6-Month vs. 5-Year CDs: What's the Best Investment in November 2025?
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CDs are one of the few safe havens still paying meaningful interest. With rates near 4.00% APY, they let you earn steady, guaranteed returns without worrying about what the market or the Fed does next.
The real question is how long to lock up your money. Here's how 6-month and 5-year CDs stack up heading into the end of 2025.
Rate comparison: 6-month vs. 5-year CDs
Here's where the top offers stand this month:
- 6-month CD: around 4.00% APY
- 5-year CD: around 3.50% APY
If you invest $10,000 today:
- A 6-month CD would earn about $200 by maturity.
- A 5-year CD would grow by roughly $1,877 over the full term.
Short-term rates are now higher than long-term ones, which is a sign that the market expects the Federal Reserve to keep cutting rates into 2026.
When a 6-month CD makes sense
A 6-month CD is the flexible play. You get a strong rate for half a year, and your money comes back quickly if conditions change.
With markets expecting another Fed rate cut before 2026, short terms let you stay nimble without parking your cash in a low-yield savings account.
A 6-month CD could be the right move if you:
- Expect to need your money within the next year
- Think rates might rise once more before cuts begin
- Want to roll short CDs into new ones as yields shift
Check out the best current short-term CD rates and lock in before banks adjust downward.
When a 5-year CD makes sense
If you won't need your money anytime soon, a 5-year CD offers the comfort of consistency. You get to lock in a higher long-term yield, and protect yourself from future rate drops.
That makes long-term CDs ideal for building predictable income or anchoring part of a balanced portfolio.
A 5-year CD might fit best if you:
- Have savings you won't touch until 2030 or later
- Prefer guaranteed growth to chasing new rates
- Expect the Fed's next moves to be cuts, not hikes
Explore today's best 5-year CDs to secure your rate before yields start to slide.
Don't overlook high-yield savings accounts
If you want flexibility above all else, a high-yield savings account (HYSA) is a solid middle ground.
Top accounts still pay over 4.00% APY, and your money stays fully accessible. HYSAs are fully insured and operate just like traditional savings accounts from big banks like Chase and Bank of America. The only difference is high-yield savings accounts don't pay 0.01% interest like most major banks.
Compare the best high-yield savings accounts here to keep earning while staying liquid.
What's best for you?
Both 6-month and 5-year CDs offer attractive yields in November 2025.
The best choice comes down to your timeline:
- Choose a 6-month CD if you want flexibility and expect more rate movement.
- Choose a 5-year CD if you want to lock in stability before the next cuts hit.
Either way, CDs remain one of the safest, simplest ways to earn meaningful returns heading into 2026.
Our Research Expert
Jake FitzGerald is a full-time Editorial Strategist and Personal Finance Writer at Motley Fool Money, leading content production and distribution while also writing about credit cards, bank accounts, and other financial products. He has more than a decade of experience editing and shaping financial content to give readers clear, trustworthy money advice. His work focuses on delivering practical insights that empower people to make smarter financial decisions. Off the clock, he’s a fan of college football tailgates and still loyal to his favorite putter -- despite what his short game suggests.