Currently, a six-month CD’s annual percentage yield is on par with many high-yield savings accounts. Even though the rates between the two savings options are close, a six-month CD offers a guaranteed return for the next six months.
While experts disagree on whether the Federal Reserve will pause rate hikes or issue another increase at its next May 2-3 meeting, most agree that shorter-term interest-earning savings options are best. If rates go up in the next few months, a six-month CD gives you the chance to take advantage of better rates down the line -- while still offering you a solid return. And if rates pause or drop, you’ll still earn a guaranteed high yield for the next six months.
Here are the best six-month CD rates and what to keep in mind before opening an account in today’s rate environment.
What is a 6-month CD?
A six-month CD is an interest-earning deposit account that lets you earn a return for a fixed period, or “term,” of six months. Your bank or credit union pays a guaranteed interest rate on your one-time deposit in exchange for keeping your money in the account for half a year. When the term ends, you’ll receive the interest, plus your deposit, as your total balance. You may then roll the funds into a new CD or use the money toward a different goal.
If you need to withdraw your funds before six months are up, you’ll typically pay an early withdrawal fee. Each bank charges its own early withdrawal penalties, charging you a portion of the interest you accrued.
After your CD matures, most CDs offer a grace period of seven to 10 days. During this time you can withdraw your funds, purchase another type of CD or let the CD automatically renew.
CNET’s picks for the best 6-month CD rates
Best 6-month CD rates
| Bank | 6-month CD APY | Minimum deposit |
| Ally | 3.40% | $0 |
| Synchrony | 4.25% | $0 |
| Alliant Credit Union | 4.75% | $1,000 |
| TIAA Bank | 4.00% | $1,000 |
| Quontic | 3.75% | $500 |
| Bask Bank | 4.85% | $1,000 |
| Capital One | 3.30% | $0 |
| Marcus by Goldman Sachs | 3.90% | $500 |
| MYSB Direct | 5.00% | $500 |
| Rising Bank | 4.80% | $1,000 |
| Forbright | 2.00% | $1,000 |
| CIT | 5.00% | $1,000 |
More details on the best 6-month CD rates
Ally Bank
Read Ally Bank Review- Min. deposit to open
- $0
- No-penalty, bump-up and high-yield CDs
- Terms range from three months to five years, depending on the type of CD
- Early withdrawal penalties range from two to five months of interest
- Loyalty reward of 0.05% for CDs you renew
About the bank: Ally is one of our favorite banks and choices for opening a CD. It’s a full-service bank that offers several deposit accounts, including high-yield checking, savings and money market accounts. Best of all, these accounts don’t require a minimum deposit or balance required. If you’re eyeing a CD with Ally, we like that it offers a loyalty reward that boosts your APY by 0.05% when you renew.
Keep in mind that Ally is an online-only bank so you’ll need to be comfortable managing your account online, but ATMs are available. However, cash deposits aren’t accepted.
Synchrony Bank
Read Synchrony Bank Review- Min. deposit to open
- $0
- Bump-up, high-yield and no-penalty CDs available
- Terms range from three months to five years, depending on the type of CD
- No minimum balance or monthly maintenance fees
- Early withdrawal penalties range from three months to one year of interest
About the bank: Synchrony offers competitive rates for all of its savings options -- including money market accounts, CDs and high-yield savings accounts. You’ll also have extended customer service hours by phone and live chat online.
However, Synchrony doesn’t allow cash deposits and a checking account option isn’t available. And Synchrony is an online-only bank, so even though it has a lot to offer, you’ll need to be comfortable managing your accounts online.
Alliant Credit Union
Read Alliant Credit Union Review- Min. deposit to open
- $1,000
- High-yield and jumbo CDs
- IRA CDs are also available for retirement
- Terms range from three months to five years
- Early withdrawal penalties range from seven days to three months of interest
About the bank: Alliant offers different types of checking and savings accounts -- including options for teens and kids. We like that the credit union lets you open up to 19 savings accounts and track your financial goals online. And you’ll get up to $20 reimbursed for out-of-network ATM surcharges.
However, you’ll need to meet certain account eligibility requirements to open an account, but it’s still available nationwide. You can open an account online or by calling 800-328-1935.
Barclays
Read Barclays Review- Min. deposit to open
- $0
- Only high-yield CDs available
- Terms range from one to five years
- No monthly maintenance fees
- Early withdrawal penalties range from three to six months of interest, depending on the CD term
About the bank: Barclays Bank is a good choice for high-yield savings accounts and CDs, but you won’t find any other options -- such as checking or money market accounts. However, you can manage your accounts online or via the mobile app. We also like that Barclays also offers a few helpful tools to help you manage your money and track savings goals, including the Savings Assistant and CD calculator.
The downside is while customer service is available seven days a week, the hours are 8 a.m. to 8 p.m. ET -- not 24/7.
TIAA Bank
Read TIAA Bank Review- Min. deposit to open
- $0
- High-yield, bump-up and IntraFi® CDs available
- Terms range from three months to five years, depending on the type of CD
- No monthly account fee
- Minimum deposit for CD varies based on the type of CD
- Early withdrawal penalty is one-fourth of the CD term’s total interest
About the bank: We like that TIAA Bank offers an array of CD types to choose from and competitive rates for its deposit accounts. However, there’s a minimum deposit for most accounts and if you plan to open a checking account, the APY will depend on your daily minimum balance.
24/7 customer support is available online and by phone at 888-882-3837. You can also manage your accounts online or in person if there’s a branch nearby. However, there aren’t many brick-and-mortar branches compared to major national banks.
Quontic Bank
Read Quontic Bank Review- Min. deposit to open
- $500
- Only high-yield CDs available
- Terms range from one to five years
- Early withdrawal penalties vary by term
About the bank: Quontic offers several checking accounts to let you earn cash rewards, interest or bitcoin on your balance. You can also open a high-yield savings, money market and CD account. We like that the deposit accounts don’t have any overdraft or monthly maintenance fees. And Quontic’s Pay Ring lets you make transactions using a wearable.
To reach Quontic, you can have live chat or share your phone number with the bank for a phone call. Quontic’s mobile app is also available for help and managing your accounts.
Bask Bank
- Min. deposit to open
- $1,000
- Only high-yield CDs available
- Terms range from six months to two years
- Only up to five CDs per account, which is worth noting for CD ladders
- Early withdrawal penalties range from three to six months of interest
- No monthly fees
About the bank: Bask Bank only offers savings and CD accounts. With the Bask Mileage Savings Account, there’s also a chance to earn two American Airlines AAdvantage miles for every dollar saved annually. The high-yield savings account comes with a competitive rate. Occasionally, Bask may bump your CD rate to a promotional rate or allow you to choose a one-time rate bump but aren’t obligated to.
You’ll have to manage the account online, via the mobile app or by calling customer service during available hours at 833-260-4320.
Bread Savings
- Min. deposit to open
- $1,500
- Only high-yield CDs available
- Terms range from one to five years
- Early withdrawal penalties range from three months to one year of interest
About the bank: Bread Savings offers CDs and high-yield savings accounts, but both require a minimum deposit -- $1,500 and $100 respectively. CDs come with a few free services that are common amongst banks, but worth noting -- including incoming wire transfers, monthly maintenance and ACH transfers. Bread Savings is an online bank but can be reached at 833-755-4354.
CFG Bank
Read CFG Bank Review- Min. deposit to open
- $500
- Only high-yield CDs are available
- Terms range from one to five years
- Requires a $500 minimum deposit
- CDs cannot exceed $500,000
- Early withdrawal penalty of seven days of interest within six days of account opening
About the bank: CFG Bank offers money markets, CDs and savings accounts with competitive rates. Several checking accounts are also available with access to over 2,000 ATMs. CFG also charges a few fees that are more than other banks, such as a $37 overdraft fee and a monthly maintenance fee between $2 and $10 depending on the account.
Branches are available in Maryland -- which can be a downside if you need in-person help and you’re not close by. However, you can manage your account online, via the mobile app or by phone at 410-823-0500.
Capital One Bank
Read Capital One Bank Review- Min. deposit to open
- $0
- Only high-yield CDs available
- Terms range from six months to five years
- CDs cannot exceed $1,000,000
- Early withdrawal penalties range from three to six months of interest
About the bank: Capital One offers several savings options that don’t require a minimum deposit or monthly maintenance fees -- including high-yield and kids savings accounts. Checking accounts are also available. Compared to other interest-earning checking accounts, the APY is slightly lower for Capital One’s 360 checking account, but you won’t be charged for overdraft protection. And we like the convenience of depositing cash at CVS stores.
Aside from deposit accounts, Capital One offers CreditWise to manage your credit using the Capital One app. You can open an account at a Capital One branch near you or online.
Marcus by Goldman Sachs
Read Marcus by Goldman Sachs Review- High-yield, no-penalty and bump-up CDs available
- Terms range from six months to six years, depending on the type of CD
- Early withdrawal penalties range from three to nine months of interest
- CD Maturity Center available 12 months before your CD matures to make changes to your CD beforehand, including withdrawing money or closing the account
About the bank: Marcus by Goldman Sachs offers high-yield savings and CDs. No-penalty and bump-up CDs are also available, but checking accounts are not. High-yield CDs require a minimum $500 deposit, while savings accounts don’t require any amount to get started. We like that you can make same-day transfers of $100,000 or less to and from other banks. We like that you can reach the contact center 24/7 by calling 855-730-7283. An extensive list of frequently asked questions is also available online.
However, there are some shortcomings. Marcus by Goldman Sachs doesn’t offer an ATM network, checking or money market accounts. Lastly, you won’t be able to deposit cash or mobile check deposits.
MYSB Direct
- Min. deposit to open
- $500
- Only high-yield CDs available
- Terms range from one month to five years
- Early withdrawal penalties apply, but the amount isn’t clear
About the bank: M.Y. Safra Bank Direct is a full-service bank that offers a range of checking, savings, money market and CD accounts depending on your needs. However, it’s not the best option for a money market account since the interest rates are lower than other banks. MYSB Direct is still a solid option for most CD accounts since you’ll earn a competitive rate and it only requires a $500 deposit. Another downside is that this bank charges a $5 monthly fee for select accounts.
You can visit the local branch if you live in New York City or call 212-652-7200 during business hours. Accounts can also be managed online.
Rising Bank
- Min. deposit to open
- $1,000
- High-yield, jumbo and bump-up CDs available
- Terms range from six months to three years
- Early withdrawal penalties range from three to six months of interest
- No monthly maintenance fees
About the bank: Rising Bank offers competitive rates for its high-yield savings and CDs with no monthly maintenance fees attached. The bank also has an interest-earning checking account option, which makes it a solid pick if you’d like to keep all of your money with one bank. You can manage your account via the mobile app and customer service is available to help by email at support@risingbank.com or calling 888-222-9484.
If you’re looking for a longer-term CD, such as a five-year term, it’s best to consider other options since the longest term Rising offers is three years. Or if you need to withdraw more than $550 from your account on a regular basis, you won’t be able to with Rising’s checking or savings accounts. Lastly, money markets are not available.
CIT Bank
- Min. deposit to open
- $1,000
- High-yield, no-penalty, jumbo and bump-up CDs available
- Terms range from three months to five years
- Minimum $1,000 deposit
- Early withdrawal penalty is three to six months of interest
About the bank:
We like that CIT Bank offers several CD types and terms. You won’t be charged any monthly maintenance fees, but a $1,000 minimum deposit is required. We like that aside from CDs, CIT Bank also offers competitive rates for savings and money market accounts. And a checking account is available if you prefer to keep all of your money with one bank.
Keep in mind that CIT Bank is an online-only bank and no physical branches are available. You can open and manage your account online or via the mobile app.
Forbright Bank
- Min. deposit to open
- $1,000
- Only high-yield CDs available
- Terms range from three months to five years
- Minimum $1,000 deposit
About the bank:
Forbright is a full-service bank that offers money market, savings and checking accounts -- along with CDs. It offers a competitive rate that’s on par with other banks we feature. However, opening a CD requires a $1,000 deposit and only traditional, high-yield CDs are available. There are a few branches in Maryland and Virginia, or you can open an account online if a location isn’t nearby.
How high will 6-month CD rates go?
Right now, the average six-month CD APY is 4.08% based on the banks we track at CNET -- and a couple banks are offering APYs of 5.00%. Experts predict more banks may offer rates at or above 5.00% APY, but don’t expect them to climb much higher.
Since the Silicon Valley Bank crisis, John Koczara, a chartered financial analyst and partner at LaFleur & Godfrey, believes the competition for deposits will increase -- especially for smaller banks. “The increased promotional activity from these banks could drive CD rates over 5.00% over the near term,” he said. Alvin Carlos, a certified financial planner at District Capital, echoed Koczara’s thoughts that we’ll see some more CDs reach the 5.00% mark by early summer.
But when you do the math between between 4.08% APY, the current average 6-month CD rate, and 5.00%, there’s not a huge difference in your return. Here’s a comparison if you deposit $500.
| 6-month CD APY | Deposit | Interest earned | Balance |
| 4.08% | $500 | $10.10 | $510.10 |
| 5.00% | $500 | $12.35 | $512.35 |
Unless you plan to make a bigger deposit in a few months, waiting for rates to reach 5.00% may not be worthwhile since the difference in the return is minimal.
How to get the best six-month CD rate
Several factors determine the CD rates banks offer. Typically when inflation is high, as we’ve seen over the past year, the Fed will raise the federal funds rate to increase the cost of borrowing and slow the economy. Banks typically follow in lockstep, raising rates on loans, credit cards and even mortgages, but also offering higher savings account rates. But aside from the economic factors, the bank you choose will play a big part.
“While the general level of Fed Funds interest rates has a positive impact on the direction of savings rates offered across the industry, individual institutions set their rates based upon their need for deposits at any given time,” said Tracy Bell, CFA and director of equity strategies at First Horizon Advisors. “An institution in need of deposits may pay a much higher savings rate than one that has excess deposits.
That’s why it’s best to shop around and compare rates before opening an account. Neobanks, those that only operate online without physical branches, often offer the best rates since these banks have fewer overhead costs. That translates into better savings and CD rates for you.
FAQs
There are several factors involved in choosing the best CD term to suit your financial needs. First, examine the various CD types and terms to decide if a six-month CD is best for you. Then compare APYs across banks and look at any other requirements, such as a minimum deposit.
You should also think about how you plan to manage your CD, either online or at a physical branch, to find a bank that meets your needs. Finally, you should understand what happens when your CD term ends. You may receive a better rate if you renew or choose another savings option the bank offers. And just in case you need to withdraw money sooner, check the early withdrawal penalties to see how much you’ll be on the hook for.
Fees vary depending on the institution. Most CDs charge an early withdrawal penalty for taking money out before the CD term ends. The fee is generally based on a percentage of the interest earned and the CD term. Some banks also charge monthly maintenance fees.
The Federal Deposit Insurance Corporation or National Credit Union Administration insures CDs purchased through a bank or credit union, respectively, for up to $250,000 per person per account category. That means you won’t lose your deposit if there’s a bank failure or loss.
Usually, you can lose money from an FDIC- or NCUA-insured CD by withdrawing money before the CD term ends. If so, you’ll pay a withdrawal penalty, which will equal a portion of the CD term’s total interest.
Depending on your savings goals, a money market or high-yield savings account may be a better fit. These accounts offer more flexibility to regularly withdraw and contribute funds whenever. And you’ll still earn a competitive rate. However, instead of locking in a rate with a CD, you’ll have a variable interest rate that will fluctuate with the market -- so your return will be much less predictable.
CD terms can vary from three months to five years. Generally, CDs with longer terms of maturity pay higher interest rates. Additionally, there are other safe savings accounts to consider, such as high-yield savings accounts or I bonds.
Methodology
CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We selected the CDs with the highest APY for six-month terms from among the organizations we surveyed.
Banks surveyed include: Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Barclays, BMO Harris, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Citizens Access, Colorado Federal Savings Bank, Connexus Credit Union, Consumers Credit Union, Discover Bank, First Internet Bank of Indiana, First Tech Federal Credit Union, FNBO Direct, GO2bank, Golden 1 Credit Union, HSBC Bank, Huntington Bank, Lake Michigan Credit Union, LendingClub Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Nationwide (by Axos), Navy Federal Credit Union, NBKC, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, Synchrony Bank, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, USAA Bank, Vio Bank and Wells Fargo.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
