August 2023 Best 18-Month CD Rates (Up to 5.70%)

August 2023 Best 18-Month CD Rates (Up to 5.70%)

The Best 18-Month CD Rates: Secure Your Savings and Boost Your Earnings

At Insider, we strive to provide you with unbiased and expert advice to help you make informed decisions about your finances. In this article, we’ll explore the world of 18-month certificate of deposits (CDs) and highlight the best rates currently available. Whether you’re looking to bolster your savings or earn higher interest rates on your money, these 18-month CDs offer a compelling opportunity.

The Appeal of Online Banks and Credit Unions

For savers seeking higher interest rates, online banks and credit unions are presenting a tantalizing alternative to traditional brick-and-mortar institutions. These digital-first financial institutions often offer significantly higher interest rates, providing an opportunity to grow your savings more quickly. In fact, some of the most competitive 18-month CDs currently offer more than 5% APY.

Our Top Picks: The Best 18-Month CDs

Here are our expert-selected top picks for the best 18-month CDs:

These top picks not only offer attractive interest rates but also come with a range of other benefits. Many of them have low minimum opening deposits, user-friendly mobile apps, and modest early withdrawal penalties. Furthermore, all of these banks and credit unions are protected by FDIC or NCUA insurance, ensuring the security of your funds.

Expert Insights: Choosing the Right CD for You

To offer you even more guidance, we consulted four financial experts on the intricacies of choosing the best 18-month CD. Here are their insights:

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The Right Fit for You

Tania Brown, a Certified Financial Planner at SaverLife, advises considering your banking preferences and needs. Are you someone who values the in-person banking experience, or do you prefer the convenience of online banking? Do you write checks frequently, or does digital banking suffice? Assessing your personal preferences will help you determine the right fit.

Sophia Acevedo, a certified educator in personal finance and banking reporter at Personal Finance Insider, suggests prioritizing what matters most to you in a bank account. Whether it’s avoiding monthly service fees, earning interest, or fulfilling specific requirements, defining your priorities will guide your decision-making process.

Choosing the CD Term Length

Roger Ma, a certified financial planner and author of “Work Your Money, Not Your Life,” advises aligning the CD term length with your financial goals and timeline. Consider when you need the funds and compare that with prevailing CD rates. By matching your financial perspective with your personal timing, you’ll be better equipped to select the appropriate term length.

Mykail James, an MBA holder and certified financial education instructor at BoujieBudgets.com, underscores the importance of having a clear plan for your funds. Whether it’s saving for a home, a car, or another future expense, take into account your specific goals and time horizon when deciding on a CD term length.

CDs vs. High-Yield Savings Accounts and Money Market Accounts

When deciding between CDs, high-yield savings accounts, and money market accounts, Tania Brown suggests considering the amount of money you want to place in the account and the level of transactions you expect to make. For frequent transactions, high-yield savings accounts or money market accounts may be more suitable options. On the other hand, if you don’t require immediate access to your funds, CDs can provide higher interest rates for a specific term.

Sophia Acevedo adds that high-yield savings accounts and money market accounts are ideal for emergency funds or short-term savings goals. High-yield savings accounts offer higher interest rates than traditional savings accounts, while money market accounts provide additional features such as paper checks, ATM cards, or debit cards. CDs, with their fixed interest rates, are better suited for funds that won’t be needed in the near future.

How We Chose the Best 18-Month CD Rates

At Personal Finance Insider, we’ve done the legwork to identify the most attractive 18-month CD rates for you. We began by researching over two dozen banks and credit unions offering 18-month CDs. We then examined each institution comprehensively, considering factors such as minimum opening deposits, early withdrawal penalties, and interest rates. Furthermore, we took into account the overall banking experience, including customer support availability, mobile app ratings, and ethical considerations. This thorough process enables us to present you with the best options available.

Frequently Asked Questions about 18-Month CDs

To address common queries, we’ve compiled a list of frequently asked questions about 18-month CDs.

In-Depth Reviews of Our Top 18-Month CDs

We’ll now provide you with detailed reviews of our top picks for 18-month CDs, highlighting their unique features, interest rates, and any potential drawbacks.

USAlliance Financial 18 Month Certificate

With an impressive interest rate of 5.70% APY, USAlliance Financial stands out as the top choice for an 18-month CD. Additionally, it offers low minimum opening deposit requirements. However, be aware that USAlliance Financial does have a steep early withdrawal penalty. Membership eligibility is required to open an account with this credit union.

Gulf Coast Federal Credit Union 18 Month Share Certificate

For individuals residing in Texas, Gulf Coast Federal Credit Union presents an attractive option. It offers a competitive interest rate of 5.30% APY and requires a reasonable minimum opening deposit. However, you must meet the credit union’s eligibility requirements to open a CD with them.

Crescent Bank 18 Month CD

Crescent Bank provides high interest rates across various online CDs, including their 18-month term. It also has standard early withdrawal penalties and offers multiple options for depositing funds. However, be aware that Crescent Bank CDs automatically renew at the end of each term.

CIBC Agility 18 Month CD

CIBC Agility provides competitive CD rates for 18-month and 2-year terms. Depositing $25,000 or more can earn you an even higher interest rate. Moreover, CIBC Agility CDs have low early withdrawal penalties. Keep in mind that CIBC Bank USA’s physical banking centers are limited to certain states.

Alliant 18 Month Certificate

Alliant Credit Union is an excellent online option for customers across the U.S. It offers competitive CD rates for various terms, including 18 months. The interest rate for their 18-month CD stands at 5.15% APY. Credit union membership is required to open an account, with Foster Care to Success being the easiest route to membership.

Sallie Mae 18 Month CD

Sallie Mae not only offers a good rate on its 18-month term but also provides high rates on its savings and money market accounts. The interest rate for their 18-month CD is 5.15% APY. However, note the relatively high minimum deposit requirement of $2,500.

Popular Direct 18 Month CD

Popular Direct is an appealing option, offering a competitive interest rate and daily compound interest. Their 18-month CD comes with an interest rate of 5.15% APY. It does, however, require a minimum deposit of $10,000, and the early withdrawal penalty is relatively high.

First Internet Bank of Indiana 18 Month CD

First Internet Bank of Indiana is an online bank with competitive interest rates on several CDs. Their 18-month CD currently offers an interest rate of 5.07% APY. Keep in mind that interest is compounded monthly, not daily, and the difference in earnings might be significant depending on your deposit amount.

Ally 18 Month High Yield CD

Ally is a well-known online bank with a variety of account options. Its 18-month CD offers a high interest rate of 5.00% APY and requires no minimum opening deposit. It’s worth noting that there are other online banks with slightly higher CD rates available.

Synchrony 18 Month CD

Synchrony offers competitive interest rates on its 18-month CD, with a minimum opening deposit of $0. Additionally, Synchrony provides a wider range of CD terms compared to other banks. However, be aware that Synchrony does not offer checking accounts.

Other Considerations and Options

We also considered several other 18-month CDs in our research, including those from Discover, LendingClub, CFG Bank, and many more. While these options may be worth exploring, our top picks stood out due to their higher interest rates, lower minimum opening deposits, and overall benefits.

Bank Trustworthiness and BBB Ratings

To evaluate the trustworthiness of these banks, we examined their Better Business Bureau (BBB) ratings. Gulf Coast received an NR (“No Rating”) grade, while Ally boasts an A rating, though it has a few unresolved customer complaints. USAlliance Financial received a D- rating, primarily due to unanswered customer complaints. CIBC Bank USA received an A+ rating, but its parent company CIBC has an F rating concerning financial information misrepresentation issues. LendingClub also holds an A grade but faced government action regarding hidden fees. It is crucial to consider these ratings alongside customer reviews when assessing a bank’s reputation.

Find the Perfect 18-Month CD for You

By considering our expert insights and exploring our top picks, you can confidently navigate the world of 18-month CDs. Remember to align your financial goals and preferences with the features and benefits offered by each institution. With the right CD, you can secure your savings and make the most of your hard-earned money.

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