Certificate of deposit rates are trending downward, but there’s still time to lock in a great rate with a six-month CD. The average annual percentage yield, or APY, for the top six-month CDs we track at CNET is 4.58% — and you can find plenty with APYs above 5%.
But since the best high-yield savings accounts also earn over 5% APY, is it worth locking up your money for half a year? Both savings accounts and CDs are low-risk savings options, but a CD allows you to lock in a fixed rate for a set term, whereas a savings account rate could change at any time. And in an uncertain economic environment, CDs can come in handy.
CD rates have wavered over the last few weeks as banks anticipate the Federal Reserve’s next move. Right now, all signs point toward a September rate cut. So, what does that mean for CD rates? That now’s the time to secure a high rate before it’s too late.
Read on to learn where you can find CNET’s picks for the best six-month CD rates.
The best 6-month CD rates
Banks that offer the best 6-month CD rates
CommunityWide Federal Credit Union
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APY
- 5.25%
- Min. deposit to open
- $1,000
- Only high-yield CDs available
- Terms range from six months to five years
- No monthly fees
- No automatic renewals
- Early withdrawal penalty fees do apply when you withdraw before your account matures
Editor’s take: CommunityWide Federal Credit Union’s six-month CD currently has the highest CD rate available, at 5.25% APY. This rate is accurate as of Aug. 21, 2024.
This bank consistently makes our list of best online credit unions. You need to deposit at least $1,000 to open a CD account, but we like that there are no monthly fees. CommunityWide Federal Credit Union offers other CD terms with competitive rates, ranging from six months to five years.
Keep your savings timeline in mind before opening any CD account. CommunityWide does charge a pretty hefty early withdrawal penalty. Any amount withdrawn prior to the maturity date will be assessed a penalty equal to the amount of the withdrawal times the remaining term (days) of this certificate at the rate of 2 times the current APR.
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APY
APY = Annual Percentage Yield.
- 5.10%
- Min. deposit to open
- $1,000
- Only high-yield CDs available
- Terms range from six months to two years
- Only up to five CDs per account, which is worth noting for CD ladders
- Early withdrawal penalties range from three to six months of interest
- No monthly fees
Editor’s take: Bask Bank only offers savings and CD accounts. With the Bask Mileage Savings Account, there’s also a chance to earn two American Airlines AAdvantage miles for every dollar saved annually. The high-yield savings account comes with a competitive rate. Occasionally, Bask may bump your CD rate to a promotional rate or allow you to choose a one-time rate bump but aren’t obligated to.
You’ll have to manage the account online, via the mobile app or by calling customer service during available hours at 833-260-4320.
- Only high-yield CDs available
- Terms range from six months to two years
- Only up to five CDs per account, which is worth noting for CD ladders
- Early withdrawal penalties range from three to six months of interest
- No monthly fees
Editor’s take: Bask Bank only offers savings and CD accounts. With the Bask Mileage Savings Account, there’s also a chance to earn two American Airlines AAdvantage miles for every dollar saved annually. The high-yield savings account comes with a competitive rate. Occasionally, Bask may bump your CD rate to a promotional rate or allow you to choose a one-time rate bump but aren’t obligated to.
You’ll have to manage the account online, via the mobile app or by calling customer service during available hours at 833-260-4320.
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APY
APY = Annual Percentage Yield.
- 5.10%
- Min. deposit to open
- $500
- Only high-yield CDs available
- Terms range from one to five years
- Early withdrawal penalties vary by term
Editor’s take: Quontic only offers high-yield CDs, including six-month, one-, two-, three- and five-year terms. All of Quontic’s CDs have competitive rates, but you’ll need a $500 deposit to get started. Interest compounds daily and is paid monthly. When it’s almost time for your CD to mature, you’ll receive a maturity notice that will outline your options for when your CD ends. If you need help, you can reach Quontic via live chat, a phone call or the mobile app. But if you’re looking for speciality CDs or want in-person assistance, you’ll need to consider other options.
- Only high-yield CDs available
- Terms range from one to five years
- Early withdrawal penalties vary by term
Editor’s take: Quontic only offers high-yield CDs, including six-month, one-, two-, three- and five-year terms. All of Quontic’s CDs have competitive rates, but you’ll need a $500 deposit to get started. Interest compounds daily and is paid monthly. When it’s almost time for your CD to mature, you’ll receive a maturity notice that will outline your options for when your CD ends. If you need help, you can reach Quontic via live chat, a phone call or the mobile app. But if you’re looking for speciality CDs or want in-person assistance, you’ll need to consider other options.
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APY
APY = Annual Percentage Yield.
- 4.90%
- Min. deposit to open
- $500
- Only high-yield CDs available
- Terms range from one month to five years
- Early withdrawal penalties apply, but the amount isn’t clear
Editor’s take: M.Y. Safra Bank Direct is a full-service bank that offers a range of checking, savings, money market and CD accounts depending on your needs. However, it’s not the best option for a money market account since the interest rates are lower than other banks. MYSB Direct is still a solid option for most CD accounts since you’ll earn a competitive rate and it only requires a $500 deposit. Another downside is that this bank charges a $5 monthly fee for select accounts.
You can visit the local branch if you live in New York City or call 212-652-7200 during business hours. Accounts can also be managed online.
- Only high-yield CDs available
- Terms range from one month to five years
- Early withdrawal penalties apply, but the amount isn’t clear
Editor’s take: M.Y. Safra Bank Direct is a full-service bank that offers a range of checking, savings, money market and CD accounts depending on your needs. However, it’s not the best option for a money market account since the interest rates are lower than other banks. MYSB Direct is still a solid option for most CD accounts since you’ll earn a competitive rate and it only requires a $500 deposit. Another downside is that this bank charges a $5 monthly fee for select accounts.
You can visit the local branch if you live in New York City or call 212-652-7200 during business hours. Accounts can also be managed online.
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APY
APY = Annual Percentage Yield.
- 4.85%
- Min. deposit to open
- $500
- High-yield, no-penalty and bump-up CDs available
- Terms range from six months to six years, depending on the type of CD
- Early withdrawal penalties range from three to nine months of interest
- CD Maturity Center available 12 months before your CD matures to make changes to your CD beforehand, including withdrawing money or closing the account
Editor’s take: Marcus by Goldman Sachs offers high-yield savings and CDs. No-penalty and bump-up CDs are also available, but checking accounts are not. High-yield CDs require a minimum $500 deposit, while savings accounts don’t require any amount to get started. We like that you can make same-day transfers of $100,000 or less to and from other banks. We like that you can reach the contact center 24/7 by calling 855-730-7283. An extensive list of frequently asked questions is also available online.
However, there are some shortcomings. Marcus by Goldman Sachs doesn’t offer an ATM network, checking or money market accounts. Lastly, you won’t be able to deposit cash or mobile check deposits.
- High-yield, no-penalty and bump-up CDs available
- Terms range from six months to six years, depending on the type of CD
- Early withdrawal penalties range from three to nine months of interest
- CD Maturity Center available 12 months before your CD matures to make changes to your CD beforehand, including withdrawing money or closing the account
Editor’s take: Marcus by Goldman Sachs offers high-yield savings and CDs. No-penalty and bump-up CDs are also available, but checking accounts are not. High-yield CDs require a minimum $500 deposit, while savings accounts don’t require any amount to get started. We like that you can make same-day transfers of $100,000 or less to and from other banks. We like that you can reach the contact center 24/7 by calling 855-730-7283. An extensive list of frequently asked questions is also available online.
However, there are some shortcomings. Marcus by Goldman Sachs doesn’t offer an ATM network, checking or money market accounts. Lastly, you won’t be able to deposit cash or mobile check deposits.
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APY
APY = Annual Percentage Yield.
- 4.80%
- Min. deposit to open
- $0
- Bump-up, high-yield and no-penalty CDs available
- Terms range from three months to five years, depending on the type of CD
- No minimum balance or monthly maintenance fees
- Early withdrawal penalties range from three months to one year of interest
Editor’s take: Synchrony offers competitive rates for its high-yield CDs. It also offers specialty CDs, including no-penalty, IRA and bump-up CDs, but terms are limited. Synchrony doesn’t require a minimum deposit or charge monthly maintenance fees. But keep in mind that if you open a six-month CD with Synchrony and withdraw money before the CD matures, you’re on the hook for three months of interest.
However, Synchrony doesn’t allow cash deposits and a checking account option isn’t available. And Synchrony is an online-only bank, so even though it has a lot to offer, you’ll need to be comfortable managing your accounts online. If so, you’ll also have extended customer service hours by phone and live chat online.
- Bump-up, high-yield and no-penalty CDs available
- Terms range from three months to five years, depending on the type of CD
- No minimum balance or monthly maintenance fees
- Early withdrawal penalties range from three months to one year of interest
Editor’s take: Synchrony offers competitive rates for its high-yield CDs. It also offers specialty CDs, including no-penalty, IRA and bump-up CDs, but terms are limited. Synchrony doesn’t require a minimum deposit or charge monthly maintenance fees. But keep in mind that if you open a six-month CD with Synchrony and withdraw money before the CD matures, you’re on the hook for three months of interest.
However, Synchrony doesn’t allow cash deposits and a checking account option isn’t available. And Synchrony is an online-only bank, so even though it has a lot to offer, you’ll need to be comfortable managing your accounts online. If so, you’ll also have extended customer service hours by phone and live chat online.
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APY
APY = Annual Percentage Yield.
- 4.75%
- Min. deposit to open
- $1,000
- High-yield and jumbo CDs
- IRA CDs are also available for retirement
- Terms range from three months to five years
- Early withdrawal penalties range from seven days to three months of interest
Editor’s take: Alliant offers high-yield CDs and jumbo CDs if you have a higher deposit. Terms range from three months to five years. IRA CDs are also available. Alliant requires a $1,000 minimum deposit, and unlike other banks and credit unions, it compounds and pays interest monthly instead of compounding interest daily. So you won’t earn as much comparatively.
You’ll need to meet certain account eligibility requirements to open an account, but it’s still available nationwide. You can open an account online or by calling 800-328-1935.
- High-yield and jumbo CDs
- IRA CDs are also available for retirement
- Terms range from three months to five years
- Early withdrawal penalties range from seven days to three months of interest
Editor’s take: Alliant offers high-yield CDs and jumbo CDs if you have a higher deposit. Terms range from three months to five years. IRA CDs are also available. Alliant requires a $1,000 minimum deposit, and unlike other banks and credit unions, it compounds and pays interest monthly instead of compounding interest daily. So you won’t earn as much comparatively.
You’ll need to meet certain account eligibility requirements to open an account, but it’s still available nationwide. You can open an account online or by calling 800-328-1935.
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APY
APY = Annual Percentage Yield.
- 4.50%
- Min. deposit to open
- $1,000
- High-yield, jumbo and bump-up CDs available
- Terms range from six months to three years
- Early withdrawal penalties range from three to six months of interest
- No monthly maintenance fees
Editor’s take: Rising Bank offers competitive rates for its high-yield savings and CDs with no monthly maintenance fees attached. The bank also has an interest-earning checking account option, which makes it a solid pick if you’d like to keep all of your money with one bank. You can manage your account via the mobile app and customer service is available to help by email at support@risingbank.com or calling 888-222-9484.
If you’re looking for a longer-term CD, such as a five-year term, it’s best to consider other options since the longest term Rising offers is three years. Or if you need to withdraw more than $550 from your account on a regular basis, you won’t be able to with Rising’s checking or savings accounts. Lastly, money markets are not available.
- High-yield, jumbo and bump-up CDs available
- Terms range from six months to three years
- Early withdrawal penalties range from three to six months of interest
- No monthly maintenance fees
Editor’s take: Rising Bank offers competitive rates for its high-yield savings and CDs with no monthly maintenance fees attached. The bank also has an interest-earning checking account option, which makes it a solid pick if you’d like to keep all of your money with one bank. You can manage your account via the mobile app and customer service is available to help by email at support@risingbank.com or calling 888-222-9484.
If you’re looking for a longer-term CD, such as a five-year term, it’s best to consider other options since the longest term Rising offers is three years. Or if you need to withdraw more than $550 from your account on a regular basis, you won’t be able to with Rising’s checking or savings accounts. Lastly, money markets are not available.
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APY
APY = Annual Percentage Yield.
- 4.25%
- Min. deposit to open
- $0
- Only high-yield CDs available
- Terms range from six months to five years
- CDs cannot exceed $1,000,000
- Early withdrawal penalties range from three to six months of interest
Editor’s take: Capital One offers several savings options that don’t require a minimum deposit or monthly maintenance fees — including high-yield and kids savings accounts. Checking accounts are also available. Compared to other interest-earning checking accounts, the APY is slightly lower for Capital One’s 360 checking account, but you won’t be charged for overdraft protection. And we like the convenience of depositing cash at CVS stores.
Aside from deposit accounts, Capital One offers CreditWise to manage your credit using the Capital One app. You can open an account at a Capital One branch near you or online.
- Only high-yield CDs available
- Terms range from six months to five years
- CDs cannot exceed $1,000,000
- Early withdrawal penalties range from three to six months of interest
Editor’s take: Capital One offers several savings options that don’t require a minimum deposit or monthly maintenance fees — including high-yield and kids savings accounts. Checking accounts are also available. Compared to other interest-earning checking accounts, the APY is slightly lower for Capital One’s 360 checking account, but you won’t be charged for overdraft protection. And we like the convenience of depositing cash at CVS stores.
Aside from deposit accounts, Capital One offers CreditWise to manage your credit using the Capital One app. You can open an account at a Capital One branch near you or online.
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APY
APY = Annual Percentage Yield.
- 4.00%
- Min. deposit to open
- $0
- High-yield, bump-up and IntraFi® CDs available
- Terms range from three months to five years, depending on the type of CD
- No monthly account fee
- Minimum deposit for CD varies based on the type of CD
- Early withdrawal penalty is one-fourth of the CD term’s total interest
Editor’s take: We like that TIAA Bank offers an array of CD types to choose from and competitive rates for its deposit accounts. However, there’s a minimum deposit for most accounts and if you plan to open a checking account, the APY will depend on your daily minimum balance.
24/7 customer support is available online and by phone at 888-882-3837. You can also manage your accounts online or in person if there’s a branch nearby. However, there aren’t many brick-and-mortar branches compared to major national banks.
- High-yield, bump-up and IntraFi® CDs available
- Terms range from three months to five years, depending on the type of CD
- No monthly account fee
- Minimum deposit for CD varies based on the type of CD
- Early withdrawal penalty is one-fourth of the CD term’s total interest
Editor’s take: We like that TIAA Bank offers an array of CD types to choose from and competitive rates for its deposit accounts. However, there’s a minimum deposit for most accounts and if you plan to open a checking account, the APY will depend on your daily minimum balance.
24/7 customer support is available online and by phone at 888-882-3837. You can also manage your accounts online or in person if there’s a branch nearby. However, there aren’t many brick-and-mortar branches compared to major national banks.
Should you open a 6-month CD now?
Since your rate is locked in on the day you open a CD account, opening one can protect your earnings against future rate drops. But it’s always a good idea to compare savings options to get the best account for your financial needs and goals.
You should open a 6-month CD right now if:
Six months is one of the shortest CD terms most banks and credit unions offer. If you’re considering a savings vehicle for a short-term goal, a six-month CD allows you to lock in a fixed rate without the commitment of a long-term CD. But it’s important to note that CDs of less than one year will earn slightly less than the full APY.
One of the benefits of putting money in a CD is that it can help you avoid spending money you want to allocate toward a goal, like saving up for a home down payment, a wedding or a vacation.
Generally, longer-term CDs have higher APYs than CDs with shorter terms, but right now that isn’t the case, due to a phenomenon known as an inverted yield curve. Short-term CDs, such as six-month, nine-month and one-year CDs, are earning higher interest rates than many longer-term CDs. For example, the average APY for three-year and five-year CDs is 3.96% and 3.83%, respectively, while the average APY for six-month CDs is 4.58%, based on the banks we track at CNET.
You should look for CD alternatives if:
Although some of the best six-month CDs are offering APYs over 5.00%, you might consider a high-yield savings account instead if you’d prefer liquidity, says Andrew Latham, a certified financial planner and managing editor of Supermoney.com.
“It often comes down to a balance between interest rates and liquidity needs,” said Latham. If a six-month CD offers a considerably higher rate than the HYSA and you don’t need access to those funds right away, it might be worth considering. But if the rates are comparable, the flexibility of an HYSA can be more appealing, since you can withdraw your funds without facing a penalty, unlike CDs, Latham added.
Several factors determine the CD rates banks offer. When inflation is high, as we’ve seen over the past year, the Fed raises the federal funds rate to increase the cost of borrowing and slow the economy. Banks typically follow suit, raising rates on loans, credit cards and even mortgages but also offering higher savings account rates. But banks also set their own rates to be competitive.
“While the general level of Fed funds interest rates has a positive impact on the direction of savings rates offered across the industry, individual institutions set their rates based upon their need for deposits,” said Tracy Bell, CFA and director of equity strategies at First Horizon Advisors. “An institution in need of deposits may pay a much higher savings rate than one that has excess deposits.”
That’s why it’s best to shop around and compare rates before opening an account. Neobanks — those that only operate online without physical branches — often offer competitive CD and savings rates because these banks have fewer overhead costs.
How to choose a 6-month CD
There are several factors involved in choosing the best CD term to suit your financial needs.
- Rates and features: APY is important, but it’s not the only factor worth considering. However, online-only banks and credit unions usually offer the best rates.
- Minimum deposit requirement: Some CDs require a minimum deposit to open an account, so keep in mind how much you have to set aside to help you narrow down your options. Also, keep in mind that most CDs allow only a one-time deposit upon opening the account, so make sure you can meet the requirement (if there is one) before you get started.
- Customer service: To find a bank that meets your needs, consider how you plan to manage your CD – either online or at a physical branch. If it’s an online bank, contact its customer service line before you open an account to gauge whether you feel comfortable with the quality of assistance you’ll get.
- Early withdrawal penalties: Early withdrawal penalties can eat into your interest earnings. To avoid unnecessary fees, choose a term that fits your savings timeline. But just in case you need to withdraw money sooner – though you should always avoid this if you can – check the early withdrawal penalties to see how much you’ll be on the hook for.
You’ll also want to check your options for how the interest will be managed. Depending on the bank, you can invest the CD’s interest to compound your savings further, or you can have the interest deposited into another eligible account — usually at the same bank — to have access to the interest immediately, penalty-free. If you want access to your interest sooner, consider opening a CD at a bank you already have an account with.
How to open a 6-month CD
When you’re ready to open a CD, you can open the account in person or online, depending on the bank. You’ll need to provide some personal information to open the account, such as your full name, Social Security number or Individual Taxpayer Identification Number, physical address and contact information.
After you complete the application, you’ll need to make a one-time deposit to fund the CD. You won’t be able to make any additional contributions after that — unless you open an add-on CD — so you should only open a CD when you have the funds ready to go.
FAQs
A six-month CD is an interest-earning deposit account that offers a return for a fixed period, or term, of six months. Your bank or credit union pays a guaranteed interest rate on your one-time deposit in exchange for keeping your money in the account for half a year. When the term ends, you’ll receive the interest plus your initial deposit. You may then roll the funds into a new CD or use the money toward a different goal.
Fees vary depending on the institution. Most CDs charge an early withdrawal penalty for taking money out before the CD term ends. The fee is generally based on a percentage of the interest earned and the CD term. Some banks also charge monthly maintenance fees.
The Federal Deposit Insurance Corporation or National Credit Union Administration insures CDs purchased through a bank or credit union, respectively, for up to $250,000 per person per account category. To clarify, if you have multiple CDs at the same bank, you will only be insured up to $250,000 in total across all the CD accounts.
That means you won’t lose your deposit if there’s a bank failure or loss. Usually, you’ll only lose money from an FDIC- or NCUA-insured CD by withdrawing money before the CD term ends. If so, you’ll typically pay a withdrawal penalty equaling a portion of the interest.
Depending on your savings goals, a money market or high-yield savings account may be a better fit than a CD if you plan on regularly withdrawing or contributing funds.. You’ll still earn a competitive rate, but instead of locking in a rate with a CD, you’ll have a variable interest rate that will fluctuate with the market — so your return will be much less predictable.
If you need to withdraw your funds before six months are up, you’ll typically pay an early withdrawal fee. Each bank has its own early withdrawal penalties equal to a portion of the interest you’ve accrued. Some banks we track charge three months of interest for a six-month CD.
After your CD matures, most CDs offer a grace period of seven to 10 days to give you time to decide if you want to withdraw your funds, purchase another type of CD or let the CD automatically renew at the then-current rate.
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Methodology
CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We selected the CDs with the highest APY for six-month terms from among the organizations we surveyed.
The banks, credit unions and neobanks we reviewed include: Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Barclays, BMO Harris, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Citizens Access, Colorado Federal Savings Bank, Connexus Credit Union, Consumers Credit Union, Discover Bank, First Internet Bank of Indiana, First Tech Federal Credit Union, FNBO Direct, GO2bank, Golden 1 Credit Union, HSBC Bank, Huntington Bank, Lake Michigan Credit Union, LendingClub Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Nationwide (by Axos), Navy Federal Credit Union, NBKC, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, Synchrony Bank, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, USAA Bank, Vio Bank and Wells Fargo.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
