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The national average APY (Annual Percentage Yield) on a 6-month CD is 1.19% APY. However, some of the best online banks offer up to 5.10% APY for a 6-month CD right now.
A 6-month CD is a short-term CD that lets you maintain a fixed interest rate for a short period of time. It may be a good option if you’re not comfortable parting with your money for more than six months. If you’re interested in other CD term lengths, check out our overall best CD rates guide.
Best 6-month CDs
Bask Bank 6 Month CD – Product Name Only :Bask Bank 6 Month CD – APY APYFirst Internet Bank of Indiana 6 Month CD – Product Name Only :First Internet Bank of Indiana 6 Month CD – APY APYSignature Federal Credit Union 6 Month Certificate – Product Name Only :Signature Federal Credit Union 6 Month Certificate – APY APYVio Bank 6 Month CD – Product Name Only :Vio Bank 6 Month CD – APY APYSynchrony 6 Month CD – Product Name Only :Synchrony 6 Month CD – APY APYBank5 Connect 6 Month High-Yield CD – Product Name Only :Bank5 Connect 6 Month High-Yield CD – APY APYAmerica First Credit Union 6 Month Certificate – Product Name Only :America First Credit Union 6 Month Certificate – APY APYCIT Bank 6 Month Term CD – Product Name Only :CIT Bank 6 Month Term CD – APY APYRising Bank 6 Month CD – Product Name Only :Rising Bank 6 Month CD – APY APY
These are our picks for the best 6-month CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. Although Silicon Valley Bank, Signature Bank, and First Republic Bank have recently been shut down, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
Compare the Best 6-Month CDs
Expert Advice on Choosing the Best 6-month CD
To learn more about what makes a good CD and how to choose the best fit, Insider consulted four experts:
Insider
Here’s what they had to say about CDs. (Some text may be lightly edited for clarity.)
How can someone figure out whether a bank is right for them?
Tania Brown, certified financial planner at SaverLife:
- It should be FDIC insured
- It should fit the banking experience you want (A local bank to visit in person? An online bank to use through your phone? The ability to write checks?)
Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider:
- Prioritize what matters to you, like whether you can waive a monthly service fee
- Pay attention to rates if you want a high-interest account (it should pay higher than average bank account rates)
How should you choose the right CD term length?
Roger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”:
- Consider when you need the money
- Compare your timeline with current CD rates to find the best rates for the closest timeline
Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:
- Have a goal for the money in that CD
- Consider your timeline for the goal, and choose a term length that matches that timeline
How should you decide between a high-yield savings account, money market account, or CD?
Tania Brown, CFP:
- Start off with how much money you want to put in
- Add the level of transactions you plan to have — CDs won’t let you touch the money
Sophia Acevedo, Personal Finance Insider:
- A high-yield savings account or money market account are good options for an emergency fund or short-term savings goals
- Money market accounts are worth considering if you want more account accessibility (paper checks, ATM cards, or debit cards)
- CDs could be worthwhile if you don’t need access tothat money, since they have a fixed interest rate for a specific term
Methodology: How did we choose the best 6-month CDs?
Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.
First, we researched to find over 20 banks and credit unions that offered 6-month CDs. Then, we reviewed each institution using our CD rates methodology to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.
6-month CD: Frequently Asked Questions
What is a 6-month CD?
With a 6-month CD, you stash away your money for six months and typically earn a fixed rate. You have the option to renew your CD at the end of the 6-month period, or close the account and pocket the money.
How does a 6-month CD work?
Most CDs lock in your rate for the entire term. If you open a 6-month CD at a 5.00% APY, you’ll earn 5.00% for the entire six months. If you renew your CD after it matures, you’ll earn the new rate available in six months.
There are exceptions to the fixed-rate rule. Some institutions offer variable-rate CDs or CDs that allow your rate to change after a predetermined amount of time.
Which is best: a 6-month, 1-year, or 5-year CD?
CDs with 1-year and 5-year terms pay higher rates than ones with 6-month terms. You may prefer longer terms than six months to earn better interest rates.
Ultimately, your choice will likely depend on how soon you plan to need the money. For example, if you want the money to buy a house in less than a year, a longer term isn’t the best idea.
Going for a shorter term also gives you the opportunity to snag a better APY if rates are up in a year. With a 1-year or 5-year CD, you could miss out on higher rates. But on the other hand, you could avoid lower rates with a 1-year or 5-year term if rates drop later.
Many experts recommend CD laddering. With this strategy, you open multiple CDs with different term lengths so you can take advantage of higher rates with longer terms, but also access some of your money earlier. For instance, you might open 6-month, 1-year, and 5-year CDs at the same time, which means you’ll get some of your money back in six months, then more in a year, then more in five years.
Which is better, a 6-month CD or a high-yield savings account?
The choice between a 6-month CD and high-yield savings account will depend on several factors.
First, some institutions pay higher rates on high-yield savings accounts than on 6-month CDs. This isn’t always the case, though, so be sure to double-check.
A CD also locks in your rate for the entire term. If rates are dropping, this could make the CD a better choice, because your savings account APY could decrease over the next few months. If rates are rising, the savings account might be a better fit, because your rate could go up. Either way, there’s a good chance rates will fluctuate over a 6-month period.
It also depends on when you’ll need to access your money. You should be able to access funds from your savings account regularly — but you’ll have to pay a fee if you need access to money from your 6-month CD before it matures. You can also continuously add money to your savings account, whereas most CDs block you from making additional deposits after opening the account.
Which is better, a 6-month CD or a money market account?
Like with a high-yield savings account, you may prefer a money market account over a CD if you want quick access to your money. Money market account rates also fluctuate, so you may prefer a money market account if rates are rising, but a CD if rates are dropping. Still, remember that rates will likely go up or down over a 6-month term.
Many banks require higher deposits for money market accounts than CDs, which could affect your decision. It’s also good to remember that you can add more funds to your money market account over time, while a CD only allows an opening deposit.
Is a 6-month CD a good investment?
CDs aren’t generally considered investments the same way something like an index fund, which puts your money into the stock market, is. Instead, a CD is typically viewed as a type of savings account, and your potential for losses and gains — your risk — is much more limited. Because the stock market is risky, experts generally don’t advise investing money you’ll need in the next five years. In the case of a stock market drop, you wouldn’t have time to make up your losses.
If you need to access your money in six months and want a guaranteed rate of return, a 6-month CD is a better choice than a different type of investment account.
If you’re comfortable parting with your money for longer and want to take more risk with your money, then you may want to invest in the stock market. One way to do this is through tax-advantaged retirement accounts, like a 401(k) or IRA, which grows your money over decades. Another is through brokerage accounts, which are useful tools to build long-term wealth, but can’t guarantee a given return like a CD can.
There is such a thing as an IRA CD, which is a sort of combo savings/investment account. It’s a safe investment tool that may be a worthwhile option for people who are close to retirement age.
Bask Bank 6 Month CD – Product Name Only
Why it stands out: Bask Bank is an excellent option if you’d like to earn a competitive interest rate on a high-yield savings account or CD. Its 6-month term currently pays the highest interest rate.
Interest for 6-month CD:
6-month CD early withdrawal penalty: 90 days simple interest
What to look out for: Bask Bank has limited CD terms. If you’re looking to open a CD with a term over 2 years, you might prefer another institution.
First Internet Bank of Indiana 6 Month CD – Product Name Only
Why it stands out: First Internet Bank of Indiana pays high interest rates on a variety of CDs.
First Internet Bank of Indiana also has a money market account that’s a top pick in our best money market accounts guide.
Interest for 6-month CD:
6-month CD early withdrawal penalty: 180 days of interest
What to look out for: First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference.
First Internet Bank of Indiana Review
Signature Federal Credit Union 6 Month Certificate – Product Name Only
Why it stands out: Signature Federal Credit Union could be a good option if you’d like to open a certificate with a low initial deposit. You’ll only need
Interest for 6-month CD:
6-month CD early withdrawal penalty: 90 days of interest
What to look out for: Credit unions require membership to open an account. The easiest way to become a member is to enroll in the American Consumer Council. Then you’ll just need to open a savings account.
Vio Bank 6 Month CD – Product Name Only
Why it stands out: Vio Bank stands out because it pays a competitive interest rate on its 6-month term. You also might like this online bank if you want to open a fixed-interest bank account with a minimum of
Interest for 6-month CD:
6-month CD early withdrawal penalty: 1% of the amount withdrawn, plus $25
What to look out for: Vio Bank has high early withdrawal penalties. Also, keep in mind Vio Bank doesn’t have a checking account. If you plan on opening a checking account with the same financial institution, you might prefer one of our other top picks.
Synchrony 6 Month CD – Product Name Only
Why it stands out: Most banks typically require at least $1,000 for an initial deposit, but Synchrony stands out because it doesn’t require any account minimums to open a CD.
Interest for 6-month CD:
6-month CD early withdrawal penalty: 90 days of interest
What to look out for: You’ll want to consider whether you have a preference on how you’ll withdraw money from a CD. When you’re ready to cash out your CD, you must call Synchrony. Some other banks will let you cash out your CD through online banking.
Bank5 Connect 6 Month High-Yield CD – Product Name Only
Why it stands out: You might like Bank5 Connect if you’d like to get a CD with a low minimum opening deposit. You’ll only need
Interest for 6-month CD:
6-month CD early withdrawal penalty: Up to 90 days of interest
What to look out for: You may want to consider another financial institution if you’re also looking for long-term CDs. Bank5 Connect only offers terms ranging from 6 months to 3 years.
America First Credit Union Certificate – Product Name Only
Why it stands out: You might like America First Credit Union if you prefer credit unions over banks. America First Credit Union has a 6-month certificate with a competitive interest rate. Its certificates also stand out because they have low early withdrawal penalties.
Interest for 6-month CD:
6-month CD early withdrawal penalty: 60 days of interest
What to look out for: To open a bank account at a credit union, you must become a member first. You may join America First Credit Union if you live, work, worship, or volunteer in an Arizona, Idaho, Nevada, or Utah county on this list. If you have a family member or spouse that’s a current member, you’re also eligible.
To become a member, you must also open an
America First Credit Union Review
CIT Bank 6 Month Term CD – Product Name Only
Why it stands out: You might like CIT Bank Term CDs if you’re comfortable with online banking. CIT Bank has a competitive interest rate on a 6-month CD.
Interest for 6-month CD:
6-month CD early withdrawal penalty: 3 months of interest
What to look out for: While CIT Bank has a high interest rate on its 6-month CD, some of it’s other terms aren’t as competitive. If you’re also looking for a 2-year or 3-year term, for example, you may prefer another online bank.
Rising Bank 6 Month CD – Product Name Only
Why it stands out: Rising Bank could be a good choice if you’re searching for short-term CDs. Its 6-month term has a competitive interest rate.
Interest for 6-month CD:
6-month CD early withdrawal penalty: 90 days simple interest
What to look out for: At Rising Bank, interest is compounded and deposited every three months, while other institutions may compound monthly or even daily. Depending on how much you deposit into a CD, this may or may not make a significant difference.
Alternative CD options
Live Oak Bank CD – Product Name Only : Live Oak paysLive Oak Bank 6 Month CD – APY APY on its 6-month term, but our top picks have even higher interest rates right now.TAB Bank CD – Product Name Only : TAB Bank has solid interest rates on CDs, but you can still find more competitive interest rates at other online banks.LendingClub CD – Product Name Only : LendingClub offers high CD rates, but our top picks have lower minimum opening deposits or even more competitive rates right now.Alliant Certificate – Product Name Only : Alliant pays solid interest rates on CDs, but its 6-month term pays a lower rate than our top picks.First Internet Bank of Indiana CD – Product Name Only : First Internet Bank of Indiana offers a variety of CD terms, but our top picks have higher CD rates right now.Sallie Mae Certificate of Deposit : Sallie Mae has a high interest rate, but you’ll need a minimum opening deposit ofSallie Mae Certificate of Deposit .Marcus by Goldman Sachs High-Yield CD : Marcus lets you open an account withMarcus by Goldman Sachs High-Yield CD , but our top picks have higher interest rates right now.Ally High Yield Certificate of Deposit : Ally offers a variety of CDs, but our top picks pay higher interest rates.Capital One 360 Certificate of Deposit® : Capital One has a low minimum opening deposit, but our top picks pay higher interest rates.Nationwide CD : Nationwide CDs has a solid 12-month CD, but its 6-month CD isn’t as strong.Quontic Certificate of Deposit : Quontic has a good interest rate on its 6-month CD, but our top picks have lower early withdrawal penalties or pay higher interest rates.TIAA Basic Certificate of Deposit : TIAA Bank’s 6-month CD isn’t as strong as its long-term CDs.Citi Fixed Rate Certificates of Deposit : Citi pays has good rates, but our top picks have even higher interest rates.Navy Federal Credit Union Standard Certificate : Navy Federal Credit Union has solid interest rates on long-term CDs, but its short-term CDs aren’t as competitive.Discover CD : Discover has competitive interest rates on long-term CDs, but its short-term CDs aren’t as strong. You’ll also need at leastDiscover CD to get a CD.Pentagon Federal Credit Union Money Market Certificate : Pentagon Federal Credit Union offers a competitive interest rate, but the early withdrawal penalties are high compared to our top picks.Popular Direct CD : Popular Direct has great interest rates on CDs, but you’ll also need at leastPopular Direct Certificate of Deposit to open a CD.Charles Schwab Bank Certificate of Deposit : Charles Schwab has brokered CDs, meaning Charles Schwab doesn’t actually own the CD. Instead, Charles Schwab acts as the middleman for you and the bank that owns the CD. Depending on how your bank, you may prefer open a CD directly with the financial institution.American Express CD : American Express offers a good interest rate, but our top picks offer even higher rates.
Bank Trustworthiness and BBB Ratings
We’ve compared each financial institution’s Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices.
All of our top picks have BBB ratings with the exception of Signature Federal Credit Union.
Here is each company’s score:
| Institution | BBB Grade |
| Synchrony | A+ |
| America First Credit Union | A+ |
| First Internet Bank of Indiana | A+ |
| CIT Bank | A- |
| Bask Bank | D- (Parent company, Texas Capital Bank, has an A+ rating) |
| Bank5 Connect | A+ |
| Rising Bank | A+ (rating of parent company, Midwest BankCentre) |
| Vio Bank | A+ |
CIT Bank has an A- rating from the BBB because it has failed to respond to one customer compliant.
Bask Bank received a D- rating from the BBB. Bask Bank received 27 customer complaints on the BBB website and it failed to respond to one complaint. However, its parent company, Texas Capital Bank, has an A+ rating from the BBB.
BBB ratings aren’t necessarily the be-all and end-all. To see if a company is right for you, you may also read online customer reviews or talk to current customers.
6-month CD Rates at the Largest US Banks
If you prioritize banking with a company you’re familiar with, here are the rates you’ll earn on a 6-month CD with some of the most popular institutions:
| Bank | APY (Annual Percentage Yield) | Next steps |
| Citi | ||
| Capital One | ||
| PNC Bank | ||
| TD Bank | ||
| Bank of America | ||
| Chase Bank | ||
| US Bank | ||
| Charles Schwab Bank | ||
| Wells Fargo |