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We check rates from many top nationwide financial institutions each day to help you find the best 6-month CDs. If you're interested in a short-term CD that will let you lock in a good interest rate, 6-month CDs could be a good choice. The national average CD rate on a 6-month term is 1.75% APY (Annual Percentage Yield), according to the FDIC.
| Featured Offer | APYs (Annual Percentage Yields) are accurate as of 11/13/2024 | Minimum Deposit |
| Featured Offer - Barclays 6 Month Online CD | 4.50% | $0 |
| Valley Direct Savings Promo | 4.80% (for new customers only) | $1 |
However, there are much higher interest rates on 6-month CDs right now. The best CD rate for a 6-month term is 5.25% APY available at Newtek Bank.
Below, you'll find our top picks for the best 6-month terms currently offered by nationwide banks and credit unions.
Best 6-Month CDs
- Newtek Bank 6 Month CD: 5.25% APY
- Vibrant Credit Union 6 Month Certificate Special: 5.00% to 5.25% APY
- TotalBank 6 Month CD: 4.85% APY
- Bellco Credit Union 6 Month CD: 4.75% APY
- Bread Savings 6 Month High-Yield CD: 4.75% APY
- AbleBanking 6 Month CD: 4.70% APY
- Limelight Bank 6 Month Online CD: 4.65% APY
- America First Credit Union 6 Month Certificate: 4.55% 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.
You might also want to look for eco-friendly banks or community development financial institutions. Both of these types of financial institutions use the money you put in the bank for good; eco-friendly banks help the environment, while CDFIs provide financial services to underserved banking populations. Opening a CD with one of these financial institutions can be an easy way to support causes you care about.
5.25%
$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% to 5.25%
$5
- Low minimum opening deposit
- High APY
- Maximum of $250,000
- Must be opened with new money
- High early withdrawal penalty
- Credit union branches only in Illinois
- Branches only in Illinois
- To become a member of Vibrant Credit Union, you must meet one of the following requirements: 1) join the Illinois Consumer Council, 2) work for a Select Employee Group 3) are a member of an association Vibrant partners with 4) live or work in select areas in Illinois, Indiana, Iowa, or Wisconsin
- Limit of 2 accounts per member
- Earn an additional 0.10% APY if you have a Preferred Savings account with a balance of $10,000
- Earn an additional 0.25% APY if you have an Elite Savings account with a balance of $100,000 or more
- Early withdrawal penalty is all interest earned
- Interest compounded and credited quarterly
- Federally insured by the NCUA
4.85%
$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
no monthly service fees
4.75%
$500
- High interest rate
- Low minimum opening deposit
- Credit union that anyone can join
- Credit union also offers many types of specialty CDs
- Low early withdrawal penalties
- Physical branches only in Colorado
- Interest compounds monthly, not daily
- Can become a Bellco member by living or working in certain parts of Colorado, being a family member of a Bellco member, working for a Select Employee Group, or by donating $5 and joining the Bellco Foundation
- 29 physical branches in Colorado
- Customer service available by phone from 8:00 a.m. MT to 6:00 p.m. MT, Monday through Friday, and 8:00 a.m. MT to 2:00 p.m. MT on Saturday
- Traditional CDs are available with term lengths from 3 months to 5 years. Smart Move CDs, Jumbo CDs, Youth CDs, HSA CDs, and IRA CDs are also available
- Early withdrawal penalties are 30 days of interest for 3-month CDs, 90 days of interest on 6 month to 3 year CDs, and 180 days of interest on any CD with term lengths over 3 years
- Interest compounds and deposits monthly
- Member NCUA
4.75%
$1,500
- Competitive APY
- Standard early withdrawal penalties
- $1,500 minimum opening deposit
- Limited term options
- Early withdrawal penalty: 180 days simple interest for terms between 1 year and 3 years; 365 days simple interest for terms between 4 years and 5 years
- Interest compounded daily, paid monthly
- FDIC Insured
no monthly service fees
4.70%
$5,000
- High interest rate
- Interest compounds daily
- Standard-to-low early withdrawal penalties
- High minimum opening deposit
- New money only
- Online-only bank
- Limited CD terms
- Online division of Northeastern Bank
- New money only (money that hasn’t been deposited with ableBanking in the past 30 days)
- Online-only bank
- Customer service available by phone from 8:00 a.m. ET to 6:00 p.m. ET from Monday to Friday and 9:00 a.m. ET to 1:00 p.m. ET on Saturday
- CDs available with term lengths of 6 months, 1 year, and 2 years
- Early withdrawal penalties are 90 days of interest for 6-month, 1-year, and 2-year term lengths
- Interest compounds daily and deposits monthly
- Member FDIC
4.65%
$1,000
- Competitive interest rate
- Standard-to-low early withdrawal penalties
- $1,000 minimum opening deposit
- Interest compounded daily and deposited monthly
- FDIC insured
4.55%
$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
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.
Newtek Bank 6 Month CD
Newtek's 6-month CD has one of the best rates currently offered. 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.
APY for 6-month CD: 5.25% APY
6-month CD early withdrawal penalty: 90 days of interest
Vibrant Credit Union 6 Month Certificate Special
Vibrant Credit Union offers a good rate on its 6-month CD. The CD has a very low minimum opening deposit of $5, which could be helpful if you want to open a CD with a small amount of money. If you have a Preferred Savings account or an Elite Savings account with Vibrant Credit union, you'll earn a higher rate.
Vibrant Credit Union is a credit union anyone can join by becoming a member of the Illinois Consumer Council. You can also qualify if you're an employee of a select employer group, a family member of a current Vibrant member, or if you live or work in certain parts of Illinois, Indiana, Iowa, or Wisconsin.
APY for 6-month CD: 5.00% to 5.25% APY
6-month CD early withdrawal penalty: All of the interest accrued
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: 4.85% APY
6-month CD early withdrawal penalty: 30 days of interest
Bellco Credit Union 6 Month CD
Bellco Credit Union is a credit union anyone in the U.S. can join and it offers a strong rate on its 6-month CD. It also has a low minimum opening deposit of $500.
The easiest way to join Bellco is by joining the Bellco Foundation. You'll need to make a $5 donation as part of the joining process. You can also be eligible to join the credit union by living in certain parts of Colorado, by working for one of Bellco's select employee groups, or by having a family member who's already part of the credit union.
APY for 6-month CD: 4.75% APY
6-month CD early withdrawal penalty: 90 days of interest
Bread Savings 6 Month High-Yield CD
Bread Savings is one of the top banks for 6-month CD rates. It also offers a high-yield savings accounts and CDs that pay above the national average.
This CD comes with a $1,500 minimum opening deposit, which is a bit steeper than other banks. If you don't plan to put a lot of money in your CD, you might want to consider one of our other options.
APY for 6-month CD: 4.75% APY
6-month CD early withdrawal penalty: 90 days of interest
AbleBanking 6 Month CD
AbleBanking, an online division of Northeastern Bank, offers a good rate on its 6-month CD. It also has standard-to-low early withdrawal penalties on all of its CD products, which could be helpful if you think there's a chance you'll need to withdraw your money before the end of the term.
AbleBanking requires a significantly higher minimum opening deposit than most CDs do, at $5,000. It also only offers a few CD term lengths; if you want to set up a CD ladder using CDs from one bank, you might struggle to do that with AbleBanking.
APY for 6-month CD: 4.70% APY
6-month CD early withdrawal penalty: 90 days of interest
Limelight Bank 6 Month Online CD
Limelight Bank is an online division of CCBank, and it offers good rates on its 6-month CD. It also has strong 3-year CD rates.
Limelight Bank doesn't offer very many term lengths for its CDs; it only has 6-month, 1-year, 18-month, and 3-year CDs. The bank doesn't offer other types of bank accounts, either. If you're hoping to open CDs with term lengths over 3 years, or if you're looking for a primary bank, you might prefer another option.
APY for 6-month CD: 4.65%
6-month CD early withdrawal penalty: 90 days of interest
America First Credit Union 6 Month Certificate
America First Credit Union offers one of the best rates for 6-month CDs, and you only need $500 to open it — 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 Arizona, Idaho, 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: 4.55% APY
6-month CD early withdrawal penalty: 60 days of interest
America First Credit Union Review
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 |
| Newtek Bank | A+ |
| Vibrant Credit Union | A+ |
| TotalBank | A- |
| Bellco Credit Union | A+ |
| Bread Savings | A+ |
| AbleBanking | A+ (Rating for its parent bank, Northeast Bank) |
| Limelight Bank | A+ (Rating for its parent bank, CCBank) |
| America First Credit Union | A+ |
TotalBank has an A- rating from the BBB because it hasn't responded to a customer complaint.
One of our top choices has been involved in a recent controversy.
In 2023, Bellco Credit Union settled with the Colorado attorney general's office along with Canvas Credit Union. The attorney general's office says that Bellco and Canvas were not refunding unearned GAP fees for its loan customers who paid off their car loans early or had their cars repossessed and auctioned before the end of the loan. The Colorado attorney general's office provided $4 million in refunds for Colorado borrowers from funds that both credit unions paid.
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.
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 5.25% APY. This CD rate is offered by Newtek Bank.
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 cut rates in September and is expected to cut rates more in the future. You'll see likely 6-month CD rates start declining as a result.
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. 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.
Ultimately, your choice of whether a 6-month, 1-year, or 5-year CD is best 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.
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 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.
*The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank's discretion. Refer to product's website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. **Earn 5.00% APY when you deposit at least $250 per month, earn 4.00% standard APY if minimum isn't met. ***Rate are determined by balance tiers and amount deposited. Earn 4.80% APY with balances over $250,000 and 4.50% APY for balances under $250,000. ****0.25% APY on balances under $5,000. Rates as of 11/13/2024. CIT Bank is a division of First-Citizens Bank & Trust Company, a member of the Federal Deposit Insurance Corporation (FDIC), which means your deposit accounts are insured up to $250,000 per depositor, for each account ownership category. Deposits held under the names First Citizens Bank & Trust Company and CIT Bank are not separately insured but must be combined for purposes of determining whether a depositor has exceeded the federal insurance deposit limit. *****SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
