Why Pick 18 Months?
The 18-month CD is the compromise term: more rate than a 1-year CD at many banks, six fewer months of commitment than a 2-year. It shines when the rate curve is flat — when 2 and 3-year CDs pay barely more than 18 months, taking the shorter lock is the smarter trade.
What Can You Earn in 18 Months?
A $10,000 deposit at 4.40% APY grows to about $10,667 — roughly $667 in interest. Note that's more than 1.5× the one-year figure at the same rate, because the second period compounds on a bigger balance. Exact numbers for your deposit: calculator above.
Where 18 Months Fits
- Rate-cut positioning: when cuts are expected within a year, 18 months locks today's rate past the likely cut date without a multi-year commitment.
- Mini-ladder top rung: a 6/12/18-month ladder frees money every six months — plan it with our CD Ladder Calculator.
- Medium-term goals: money needed in about a year and a half — next year's tuition, a planned renovation — matches this term exactly.
Compare Before You Lock
Always price 18 months against both neighbors: if the 12-month rate is nearly identical, take the shorter term; if the 24-month rate is meaningfully higher, consider stretching. The right term is a rate decision, not a habit.