Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
A 6-month CD is a type of savings option that lets you maintain a fixed interest rate for a short period of time. The national average APY (Annual Percentage Yield) on a 6-month CD is 1.39% APY.
Featured CD OfferAPY Western Alliance Bank 6 Month CD – Product Name OnlyWestern Alliance Bank 6 Month CD – APYmph.bank 6 Month No Penalty CD – Product Name Onlymph.bank 6 Month No Penalty CD – APYQuontic 6 Month CD – Product Name OnlyQuontic 6 Month CD – APYCIT Bank 6 Month Term CD – Product Name OnlyCIT Bank 6 Month Term CD – APY
However, there are much higher interest rates on 6-month CDs right now. The best CD rate for a 6-month term is TotalDirectBank 6 Month CD – APY APY from TotalDirectBank.
We check rates daily to find the best rates for 6-month terms. Below, you’ll find our top picks.
Best 6-Month CDs
TotalDirectBank 6 Month CD – Product Name Only: TotalDirectBank 6 Month CD – APY APYUSALLIANCE Financial 6 Month Certificate – Product Name Only: USALLIANCE Financial 6 Month Certificate – APY APYCredit Human 6 Month Share Certificate – Product Name Only: Credit Human 6 Month Share Certificate – APY APYBask Bank 6 Month CD – Product Name Only: Bask Bank 6 Month CD – APY APYPopular Direct 6 Month CD – Product Name Only: Popular Direct 6 Month CD – APY APYSignature Federal Credit Union 6 Month Certificate – Product Name Only: Signature Federal Credit Union 6 Month Certificate – APY APYBank5 Connect 6 Month High-Yield CD – Product Name Only: Bank5 Connect 6 Month High-Yield CD – APY APYNewtek Bank 6 Month CD – Product Name Only: Newtek Bank 6 Month CD – APY APYDow Credit Union 6 Month Simple CD – Product Name Only: Dow Credit Union 6 Month Simple CD – APY APY
The best 6-month CDs pay high interest rates, and many of them have low minimum opening deposits and low early withdrawal penalties.
Compare the Best 6-Month CDs
6-Month CD FAQs
Who has the highest 6-month CD rate?
The highest 6-month CD rate is TotalDirectBank 6 Month CD – APY APY available at TotalDirectBank. The online institution operates everywhere in the US except Florida, Somoa, Guam, the Northern Mariana Islands, or the US Virgin Islands.
Is a 6-month CD worth it?
A 6-month CD may be worthwhile if you’d like to earn a competitive interest rate on a short-term, fixed-interest savings account. Many CDs offer over 5% APY. However, keep in mind that CDs do not allow additional deposits and have early withdrawal penalties if you have to take out money before the term ends.
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?
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. 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.
6-Month CD Reviews
These are our picks for the best 6-month CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. If you’re worried about bank failures, 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.
TotalDirectBank 6 Month CD – Product Name Only
TotalDirectBank CDs may be a good choice if you’re searching for a variety of short-term CDs with high interest rates. The 3-month, 6-month, and 1-year terms, in particular, offer CD rates significantly above the national average.
TotalDirectBank CDs have a steep minimum opening deposit of TotalDirectBank 6 Month CD – Minimum Deposit and a maximum deposit of $1 million. The online institution also doesn’t operate in Florida, Somoa, Guam, the Northern Mariana Islands, or US Virgin Islands.
APY for 6-month CD: TotalDirectBank 6 Month CD – APY APY
6-month CD early withdrawal penalty: 30 days of interest
Credit Human 6 Month Share Certificate – Product Name Only
You might like a Credit Human Share Certificate if you value banking with a credit union over a bank. Credit Human Federal Credit Union has a high interest rate on a 6-month term, and one of the best 1-year CD rates. This credit union also could be a good option if you have at least Credit Human 6 Month Share Certificate – Minimum Deposit to open a CD.
To open a Credit Human Share Certificate, you’ll have to qualify for membership. The easiest way to become a member regardless of where you live in the US is to join the American Consumer Council. Credit Human also has other ways to become a member. For example, you’ll be eligible to join if you live in a service area in San Antonio, Texas, or New Orleans, Louisiana, or if you work for a partner employer or organization.
APY for 6-month CD: Credit Human 6 Month Share Certificate – APY APY
6-month CD early withdrawal penalty: 180 days of interest
USALLIANCE Financial 6 Month Certificate – Product Name Only
USALLIANCE Financial Share Certificates could be a good choice if you’re searching for a 6-month term. The credit union also has one of the best 18-month CD rates.
USALLIANCE Financial certificates have steep early withdrawal penalties. You can also only open a CD if you qualify for membership at the credit union.
You may join USALLIANCE Financial if you do one of the following: live in a select area in Massachusetts, Connecticut, New Jersey, or New York; work for a select employment group; or become a member of the American Consumer Council, Arco of Westchester, Tread Lightly!, or Council of Community Services from anywhere in the US.
APY for 6-month CD: USALLIANCE Financial 6 Month Certificate – APY APY
6-month CD early withdrawal penalty: Up to 180 days of interest
Bask Bank 6 Month CD – Product Name Only
A Bask Bank CD is an excellent option if you’d like to earn a competitive interest rate on a 6-month term. Bask Bank also has a solid high-yield savings account and one of the best savings accounts for travel.
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.
Interest for 6-month CD: Bask Bank 6 Month CD – APY APY
6-month CD early withdrawal penalty: 90 days simple interest
Popular Direct 6 Month CD – Product Name Only
Popular Direct CDs pay a high interest rate, and compound interest daily.
You’ll need at least Popular Direct 6 Month CD – Minimum Deposit to open a Popular Direct CD.
APY for 6-month CD: Popular Direct 6 Month CD – APY APY
6-month CD early withdrawal penalty: 120 days of simple interest
Signature Federal Credit Union 6 Month Certificate – Product Name Only
Signature Federal Credit Union Certificates are another great option if you’d like to bank with a credit union. You also might like this option if you’d like to get a CD with a low minimum opening deposit.
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.
APY for 6-month CD: Signature Federal Credit Union 6 Month Certificate – APY APY
6-month CD early withdrawal penalty: 90 days of interest
Signature Federal Credit Union Review
Bank5 Connect 6 Month High-Yield CD – Product Name Only
Bank5 Connect High-Yield CDs are a good choice if you want a CD with a low minimum opening deposit.
Bank5 Connect is the online operation of the Massachusetts-based bank Bank5. You only need Bank5 Connect 6 Month High-Yield CD – Minimum Deposit to get started.
You won’t be eligible to open a Bank5 Connect bank account if you’re a resident of Massachusetts or Rhode Island. However, you can open bank accounts at a Bank5 branch.
Interest for 6-month CD: Bank5 Connect 6 Month High-Yield CD – APY APY
6-month CD early withdrawal penalty: Three months of interest on the amount withdrawn
Newtek Bank 6 Month CD – Product Name Only
Newtek Bank CDs may be appealing if you’re searching for a variety of terms that pay well above the national average. Newtek Bank also has standard early withdrawal penalties.
Newtek Bank CDs have a Newtek Bank 6 Month CD – Minimum Deposit minimum opening deposit. Other financial institutions may let you open a CD with less money upfront.
Interest for 6-month CD: Newtek Bank 6 Month CD – APY APY
6-month CD early withdrawal penalty: 90 days of interest
Dow Credit Union 6 Month Simple CD – Product Name Only
Dow Credit Union Simple CDs are a great option if you prioritize banking with a credit union. The 6-month Simple CD pays a high interest rate, and you only need Dow Credit Union 6 Month Simple CD – Minimum Deposit to get started.
Credit unions require membership to open an account. The easiest way to become a member of Dow Credit Union is to make a $10 donation to the Midland Area Community Foundation. The credit union also has other ways to join, such as being part of a Select Employer Group or having a family member who is a current credit union member.
APY for 6-month CD: Dow Credit Union 6 Month Simple CD – APY
6-month CD early withdrawal penalty: 90 days of interest
Alternative CD options
Latino Community Credit Union 6 Month Share Certificate – Product Name Only: Latino Community Credit Union offers more than the national average for a 6-month term, but it still has a lower APY than all our top picks. You still might like this option if you live in North Carolina and prioritize banking with a local financial institution, though. Western Alliance Bank 6 Month CD – Editorial Name Only: Western Alliance Bank, powered by Raisin has 6-month CD with a high interest rate, but other banks offer even more competitive 6-month CD rates. MYSB Direct 6 Month CD – Product Name Only: MYSB Direct has an online 6-month CD paying MYSB Direct 6 Month CD – APY APY, but other financial institutions pay higher CD rates for a 6-month term.Vio Bank CD – Product Name Only: Vio Bank has a 6-month CD offering Vio Bank 6 Month CD – APY APY, which is just short of the rates included on our list.Gulf Coast Federal Credit Union Share Certificate – Product Name Only: Gulf Coast Federal Credit Union is a local financial institution in Texas. It has a 6-month CD rate that’s high, but our top picks have even more competitive rates. It still might be worth considering if you live in Nueces, San Patricio or Jim Wells County and prioritize banking locally America First Credit Union 6 Month Certificate – Product Name Only: America First Credit Union pays America First Credit Union 6 Month Certificate – APY APY on a 6-month CD, but other financial institutions offer even more competitive CD rates for a 6-month term. Rising Bank CD – Product Name Only: Rising Bank has a solid rate on a 6-month CD, but it’s just short of the rates on our list.First Internet Bank of Indiana CD – Product Name Only: First Internet Bank of Indiana pays First Internet Bank of Indiana 6 Month CD – APY APY, which is lower than the rates on our list. Bethpage Federal Credit Union Certificate Account – Product Name Only: Bethpage Federal Credit Union pays a solid interest rate, but our top picks offer more competitive rates right now. Synchrony CD – Product Name Only: Synchrony pays high rates overall, but its 6-month CD rate falls shorts of the rates on our list.CIT Bank Term CD – Product Name Only: CIT Bank’s 6-month CD rate is more competitive than its other CDs, but you’ll still find higher elsewhere.Live Oak Bank CD – Product Name Only: Live Oak pays Live 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.Sallie Mae Certificate of Deposit: Sallie Mae has a high interest rate, but you’ll need a minimum opening deposit of Sallie Mae Certificate of Deposit.Marcus by Goldman Sachs High-Yield CD: Marcus lets you open an account with Marcus 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.EverBank CD – Product Name Only: EverBank’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 least Discover 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. Charles Schwab Bank CD – Product Name Only: 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.
Signature Federal Credit Union does not have a profile with the Bureau yet, so there are no complaints or reviews to use for evaluating the company’s business practices.
Here is each company’s score:
InstitutionBBB ratingUSALLIANCE FinancialD-TotalDirectBankA+ (rating for its parent bank, City National Bank of Florida)Credit Human Federal Credit Union A-Newtek BankA+Bask Bank BDow Credit Union A+Bank5 ConnectA+Popular DirectA+
USALLIANCE Financial received a D- rating from the BBB because it has failed to respond to six customer complaints on the BBB website.
Bask Bank also received a B rating from the BBB because it’s received 30 customer complaints on the BBB website. However, its parent company, Texas Capital Bank, has an A+ rating from the BBB.
Credit Human received an A- rating from the BBB because it has not resolved several customer complaints.
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.
In 2021, a San Antonio resident filed a lawsuit against Credit Human Federal Credit Union. According to the San Antonio Express News, the Texas resident claims the credit union has unfair overdraft practices and has charged fees when it shouldn’t have. The case is currently ongoing.
Why You Should Trust Us: 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 insuredIt 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 feePay 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 moneyCompare 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 CDConsider 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 inAdd 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 goalsMoney 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 to that money, since they have a fixed interest rate for a specific term
Methodology
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.
+ There are no comments
Add yours