As interest rates are almost touching recent years highs, 2025 becomes the perfect time for savers to capture those high returns by investing in an 18-month certificate of deposit (CD). These are low-risk investments that offer fixed-term guaranteed growth, which usually come out with better yields than most savings accounts or money market funds. Nevertheless, the complexity of the offer may mislead you, so keep a sharp eye, and you will still find the best terms.
Top 18-Month CD Rates in 2025—What You Need to Know
At the present time, leading 18-month CD rates are available from credit unions and online banks across the United States with a range from 4.10% to 4.40% Annual Percentage Yields (APY) in May 2025. These rates are much superior to the traditional saving accounts, which on average offer a smaller return. While the changes of the Federal Reserve’s policies are monitored by the financial sector, many analysts still believe that the rates are going to remain high in the short term, and this is an excellent time for investors to take advantage of the opportunity to deposit for a year and a half.
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Why Choose an 18-Month CD in 2025?
The 18-month CD is the middle ground between a short-term commitment and the capacity to earn significant interest. Although both the short and long-term CDs have their advantages, the 18-month period is also a good alternative to consider. Here are some advantages to consider:
- First of all, lower liquidity should be mentioned…
- Certain Returns: In contrast to stock market investments, with CDs, the gains are stable and are thus not only a guaranteed but also a great source of peace.
- FDIC or NCUA Insurance: Insurances from a CD of a bank insured by FDIC and/or a credit union insured by NCUA are kept safe by the government of the USA, meaning that even if the bank or credit union goes bankrupt, the insured deposits amounting to up to $250,000 of the clients holding them will be returned to the clients, and remaining in the possession of the bank or the credit union will only be unsecured deposits.
What you need to know when starting an 18-month CD?
Not all 18-month CDs have the same features. Therefore, when deciding between the different options that will help you achieve your financial goals, it is not sufficient to just look at the APY. These are some factors you should consider:
- Minimum Deposit: The best advertised rates on some CDs start at just $500, while others may need a larger deposit to get the rate.
- Early Withdrawal Penalties: Always remember to check the early withdrawal charges. In this case, if you lose your principal before the scheduled date of the maturity, you could get a fee that may be equivalent to several months of interest.
- Accessibility and Membership Requirements: For example, some credit unions and virtual banks may offer you higher rates, but you may have to fulfill the requirements to be a member or open an account.
Forecast for the coming months
Due to the Federal Reserve’s unchanging of the course of rate action, the rates of CDs can still keep growing well into 2025, if we are to believe the words of the analysts that they have spoken till now. The consequences of the diminution of the rates are not going to come to pass until the close of the year, so the clients who are signing up now have the possibility of getting a good interest rate for the next 18 months.
With all the changes that are currently happening in the economy, you should really be on top of things and make the most out of these special situations. You might be putting money aside for a short-term goal or simply seeking a secure place to store your savings, 18-month CDs deserve your attention. These deposits ensure your money is safe and allow you to grow funds faster, all while providing better interest rates than regular accounts.
