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Six-month CD rates are a great way to maximize your short-term savings, especially if you can score a higher interest rate. Your money isn't tied up as long as with longer CD terms, giving you the flexibility to pivot your investing strategy as needed.
Here are our picks for the best 6-month CD rates, what to consider when choosing a CD, and alternatives that may offer better returns.
We pride ourselves on being able to confidently say that these CDs are chosen by personal finance experts that operate independently of our Partnerships team, meaning the picks on this page are not and never have been influenced by advertising deals.
Our Ratings team:
Western Alliance Bank offers some of the highest APYs we've seen across short-term CDs through the Raisin platform. Its CDs have low $1 minimums, and relatively low withdrawal penalties without any additional fees. But you will need to look elsewhere for terms longer than one year.
Minimum Deposit $1
3 Mo. APY | 5 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY |
---|---|---|---|---|
5.26% | 5.30% | 5.23% | 5.15% | 5.05% |
Quontic Bank offers CDs with terms ranging from six months to five years. It offers most of the terms one would expect, though it is missing a four-year CD, so it may not be ideal for those hoping to build a CD ladder. Its rates are competitive, especially on its longer term CDs, and its minimum deposit is more affordable than what you see with some other top banks.
Minimum Deposit $500
6 Mo. APY | 1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
---|---|---|---|---|
5.05% | 4.50% | 4.50% | 4.40% | 4.30% |
Barclays offers competitive rates on most common CD terms with no minimum balance requirements. There are no monthly fees, so you likely won't lose money unless you try to withdraw your funds early. Those interested in building longer-term CD ladders will find plenty to like here.
Minimum Deposit $0
6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
4.85% | 5.00% | 4.50% | 4.00% | 3.50% | 3.50% | 3.75% |
LendingClub CDs don't skimp on interest, offering competitive APYs for all six of their CD terms, from six months to five years. They're also FDIC insured. One downside is that you'll need to commit at least $2,500 to open an account.
Minimum Deposit $2,500
6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|
5.00% | 5.15% | 5.00% | 4.50% | 4.30% | 4.00% |
Tab Bank CDs are available for an opening deposit of at least $1,000, but the APYs are competitive and terms offered are straightforward. You could easily build a CD ladder at Tab Bank.
Minimum Deposit $1,000
6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|---|
5.27 | 5.27% | 5.27% | 5.00% | 4.80% | 4.25% | 4.05% | 4.00% |
Sallie Mae may not be well-known for its banking services, but it offers CDs with competitive rates and the typically available terms. But the $2,500 required minimum deposit to open one will make them out of reach for many savers.
Minimum Deposit $2,500
6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
5.10% | 5.15% | 5.25% | 4.90% | 4.50% | 4.00% | 4.00% |
Perhaps one of the lesser-known names on the list, Synchrony is a full-line bank with a 90-year history. Synchrony's CDs are notable for competitive rates at most term lengths, plus low or no minimum deposits.
Minimum Deposit $0
6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|---|
4.80% | 5.10% | 4.80% | 4.50% | 4.20% | 4.15% | 4.00% | 4.00% |
Savers have the potential to create effective CD ladders through Marcus, as it provides competitive rates through the most common CD terms. The minimum deposit is $500 and withdrawal penalties are moderate compared with competitive banks.
Minimum Deposit $500
6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY | 6 Yr. APY |
---|---|---|---|---|---|---|---|---|
5.10% | 5.00% | 5.00% | 4.60% | 4.20% | 4.15% | 4.05% | 4.00% | 3.90% |
The rates on Prime Alliance Bank's CDs are decent enough, but you can find better. However, the relatively low $500 minimum deposit makes these more available to the everyday saver -- or someone looking to build a CD ladder.
Minimum Deposit $500
6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
4.95% | 4.95% | 4.75% | 4.50% | 4.25% | 4.00% | 4.00% |
Want a competitive APY on a shorter-term CD? Look no further than Vio Bank -- and you can bring just $500 to open a CD there. Longer-term CD rates aren't so competitive, though.
Minimum Deposit $500
6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
5.25% | 5.00% | 4.50% | 4.25% | 3.50% | 2.75% | 2.75% |
Here are some other factors besides APY to consider when comparing 6-month CDs:
Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
---|---|---|---|---|
APY: 5.23% | Term: 6 Months | Min. Deposit: $1 | ||
Member FDIC.
| APY: 5.05% | Term: 6 Months | Min. Deposit: $500 | |
Member FDIC.
| APY: 4.85% | Term: 6 Months | Min. Deposit: $0 | |
Member FDIC.
| APY: 5.00% | Term: 6 Months | Min. Deposit: $2,500 | |
Member FDIC.
| APY: 5.27 | Term: 6 Months | Min. Deposit: $1,000 | |
APY: 5.10% | Term: 6 Months | Min. Deposit: $2,500 | ||
Member FDIC.
| APY: 4.80% | Term: 6 Months | Min. Deposit: $0 | |
Member FDIC.
| APY: 5.10% | Term: 6 Months | Min. Deposit: $500 | |
Member FDIC.
| APY: 4.95% | Term: 6 Months | Min. Deposit: $500 | |
Member FDIC.
| APY: 5.25% | Term: 6 Months | Min. Deposit: $500 |
A 6-month CD is a bank account that locks a deposit up for six months in exchange for a fixed interest rate. Like other CDs, six-month CDs usually come with an early withdrawal penalty, usually equal to three months of interest, which you pay if you cash out your CD early.
However, 6-month CDs have shorter maturity periods than other CD terms, which could reduce the risk of needing to withdraw funds early.
A 6-month CD is right for people who want to earn a decent interest rate but don't want their money tied up longer than six months.
How much you earn depends on your rate and how much you deposit into the CD. Let's look at some examples.
The best CDs have rates in the 4.50% to 5.50% range. To look at some actual numbers, here's what you'd earn with $1,000 in a high-yield 6-month CD based on the APY:
APY | 4.50% | 4.75% | 5% | 5.25% | 5.50% |
---|---|---|---|---|---|
End balance | $1,022.71 | $1,023.99 | $1,025.26 | $1,026.54 | $1,027.82 |
Total interest | $22.71 | $23.99 | $25.26 | $26.54 | $27.82 |
At the low end, you're looking at a total interest earning of $22.71, which is great for just letting your money sit there.
(We assumed that the CD compounds monthly in these calculations. Some may actually compound daily, so you could maybe boost these totals by a few cents in that case.)
Now, above we looked at some of the best CDs. That's an important distinction to make, because many, many institutions are not going to offer you rates anywhere near this high.
An average 6-month CDs offers APYs as low as 0.03%. Stay away from these low-rate CDs. Here's how little $1,000 will grow in an "average" 6-month CD:
APY | 0.03% | 0.50% | 1.00% | 1.49% | 2.50% |
---|---|---|---|---|---|
End balance | $1,000.15 | $1,002.50 | $1,005.01 | $1,007.47 | $1,012.57 |
Total interest | $0.15 | $2.50 | $5.01 | $7.47 | $12.57 |
No, it's unlikely 6-month CD rates will go any higher in 2024. In fact, CD rates have slowly dropped.
While the drops have been subtle, they could be more pronounced if the Federal Reserve decides to cut its federal funds rate, which is the primary reason CD rates have been at their highest in over a decade. If you're interested in investing in short-term CDs, it might be prudent to lock in a rate while they're still high.
Opening a 6-month CD account can be a solid investment choice, but it also has its drawbacks. Here are some pros and cons to opening 6-month CDs.
The best 6-month CD rates allow you to earn a fair amount of money in a short amount of time. However, other options might provide more flexibility or more growth. Here are a few alternatives to a 6-month CD to consider:
For high-yield interest while keeping your money accessible, try a high-yield savings account. The interest on these accounts can sometimes approach 6-month CD rates. Another plus: Savings accounts don't require you to leave your money untouched long term. However, keep in mind that savings account interest rates are not guaranteed for any specific length of time, and can certainly rise or fall significantly within a six-month period.
Money market accounts are similar to savings accounts, but they often come with extra features like an ATM card or check-writing privileges. They also feature high-yield savings rates that are comparable to the best CD rates. Money market accounts are a great way to build toward a savings goal, like a vacation or emergency fund.
Typically, a longer CD term will offer a higher interest rate than even the best 6-month CD rates. But be careful: You could face hefty penalties if you need to withdraw funds early. Another option is to build a CD ladder. This strategy involves opening several CD accounts of varying lengths. CD ladders allow you to take advantage of higher rates without tying up all of your money long term.
If you are playing the long game, CDs are unlikely to earn as much interest as investing in stocks or a retirement fund. However, you won't see high returns on the stock market within six months -- you'll likely need to wait a few years. There's also a greater risk because stocks can fall dramatically in a short time. Investing is only a smart choice if you can let your money sit and grow long term.
Six-month CDs are one of the shortest CD terms available, but typically have higher APYs than the national savings rate. Whether a CD is right for you depends on your banking needs and whether you can commit to leaving your money alone for a set period.
Offer | APY | Min. Deposit |
---|---|---|
5.23% - 6 Mo. | $1 | |
5.05% - 6 Mo. | $500 | |
4.85% - 6 Mo. | $0 | |
5.00% - 6 Mo. | $2,500 | |
5.27 - 6 Mo. | $1,000 | |
5.10% - 6 Mo. | $2,500 | |
4.80% - 6 Mo. | $0 | |
5.10% - 6 Mo. | $500 | |
4.95% - 6 Mo. | $500 | |
5.25% - 6 Mo. | $500 |
At The Motley Fool Ascent, our certificates of deposit (CDs) ratings primarily focus on annual percentage yield (APY) and early withdrawal penalty fees. Our highest-rated CDs generally include competitive APYs without complex qualification tiers, low withdrawal fees, reliable brand trust and reputation, and ease of use.
The Ascent tracks just standard CDs, not IRA, bump up, callable, and other less popular CD accounts. CD rates displayed on this Best 6-Month CD Rates pages are comprised of both the highest CD rates in The Ascent’s universe of tracked rates and featured placements from advertisers. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list.
Learn more about how The Motley Fool Ascent rates bank accounts.
Here are the 100+ financial institutions we've evaluated in our research:
Alliant, Ally, All America Bank, American First Credit Union, American Express® National Bank, Arvest Bank, Aspiration, Axos Bank, B2 Bank, Bank of America, Bank5 Connect, Bank7, Barclays, Bask Bank, Betterment, Bluevine, BMO, Bread Financial, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIT, Citibank, Citizens Bank, Citizens Savings Bank, Columbia Bank, Connexus Credit Union, Consumers Credit Union, Copper, Cross River Bank, Customers Bank, Discover® Bank, E*TRADEEdward Jones, EverBank, Fidelity, Fifth Third Bank, First Foundation Bank, First Internet Bank of Indiana, First National Bank, First Tech Federal Credit Union, Flushing Bank, Freedom Bank, Generations Bank, GN Bank, Golden 1 Credit Union, Greenlight, Harborstone Credit Union, HSBC, Huntington Bank, Ivella, Jenius Bank, Kabbage by American Express, KeyBank, Laurel Road, LendingClub, Liberty Bank, Liberty Federal Credit Union, Marcus by Goldman Sachs, Mercury, Municipal Credit Union, Mutual of Omaha, My Banking Direct, NASA Federal Credit Union, Nationwide Bank, Navy Federal Credit Union, NBKC Bank, New York Community Bank, NexBank, Northpointe Bank, Novo, OceanFirst Bank, Old National Bank, ONE Finance, OneUnited Bank, Oxygen, Pacific Western Bank, PNC Bank, Ponce Bank, Popular Direct, Presidential Bank, Prime Alliance Bank, Quontic, Radius, Raisin, Redneck Bank, Regions Bank, Relay, Republic Bank of Chicago, Revolut, Salem Five Bank, Sallie Mae, Santander Bank, SchoolsFirst Federal Credit Union, Simple, SoFi, Synchrony Bank, Tab Bank, TD Bank, Third Federal, Truist Bank, U.S. Bank, UFB, Upgrade, USAA, Valley Bank, Vanguard, Varo Bank, Vio Bank, Wealthfront, Wells Fargo, Western Alliance Bank, and Zeta.
Six-month CDs are a great way to get a taste of the CD world without commiting your money for a long period. They are also a great short-term CD option in a CD-ladder strategy.
A 6-month CD is worth it if you prefer the flexibility of a shorter CD term over the higher rate of a longer term.
After choosing a 6-month CD, you'll open an account and make an initial deposit, making sure to meet the minimum on your CD (if it has one). You'll then let your deposit grow over six months. Once the six months are over, your CD has matured, and you can withdraw your deposit plus interest. You can also reinvest your money into another CD or renew the 6-month CD at the same institution.
Our Banking Experts
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.