Certificates of deposit (CDs) are a form of time deposit offered by banks and credit unions, which typically offer higher interest rates than traditional savings accounts in exchange for locking in your funds for a preset period. An 18-month CD can be an ideal middle ground for savers looking to earn a higher yield without the long commitment of a multi-year term. Recently, certain financial institutions have distinguished themselves by offering particularly competitive 18-month CD rates. Here’s a rundown of the 12 best options available right now:

1.Ally Bank – Ally continues to stand out for its favorable rates and customer-friendly approach which includes no minimum deposit requirement and a ten-day best rate guarantee.

2.Marcus by Goldman Sachs – Known for competitive rates, Marcus also offers no-penalty CDs with access to funds without withdrawal penalties.

3.Capital One – Offers high-yield CDs with guaranteed returns and doesn’t charge maintenance fees. Capital One has consistently been near the top of the list for its rates.

4.Barclays Bank – With competitive APYs and no minimum balances required to open an account, Barclays’ CDs are a solid option.

5.Synchrony Bank – Praised for its high-yield CDs combined with flexibility regarding interest payments.

6.Discover Bank – Not just known for credit cards, Discover offers some of the best 18-month CD rates on the market along with easy online management.

7.TIAA Bank – Its “Basic CD” comes with competitive rates and is available nationwide with offerings that frequently outpace inflation.

8.American Express National Bank – This institution offers high-rate CDs to customers, including an appealing 18-month term with competitive interest rates.

9.CIT Bank – Features tiered interest rates that reward higher balances in their “Term CDs”, making it an attractive option for larger deposits.

10.Navy Federal Credit Union – Offers some of the highest rates available, but you need to be affiliated with the military to join.

11.PenFed Credit Union – Known for offering some of the best rates around and is accessible to more potential members than many other military-focused credit unions.

12.First Internet Bank – Stands out for its high APYs and extensive range of CD products available entirely online, catering especially well to digital-savvy users.

Each of these banks and credit unions offer FDIC or NCUA insurance on up to $250,000 per depositor, per institution, safeguarding your investment in the unlikely event that the institution fails. When considering an 18-month CD, always check the latest quotes from multiple institutions as rates can change based on economic conditions.

Interest earned on these CDs can vary depending on your initial deposit amount and whether you choose to have interest payments compounded during the term or paid out at maturity. To make the most out of these 18-month CD investments, also consider if early withdrawal penalties apply should you need access to your funds before maturity.

With today’s fluctuating economy, locking in a great rate with an 18-month CD can be a smart move for those looking to grow their savings while avoiding market risk associated with other investment types like stocks or bonds. However, always ensure that any investment aligns with your overall financial goals and risk tolerance before proceeding.