pwshub.com

Best 6-Month CD Rates for August 2024

Article updated on Aug 23, 2024

Why You Can Trust CNET Money

Our mission is to help you make informed financial decisions, and we hold ourselves to strict . This post may contain links to products from our partners, which may earn us a commission. Here’s a more detailed explanation of .

Dashia Milden Liliana Hall

Dashia Milden

Dashia Milden

Dashia is a staff editor for CNET Money who covers all angles of personal finance, including credit cards and banking. From reviews to news coverage, she aims to help readers make more informed decisions about their money. Dashia was previously a staff writer at NextAdvisor, where she covered credit cards, taxes, banking B2B payments. She has also written about safety, home automation, technology and fintech.

See full bio

Liliana Hall

Liliana Hall

Liliana Hall

Associate Writer

Liliana Hall is a writer for CNET Money covering banking, credit cards and mortgages. Previously, she wrote about personal credit for Bankrate and CreditCards.com. She is passionate about providing accessible content to enhance financial literacy. She graduated from the University of Texas at Austin with a bachelor's degree in journalism, and has worked in the newsrooms of KUT and the Austin Chronicle. When not working, she is probably paddle boarding, hopping on a flight or reading for her book club.

See full bio

Edited by

Kelly Ernst

Kelly Ernst

Kelly is an editor for CNET Money focusing on banking. She has over 10 years of experience in personal finance and previously wrote for CBS MoneyWatch covering banking, investing, insurance and home equity products. She is passionate about arming consumers with the tools they need to take control of their financial lives. In her free time, she enjoys binging podcasts, scouring thrift stores for unique home décor and spoiling the heck out of her dogs.

See full bio

Reviewed by

Bernadette Joy

Bernadette Joy

Bernadette Joy

Money coach and founder of Crush Your Money Goals

Bernadette Joy is a money expert that offers relatable  advice on achieving financial freedom. She paid off $300,000 of debt in three years and invested enough to retire by 40. Bernadette has shared her expertise on TEDx, South By Southwest, and Nasdaq. Bernadette's upcoming book, CRUSH Your Money Goals, will be released in December 2024.

See full bio

Article updated on Aug 23, 2024

Dashia Milden Liliana Hall Kelly Ernst Bernadette Joy

Written by 

Dashia Milden

Dashia is a staff editor for CNET Money who covers all angles of personal finance, including credit cards and banking. From reviews to news coverage, she aims to help readers make more informed decisions about their money. Dashia was previously a staff writer at NextAdvisor, where she covered credit cards, taxes, banking B2B payments. She has also written about safety, home automation, technology and fintech.

See full bio

Liliana Hall

Liliana Hall

Associate Writer

Liliana Hall is a writer for CNET Money covering banking, credit cards and mortgages. Previously, she wrote about personal credit for Bankrate and CreditCards.com. She is passionate about providing accessible content to enhance financial literacy. She graduated from the University of Texas at Austin with a bachelor's degree in journalism, and has worked in the newsrooms of KUT and the Austin Chronicle. When not working, she is probably paddle boarding, hopping on a flight or reading for her book club.

See full bio

Edited by 

Kelly Ernst

Kelly is an editor for CNET Money focusing on banking. She has over 10 years of experience in personal finance and previously wrote for CBS MoneyWatch covering banking, investing, insurance and home equity products. She is passionate about arming consumers with the tools they need to take control of their financial lives. In her free time, she enjoys binging podcasts, scouring thrift stores for unique home décor and spoiling the heck out of her dogs.

See full bio

Reviewed by 

Bernadette Joy

Bernadette Joy

Money coach and founder of Crush Your Money Goals

Bernadette Joy is a money expert that offers relatable  advice on achieving financial freedom. She paid off $300,000 of debt in three years and invested enough to retire by 40. Bernadette has shared her expertise on TEDx, South By Southwest, and Nasdaq. Bernadette's upcoming book, CRUSH Your Money Goals, will be released in December 2024.

See full bio

CNET staff -- not advertisers, partners or business interests -- determine how we review the products and services we cover. If you buy through our links, we may get paid.

Reviews ethics statement

A certificate of deposit lets you earn interest on a sum of money with a fixed annual percentage yield, or APY, over a fixed period of time, or term. CDs are a good savings option to park money for a few months or years with minimal risk of losing your earnings.

If you need to access the money before it fully matures, you’ll often pay an early withdrawal penalty that can reduce your interest earnings. Most CD options require a single deposit and don’t allow additional deposits, so you’ll need to gather your funds before opening an account. When you’re ready to open a CD, compare the best terms and rates among local credit unions and banks to find the right fit for your savings.

  • CommunityWide Federal Credit Union 5.25% APY , $1,000 Min. deposit to open
  • Bask Bank 5.10% APY, $1,000 Min. deposit to open
  • Quontic Bank 5.10% APY, $500 Min. deposit to open
  • MYSB Direct 4.90% APY, $500 Min. deposit to open
  • Marcus by Goldman Sachs 4.85% APY, $500 Min. deposit to open
  • Synchrony Bank 4.80% APY, $0 Min. deposit to open
  • Alliant Credit Union 4.75% APY, $1,000 Min. deposit to open
  • Rising Bank 4.50% APY, $1,000 Min. deposit to open
  • Capital One Bank 4.25% APY, $0 Min. deposit to open
  • EverBank 4.00% APY, $0 Min. deposit to open

Certificate of deposit (CD)

A type of savings account in which a lump-sum deposit accrues interest at a fixed rate for a fixed term, usually with an early withdrawal penalty.

Annual percentage yield (APY)

A CD’s interest rate that represents the return from the compounded interest you’ll earn in 12 months on your deposit. The higher the APY, the faster your money grows.

CD term

The fixed period in which your deposit earns interest. The maturity date is the end of the term, which can range from one month to 10 years or more.

Early withdrawal penalty

The fee for withdrawing your CD funds before maturity, often equalling a period's worth of interest, which varies by institution and length of CD term.

Share certificate

Similar to a CD, but issued by a credit union, in which a credit union member deposits a lump sum that accrues interest for a fixed term.

Advertiser Disclosure

CNET editors independently choose every product and service we cover. Though we can’t review every available financial company or offer, we strive to make comprehensive, rigorous comparisons in order to highlight the best of them. For many of these products and services, we earn a commission. The compensation we receive may impact how products and links appear on our site.


The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guarantee the accuracy or availability of any rates shown. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own website where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers’ terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

For details on our best products and how we chose them click here.

Certificate of Deposit (CD)

A type of savings account in which a lump-sum deposit accrues interest at a fixed rate for a fixed term, usually with an early withdrawal penalty.

Checking

The core bank account used for financial transactions. Account holders use it to deposit money and withdraw funds as needed.

Savings

A deposit account issued by banks and credit unions used to deposit money and earn a small amount of interest. Typically insured for up to $250,000 per account owner.

Money Market Account (MMA)

Similar to a savings account but with the added feature of checking-writing privileges and debit card to access cash, with some limitations.

Annual Percentage Yield (APY)

A CD’s interest rate that represents the return from the compounded interest you’ll earn in 12 months on your deposit. The higher the APY, the faster your money grows.

Estimated earnings

An estimated calculation usually associated with determining how much you’ll receive from an interest-bearing account.

Certificate of deposit rates are trending downward, but there’s still time to lock in a great rate with a six-month CD. The average annual percentage yield, or APY, for the top six-month CDs we track at CNET is 4.58% -- and you can find plenty with APYs above 5%.

But since the best high-yield savings accounts also earn over 5% APY, is it worth locking up your money for half a year? Both savings accounts and CDs are low-risk savings options, but a CD allows you to lock in a fixed rate for a set term, whereas a savings account rate could change at any time. And in an uncertain economic environment, CDs can come in handy. 

CD rates have wavered over the last few weeks as banks anticipate the Federal Reserve’s next move. Right now, all signs point toward a September rate cut. So, what does that mean for CD rates? That now’s the time to secure a high rate before it’s too late. 

Read on to learn where you can find CNET’s picks for the best six-month CD rates.

The best 6-month CD rates

Banks that offer the best 6-month CD rates

CommunityWide Federal Credit Union

CommunityWide Federal Credit Union

APY

5.25%

Min. deposit to open

$1,000

  • Only high-yield CDs available
  • Terms range from six months to five years
  • No monthly fees
  • No automatic renewals
  • Early withdrawal penalty fees do apply when you withdraw before your account matures

Editor’s take: CommunityWide Federal Credit Union’s six-month CD currently has the highest CD rate available, at 5.25% APY. This rate is accurate as of Aug. 21, 2024.

This bank consistently makes our list of best online credit unions. You need to deposit at least $1,000 to open a CD account, but we like that there are no monthly fees. CommunityWide Federal Credit Union offers other CD terms with competitive rates, ranging from six months to five years.

Keep your savings timeline in mind before opening any CD account. CommunityWide does charge a pretty hefty early withdrawal penalty. Any amount withdrawn prior to the maturity date will be assessed a penalty equal to the amount of the withdrawal times the remaining term (days) of this certificate at the rate of 2 times the current APR.

Bask Bank

Bask Bank

APY APY = Annual Percentage Yield.

5.10%

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

Editor’s take: 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.

  • 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

Editor’s take: 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.

Quontic Bank

Quontic Bank

4.8/5

We score certificates of deposit based on annual percentage yields, customer experience, and minimum deposits and fees. Our CD ratings are based on extensive in-house research.

Minimum deposit and fees

5.0/5

APY APY = Annual Percentage Yield.

5.10%

Min. deposit to open

$500

  • Only high-yield CDs available
  • Terms range from one to five years
  • Early withdrawal penalties vary by term

Editor’s take: Quontic only offers high-yield CDs, including six-month, one-, two-, three- and five-year terms. All of Quontic’s CDs have competitive rates, but you’ll need a $500 deposit to get started. Interest compounds daily and is paid monthly. When it’s almost time for your CD to mature, you’ll receive a maturity notice that will outline your options for when your CD ends. If you need help, you can reach Quontic via live chat, a phone call or the mobile app. But if you’re looking for speciality CDs or want in-person assistance, you’ll need to consider other options.

  • Only high-yield CDs available
  • Terms range from one to five years
  • Early withdrawal penalties vary by term

Editor’s take: Quontic only offers high-yield CDs, including six-month, one-, two-, three- and five-year terms. All of Quontic’s CDs have competitive rates, but you’ll need a $500 deposit to get started. Interest compounds daily and is paid monthly. When it’s almost time for your CD to mature, you’ll receive a maturity notice that will outline your options for when your CD ends. If you need help, you can reach Quontic via live chat, a phone call or the mobile app. But if you’re looking for speciality CDs or want in-person assistance, you’ll need to consider other options.

MYSB Direct

MYSB Direct

4.1/5

We score certificates of deposit based on annual percentage yields, customer experience, and minimum deposits and fees. Our CD ratings are based on extensive in-house research.

Minimum deposit and fees

1.8/5

APY APY = Annual Percentage Yield.

4.90%

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

Editor’s take: 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.

  • Only high-yield CDs available
  • Terms range from one month to five years
  • Early withdrawal penalties apply, but the amount isn’t clear

Editor’s take: 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.

Marcus by Goldman Sachs

Marcus by Goldman Sachs

4.4/5

We score certificates of deposit based on annual percentage yields, customer experience, and minimum deposits and fees. Our CD ratings are based on extensive in-house research.

Minimum deposit and fees

5.0/5

APY APY = Annual Percentage Yield.

4.85%

Min. deposit to open

$500

  • 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

Editor’s take: 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.

  • 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

Editor’s take: 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.

Synchrony Bank

Synchrony Bank

4.5/5

We score certificates of deposit based on annual percentage yields, customer experience, and minimum deposits and fees. Our CD ratings are based on extensive in-house research.

Minimum deposit and fees

5.0/5

Customer experience

3.5/5

APY APY = Annual Percentage Yield.

4.80%

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

Editor’s take: Synchrony offers competitive rates for its high-yield CDs. It also offers specialty CDs, including no-penalty, IRA and bump-up CDs, but terms are limited. Synchrony doesn’t require a minimum deposit or charge monthly maintenance fees. But keep in mind that if you open a six-month CD with Synchrony and withdraw money before the CD matures, you’re on the hook for three months of interest.

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. If so, you’ll also have extended customer service hours by phone and live chat online.

  • 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

Editor’s take: Synchrony offers competitive rates for its high-yield CDs. It also offers specialty CDs, including no-penalty, IRA and bump-up CDs, but terms are limited. Synchrony doesn’t require a minimum deposit or charge monthly maintenance fees. But keep in mind that if you open a six-month CD with Synchrony and withdraw money before the CD matures, you’re on the hook for three months of interest.

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. If so, you’ll also have extended customer service hours by phone and live chat online.

Alliant Credit Union

Alliant Credit Union

3.9/5

We score certificates of deposit based on annual percentage yields, customer experience, and minimum deposits and fees. Our CD ratings are based on extensive in-house research.

Minimum deposit and fees

2.6/5

APY APY = Annual Percentage Yield.

4.75%

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

Editor’s take: Alliant offers high-yield CDs and jumbo CDs if you have a higher deposit. Terms range from three months to five years. IRA CDs are also available. Alliant requires a $1,000 minimum deposit, and unlike other banks and credit unions, it compounds and pays interest monthly instead of compounding interest daily. So you won’t earn as much comparatively.

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.

  • 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

Editor’s take: Alliant offers high-yield CDs and jumbo CDs if you have a higher deposit. Terms range from three months to five years. IRA CDs are also available. Alliant requires a $1,000 minimum deposit, and unlike other banks and credit unions, it compounds and pays interest monthly instead of compounding interest daily. So you won’t earn as much comparatively.

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.

Rising Bank

Rising Bank

3.7/5

We score certificates of deposit based on annual percentage yields, customer experience, and minimum deposits and fees. Our CD ratings are based on extensive in-house research.

Minimum deposit and fees

5.0/5

APY APY = Annual Percentage Yield.

4.50%

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

Editor’s take: 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.

  • 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

Editor’s take: 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.

Capital One Bank

Capital One Bank

4.7/5

We score certificates of deposit based on annual percentage yields, customer experience, and minimum deposits and fees. Our CD ratings are based on extensive in-house research.

Minimum deposit and fees

5.0/5

APY APY = Annual Percentage Yield.

4.25%

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

Editor’s take: 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.

  • 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

Editor’s take: 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.

EverBank

EverBank

3.9/5

We score certificates of deposit based on annual percentage yields, customer experience, and minimum deposits and fees. Our CD ratings are based on extensive in-house research.

Minimum deposit and fees

3.8/5

APY APY = Annual Percentage Yield.

4.00%

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

Editor’s take: 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.

  • 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

Editor’s take: 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.

Should you open a 6-month CD now?

Since your rate is locked in on the day you open a CD account, opening one can protect your earnings against future rate drops. But it’s always a good idea to compare savings options to get the best account for your financial needs and goals. 

You should open a 6-month CD right now if: 

Six months is one of the shortest CD terms most banks and credit unions offer. If you’re considering a savings vehicle for a short-term goal, a six-month CD allows you to lock in a fixed rate without the commitment of a long-term CD. But it’s important to note that CDs of less than one year will earn slightly less than the full APY. 

One of the benefits of putting money in a CD is that it can help you avoid spending money you want to allocate toward a goal, like saving up for a home down payment, a wedding or a vacation. 

Generally, longer-term CDs have higher APYs than CDs with shorter terms, but right now that isn’t the case, due to a phenomenon known as an inverted yield curve. Short-term CDs, such as six-month, nine-month and one-year CDs, are earning higher interest rates than many longer-term CDs. For example, the average APY for three-year and five-year CDs is 3.96% and 3.83%, respectively, while the average APY for six-month CDs is 4.58%, based on the banks we track at CNET. 

You should look for CD alternatives if:

Although some of the best six-month CDs are offering APYs over 5.00%, you might consider a high-yield savings account instead if you’d prefer liquidity, says Andrew Latham, a certified financial planner and managing editor of Supermoney.com

“It often comes down to a balance between interest rates and liquidity needs,” said Latham. If a six-month CD offers a considerably higher rate than the HYSA and you don’t need access to those funds right away, it might be worth considering. But if the rates are comparable, the flexibility of an HYSA can be more appealing, since you can withdraw your funds without facing a penalty, unlike CDs, Latham added.

Several factors determine the CD rates banks offer. When inflation is high, as we’ve seen over the past year, the Fed raises the federal funds rate to increase the cost of borrowing and slow the economy. Banks typically follow suit, raising rates on loans, credit cards and even mortgages but also offering higher savings account rates. But banks also set their own rates to be competitive.

“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,” 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 competitive CD and savings rates because these banks have fewer overhead costs.

How to choose a 6-month CD

There are several factors involved in choosing the best CD term to suit your financial needs. 

  • Rates and features: APY is important, but it’s not the only factor worth considering. However, online-only banks and credit unions usually offer the best rates. 
  • Minimum deposit requirement: Some CDs require a minimum deposit to open an account, so keep in mind how much you have to set aside to help you narrow down your options. Also, keep in mind that most CDs allow only a one-time deposit upon opening the account, so make sure you can meet the requirement (if there is one) before you get started.
  • Customer service: To find a bank that meets your needs, consider how you plan to manage your CD – either online or at a physical branch. If it’s an online bank, contact its customer service line before you open an account to gauge whether you feel comfortable with the quality of assistance you’ll get. 
  • Early withdrawal penalties: Early withdrawal penalties can eat into your interest earnings. To avoid unnecessary fees, choose a term that fits your savings timeline. But just in case you need to withdraw money sooner – though you should always avoid this if you can – check the early withdrawal penalties to see how much you’ll be on the hook for.

You’ll also want to check your options for how the interest will be managed. Depending on the bank, you can invest the CD’s interest to compound your savings further, or you can have the interest deposited into another eligible account -- usually at the same bank -- to have access to the interest immediately, penalty-free. If you want access to your interest sooner, consider opening a CD at a bank you already have an account with. 

How to open a 6-month CD

When you’re ready to open a CD, you can open the account in person or online, depending on the bank. You’ll need to provide some personal information to open the account, such as your full name, Social Security number or Individual Taxpayer Identification Number, physical address and contact information. 

After you complete the application, you’ll need to make a one-time deposit to fund the CD. You won’t be able to make any additional contributions after that -- unless you open an add-on CD -- so you should only open a CD when you have the funds ready to go.

FAQs

A six-month CD is an interest-earning deposit account that offers 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 initial deposit. You may then roll the funds into a new CD or use the money toward a different goal.

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. To clarify, if you have multiple CDs at the same bank, you will only be insured up to $250,000 in total across all the CD accounts.  

That means you won’t lose your deposit if there’s a bank failure or loss. Usually, you’ll only lose money from an FDIC- or NCUA-insured CD by withdrawing money before the CD term ends. If so, you’ll typically pay a withdrawal penalty equaling a portion of the interest.

Depending on your savings goals, a money market or high-yield savings account may be a better fit than a CD if you plan on regularly withdrawing or contributing funds.. You’ll still earn a competitive rate, but 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.

If you need to withdraw your funds before six months are up, you’ll typically pay an early withdrawal fee. Each bank has its own early withdrawal penalties equal to a portion of the interest you’ve accrued. Some banks we track charge three months of interest for a six-month CD. 

After your CD matures, most CDs offer a grace period of seven to 10 days to give you time to decide if you want to withdraw your funds, purchase another type of CD or let the CD automatically renew at the then-current rate.

Recommended Articles

Best CD Rates for August 2024

Best CD Rates for August 2024

Alternatives to CDs

Alternatives to CDs

Best Jumbo CD Rates for August 2024

Best Jumbo CD Rates for August 2024

Best 1-Month CD Rates for August 2024

Best 1-Month CD Rates for August 2024

Best 3-Month CD Rates for August 2024

Best 3-Month CD Rates for August 2024

Best 9-Month CD Rates for August 2024

Best 9-Month CD Rates for August 2024

Best 1-Year CD Rates for August 2024

Best 1-Year CD Rates for August 2024

Best 18-Month CD Rates for August 2024

Best 18-Month CD Rates for August 2024

Best 3-Year CD Rates for August 2024

Best 3-Year CD Rates for August 2024

Best 5-Year CD Rates for August 2024

Best 5-Year CD Rates for August 2024

Best 10-Year CD Rates for August 2024

Best 10-Year CD Rates for August 2024

Best 1-Year Credit Union CD Rates (Share Certificates)

Best 1-Year Credit Union CD Rates (Share Certificates)

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.

The banks, credit unions and neobanks we reviewed 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.

Dashia Milden

Written by

Dashia Milden

Editor

Dashia is a staff editor for CNET Money who covers all angles of personal finance, including credit cards and banking. From reviews to news coverage, she aims to help readers make more informed decisions about their money. Dashia was previously a staff writer at NextAdvisor, where she covered credit cards, taxes, banking B2B payments. She has also written about safety, home automation, technology and fintech.

Liliana Hall

Written by

Liliana Hall

Associate Writer

Liliana Hall is a writer for CNET Money covering banking, credit cards and mortgages. Previously, she wrote about personal credit for Bankrate and CreditCards.com. She is passionate about providing accessible content to enhance financial literacy. She graduated from the University of Texas at Austin with a bachelor's degree in journalism, and has worked in the newsrooms of KUT and the Austin Chronicle. When not working, she is probably paddle boarding, hopping on a flight or reading for her book club.

CNET editors independently choose every product and service we cover. Though we can’t review every available financial company or offer, we strive to make comprehensive, rigorous comparisons in order to highlight the best of them. For many of these products and services, we earn a commission. The compensation we receive may impact how products and links appear on our site.

Writers and editors and produce editorial content with the objective to provide accurate and unbiased information. A separate team is responsible for placing paid links and advertisements, creating a firewall between our affiliate partners and our editorial team. Our editorial team does not receive direct compensation from advertisers.

CNET Money is an advertising-supported publisher and comparison service. We’re compensated in exchange for placement of sponsored products and services, or when you click on certain links posted on our site. Therefore, this compensation may impact where and in what order affiliate links appear within advertising units. While we strive to provide a wide range of products and services, CNET Money does not include information about every financial or credit product or service.

Source: cnet.com

Related stories
1 month ago - Take advantage of high rates and keep your money accessible with this savings strategy.
1 month ago - You can contribute more money to an add-on CD, but the tradeoff could be a lower yield.
1 month ago - Unless you already have an established relationship with this bank, these CD rates aren't the best available.
1 month ago - Key takeaways Cast a wide net for your CD search and consider online-only banks and local community banks and credit unions hungry to attract new...
1 month ago - Article updated on Aug 15, 2024 Why You Can Trust CNET Money Our mission is to help...
Other stories
56 minutes ago - If the case is confirmed by the CDC, it will be the 16th linked to the dairy outbreak.
56 minutes ago - Automattic founder Matt Mullenweg called WP Engine "a cancer to WordPress." Automattic...
1 hour ago - The game is set thousands of years in the past, so don't expect characters from The Last Airbender or Legend of Korra.
1 hour ago - Why You Can Trust CNET Our expert deal-hunting staff showcases the best price drops and discounts from reputable sellers daily. If you make a...
1 hour ago - The universe is full of oddities and formations that range from magnetars to solar systems with four stars. One of those oddities is the stellar...