Best 6-Month CD Rates of January 2024 (up to 5.50%)

May 2024 · 23 minute read

Our experts answer readers' banking questions and write unbiased product reviews (here's how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

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 term is 1.49% 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

The best 6-month CDs pay high interest rates, and many of them have low minimum opening deposits and low early withdrawal penalties.

Compare the Best 6-Month CDs

Signature Federal Credit Union 6 Month Certificate

Signature Federal Credit Union Signature Federal Credit Union 6 Month Certificate Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4/5

Annual Percentage Yield (APY)

5.50%

Minimum Deposit Amount

$500

ProsConsProduct Details

Bank5 Connect 6 Month High-Yield CD

Bank5 Connect Bank5 Connect 6 Month High-Yield CD Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.75/5

Annual Percentage Yield (APY)

5.50%

Minimum Deposit Amount

$500

ProsConsProduct Details

Newtek Bank 6 Month CD

Newtek Bank Newtek Bank 6 Month CD Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.75/5

Annual Percentage Yield (APY)

5.50%

Minimum Deposit Amount

$2,500

ProsConsProduct Details

BMO Alto 6 Month High Yield CD

BMO BMO Alto 6 Month High Yield CD Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.5/5

Annual Percentage Yield (APY)

5.50%

Minimum Deposit Amount

$0

ProsConsProduct Details

TotalDirectBank 6 Month CD

TotalDirectBank TotalDirectBank 6 Month CD Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.25/5

Annual Percentage Yield (APY)

5.50%

Minimum Deposit Amount

$25,000

ProsConsProduct Details

The Atlantic Federal Credit Union 6 Month CD

Raisin The Atlantic Federal Credit Union 6 Month CD Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.75/5

Annual Percentage Yield (APY)

5.40%

Minimum Deposit Amount

$1

ProsConsProduct Details

America First Credit Union 6 Month Certificate

America First Credit Union America First Credit Union 6 Month Certificate Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4/5

Annual Percentage Yield (APY)

5.30%

Minimum Deposit Amount

$500

ProsConsProduct Details

TAB Bank 6 Month CD

TAB Bank TAB Bank 6 Month CD Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4/5

Annual Percentage Yield (APY)

5.27%

Minimum Deposit Amount

$1,000

ProsConsProduct Details

MYSB Direct 6 Month CD

M.Y. Safra Bank MYSB Direct 6 Month CD Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.5/5

Annual Percentage Yield (APY)

5.26%

Minimum Deposit Amount

$500

ProsConsProduct Details

LendingClub 6 Month CD

LendingClub LendingClub 6 Month CD Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.75/5

Annual Percentage Yield (APY)

5.00%

Minimum Deposit Amount

$2,500

ProsConsProduct Details

6-Month CD FAQs

The highest paying 6-month CD offers 5.50% APY. This CD rate is available at seven financial institutions, including (but not limited to) Signature Federal Credit Union, Bank5 Connect, Newtek Bank.

A 6-month CD may be a good idea if you'd like to earn a competitive interest rate on a short-term, fixed-interest savings account. Many CDs offer over 5% APY. However, keep in mind that CDs do not allow additional deposits and have early withdrawal penalties if you have to take out money before the term ends. 

A 6-month CD is a savings product where you stash away your money for six months and typically earn a fixed rate. You have the option to renew your CD at the end of the 6-month period, or close the account and pocket the money.

A 6-month CD works by locking in your rate for the entire term. If you open a 6-month CD at a 5.00% APY, you'll earn 5.00% for the entire six months. If you renew your CD after it matures, you'll earn the new rate available in six months. There are exceptions to the fixed-rate rule. Some institutions offer variable-rate CDs or CDs that allow your rate to change after a predetermined amount of time.

Ultimately, your choice whether a 6-month, 1-year, or 5-year CD is best will likely depend on how soon you plan to need the money. For example, if you want the money to buy a house in less than a year, a longer term isn't the best idea. Many experts recommend CD laddering. With this strategy, you open multiple CDs with different term lengths so you can take advantage of higher rates with longer terms, but also access some of your money earlier.

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

The Atlantic Federal Credit Union 6 Month CD

The The Atlantic Federal Credit Union 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: 5.40% APY

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

Raisin 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

TAB Bank 6 Month CD

TAB Bank could be a good choice if you have at least $1,000 to open an account. 

TAB Bank also offers one of the best high-yield savings accounts with a high interest rate and easy opening requirements.

Keep in mind other financial institutions have higher CD rates overall. 

APY for 6-month CD: 5.27% APY

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

TAB Bank Review

MYSB Direct 6 Month CD

 MYSB Direct pays a high interest rate on an online 6-month term and also offers one of the best 18-month CD rates.

The bank compounds interest monthly, not daily. Depending on how much money you plan to keep in a CD, this may or may not make a significant difference.

APY for a 6-month term: 5.26% APY

CD early withdrawal penalty: 90 days of interest

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: 5.00% APY

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

LendingClub Bank Review

Alternative CD options

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.

The Better Business Bureau gives TAB Bank an A- rating because the government has taken action against the bank.

M.Y. Safra Bank also has an NR (No Rating) from the BBB because there isn't enough information to provide a rating.

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.

In 2022, the bank entered an Assurance of Discontinuance with the State of Iowa. According to the settlement, the State of Iowa accused TAB Bank of charging Iowa residents more than the permitted maximum APR for consumer installment loans. The bank has stopped making consumer installment loans to Iowa residents and can resume if they provide a 30-day notice to the state and follow the state code.

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:

Business Insider

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 at SaverLife:

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

How should you choose the right CD term length?

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

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

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

Tania Brown, CFP:

Sophia Acevedo, Personal Finance Insider:

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.

Banking Reporter

Compliance Associate

Evelyn He is a compliance associate at Business Insider who supports the Personal Finance Insider team. Personal Finance Insider is Business Insider's personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Business Insider readers already know and love.The compliance team's mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.Before joining Business Insider, she served in various legal and compliance roles in different industries, including the legal and pharmaceutical industries.   Evelyn obtained her M.S. degree in Marketing at Boston University in 2022. Prior to combining and consolidating her knowledge of law and business, she spent one year finishing 1L courses at Suffolk University Law School to further her legal knowledge. She has also completed MBA business law courses while working on her Bachelor of Business Administration in Management at the University of Massachusetts, Amherst. Outside of work, she enjoys spending time with her 14-year-old Shih Tzu named Money, and her 5-year-old Bichon named Tibber.

Read more Read less Top Offers From Our Partners

ncG1vNJzZmivp6x7o8HSoqWeq6Oeu7S1w56pZ5ufonyxsdGspqeZnGKzqrrAp5qeZ5KawLV5lWakqKaknXqksIyrmK2dow%3D%3D