Best 6-Month CD Rates of December 2023 (Up to 5.50%) (2024)

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A 6-month CD is a type of savings option that lets you maintain a fixed interest rate for a short period of time. The national average CD rate on a 6-month termis 1.43% APY (Annual Percentage Yield).

However, there are much higher interest rates on 6-month CDs right now. The best CD rate for a 6-month term is 5.50% APY. Seven financial institutions offer this CD rate, including (but not limited to) Signature Federal Credit Union, BMO Alto, and Bank5 Connect.

We check rates daily to find the best rates for 6-month terms. Below, you'll find our top picks.

Best 6-Month CDs

• Signature Federal Credit Union 6 Month Certificate: 5.50% APY
• Bank5 Connect 6 Month High-Yield CD: 5.50% APY
• Newtek Bank 6 Month CD: 5.50% APY
• BMO Alto 6 Month High Yield CD: 5.50% APY
• TotalDirectBank 6 Month CD: 5.50% APY
• Dow Credit Union 6 Month Simple CD: 5.46% APY
• Popular Direct 6 Month CD: 5.35% APY
• America First Credit Union 6 Month Certificate: 5.30% APY
• LendingClub 6 Month CD: 5.30% APY
• Western Alliance Bank 6 Month CD, powered by Raisin: 5.28% APY

Compare the Best 6-Month CDs

6-Month CD FAQs

6-Month CD Reviews

These are our picks for the best 6-month CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. If you're worried about bank failures, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.

Signature Federal Credit Union 6 Month Certificate

Signature Federal Credit Union Certificates are another great option if you'd like to bank with a credit union. You also might like this option if you'd like to get a CD with a low minimum opening deposit.

Credit unions require membership to open an account. The easiest way to become a member is to enroll in the American Consumer Council. Then you'll just need to open a savings account.

APY for 6-month CD: 5.50% APY

6-month CD early withdrawal penalty: 90 days of interest

Signature Federal Credit Union Review

Bank5 Connect 6 Month High-Yield CD

Bank5 Connect High-Yield CDs are a good choice if you want a CD with a low minimum opening deposit.

Bank5 Connect is the online operation of the Massachusetts-based bank Bank5. You only need $500 to get started.

You won't be eligible to open a Bank5 Connect bank account if you're a resident of Massachusetts or Rhode Island. However, you can open bank accounts at a Bank5 branch.

Interest for 6-month CD:5.50% APY

6-month CD early withdrawal penalty:Three months of interest on the amount withdrawn

Bank5 Connect Review

Newtek Bank 6 Month CD

Newtek Bank CDs may be appealing if you're searching for a variety of terms that pay well above the national average. Newtek Bank also has standard early withdrawal penalties.

Newtek Bank CDs have a $2,500 minimum opening deposit. Other financial institutions may let you open a CD with less money upfront.

Interest for 6-month CD: 5.50% APY

6-month CD early withdrawal penalty: 90 days of interest

Newtek Bank Savings Review

BMO Alto 6 Month High Yield CD

BMO Alto has some of the best CD rates for a variety of terms. You might like this option if you are interested in an online-only banking experience.

BMO Alto lets you open a CD with$0. You'll need to deposit funds in the first 10 days, or your account will be closed.

You might prefer another financial institution if you're also looking to open a checking or money market account. BMO Alto is an online division of BMO Bank, and as the online option, it only offers a high-yield savings account and CDs.

Interest for 6-month CD: 5.50% APY

6-month CD early withdrawal penalty: 90 days of interest

BMO Savings and CD Accounts

TotalDirectBank 6 Month CD

TotalDirectBank CDs may be a good choice if you're searching for a variety of short-term CDs with high interest rates. The 3-month, 6-month, and 1-year terms, in particular, offer CD rates significantly above the national average.

TotalDirectBank CDs have a steep minimum opening deposit of $25,000 and a maximum deposit of $1 million. The online institution also doesn't operate in Florida, Somoa, Guam, the Northern Mariana Islands, or US Virgin Islands.

APY for 6-month CD:5.50% APY

6-month CD early withdrawal penalty: 30 days of interest

Dow Credit Union 6 Month Simple CD

Dow Credit Union Simple CDs are a great option if you prioritize banking with a credit union. The 6-month Simple CD pays a high interest rate, and you only need $500 to get started.

Credit unions require membership to open an account. The easiest way to become a member of Dow Credit Union is to make a $10 donation to the Midland Area Community Foundation. The credit union also has other ways to join, such as being part of a Select Employer Group or having a family member who is a current credit union member.

APY for 6-month CD:5.46%

6-month CD early withdrawal penalty: 90 days of interest

Popular Direct 6 Month CD

Popular Direct CDs pay a high interest rate, and compound interest daily.

You'll need at least $10,000 to open a Popular Direct CD.

APY for 6-month CD: 5.35% APY

6-month CD early withdrawal penalty:120 days of simple interest

Popular Direct Review

America First Credit Union 6 Month Certificate

America First Credit Union only requires $500 to open a 6-month CD, which is less than you'll need with many institutions. It also charges relatively low early withdrawal penalties.

This credit union is a great choice if you live in certain areas in the Western United States. Membership is available to people who live, work, study, worship or volunteer in select counties of New Mexico, Nevada, Oregon, and Utah. You're also eligible to join if you work for a company on its Select Employer Group list or are a member of an affiliated association.

APY for 6-month CD: 5.30% APY

6-month CD early withdrawal penalty: 60 days of interest

America First Credit Union Review

LendingClub 6 Month CD

LendingClub CDs may be a good option if you're searching for short-term, fixed-interest savings options. The 6-month and 1-year terms pay especially high rates.

LendingClub requires $2,500 to open a CD, which is steep compared to some of our other top picks. It also compounds interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference.

APY for 6-month CD: 5.30% APY

6-month CD early withdrawal penalty: 90 days of simple interest

LendingClub Bank Review

Western Alliance Bank 6 Month CD

The Western Alliance Bank 6 Month CD, powered by Raisin offers a competitive interest rate and has a $1 minimum opening deposit. Raisin is an online platform that allows you to find, fund, and manage multiple high-yield savings accounts, money market accounts, and CDs from different bank and credit unions.

While Raisin is a great option for different types of savings accounts, you'll want to consider other options if you want to open a checking account.

APY for 6-month CD: 5.28% APY

6-month CD early withdrawal penalty:90 days of interest

Raisin Review

Alternative CD options

• Bayer Heritage Federal Credit Union: Bayer Heritage FCU CDs have competitive interest rates, and branches in Ohio, Pennsylvania, South Carolina, Texas, and West Virginia. It isn't one of our top picks because it experienced a cyber incident on November 1, 2023. The credit union is conducting an investigation and will provide updates on its website and social media platforms until services are fully restored.
• USALLIANCE Financial 6 Month Certificate: USALLIANCE Financial pays 4.25% APY on a 6-month term, which is lower than what our top picks pay.
• Latino Community Credit Union 6 Month Share Certificate: Latino Community Credit Union offers more than the national average for a 6-month term, but it still has a lower APY than all our top picks. You still might like this option if you live in North Carolina and prioritize banking with a local financial institution, though.
• MYSB Direct 6 Month CD: MYSB Direct has an online 6-month CD paying 5.26% APY, but other financial institutions pay higher CD rates for a 6-month term.
• Vio Bank CD: Vio Bank has a 6-month CD offering 5.15% APY, which is just short of the rates included on our list.
• Gulf Coast Federal Credit Union Share Certificate: Gulf Coast Federal Credit Union is a local financial institution in Texas. It has a 6-month CD rate that's high, but our top picks have even more competitive rates. It still might be worth considering if you live in Nueces, San Patricio or Jim Wells County and prioritize banking locally.
• Rising Bank CD: Rising Bank has a solid rate on a 6-month CD, but it's just short of the rates on our list.
• First Internet Bank of Indiana CD: First Internet Bank of Indiana pays 5.22% APY, which is lower than the rates on our list.
• Bethpage Federal Credit Union Certificate Account: Bethpage Federal Credit Union pays a solid interest rate, but our top picks offer more competitive rates right now.
• Synchrony Bank CD: Synchrony pays high rates overall, but its 6-month CD rate falls shorts of the rates on our list.
• CIT Bank Term CD: CIT Bank's 6-month CD rate is more competitive than its other CDs, but you'll still find higher elsewhere.
• Live Oak Bank CD: Live Oak pays 5.00% APY on its 6-month term, but our top picks have even higher interest rates right now.
• TAB Bank CD: TAB Bank has solid interest rates on CDs, but you can still find more competitive interest rates at other online banks.
• Alliant Credit Union CDs: Alliant pays solid interest rates on CDs, but its 6-month term pays a lower rate than our top picks.
• Sallie Mae CD: Sallie Mae has a high interest rate, but you'll need a minimum opening deposit of $2,500.
• Marcus High-Yield CD: Marcus lets you open an account with $500, but our top picks have higher interest rates right now.
• Ally High Yield CD: Ally offers a variety of CDs, but our top picks pay higher interest rates.
• Capital One 360 CD: Capital One has a low minimum opening deposit, but our top picks pay higher interest rates.
• Nationwide CD: Nationwide CDs has a solid 12-month CD, but its 6-month CD isn't as strong.
• EverBank CD: EverBank's 6-month CD isn't as strong as its long-term CDs.
• Citi Fixed Rate CD: Citi pays has good rates, but our top picks have even higher interest rates.
• Discover CD: Discover has competitive interest rates on long-term CDs, but its short-term CDs aren't as strong. You'll also need at least $2,500 to get a CD.
• PenFed Credit Union Money Market Certificate: Pentagon Federal Credit Union offers a competitive interest rate, but the early withdrawal penalties are high compared to our top picks.
• Charles Schwab Bank CD: Charles Schwab has brokered CDs, meaning Charles Schwab doesn't actually own the CD. Instead, Charles Schwab acts as the middleman for you and the bank that owns the CD. Depending on how your bank, you may prefer open a CD directly with the financial institution.
• American Express CD: American Express offers a good interest rate, but our top picks offer even higher rates.

Bank Trustworthiness and BBB Ratings

We've compared each financial institution's Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices.

Signature Federal Credit Union does not have a profile with the Bureau yet, so there are no complaints or reviews to use for evaluating the company's business practices.

Here is each company's score:

Raisin has a B+ rating from the BBB. The rating is due to several unresolved customer complaints on the BBB website.

Even though they have strong BBB ratings, some of our top picks do have recent public controversies.

In 2022, a Minnesota jury ordered BMO bank to pay $564 million in damages in a lawsuit involving a Ponzi scheme operated by a Minnesota businessman. That said, the Ponzi scheme was uncovered in 2008 at M&I Bank, and BMO Harris didn't buy M&I Bank until 2011.

In 2021, LendingClub paid $18 million in a settlement with the Federal Trade Commission. The FTC claimed LendingClub told loan applicants they were approved for loans when this wasn't true, withdrew money from those customers' accounts without permission, and was dishonest in telling other customers that they were "no hidden fees" with their loans. The company didn't admit to wrongdoing.

Why You Should Trust Us: Expert Advice on Choosing the Best 6-Month CD

To learn more about what makes a good CD and how to choose the best fit, Personal Finance Insider consulted four experts:

Here's what they had to say about CDs. (Some text may be lightly edited for clarity.)

How can someone figure out whether a bank is right for them?

Tania Brown, certified financial planner atSaverLife:

• It should be FDIC insured
• It should fit the banking experience you want (A local bank to visit in person? An online bank to use through your phone? The ability to write checks?)

Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider:

• Prioritize what matters to you, like whether you can waive a monthly service fee
• Pay attention to rates if you want a high-interest account (it should pay higher than average bank account rates)

How should you choose the right CD term length?

Roger Ma, certified financial planner withlifelaidout®and author of"Work Your Money, Not Your Life":

• Consider when you need the money
• Compare your timeline with current CD rates to find the best rates for the closest timeline

Mykail James, MBA, certified financial education instructor,BoujieBudgets.com:

• Have a goal for the money in that CD
• Consider your timeline for the goal, and choose a term length that matches that timeline

How should you decide between a high-yield savings account, money market account, or CD?

Tania Brown, CFP:

• Start off with how much money you want to put in
• Add the level of transactions you plan to have — CDs won't let you touch the money

Sophia Acevedo, Personal Finance Insider:

• A high-yield savings account or money market account are good options for an emergency fund or short-term savings goals
• Money market accounts are worth considering if you want more account accessibility (paper checks, ATM cards, or debit cards)
• CDs could be worthwhile if you don't need access to that money, since they have a fixed interest rate for a specific term

Methodology

Personal Finance Insider's mission is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don't have to.

First, we researched to find over 20 banks and credit unions that offered 6-month CDs. Then, we reviewed each institution using our CD rating methodology to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.