Best 18-Month CD Rates of July 2025
Written by Theresa Stevens
The best 18-month certificate of deposit (CD) rate is currently a 4.40% annual percentage yield (APY) from EagleBank.
Use the table below to explore 18-month CD rates at various financial institutions and learn about the factors to consider before deciding whether a CD is the right option for you.
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What is an 18-month CD?
When you save money in a CD, you agree to set aside these funds for a fixed period of time, known as the CD term. With an 18-month CD, the term is 18 months.
The APY — the rate you earn on your savings — is typically guaranteed for the entire CD term, so you don’t have to worry about the rate changing during the 18 months. This makes it easier to predict how much your savings will earn.
Before stashing your savings in an 18-month CD, it’s important to understand the potential early withdrawal penalty. If you need to tap into your savings before the term ends, you’ll likely have to pay a penalty to do so. The penalty depends on the bank and the term length, but it is typically a certain number of months’ worth of interest.
How to find the best 18-month CD rates
One of the best ways to find the highest 18-month CD rates is to shop around. CD rates can vary significantly between lenders, as can minimum opening deposits and early withdrawal penalties. It’s a good idea to compare options at various types of financial institutions, such as traditional banks and credit unions, as well as online banks.
You may have better luck locking in a high CD rate at an online bank, which can often feature more competitive rates than traditional brick-and-mortar banks. By operating primarily online, these banks have fewer overhead costs and can pass along some of the savings to customers in the form of higher interest rates.
Learn more: Online Banking vs. Traditional Banking: Which Is Right For You?
What affects CD rates?
Various factors influence CD rates, including changes to the federal funds rate, which is set by the Federal Reserve and is the rate at which commercial banks lend to each other overnight. Banks often use the federal funds rate as a starting point when setting the prime rate and other rates to charge borrowers.
The federal funds rate can also influence CD rates. If the Fed raises rates, you may see higher CD rates, and if it lower rates, the opposite may occur.
Treasury yield changes can affect CD rates as well. The Treasury yield is the rate the U.S. government pays on its debt, such as Treasury bills. Banks often use Treasury yields as a reference point when setting CD rates.
Additional factors that may affect rates are competition with other financial institutions and term length.
Pros and cons of 18-month CDs
Pros
- Your rate will remain the same for 18 months: Your CD rate is guaranteed for the entire term. You don’t have to worry about it going down and reducing your earnings.
- Your money will be safe: Up to $250,000 of your CD savings are protected in the unlikely event that your bank or credit union fails. Just be sure to open an account at an institution backed by the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA) to protect your deposits.
- You’ll know what your money will earn: Because CD rates are fixed for the length of the term, you’ll be able to calculate and predict your earnings. This makes it easier to plan your financial goals.
Cons
- You might pay a penalty to withdraw funds early: If you access your money before the 18 months are up, you’ll likely have to pay an early withdrawal penalty, which can eat into your earnings.
- You’ll be stuck with a lower rate if interest rates rise: If interest rates go up while you’re locked into a CD, you’ll miss out on securing a higher rate.
- You can generally only make one deposit: Unlike savings accounts that allow you to add money over time, CDs typically allow only one initial deposit.
How to choose an 18-month CD
Here are some factors to consider while comparing CD providers:
- APY: This determines how much interest you’ll earn on your CD balance. Unlike most savings accounts, which have a variable APY, CDs typically offer a fixed APY for the entire term, although variable rate CDs do exist.
- Minimum initial deposit: Some CDs require a minimum opening deposit, which can be $1,000 or more. If you have a smaller amount to save, look for CDs with low or no minimums or a savings account without these restrictions.
- Account fees: While it’s less common for CDs to have monthly maintenance fees or other account charges other than early withdrawal penalties, it’s still a good idea to check the fine print.
- FDIC or NCUA insurance: It’s wise to open an account with a bank or credit union that has FDIC or NCUA insurance. Though bank failure is unlikely, it’s worth it to have the peace of mind that your deposits are protected up to the federal limit. You can verify that your bank is insured using the FDIC BankFind Suite tool or the NCUA Credit Union Locator.
Alternatives to 18-month CDs
- Shorter-term CDs: If you don’t want to lock away your money for 18 months, consider a shorter-term CD, such as a 1-year CD. Bonus: The rates on 1-year CDs are currently slightly higher than 18-month CD rates.
- Longer-term CDs: Alternatively, if you want to earn a guaranteed rate for a longer period of time, consider a 2-year CD, 3-year CD or 5-year CD.
- No-penalty CDs: A no-penalty CD is what it sounds like — a CD without an early withdrawal penalty. However, you’ll typically earn a lower interest rate than you would with a traditional CD.
- High-yield savings accounts: If you want to earn a competitive APY while being able to access your savings as needed, a high-yield savings account may make sense. Savings rates are comparable to CDs but typically won’t be fixed.
Frequently asked questions
What is the highest rate for an 18-month CD?
A rate of 4.00% APY or higher is currently considered a high rate for an 18-month CD. At the time of writing, the highest rate for an 18-month CD is 4.40% APY.
Should you get an 18-month CD?
Whether you should get an 18-month CD depends on your financial needs and goals. If you don’t need the money for 18 months, opening a CD can be a safe and predictable way to grow savings with a guaranteed rate. One thing CDs aren’t ideal for is emergency savings because you’ll want easy access to the funds. If you want to build an emergency fund, a high-yield savings account may be a better option.
What happens when an 18-month CD matures?
When your 18-month CD reaches its maturity date, you have a few different options: 1) withdraw the money and use it to achieve a financial goal, such as buying a car, 2) roll the funds into a new CD or 3) withdraw the funds and put the money into a different account, such as a savings account. Keep in mind, your CD may automatically roll over into a new CD at the end of your term unless you tell your bank otherwise.
How much can I earn with an 18-month CD?
The amount you can earn with an 18-month CD depends on how much you deposit, the term and the APY. Here’s an example of how much you could earn, assuming a deposit of $5,000 and a 4.40% APY.
- CD term: 18 months
- Deposit: $5,000
- APY: 4.40%
At the end of the 18-month term, you’d have earned about $334, so you’d have $5,334 to withdraw, roll over or use toward other financial goals.
What is a CD ladder?
A CD ladder involves opening multiple CDs with varying maturity dates so you can access cash at regular intervals. For example, you’d open a 1-year CD, an 18-month CD and a 3-year CD instead of one 3-year CD. This strategy also allows you to secure a CD with a higher interest rate if rates have gone up.