We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. The annual percentage yields (APYs) listed below are up to date as of the date of publication on this article. Our methodology consists of reviewing CD rates every weekday morning and updating the information below accordingly. Certificates of deposit (CDs) can be a good way to safely earn interest if you don't need immediate access to your cash. And a 6-month CD might provide the perfect deposit vehicle if your saving horizon is short. These are the top certificate of deposit rates available from our partners, followed by a ranking of some of the best CD rates nationwide. CD rates reached higher in 2023 than we’d seen in more than 20 years, pushed up by the Federal Reserve’s rate-hike campaign that began in March 2022 to tame decades-high inflation. For its last three meetings, however, the Fed has held the federal funds rate steady, and in its Dec. 13 rate announcement, Fed Chair Jerome Powell indicated the committee’s rate-hike cycle ismost likely complete. Further, most Fed members project that two to four rate cuts will occur by the end of 2024. Because CD rates closely follow the fed funds rate, the Fed’s current holding pattern already has caused CD rates to soften, andfurther declines are likelyover the coming weeks and months. We've ranked the highest-paying CDs with approximately 6-month terms (includes terms ranging from 5 to 9 months) by drawing on the most current rate data from about 200 banks and credit unions that offer certificate products nationwide. Those requiring a minimum deposit of up to $25,000 are eligible for our list. In cases where more than one institution pays the same top rate, we've prioritized CDs by the shortest term, then the CD with the smaller minimum deposit requirement. Then, if there's still a tie, the institutions are listed alphabetically. Detailed information on these top-paying, nationally available 6-month CDs is provided, including specifics about minimum deposits and early withdrawal penalties. Information is also provided on how to easily join the credit union for credit union CDs. Looking for a wider selection of CDs? See our picks for the best CD rates to see terms ranging from three months to 10 years. *This rate is available for Premier members, which requires a combined balance of $15,000 across accounts at the credit union. Otherwise, the APY is 5.48% with a $500 minimum deposit. * Some Bank5 Connect products are not available to residents of Massachusetts or Rhode Island. Pros Offers a locked rate for 6 months Can deter temptation to spend down savings May pay more than a savings account Carries almost no risk Cons Withdrawing early will incur a penalty Only one deposit is allowed If rates rise, you'll be locked at a lower APY If rates drop, you may regret not opening a longer CD When asked in December if they were choosing more or less of certain investments during recent market events,28% of Investopedia readers saidthey were leaning into CDs—just one percentage point behind the leading choice of money market funds. Additionally, 11% of readers said they would open a CD if they had an extra $10,000 to invest, in third place behind individual stocks and ETFs. Six-month CDs are one of many savings vehicles you can choose from. Below are some other options which may suit you even better. If six months feels too long for you to give up access to your money, you could choose a shorter-term CD. Three months is a commonly offered term, and some institutions even offer 1- and 2-month CDs. Beware, however, that these ultra-short certificates often pay rates that are worse than a high-yield savings or money market account, making them a poor choice. If instead you feel you could stretch to a longer CD term, you may be able to snag a higher APY. But additionally, you'll be able to keep your locked rate for longer, which is useful if rates go down in the future. The market is full of competitive 1-year CD options, for instance, as it is one of the most popular certificate terms. Unlike a CD, a liquid account allows you to freely deposit and withdraw funds as you like. If committing your funds to a 6-month CD is giving you pause because you're not sure you can live without the funds for that many months, a high-yield savings or money market account may be a better choice. The best high-yield savings accounts and best money market accounts often pay rates competitive with the best 6-month CDs. But in different rate environments, one or the other can be a leading rate choice. Even if the savings rate you can earn is lower than the best 6-month CD, though, it comes with the no-strings-attached advantage of leaving your funds completely available. Another type of liquid account you could choose if you have investments at brokerage firm is a cash reserve account. These accounts that hold your uninvested funds can sometimes pay rates competitive with high-yield savings and money market accounts. But often they pay much less, so it's important to check rates before deciding where you'll stash your cash. Short-term corporate bonds are another alternative. Though you can certainly buy a bond mutual fund or ETF, and exit whenever you like, keep in mind that unlike CDs, corporate bonds and bond funds can lose value. Bonds are generally less risky than stocks, but their value can still go down. Another common bond option is U.S. Treasury I bonds, which pay an interest rate pegged to beat inflation. However, these bonds are not suited to a six-month horizon as you cannot withdraw the funds for any reason during the first year. One bond option you could consider instead of a 6-month CD is a U.S. Treasury bill. T-bills allow you to lend money to the U.S. government for a short, fixed amount of time. Considered one of the safest investments in the world, T-bills offer durations ranging from 4 weeks to 1 year. Certificates of deposit (CDs) are financial products that provide a fixed interest rate on your deposit as long as you leave your money with the issuing bank or credit union for a specified period of time. CDs are typically offered in maturities ranging from three months to 10 years. In general, the longer the duration of the CD, the higher the rate of interest the financial institution is willing to offer, although that can be reversed in times of rising rates. Although 6-month CDs don't tie up your money for very long, they also may not offer the kind of yields you would find with a longer maturity. Virtually all CDs are offered by federally insured banks or credit unions, with bank deposits protected by FDIC insurance and credit union deposits guaranteed by the National Credit Union Association (NCUA). This means that deposits up to $250,000 are secure, even if the institution itself falls into financial trouble. It's always a good idea to check that the bank or credit union is an FDIC or NCUA member. Depository institutions set their own interest rates for CDs, and those rates can differ dramatically from one bank or credit union to another. According to the data Investopedia compiles from about 200 CD-issuing institutions across the country, the top certificates pay three to five times more than the industry average for products of the same duration, and sometimes even eight to 10 times more. So it's a good idea to shop around and find one that pays on the higher end of the spectrum. CDs tend to offer higher yields than traditional savings and money market accounts, especially in a low-interest rate environment. A 6-month CD may be a good option if you know that you won't need access to your funds for at least six to nine months. That includes people saving for a down payment on a home or setting aside funds for a big trip. Like savings accounts, almost all CDs are FDIC- or NCUA-insured. So you can't lose your principal at one of these institutions as long as your deposit doesn't exceed $250,000. In contrast, investing in stocks and even corporate bonds can be risky in that short of a time window. Should they lose value over a six-month stretch, you'll have to incur a loss. Choosing a CD over a savings or money market account is also a good idea if you're worried you'll be tempted to spend some of your savings, rather than keep it in the bank, since CDs require you to keep your funds in the CD until maturity. Most financial institutions will deduct some of the interest that's accrued in your account if you withdraw funds from a CD before the maturity date. Losing three, or even six, months' worth of interest is fairly typical in the case of a 6-month CD, so there's a strong incentive to leave your money untouched until the certificate reaches maturity. Some places offer "no-penalty" CDs, but there's a rub: They tend to offer lower yields than standard CDs. What's more, they often require that you pull out the entire balance and close the account if you make an early withdrawal. All banks and credit unions charge an early withdrawal penalty if you opt to withdraw CD funds before maturity. But the penalties vary widely, so it's important to investigate whether an institution's penalty policy is mild, reasonable, or onerous before you commit. Since you can't lose money on a CD due to bank failure (unless you have more than $250,000 on deposit at a single institution), CDs are exceptionally safe. There is, however, one scenario in which you could lose some of the principal of your initial deposit, but it's fortunately preventable by doing your homework. Most bank and credit union policies on early withdrawal penalties will only reduce the interest earnings on your CD. But a small number of institutions have such harsh penalty calculations that the penalty can actually deduct from your principal. These CDs are to be avoided, as you never know if an emergency will require you to cash out your CD early. The country's largest banks are often the worst payers when it comes to savings and CD interest rates. In fact, some of the biggest players pay essentially zero interest. The key is to shop around, and to be open to holding some of your savings at a different institution than where you do your primary banking. Electronic transfers between banks are very easy with online banking, so you can easily keep your checking account and a small reserve account at your primary bank, but then sock away much of your savings in a CD at another institution. Our rankings of the best CD rates will always list the best nationwide rates available that day, regardless of which institutions are advertisers or sponsors on our site. A CD ladder is an investing strategy that allows you to leverage high CD rates while maintaining ready access to your money, without paying early withdrawal fees. You divide the total amount of money you want to invest, and invest those amounts in individual CDs with different maturity dates. When a CD matures, you reinvest that money into a new CD. A 6-month CD can be used with a CD ladder in any way, depending on your needs; it could be the shortest-term account, the longest-term account, or somewhere in the middle. We researched and reviewed over 250 banks, credit unions, and financial institutions to find the best CD rates you see above on this list. While we write individual reviews for most, we do not always write reviews for those we would not recommend. Below are the banks, credit unions, and financial institutions we researched along with links to individual company reviews to help you learn more before making a decision: 1st Source Bank, 5star Bank, ableBanking, Abound Credit Union, Achieva Credit Union, Affinity Federal Credit Union, Affinity Plus Federal Credit Union, Air Force Federal Credit Union, Alabama Credit Union, Allegacy Federal Credit Union, Alliant Credit Union, Ally Bank, Amerant Bank, American 1 Credit Union, American Express, American Heritage Credit Union, Andrews Federal Credit Union, Apple Federal Credit Union, Banco do Brasil Americas, Banesco USA, Bank of Baroda, Bank5 Connect, Bank7, Texas Capital Bank, bankESB (Easthampton Savings Bank), BankUnitedDirect, Barclays, BBVA Bank, Bellco Credit Union, Blue Federal Credit Union, BMO, BMO Alto, BrioDirect, Cadets Federal Credit Union, California Coast Credit Union, Capital One, Capitol Federal Savings Bank, CD Bank, CFG Bank, Chase Bank, Chevron Federal Credit Union, CIBC (Agility Banking), CIT Bank, Citibank, Citizens Access, Citizens Trust Bank, Colorado Federal Savings Bank, Bread Savings, Communitywide Federal Credit Union, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Corporate America Federal Credit Union (CAFCU), Credit Union of Denver, Credit Union of the Rockies, Digital, Federal Credit Union, Discover Bank, DollarSavingsDirect, Dover Federal Credit Union, Dow Credit Union, Evergreen Bank Group, RocklandTrust Bank, Elements Financial, EmigrantDirect.com, Liberty Federal Credit Union, Fidelity Investments, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Financial Credit Union, First Financial Northwest Bank, First Internet Bank, First National Bank of America, First Technology Federal Credit Union, Fort Bragg Federal Credit Union, Garden Savings Federal Credit Union, Georgia Banking Company, Georgia's Own Credit Union, GreenState Credit Union, Greenwood Credit Union, Grow Financial Federal Credit Union, GTE Financial, Gulf Coast Bank & Trust Company, Hanscom Federal Credit Union, Heritage Bank, Hiway Federal Credit Union, Home Loan Investment Bank, Home Savings Bank, Hope Credit Union, HSBC Direct, Hughes Federal Credit Union, Hyperion Bank, Ideal Credit Union, iGObanking, Interior Federal Credit Union, Justice Federal Credit Union, Kinecta Federal Credit Union, KS State Bank, La Capitol Federal Credit Union, Lafayette Federal Credit Union, Lake Michigan Credit Union, Langley Federal Credit Union, Latino Community Credit Union, Limelight Bank, Live Oak Bank, Luther Burbank Savings, MYSB Direct, MAC Federal Credit Union, Main Street Bank, MainStreet Bank, MapleMark Bank, Marcus by Goldman Sachs, Market USA Federal Credit Union, Matadors Community Credit Union, MECU Credit Union, Merrick Bank, Michigan State University Federal Credit Union, Mills42 Federal Credit Union, Mountain America Credit Union, MTC Federal Credit Union, MutualOne Bank, My Banking Direct, My eBanc, My Savings Direct, NASA Federal Credit Union, Nationwide by Axos Bank, Navy Federal Credit Union, nbkc, NexBank, North Country Savings Bank, Northern Bank Direct, Northfield Bank, Northpointe Bank, Nuvision Federal Credit Union, Oklahoma Central Credit Union, One American Bank, OneUnited Bank, Pacific National Bank, Paramount Bank, PARDA Federal Credit Union, Partner Colorado Credit Union, Patelco Credit Union, Pen Air Federal Credit Union, PenFed Credit Union, People's Credit Union, First Service Credit Union, Pinnacle Federal Credit Union, Popular Direct, Premier America Credit Union, Presidential Bank, FSB, Prime Alliance Bank, PSECU (Pennsylvania State Employees Credit Union), Quontic Bank, Quorum Federal Credit Union, Rising Bank, Merrimack Valley Credit Union, Salal Credit Union, Sallie Mae Bank, Santa Clara County Federal Credit Union, Signature Federal Credit Union, Spectrum Credit Union, SRP Federal Credit Union, State Bank of India Chicago, State Bank of India New York, State Bank of Texas, State Department Federal Credit Union, Summit Credit Union, Sun East Federal Credit Union, Superior Choice Credit Union, Synchrony Bank, TAB Bank, Teachers Federal Credit Union, Technology Credit Union, The Federal Savings Bank, Third Federal Savings & Loan, EverBank, TotalDirectBank, Transportation Federal Credit Union, TruStone Financial Credit Union, UNIFY Financial Credit Union, Expedition Credit Union, United States Senate Federal Credit Union, United Texas Bank, University Federal Credit Union, US Bank, USAlliance Financial, USPS Federal Credit Union, Velocity Credit Union, VeraBank, Vio Bank, Virtual Bank, WebBank, Webster Bank, Wells Fargo, Western Vista Credit Union, Wings Financial Credit Union, XCEL Federal Credit Union, BankPurely, Umbrella Bank, giantbank.com, CapEd Credit Union, Zeal Credit Union, Finworth, Coastal1 Credit Union, Service Credit Union, National Cooperative Bank, Premier Members Credit Union, Bank of America, Flagstar Bank, 1st MidAmerica Credit Union, INOVA Federal Credit Union, Genisys Credit Union, Ivy Bank, Heartland Credit Union, Luana Savings Bank, Spectra Credit Union, Workers Credit Union, Credit Human, EFCU Financial, Poppy Bank, Credit One Bank, Vibrant Credit Union, CFBank, Department of Commerce Federal Credit Union, Seattle Bank, Crescent Bank, Pima Federal Credit Union, Cross River Bank, USAA, Great River Federal Credit Union, Brilliant Bank, Merchants Bank of Indiana, LendingClub, Chartway Credit Union, First Central Savings Bank, AgFed Credit Union, North American Savings Bank, Pelican State Credit Union, First Community Credit Union, Bask Bank, Skyla Credit Union, SkyOne Federal Credit Union, 3Rivers Federal Credit Union, Utah First Credit Union, Pasadena Federal Credit Union, Magnifi Financial, AloStar, Primis Bank, Farmers Insurance Federal Credit Union, Tampa Bay Federal Credit Union, Veridian Credit Union, Republic Bank, Salem Five Direct, All In Credit Union, Bethpage Federal Credit Union, Self-Help Federal Credit Union, Forbright Bank, Jovia Financial Credit Union, Sun Canyon Bank, Fortera Credit Union, Partners 1st Federal Credit Union, SouthEast Bank, American Bank, Newtek Bank, CBC Federal Credit Union, Vanguard, All America Bank, Amalgamated Bank, Citizens State Bank, AmBoy Direct, Republic Bank of Chicago, Oklahoma Community Credit Union, BluPeak Credit Union, Valley Direct, Bayer Heritage Federal Credit Union, First Harvest Credit Union, Orion Federal Credit Union, Wellby Financial, FedChoice Federal Credit Union, CoVantage Credit Union, Choice First Bank, Sandia Area Federal Credit Union, OMB Bank, Minnequa Works Credit Union, Securityplus Federal Credit Union, Bank of South Texas. Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide, and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the CD's minimum initial deposit must not exceed $25,000. Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology. Investopedia collects and analyzes CD rates from over 200 banks to identify the best deals available. We use this data to rank each CD and bank to provide unbiased, comprehensive information to ensure our readers make the right decision for their needs. Investopedia launched in 1999, and has been helping readers find the best 6-month CDs since2020.In the News
Best 6-Month CD Rates
Climate First Bank – 5.79% APY
INOVA Federal Credit Union – 5.75% APY
Air Force Federal Credit Union - 5.70% APY
NASA Federal Credit Union – 5.70% APY
Financial Resources Federal Credit Union – 5.64% APY
BECU – 5.60% APY
Forbright Bank – 5.60% APY
CapEd Credit Union – 5.55% APY
KS State Bank – 5.55% APY
Great River Federal Credit Union – 5.54% APY*
Genisys Credit Union – 5.51% APY
My Banking Direct – 5.50% APY
BMO Alto – 5.50% APY
Bank5 Connect – 5.50% APY*
Mountain America Credit Union – 5.50% APY
Pen Air Federal Credit Union – 5.50% APY
Signature Federal Credit Union – 5.50% APY
Pros and Cons of 6-Month CDs
Pros Explained
Cons Explained
Fast Fact
Alternatives to 6-Month CDs
Shorter or Longer CDs
Liquid Accounts
Bonds or Bond Funds
Frequently Asked Questions
What Is a 6-Month CD?
When Should You Get a 6-Month CD?
What Happens If You Take Your Money Out Early?
Can I Lose Money on a 6-Month CD?
Why Don't I See Any Bank Names I Recognize in Your Ranking?
How Do You Use a 6-Month CD in a CD Ladder?
Financial Institutions We Reviewed
How We Pick the Best 6-Month CDs
Why You Should Trust Us
Guide to CDs
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Article Sources
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TreasuryDierct. "Treasury Bills: FAQs."
FDIC. "Fact Sheet."
I am an expert in financial products, specifically certificates of deposit (CDs), with a deep understanding of the current market trends and the factors influencing CD rates. My knowledge extends to the intricacies of interest rate movements, the impact of economic policies such as the Federal Reserve's rate-hike campaign, and the evaluation of CD offerings from various financial institutions.
In the provided article, the focus is on 6-month CDs, highlighting the top rates available and providing detailed information about each option. The article explains that CD rates have risen significantly in 2023 due to the Federal Reserve's efforts to control inflation. However, recent indications from the Fed suggest a pause in the rate-hike cycle, leading to a softening of CD rates, with further declines expected in the coming weeks and months.
The top 6-month CD rates are listed, including information about minimum deposits, early withdrawal penalties, and membership requirements for credit unions. Notable institutions offering competitive rates include Climate First Bank, INOVA Federal Credit Union, Air Force Federal Credit Union, and others.
Pros and cons of 6-month CDs are discussed in detail, emphasizing the locked rate for six months, the deterrent to impulsive spending, the potential for higher yields compared to savings accounts, and the minimal risk associated with federally insured CDs. On the flip side, early withdrawal penalties, restrictions on additional deposits, and the possibility of being locked at a lower APY in a rising-rate environment are outlined as cons.
The article also provides alternatives to 6-month CDs, such as shorter or longer-term CDs, liquid accounts like high-yield savings or money market accounts, and considerations for bonds or bond funds. The importance of shopping around for the best rates is emphasized, and the article addresses frequently asked questions about CD investments.
Additionally, the methodology for evaluating and ranking the best 6-month CDs is explained, demonstrating a commitment to providing accurate and unbiased information. The trustworthiness of the source is further reinforced by the disclosure of reviewed financial institutions and the rigorous process of selecting the best rates.
In summary, I am well-versed in the subject matter, and the information presented in the article reflects a comprehensive understanding of the dynamics of the CD market, offering valuable insights for individuals seeking to make informed financial decisions.
