bankrate's Expert Capital One Review

5.25% APY

$0 minimum deposit

CIBC Bank USA

4.1

Overview

CIBC Bank USA, formerly The PrivateBank and Trust Co., was founded in 1991 and is based in Chicago. It was rebranded as CIBC Bank USA.

CIBC has 12 CD terms, ranging from 30 days to five years. The minimum deposit to open a CD is $1,000. Also offered are a savings account, a money market account and three checking accounts.

Read Bankrate's Expert CIBC Bank USA Review

5.17% APY

$1,000 minimum deposit

Ally Bank

4.6

Overview

Ally Bank is an online-only bank formerly known as GMAC Bank. Ally offers seven terms of CDs, a no-penalty CD and two terms of a Raise Your Rate CD.

The Sandy, Utah-based bank also offers a savings account, an interest-bearing checking account and a money market account. Ally has 2.5 million customers with deposit accounts.

Read Bankrate's Expert Ally Bank Review

5.15% APY

$0 minimum deposit

Sallie Mae Bank

4.7

Overview

Sallie Mae Bank offers 11 terms of CDs, a savings account, money market account, credit cards and private student loans. It offers a competitive yield on its deposit products.

Established in 2005, Sallie Mae Bank is headquartered in Salt Lake City. In 2014, Sallie Mae became a stand-alone consumer banking business.

Read Bankrate's Expert Sallie Mae Bank Review

5.15% APY

$2,500 minimum deposit

First Internet Bank of Indiana

4.6

Overview

First Internet Bank of Indiana is an FDIC-insured financial institution that operates online and has no branches. It opened in 1999 and offers products in all 50 states.

First Internet Bank offers eight terms of CDs, a money market savings account with a competitive yield, a savings account and two checking accounts.

Read Bankrate's Expert First Internet Bank of Indiana Review

5.07% APY

$1,000 minimum deposit

Alliant Credit Union

4.7

Overview

Alliant Credit Union was founded in 1935 as the United Airlines Employees’ Credit Union. It is one of the largest credit unions in Illinois and has 600,000 members nationwide.

Alliant offers six terms of CDs with competitive APYs and a reasonable minimum deposit requirement. It also offers IRA CDs, a high-yield savings account and a high-yield checking account.

Read Bankrate's Expert Alliant Credit Union Review

5.05% APY

$1,000 minimum deposit

Barclays Bank

4.8

Overview

Barclays was founded in London more than 300 years ago. Barclays has no minimum balance requirements to open an online CD. It offers nine CD terms ranging from three months to five years. A savings account is also available.

Read Bankrate's Expert Barclays Bank Review

5.00% APY

$0 minimum deposit

Discover Bank

4.3

Overview

Discover Bank may be known for its credit cards, but it also offers a wide selection of banking products. It has been offering deposit products online since 2007.

Discover Bank offers CDs ranging in terms from three months to 10 years. It also offers checking, money market and savings accounts.

Read Bankrate's Expert Discover Bank Review

5.00% APY

$2,500 minimum deposit

LendingClub Bank

4.2

Overview

LendingClub is an online bank that offers six terms of CDs ranging from six months to five years. A $2,500 minimum deposit is required.

In addition to CDs, LendingClub offers a high-yield savings account and a rewards checking account.

Read Bankrate's Expert LendingClub Bank Review

5.00% APY

$2,500 minimum deposit

What is an 18-month CD?

With a CD, you agree to leave your money in the account for a set period of time — in this case, 18 months. In return for your commitment to leave the money alone, you receive a higher yield than you would earn in a savings account.

With an 18-month CD, your annual percentage yield (APY) is locked in, so you don’t have to worry about your bank potentially lowering the rate on your account.

An 18-month CD can be ideal for setting aside money for short-term goals, such as going on vacation or saving for a car down payment. You can also use an 18-month CD to build a CD ladder.

Here are the top widely available 18-month CD rates. Compare these offers, then calculate how much interest you would earn when your CD matures.

How to find the best 18-month CD rates

An 18-month CD is a low-risk investment. But before you purchase one, it’s important to know what you’re getting yourself into.

Ask if you’ll have to maintain a certain balance to earn the APY. While you’re at it, find out how often you’ll receive the interest you’re earning from your bank or credit union. That way, it’ll be easier to hit your savings target or another financial goal.

Don’t assume that the best 18-month CD rates are found at your current bank. Instead, compare CDs online.

Finding the best 18-month CD may take some time. Besides the interest rate, you’ll need to compare early withdrawal penalties and minimum deposit requirements. Also, find out whether you’ll be responsible for any fees.

18-month CD FAQs

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. 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. If you’re looking to protect your principal, though, your money is safe in a CD if you’re within FDIC 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

When you get a 12-month CD, you’re likely to see a smaller yield than an 18-month CD. Because a 12-month CD doesn’t lock your money away for as long, the yields are often a little lower.

However, with the shorter-term CD, you can access your money six months earlier. So, if you think you want penalty-free access to your money before an 18-month CD matures, it makes sense to take the lower yield in return for slightly better liquidity.

18-month vs. longer term CDs

When considering an 18-month CD, compare it to longer-term accounts. There are CDs that will lock up your money for two years or more, but they also pay higher yields. If you’re willing to avoid touching your money for a longer period of time, you could take advantage of yields that provide you with much better returns than an 18-month CD. In fact, a five-year CD often has better yields, and your money remains safe. There are even 10-year CDs, sometimes designed to be held in an IRA, that can provide you with safe yields. Before making a decision about what type of CD you want, consider your financial needs and situation. 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, like those with terms of 12-18 months.

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.

Bankrate’s methodology for choosing the best CD rates

At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers and our content is thoroughly fact-checked to ensure accuracy.

Bankrate regularly surveys around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.

To find the best CDs, our editorial team analyzes various factors, such as: annual percentage yield (APY), the minimum needed to earn that APY (or to open the CD) and whether or not it is broadly available. All of the accounts on this page are insured by the Federal Deposit Insurance Corp. or the National Credit Union Share Insurance Fund.

When selecting the best CD for you, consider the purpose of the money and when you’ll need access to these funds to help you avoid early withdrawal penalties.

Banks we monitor

These financial institutions are featured in our CD rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank 5 Connect, Bank of America, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Financial (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens Access, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, Huntington National Bank, Investors Bank, KeyBank, LegacyTexas Bank, Limelight Bank, Live Oak Bank, M&T Bank, Morgan Stanley Private Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, Purepoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Synchrony Bank, TD Bank, TIAA Bank, Truist Bank, UFB Direct, U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.

Best 18-month CD rates - October 2023

What To Know First

Bankrate’s picks for the top 18-month CD rates

On This Page

Bankrate’s picks for the top 18-month CD rates

Popular Direct

Overview

Limelight Bank

Overview

Capital One

Overview

CIBC Bank USA

Overview

Ally Bank

Overview

Sallie Mae Bank

Overview

First Internet Bank of Indiana

Overview

Alliant Credit Union

Overview

Barclays Bank

Overview

Discover Bank

Overview

LendingClub Bank

Overview

What is an 18-month CD?

How to find the best 18-month CD rates

18-month CD FAQs

Can you lose money in a CD?

How do 18-month CDs compare to other accounts?

18-month vs. shorter term CDs

18-month vs. longer term CDs

What are the alternatives to 18-month CDs?

Consider a high yield savings account

Consider money market accounts with high yields

Bankrate’s methodology for choosing the best CD rates

Banks we monitor