Should You Lock In a 6-Month CD in June 2025?

The Federal Reserve held rates steady again this month, and now we're back in wait-and-see mode.

If you've been eyeing short-term certificates of deposit (CDs), now's the time to take a serious look. Some of the best 6-month CDs are still offering around 4.00% APY or higher, and if rate cuts do kick in later this year (as many economists expect), this could be one of your last chances to grab a short-term return that strong.

Why a 6-month CD could make sense right now

A 6-month CD gives you a guaranteed return over a short window with no stock market risk, no rate games, and no surprises. You lock in your rate, let it sit, and get your money (plus interest) at maturity.

In June 2025, that's a pretty appealing deal. Here's why:

• The Fed stayed put. With no immediate rate cuts, CD yields are holding steady. But that's not guaranteed to last.
• You don't have to commit long-term. If rates stay high, you can reinvest in six months. If they drop, you already locked in something solid.
• It's a way to earn more than some savings accounts without losing access to your cash for too long.

Right now, many of the highest-yielding online banks are offering 4.00% APY on 6-month CDs. That's miles ahead of the national average and a great short-term play if you've got cash sitting idle.

How to know if it's right for you

If you've got extra money you don't need to touch for a few months, a 6-month CD is worth considering.

Here are three signs it could be a good pick for you:

• You want a fixed return. No surprises, no market risk.
• You're nervous about rates falling. A CD locks in your rate now.
• You still want flexibility. Six months is short enough to reassess your options by the end of the year.

But if you need immediate access or think rates might rise from here (less likely now), you might want to stick with a high-yield savings account instead.

A small move now could pay off big by December

No one can perfectly time the Fed. But locking in a guaranteed 4.00% or higher return for six months while you wait for clearer signals? That's a smart move in an uncertain environment.

You won't get rich off a 6-month CD. But you will protect your money from losing value in a regular savings account, and position yourself to reinvest when the dust settles.