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Best 6-Month CD Rates of October 2022

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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.

Ratings Methodology
Rates as of Sept. 29, 2022
Best 6-Month Certificates of Deposits (CDs) of October 2022 picks.
Bank & CD Offer APY Min. Deposit Next Steps
APY -6 Mo.:  1.70% Min. Deposit:   $500
APY -6 Mo.:  1.75% Min. Deposit:   $1,000
APY -6 Mo.:  1.75% Min. Deposit:   $2,500
APY -6 Mo.:  1.50% Min. Deposit:   $0
APY -6 Mo.:  2.00% Min. Deposit:   $500
APY -6 Mo.:  1.75% Min. Deposit:   $0
APY -6 Mo.:  1.30% Min. Deposit:   $1,000
APY -6 Mo.:  2.05% Min. Deposit:   $500
APY -6 Mo.:  1.30% Min. Deposit:   $0
APY -5 Yr.:  3.15% Min. Deposit:   $0
APY -3 Yr.:  3.10% Min. Deposit:   $0
APY -1.5 Yr.:  3.00% Min. Deposit:   $0
APY -1 Yr.:  3.00% Min. Deposit:   $0
APY -4 Yr.:  1.20% Min. Deposit:   $0
APY -3 Yr.:  1.15% Min. Deposit:   $0
APY -2 Yr.:  3.00% Min. Deposit:   $0
APY -1.5 Yr.:  1.00% Min. Deposit:   $0
APY -5 Yr.:  3.50% Min. Deposit:   $0
APY -4 Yr.:  3.25% Min. Deposit:   $0
APY -3 Yr.:  3.20% Min. Deposit:   $0
APY -2 Yr.:  3.15% Min. Deposit:   $0
APY -1.5 Yr.:  3.10% Min. Deposit:   $0
APY -1 Yr.:  3.05% Min. Deposit:   $0
APY -6 Mo.:  0.10% Min. Deposit:   $0
APY -5 Yr.:  3.65% Min. Deposit:   $1,500
APY -4 Yr.:  3.60% Min. Deposit:   $1,500
APY -3 Yr.:  3.55% Min. Deposit:   $1,500
APY -2 Yr.:  3.50% Min. Deposit:   $1,500
APY -1 Yr.:  3.00% Min. Deposit:   $1,500
APY -5 Yr.:  3.20% Min. Deposit:   $0
APY -4 Yr.:  2.80% Min. Deposit:   $0
APY -1.5 Yr.:  2.40% Min. Deposit:   $0
APY -5 Yr.:  0.50% Min. Deposit:   $1,000
APY -4 Yr.:  0.50% Min. Deposit:   $1,000
APY -3 Yr.:  0.40% Min. Deposit:   $1,000
APY -2 Yr.:  0.40% Min. Deposit:   $1,000
APY -1.5 Yr.:  0.30% Min. Deposit:   $1,000
APY -1 Yr.:  0.30% Min. Deposit:   $1,000
APY -6 Mo.:  0.30% Min. Deposit:   $1,000
APY -5 Yr.:  3.25% Min. Deposit:   $5,000
APY -4 Yr.:  3.00% Min. Deposit:   $5,000
APY -3 Yr.:  2.90% Min. Deposit:   $5,000
APY -2 Yr.:  2.80% Min. Deposit:   $5,000
APY -1 Yr.:  2.25% Min. Deposit:   $5,000
APY -5 Yr.:  3.30% Min. Deposit:   $2,500
APY -4 Yr.:  3.20% Min. Deposit:   $2,500
APY -3 Yr.:  3.15% Min. Deposit:   $2,500
APY -2 Yr.:  3.10% Min. Deposit:   $2,500
APY -1.5 Yr.:  3.00% Min. Deposit:   $2,500
APY -1 Yr.:  3.00% Min. Deposit:   $2,500
APY -6 Mo.:  1.00% Min. Deposit:   $2,500
APY -5 Yr.:  3.30% Min. Deposit:   $500
APY -4 Yr.:  3.20% Min. Deposit:   $500
APY -3 Yr.:  3.15% Min. Deposit:   $500
APY -2 Yr.:  3.10% Min. Deposit:   $500
APY -1.5 Yr.:  3.00% Min. Deposit:   $500
APY -1 Yr.:  3.00% Min. Deposit:   $500
APY -5 Yr.:  3.25% Min. Deposit:   $500
APY -4 Yr.:  3.10% Min. Deposit:   $500
APY -3 Yr.:  3.05% Min. Deposit:   $500
APY -2 Yr.:  2.85% Min. Deposit:   $500
APY -1.5 Yr.:  2.50% Min. Deposit:   $500
APY -1 Yr.:  2.30% Min. Deposit:   $500
APY -5 Yr.:  3.20% Min. Deposit:   $500
APY -3 Yr.:  3.00% Min. Deposit:   $500
APY -2 Yr.:  2.80% Min. Deposit:   $500
APY -1 Yr.:  2.50% Min. Deposit:   $500
APY -5 Yr.:  3.05% Min. Deposit:   $2,500
APY -3 Yr.:  3.05% Min. Deposit:   $2,500
APY -2 Yr.:  3.00% Min. Deposit:   $2,500
APY -1.5 Yr.:  2.80% Min. Deposit:   $2,500
APY -1 Yr.:  2.65% Min. Deposit:   $2,500
APY -1 Yr.:  0.70% Min. Deposit:   $250
APY -5 Yr.:  3.25% Min. Deposit:   $0
APY -4 Yr.:  2.80% Min. Deposit:   $0
APY -3 Yr.:  2.80% Min. Deposit:   $0
APY -2 Yr.:  2.60% Min. Deposit:   $0
APY -1.5 Yr.:  2.50% Min. Deposit:   $0
APY -1 Yr.:  2.30% Min. Deposit:   $0
APY -5 Yr.:  3.25% Min. Deposit:   $1,000
APY -4 Yr.:  3.10% Min. Deposit:   $1,000
APY -3 Yr.:  3.05% Min. Deposit:   $1,000
APY -2 Yr.:  2.85% Min. Deposit:   $1,000
APY -1.5 Yr.:  2.50% Min. Deposit:   $1,000
APY -1 Yr.:  2.35% Min. Deposit:   $1,000
APY -5 Yr.:  2.85% Min. Deposit:   $1,000
APY -4 Yr.:  2.75% Min. Deposit:   $1,000
APY -3 Yr.:  2.65% Min. Deposit:   $1,000
APY -2 Yr.:  2.50% Min. Deposit:   $1,000
APY -1.5 Yr.:  2.40% Min. Deposit:   $1,000
APY -1 Yr.:  2.30% Min. Deposit:   $1,000

How to find the best 6-month CD rates

When you're looking for the best 6-month CD rates, start by looking at online banks. Since they have less overhead than traditional banks, they can often offer the best CD rates. It's always a good idea to check all your options, though -- so don't rule out brick-and-mortar banks entirely. Additionally, make sure to choose a financial institution where your money is protected. The FDIC protects your bank deposits up to $250,000 per depositor. The NCUA offers the same protection for credit unions. If your CD is not protected by either of these organizations, you could lose your money if the financial institution fails.

How to compare the best 6-month CD rates

Here are some other factors besides APY to consider when comparing 6-month CDs:

Minimum deposit: Some CDs have minimum deposit requirements, while others don't. As with other types of bank accounts, be sure you can meet the minimum requirements.

Fees: Most CDs don't charge monthly maintenance fees, but it's always good to check just in case. Getting one of the best 6-month CD rates is not as much of a financial victory if you're paying hefty fees.

Withdrawal penalties: Most financial institutions charge penalties if you withdraw money from a CD before it reaches maturity. Penalties vary from bank to bank. Don't invest your money in a 6-month CD if you'll need the money within the next six months. Some banks have waived CD penalties during the coronavirus crisis, but this is only a temporary measure.

Compounding interest: Banks handle CD interest differently. Typically, interest compounds daily, weekly, or monthly. CDs with interest that compounds daily will earn you slightly more money over time.

Interest payouts: Customers can choose to receive CD interest payouts monthly, quarterly, or annually. They can often add it to their principal funds (the amount they originally put in the account) as well. Adding earned interest to your principal funds will maximize the benefits of snagging a high CD rate.

CD maturity: Many CDs will renew automatically following a grace period if you don't take action. You'll need to actively opt out at the end of your CD term, either by contacting your bank directly or withdrawing your funds during the grace period. Forgetting to do so means your money will be tied up -- often at a rate you did not control -- for another six months.

It might seem like a given, but always check that a bank is FDIC insured before opening a CD account. FDIC insurance means that your accounts are covered up to $250,000 per depositor.

What to consider when choosing a 6-month CD

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.

Pros

Higher rates: The best 6-month CD rates are higher than the average savings account rates. That's because banks reward CD customers with better rates for leaving their money untouched in the bank long term.

Fixed rates won’t fall: CD rates are fixed, which gives them an advantage over savings accounts. If you lock in a high 6-month CD rate, you'll earn at that rate until your CD reaches maturity -- even if market rates drop.

Predictable returns: Customers can easily calculate exactly how much interest they will earn from any bank's CD simply by looking at the bank's 6-month CD rates.

Cons

Rates may rise: Having a fixed rate is great until you see rates start to rise. Even with short-term CDs, you will lose out on added savings if rates go up.

Penalties: Tying up your money in 6-month CDs may not seem like a big deal now, but a lot can happen in that time. The benefits of even the best 6-month CD rates will go out the window if you have to pay early-withdrawal penalties.

Inflation risks: Although this isn't a common problem with shorter CD terms, there's always the possibility your CD rate doesn't keep up with inflation. This is another reason it's a good idea to look for the best 6-month CD rates: The higher your rate, the better chance you have of outpacing inflation.

Alternatives to a 6-month CD

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:

High-yield savings accounts: 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.

Money market accounts: 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.

Longer-term CDs: 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.

Investments: 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
1.70% - 6 Mo. $500
1.75% - 6 Mo. $1,000
1.75% - 6 Mo. $2,500
1.50% - 6 Mo. $0
2.00% - 6 Mo. $500
1.75% - 6 Mo. $0
1.30% - 6 Mo. $1,000
2.05% - 6 Mo. $500
1.30% - 6 Mo. $0

FAQs

  • 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.

  • Six-month CDs are a great way to get a taste of the CD world. 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.

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