Best 18 Month CD Rates for November 2022
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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.
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.
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.
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.
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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 . 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 . Here are the top widely available 18-month CD rates. Compare these offers, then when your CD matures.Bankrate s picks for the top 18-month CD rates
4 15% APY $500 minimum deposit 4 10% APY $1 000 minimum deposit 4 05% APY $2 500 minimum deposit 4 00% APY $500 minimum deposit 4 00% APY $1 000 minimum deposit* : 4.00% APY, $1,000 minimum deposit 3 95% APY $10 000 minimum deposit : 3.92% APY; $1,000 minimum deposit 3 85% APY $2 500 minimum deposit 3 81% APY $0 minimum deposit : 3.75% APY; $500 minimum deposit 3 75% APY $1 000 minimum deposit 3 75% APY $2 500 minimum deposit Note: Annual percentage yields (APYs) shown are as of Oct. 28, 2022, and may vary by region for some products. *Rate is not available in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin. Today’s top, widely available 18-month CD pays 4.05 percent APY. An 18-month CD might be a suitable term for saving for a down payment on a house or a new car.A closer look at the top 18-month CD rates
4 15% APY $500 minimum deposit
Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA. The online bank has a variety of CDs. This includes nine standard CDs in terms ranging from six months to six years, three no-penalty CDs and a Rate Bump CD. Marcus by Goldman Sachs offers competitive yields on its CDs and high-yield savings account.4 10% APY $1 000 minimum deposit
Bask Bank began offering CDs in 2022, and its four CD terms range from six months to two years. The bank also offers a savings account with a competitive APY and another savings account that earns American Airlines miles. Bask Bank has been around since 2020 and is a division of .4 05% APY $2 500 minimum deposit
LendingClub Bank is a digital financial company that offers personal and business banking products. It acquired Radius Bank in early 2021. LendingClub Bank offers five terms of CDs, a high-yield savings account with a competitive yield and a checking account that earns cash back.4 00% APY $500 minimum deposit
America First Credit Union was founded in 1939. It has 131 locations and is the ninth-largest credit union, based on assets, in the U.S. It also is the sixth-largest based on membership. American First Credit Union has more than 1 million members. America First Credit Union offers certificates in terms ranging from three months to five years. It also has a Bump-Rate CD in a variety of terms and a Flexible certificate that allows one penalty-free withdrawal during the first five calendar days of each quarter.4 00% APY $1 000 minimum deposit
BMO Harris offers online accounts and operates more than 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin. BMO Harris offers 10 CD terms ranging from three months to five years, each requiring a minimum $1,000 deposit to open. It also offers several online CDs with competitive yields, although these rates are unavailable to residents of states where it maintains branches.4 00% APY $500 minimum deposit
CIT Bank, an online bank, became a subsidiary of First Citizens Bank following the completion of a merger in January 2022. CIT Bank offers eight terms of regular CDs and four terms of jumbo CDs, as well as an 11-month no-penalty CD. CIT Bank also offers savings and money market accounts.3 95% APY $10 000 minimum deposit
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.3 92% APY $1 000 minimum deposit to open
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.3 85% APY $2 500 minimum deposit
Sallie Mae Bank offers 11 terms of CDs, a savings account, money market account, credit cards and private student loans. Sallie Mae Bank offers a competitive yield on its deposit products. Sallie Mae Bank was established in 2005 and has its headquarters in Salt Lake City. In 2014, Sallie Mae became a stand-alone consumer banking business.3 81% APY $0 minimum deposit
Synchrony Bank is an online-only bank that’s a division of Synchrony Financial, a publicly traded provider of consumer financial services, including credit cards. Synchrony Bank offers competitive yields on CDs across 14 terms. It also has a bump-up CD and a no-penalty CD. The bank also offers a savings account and a money market account.– 3 75% APY $500 minimum opening deposit
Citibank is one of the largest banks in the U.S. It offers fixed rate CDs, a step up CD and a no penalty CD. Its comprehensive package of banking products also includes its High-Yield Savings account, its Basic Banking Package checking accounts, and its credit cards. In 2022, Citibank eliminated fees for overdrafts, overdraft protection, nonsufficient funds and returned items.3 75% APY $1 000 minimum deposit
Pentagon Federal Credit Union was established in 1935. It has more than 2 million members and is based in McLean, Virginia. PenFed has nine terms of CDs, ranging from six months to seven years.3 75% APY $2 500 minimum deposit
Founded in 2007, Live Oak Bank is an online-only bank based in Wilmington, North Carolina. It offers seven CD terms and a high-yield online savings account. Live Oak Bank has a mobile app that allows customers to manage their accounts from anywhere. It offers a limited number of products, but yields are competitive.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, . 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
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 , 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 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 . 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.