6-Month or 5-Year CDs: Which Are Better in September 2025?

CDs shine when the economy feels unpredictable (like right now!). You can snag guaranteed returns around the 4.00% APY mark and tune out the noise from Wall Street, Fed chatter, and scary headlines.

But how long should you lock in your money?

Let's break down the case for 6-month vs. 5-year CDs -- and compare today's top rates in mid September.

Rate comparison: 6-month vs. 5-year CDs

Here's a quick look at some of the best CD rates in September 2025:

• Top 6-month CD: around 3.75% APY
• Top 5-year CD: 3.60% APY

If you dropped $10,000 into a 6-month CD today, you'd walk away with about $186 in interest by maturity. That same $10,000 in a 5-year CD would grow to about $1,934 over the full term.

And here's a little curveball worth mentioning… Some banks are offering 8-month or 14-month CDs above 4.00% APY. These are worth a look if you're looking for higher yields and are OK with less conventional terms.

When a 6-month CD makes sense

Short-term CDs are great if you like flexibility. Your money is only tied up for half a year, so you can pivot quickly if rates change or you find a better opportunity.

The biggest thing to consider is where rates might be when your CD matures early next year. Given expected rate cuts in late 2025 you might find yourself with much lower APY options for renewal.

A 6-month CD might be a good move if you:

• Expect to need your cash within the next 12 months
• Want to lock in one of today's best short-term rates
• Think interest rates could climb higher before they fall

When a 5-year CD makes sense

If you've got cash you won't need for several years, a 5-year CD will give you peace of mind. You'll lock in a steady return, and keep it no matter what the Fed does over the next few years.

If rates slide as many expect, you'll be sitting pretty with today's fixed rate.

Of course the catch is that early withdrawals usually mean penalties that cut into your interest earnings.

A 5-year CD could be the right fit if you:

• Have long-term savings you won't touch until at least 2030
• Value predictable, steady returns
• Believe interest rates are more likely to drop than rise

Explore the best 5-year CDs and secure your rate for the long haul.

Don't neglect high-yield savings accounts

Not everyone wants to tie up cash in a CD, and that's perfectly fine.

A high-yield savings account (HYSA) gives you competitive returns without the commitment.

Today's best HYSAs are paying between 3.50% and 4.30% APY, with limited-time offers pushing as high as 4.50% APY. The beauty is flexibility -- you can move your money anytime, penalty-free.

Rates can change instantly on savings accounts. But that's the trade-off for instant access. If you're still figuring out your next move, an HYSA lets your money grow while keeping every option on the table.