Should You Open a 6-Month CD in November 2025?

The Fed has now cut rates at back-to-back meetings this fall. And odds are, more cuts are coming soon and will continue into 2026. As a result, some banks are already trimming APYs on savings accounts, nudging yields lower.

That's why locking in a high short-term CD rate might be one of the best low-risk plays right now. Especially if you can snag a good 6-month rate around 3.50%-3.90% APY.

Here are a few things to consider and places to look for high APYs.

Why a 6-month CD could make sense right now

A CD gives you a guaranteed return, FDIC protection up to $250,000, and zero exposure to stock market swings. In other words: peace of mind.

Right now, the top 6-month CDs are offering APYs in the 3.50%-3.90% range. They're a good choice for a few reasons:

• They're short enough to keep your options open and cash available in Spring 2026
• They're immune to future Fed rate cuts and savings rate changes
• Your principal is protected, with no volatility
• Short term CDs often offer better rates than longer-term CDs

If interest rates drop later this year or early next, today's CD offers could look like a steal in hindsight.

Is a 6-month CD right for you?

The biggest drawback to CDs is that they come with a penalty if you need to withdraw your money before the term is complete.

So it's mostly a question of what money goals you have and when you'll need to access your cash.

A few quick questions to ask yourself:

• Do I have cash I won't need until late spring or summer 2026?
• Am I OK locking that money up for six months?
• Do I want a guaranteed return without market risk?

If you're nodding "yes" across the board, then a 6-month CD might be a great move. Especially if you're more focused on capital preservation than chasing returns.

But if you need 24/7 access to your funds (like in case of emergency or buying things in a pinch) a top high-yield savings account is a better option for that money.

What about high-yield savings accounts (HYSAs)?

Right now, a couple top HYSAs are still paying north of 4.00% APY.

Yes, HYSA rates are variable and exposed to immediate rate changes. So they will likely drop in the coming months.

But even if they dip slightly over the next few months, your total earnings could still match what you'd get from locking in a 6-month CD.

Personally, I'm sticking with an HYSA for now. I like having the flexibility to access my cash, and I still expect to earn about the same interest as a top CD, without locking anything up.

Compare today's top high-yield savings accounts and find one that fits your short-term goals.

The bottom line

The Fed has already started cutting rates, and more reductions are likely on the way. That puts savers in a tricky spot as APYs drop on both savings accounts and CDs.

A 6-month CD will at least offer guaranteed earnings and protection from cuts into early 2026.

But if you can snag a high-yield savings account paying 4.00% or more, you might end up with the same interest -- while keeping full access to your cash.