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
Annual Percentage Yield (APY)
5.50%
Minimum Deposit Amount
$500
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. $500 opening deposit
- con icon Two crossed lines that form an 'X'. High early withdrawal penalties
- con icon Two crossed lines that form an 'X'. Interest compounded monthly, not daily
- con icon Two crossed lines that form an 'X'. No terms over 5 years
- Become a Signature FCU member by depositing $5 in a Signature savings account
- Terms ranging from 3 months to 5 years
- 45 days to 900 days interest early withdrawal penalty
- Interest compounded monthly and paid monthly
Bank5 Connect 6 Month High-Yield CD
Annual Percentage Yield (APY)
5.50%
Minimum Deposit Amount
$500
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. $500 opening deposit
- con icon Two crossed lines that form an 'X'. Limited term length options
- con icon Two crossed lines that form an 'X'. Standard-to-high early withdrawal penalties
- Term lengths between 6 months and 3 years
- 3 months interest early withdrawal penalty for terms under 1 year, 6 months interest early withdrawal penalty for terms of 1 year or more
- A 2-year investment CD allows you to make deposits after opening the account
- FDIC insured
Newtek Bank 6 Month CD
Annual Percentage Yield (APY)
5.50%
Minimum Deposit Amount
$2,500
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Variety of CD terms
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties
- con icon Two crossed lines that form an 'X'. $2,500 minimum opening deposit
- Early withdrawal penalties: For terms between 30 days and less the 1 year, the penalty is 90 days of simple interest
- Interest is compounded daily and deposited monthly
- FDIC insured
BMO Alto 6 Month High Yield CD
Annual Percentage Yield (APY)
5.50%
Minimum Deposit Amount
$0
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low minimum opening deposit
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rates
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard-to-low early withdrawal penalties
- con icon Two crossed lines that form an 'X'. Limited term lengths
- con icon Two crossed lines that form an 'X'. Cannot go to BMO branches for support
- con icon Two crossed lines that form an 'X'. No mobile app
- BMO Alto is an online-only division of BMO
- Terms range from 6 months to 60 months
- Early withdrawal penalties: For terms of 11 months or less, the penalty is 90 days of interest; For terms of 1 year or more, the penalty is 180 days of interest
- Interest is compounded daily and deposited monthly
- FDIC insured
TotalDirectBank 6 Month CD
Annual Percentage Yield (APY)
5.50%
Minimum Deposit Amount
$25,000
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties
- con icon Two crossed lines that form an 'X'. High minimum opening deposit
- con icon Two crossed lines that form an 'X'. Limited customer support
- con icon Two crossed lines that form an 'X'. Doesn't operate in Florida, Somoa, Guam, Northern Mariana Islands and US Virgin Islands
- Online-only division of City National Bank of Florida
- Early withdrawal penalties: 30 days of interest for terms between 30 days up to 6 months; 90 days of interest for terms above 6 months and up to one year; 180 days of interest for terms over 1 year
- Maximum deposit of $1 million
- Interest compounded daily and deposited monthly
- FDIC insured
The Atlantic Federal Credit Union 6 Month CD
Annual Percentage Yield (APY)
5.40%
Minimum Deposit Amount
$1
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Accounts pay high interest rates
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. No fees
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Open accounts you might not be able access outside of Raisin
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Minimum opening requirements are often lower than if you opened an account directly with a bank
- con icon Two crossed lines that form an 'X'. No checking accounts or business accounts
- con icon Two crossed lines that form an 'X'. Only way to deposit or withdraw money is by connecting to an external account
- con icon Two crossed lines that form an 'X'. Can’t connect to third-party budgeting apps
- Raisin is an online marketplace that partners with banks to offer competitive rates
- Offers high-yield savings accounts, money market accounts, CDs, and no-penalty CDs
- Filter your search by institution, or by type of institution (e.g., minority-led, family-owned, or supports small business)
- Interest is compounded daily and paid monthly
- Deposits are federally insured by the FDIC or NCUA
America First Credit Union 6 Month Certificate
Annual Percentage Yield (APY)
5.30%
Minimum Deposit Amount
$500
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. $500 opening deposit
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low early withdrawal penalties
- con icon Two crossed lines that form an 'X'. No terms over 5 years
- con icon Two crossed lines that form an 'X'. Interest compounded monthly, not daily
- con icon Two crossed lines that form an 'X'. Membership restricted to certain counties in the West
- Membership restricted to certain parts of the West
- Term lengths ranging from 3 months to 5 years
- Early withdrawal penalty of 60 days interest for terms of 12 months or less; 180 days interest for terms over 12 months
- Interest compounded monthly and paid monthly
- Federally insured by the NCUA
TAB Bank 6 Month CD
Annual Percentage Yield (APY)
5.27%
Minimum Deposit Amount
$1,000
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low-to-standard early withdrawal penalties
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Choose to keep accumulated interest in CD, receive a check, or transfer to another TAB account
- con icon Two crossed lines that form an 'X'. No terms under 6 months or over 5 years
- con icon Two crossed lines that form an 'X'. $1,000 minimum deposit
- Terms from 6 months to 5 years
- Early withdrawal penalties are as follows: 90 days interest for terms of 12 months or less, 180 days interest for terms over 12 months
- Interest compounds daily to maximize earnings
- FDIC insured
MYSB Direct 6 Month CD
Annual Percentage Yield (APY)
5.26%
Minimum Deposit Amount
$500
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. $500 minimum opening deposit
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low early withdrawal penalties
- con icon Two crossed lines that form an 'X'. Interest compounded monthly, not daily
- NY-based financial institution that serves customers nationwide
- Terms range from 6 months to 5 years
- Early withdrawal penalties 90 days of interest
- Interest compounded and deposited monthly
- FDIC insured
LendingClub 6 Month CD
Annual Percentage Yield (APY)
5.00%
Minimum Deposit Amount
$2,500
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard CD terms
- con icon Two crossed lines that form an 'X'. $2,500 minimum opening deposit
- con icon Two crossed lines that form an 'X'. Interest compounds monthly, not daily
- con icon Two crossed lines that form an 'X'. Standard-to-high early withdrawal penalties
- Online banking institution with 1 branch in Boston, Massachusetts
- Terms for online CDs range from 6 months to 5 years
- $2,500 minimum opening deposit
- Early withdrawal penalty will depend on the amount deposited and term chosen
- Interest compounded and deposited monthly
- Member FDIC
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
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
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
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
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
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
Alternative CD options
- Dow Credit Union 6 Month Simple CD: Dow Credit Union has a 6-month CD paying 5.21% APY, but other financial institutions pay higher CD rates for a 6-month term.
- Popular Direct CD: Popular Direct's 6-month CD pays 5.15% APY, which is lower than our top picks.
- 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.
- 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 5.20% APY on its 6-month term, but our top picks have even higher interest rates right now.
- 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.
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:
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:
- 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 with lifelaidout® 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.
Sophia Acevedo, CEPF
Banking Reporter
Evelyn He
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 PartnersncG1vNJzZmivp6x7o8HSoqWeq6Oeu7S1w56pZ5ufonyxsdGspqeZnGKzqrrAp5qeZ5KawLV5lWakqKaknXqksIyrmK2dow%3D%3D