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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 CD rate on a 6-month term is 1.82% APY (Annual Percentage Yield), according to the FDIC.
| Featured Offer | APY (Annual Percentage Yield) Accurate as of 8/12/2024 | Minimum Deposit |
| Generations Bank 6 Month CD, powered by Raisin | 4.92% | $1 |
| Western Alliance Bank High-Yield Savings Premier | 5.31% | $500 |
However, there are much higher interest rates on 6-month CDs right now. The best CD rate for a 6-month term is 5.20% APY available at EagleBank.
We check rates daily to find the best rates for 6-month terms. Below, you'll find our top picks.
Best 6-Month CDs
- EagleBank 6 Month CD: 5.20% APY
- America First Credit Union 6 Month Certificate: 5.15% APY
- Barclays 6 Month Online CD: 5.10% APY
- Dow Credit Union 6 Month Simple CD: 5.10% APY
- Quontic 6 Month CD: 5.10% APY
- Bask Bank 6 Month CD: 5.10% APY
- Bank5 Connect 6 Month High-Yield CD: 5.05% APY
- Newtek Bank 6 Month CD: 5.05% APY
- LendingClub 6 Month CD: 5.00% APY
- TotalBank 6 Month CD: 5.00% 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
You can find the top CDs primarily at online banks. That said, there are also two credit unions with competitive 6-month terms.
When you are choosing a CD, you can compare different features to narrow down the best fit. For example, consider how much money you want to deposit and see if the bank's minimum opening deposit requirements aren't a reach. You can also weigh the overall banking experience and check out the bank's customer service availability and mobile app ratings before settling on an account.
5.20%
$1,000
- High APY
- Standard-to-low early withdrawal penalties
- $1,000 minimum opening deposit
- $500,000 maximum initial deposit
- Can’t open if you live in California, Nevada, or Vermont
- Poor mobile app ratings
- 19 locations in Maryland, Virginia, and Washington, DC
- Can open a CD even if you don’t live near a branch; not eligible to open EagleBank accounts if you live in California, Nevada, or Vermont
- Online terms range from 6 months to 18 months; For additional CD terms you must call or visit a branch
- Early withdrawal penalty is 3 months of interest for all terms
- Interest is compounded daily and deposited quarterly
- FDIC-insured
5.15%
$500
- Competitive APY
- $500 opening deposit
- Low early withdrawal penalties
- No terms over 5 years
- Interest compounded monthly, not daily
- Membership restricted to certain counties in the West
- Membership restricted to certain parts of the West
- Term lengths ranging from 3 months to 5 years
- Early withdrawal penalty of 60 days interest for terms of 12 months or less; 180 days interest for terms over 12 months
- Interest compounded monthly and paid monthly
- Federally insured by the NCUA
5.10%
$0
- No minimum deposit
- High interest rate
- Low-to-standard early withdrawal penalties
- Other online banks pay even higher CD rates
- Early withdrawal penalties are as follows: 90 days interest for terms of 24 months or less, 180 days interest for terms of more than 24 months
- Interest compounds daily to maximize earnings
- FDIC insured
5.10%
$500
- Low minimum opening deposit
- High interest rate
- Interest compounded monthly, not daily
- Standard-to-high early withdrawal penalties
- Based in Midland, Michigan
- To join Dow Credit Union, you must be an employee or retiree of Dow Inc., the former Dow Corning Corporation, or a Select Employer Group company; have a family member who is eligible to join; donate $10 to the Dow Credit Union Members Endowed Scholarship Fund; are a member of the Midland Center for the Art's Alden B. Dow Museum of Science & Art or Midland Historical Society; own stock at Dow Inc.; have a revocable trust in which the Grantor is a member of Dow Credit Union; or are a member of Midland Country Club of Great Lakes Loons Founders Club
- Simple CDs are not eligible for Member Saver Rewards
- Early withdrawal penalty for a 3-month term is 45 days and for a 6-month term is 90 days of interest
- Interest compounded monthly, not daily
- Federally insured by the NCUA
5.10%
$500
- Competitive APY
- $500 opening deposit
- Limited term options
- High early withdrawal penalties
- Term lengths: 6 months, 1 year, 2 years, 3 years, 5 years
- Early withdrawal penalties: All interest earned for terms under 1 year, 1 year of interest for 1-year terms, 2 years of interest for terms of 2 years or longer
- Interest compounded daily, paid monthly
- FDIC insured
5.10%
$1,000
- Competitive interest rate on CDs
- $1,000 minimum opening deposit
- Early withdrawal penalties: For terms 1 year and under, the penalty is 90 days of simple interest; For any terms over 1 year, the penalty is 180 days of simple interest
- Interest compounded daily, deposited monthly
- FDIC insured through Texas Capital Bank
5.05%
$500
- Competitive APY
- $500 opening deposit
- Limited term length options
- Standard-to-high early withdrawal penalties
- Term lengths between 6 months and 3 years
- 3 months interest early withdrawal penalty for terms under 1 year, 6 months interest early withdrawal penalty for terms of 1 year or more
- A 2-year investment CD allows you to make deposits after opening the account
- FDIC insured
5.05%
$2,500
- High interest rate
- Variety of CD terms
- Standard early withdrawal penalties
- $2,500 minimum opening deposit
- Early withdrawal penalties: For terms between 30 days and less the 1 year, the penalty is 90 days of simple interest
- Interest is compounded daily and deposited monthly
- FDIC insured
5.00%
$2,500
- High interest rate
- Standard CD terms
- $2,500 minimum opening deposit
- Interest compounds monthly, not daily
- Standard-to-high early withdrawal penalties
- Online banking institution with 1 branch in Boston, Massachusetts
- Terms for online CDs range from 6 months to 5 years
- $2,500 minimum opening deposit
- Early withdrawal penalty will depend on the amount deposited and term chosen
- Interest compounded and deposited monthly
- Member FDIC
5.00%
$25,000
- High interest rate
- Standard early withdrawal penalties
- High minimum opening deposit
- Limited customer support
- Doesn't operate in Florida, Somoa, Guam, Northern Mariana Islands and U.S. Virgin Islands
- Online-only division of City National Bank of Florida
- Early withdrawal penalties: 30 days of interest for terms between 30 days up to 6 months
- Maximum deposit of $1 million
- Interest compounded daily and deposited monthly
- FDIC insured
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.
EagleBank 6 Month CD
EagleBank CDs pay competitive interest rates for a variety of terms, including 6-month CDs.
EagleBank has locations in Maryland, Virginia, and Washington, DC, so it can be a great local banking option if you live in these areas. You can also open online CDs ranging from 6 months to 18 months if you don't live near a branch.
You'll only be able to deposit a maximum of $500,000 into a CD. Another downside to banking with EagleBank is that its mobile banking app has lackluster ratings in both the Google Play and Apple stores.
Interest for a 6-month CD: 5.20% APY
6-month CD early withdrawal penalty: 3 months of interest
America First Credit Union 6 Month Certificate
America First Credit Union only requires $500 to open a 6-month CD, which is less than you'll need with many institutions. It also charges relatively low early withdrawal penalties.
This credit union is a great choice if you live in certain areas in the Western United States. Membership is available to people who live, work, study, worship or volunteer in select counties of New Mexico, Nevada, Oregon, and Utah. You're also eligible to join if you work for a company on its Select Employer Group list or are a member of an affiliated association.
APY for 6-month CD: 5.15% APY
6-month CD early withdrawal penalty: 60 days of interest
America First Credit Union Review
Barclays 6 Month Online CD
Barclays offers a good rate for 6-month CDs, and it has a $0 minimum opening deposit. You'll need to put at least $0.01 into the account in the first 14 days to keep the account open, but otherwise, you're free to earn the high interest rate that compounds daily.
Barclays doesn't have specialty CDs like some of our other top picks. You may prefer a different financial institution if you want a CD that allows you to raise your interest rate, or if you want an account that does not penalize you for withdrawing funds.
APY for 6-month CD: 5.10% APY
6-month CD early withdrawal penalty: 90 days simple interest
Dow Credit Union 6 Month Simple CD
Dow Credit Union offers a good interest rate on a 6-month Simple CD. It also has one of the best 3-month CD rates.
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: 5.10% APY
6-month CD early withdrawal penalty: 90 days of interest
Quontic 6 Month CD
Quontic offers a strong rate on its 6-month CD. It also has a low minimum opening deposit of $500 and interest that compounds daily, which may make a difference depending on how much you put in your CD.
Quontic charges high early withdrawal penalties. If you think there's a chance you'll need to withdraw your money before the CD term length is up, you might want to go with another bank.
APY for 6-month CD: 5.10% APY
6-month CD early withdrawal penalty: 180 days of interest
Bask Bank 6 Month CD
Bask Bank is an excellent option if you'd like to earn a competitive interest rate on a high-yield savings account or CD. Most of its other CD terms offer great interest rates, so if you're interested in opening multiple CDs at the same bank, Bask Bank might be a good choice for you.
Bask Bank has limited CD terms. If you're looking to open a CD with a term of over two years, you might prefer another institution.
APY for 6-month CD: 5.10% APY
6-month CD early withdrawal penalty: 90 days simple interest
Bank5 Connect 6 Month High-Yield CD
Bank5 Connect offers a strong 6-month CD with a low minimum opening deposit of $500. If you're not planning on putting a lot of money into your CD, Bank5 Connect might be a good choice for you.
Other than its 6-month CD, Bank5 Connect's CD rates aren't super high. If you want to open multiple CDs at the same bank, you might want to look elsewhere.
APY for 6-month CD: 5.05% APY
6-month CD early withdrawal penalty: 90 days of interest
Newtek Bank 6 Month CD
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 $2,500 minimum opening deposit. Other financial institutions may let you open a CD with less money upfront.
Interest for 6-month CD: 5.05% APY
6-month CD early withdrawal penalty: 90 days of interest
LendingClub 6 Month CD
LendingClub offers good rates on both its 6-month and 18-month CDs. If you're hoping to open multiple CDs at the same bank, LendingClub might be a good choice for you.
LendingClub requires a higher-than-average minimum opening deposit of $2,500. If you're planning on opening a CD with a smaller amount of money, you might prefer a different CD.
APY for a 6-month term: 5.00% APY
6-month CD early withdrawal penalty: 90 days of simple interest
TotalBank 6 Month CD
TotalBank CDs may be a good choice if you're searching for a variety of short-term CDs with high interest rates. The 3-month and 6-month terms, in particular, offer CD rates significantly above the national average.
TotalDirectBank CDs have a steep minimum opening deposit of $25,000 and a maximum deposit of $1 million. The online institution also doesn't operate in Florida, Samoa, Guam, the Northern Mariana Islands, or U.S. Virgin Islands.
APY for 6-month CD: 5.00% APY
6-month CD early withdrawal penalty: 30 days of interest
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.
Here is each company's score:
| Institution | BBB rating |
| EagleBank | A+ |
| America First Credit Union | A+ |
| Barclays | A+ |
| Dow Credit Union | A+ |
| Quontic Bank | A+ |
| Bask Bank | B |
| Bank5 Connect | A+ (Rating for its parent bank, BankFive) |
| Newtek Bank | A+ |
| LendingClub Bank | A+ |
| TotalBank | A+ |
Bask Bank has a B rating from the BBB because of the number of customer complaints against the business.
Even though they have strong BBB ratings, some of our top picks do have recent public controversies.
EagleBank was required to pay a civil penalty of $10 million in a settlement in 2022 when the Securities and Exchange Commission accused the bank and former CEO and chairman Ronald D. Paul of making false and misleading statements about party loans relating to Paul's family trusts.
What Makes 6-Month CD Rates Fluctuate?
Role of the Federal Reserve
CD rates are often impacted by changes in the federal funds rate. The Federal Reserve has a committee that holds meetings where members discuss potential changes to the federal funds rate.
Generally, CD rates rise when the federal funds rate goes up, and CD rates drop when the federal funds rate goes down. Paying attention to upcoming Fed meetings can help you keep track of when the federal funds rate changes.
Economic Trends and Market Conditions
Short-term CD rates are higher than long-term CD rates because of the current economic environment. Usually, it's the opposite: long-term CDs tend to offer better rates because you're keeping money in an account for a longer period of time, which benefits the bank.
When the Fed starts cutting rates, CD rates overall will drop more significantly and CD rate trends may change.
Institution-Specific Offers
Banks and credit unions may offer special promotional CDs occasionally to appeal to customers. Currently, many promotional CDs tend to be shorter terms.
The Fed is expected to cut rates in the future, but it isn't clear when exactly the Fed will change monetary policy. The Fed wants inflation to get closer to 2% before cutting rates.
How to Maximize Returns with the Best 6-Month CD
To maximize returns on a 6-month CD, make sure to avoid early withdrawal penalties, which can reduce your total interest earnings. Experts recommend choosing a CD term based on your financial goals so you have a purpose assigned to your money and can minimize the chance of needing to make a last-minute withdrawal.
Reviewing the CD forecast for 2024 may also help with deciding when to lock in a CD rate and which type of account to open.
6-Month CD FAQs
The highest paying 6-month CD offers 5.20% APY. This CD rate is offered by EagleBank.
Banks typically offer long-term CDs with higher rates than 6-month terms because you're leaving money locked in an account for a longer period of time. However, in the current economic environment, 6-month CD rates are actually higher than long-term CDs. The Fed is expected to cut rates in the future. Banks have kept short-term CD rates high to still have competitive offerings.
A 6-month CD may be a smart choice 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.
The best 6-month CD rates can change at any time. The top rates for 6-month CD rates also change more frequently than longer terms because they are more susceptible to market fluctuations.
Sometimes, banks will have promotions for 6-month CDs. These CD specials are often used to attract new customers at local banks or credit unions. At big banks, you'll more likely find CD promotions that are for existing customers who have eligible bank accounts.
A 6-month CD is a low-risk bank account. It could be a good option for first-time investors if they are specifically looking for a safe investment. CDs offer low returns, though, so you might consider other investment options if you want to earn higher returns and take more risk.
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, Business Insider consulted four experts:
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, CFP® professional and vice president of coaching strategy at OfColor:
- 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, banking editor, Business 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, CFP® professional 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® professional:
- 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, Business 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 to that money since they have a fixed interest rate for a specific term
Methodology: How We Selected the Best 6-Month CDs
Business Insider's personal finance team regularly monitors 60 banks and credit unions to find which ones offered the most competitive 6-month CD rates nationally.
Then, we reviewed each institution using our bank account 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.
