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A 6-month CD can be a good choice if you're looking for a short-term CD that offers a high interest rate. The national average CD rate on a 6-month term is 1.65% APY (Annual Percentage Yield) according to the FDIC, but the best 6-month CD rates are much higher.
| Featured Offer | APYs (Annual Percentage Yields) are accurate as of 12/31/2024 | Minimum Deposit |
| Featured Offer - Barclays 6 Month Online CD | 4.00% | $0 |
However, there are much higher interest rates on 6-month CDs right now. The best CD rate for a 6-month term is 4.75% APY available at First Tech Federal Credit Union and Bellco Credit Union.
At Business Insider, we monitor CDs available at top banks and credit unions every day to help you find the best 6-month CD for you. We make sure to find the top 6-month CD rates even as the Fed cuts rates, causing CD rates as a whole to go down.
Below, you'll find our top picks for the best 6-month terms currently offered by nationwide banks and credit unions.
Best 6-Month CDs
- First Tech Federal Credit Union 6 Month CD: 4.75% APY
- Bellco Credit Union 6 Month CD: 4.75% APY
- Rising Bank 6 Month CD: 4.70% APY
- Popular Direct 6 Month CD: 4.61% APY
- TotalBank 6 Month CD: 4.61% APY
- Limelight Bank 6 Month Online CD: 4.55% APY
- CIBC Agility 6 Month CD: 4.51% APY
- Signature Federal Credit Union 6 Month Certificate: 4.50% APY
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
You can find the top CDs primarily at online banks. That said, there are also two credit unions with competitive 6-month terms.
When you are choosing a CD, you can compare different features to narrow down the best fit. For example, consider how much money you want to deposit and see if the bank's minimum opening deposit requirements aren't a reach. You can also weigh the overall banking experience and check out the bank's customer service availability and mobile app ratings before settling on an account.
You might also want to look for eco-friendly banks or community development financial institutions. Both of these types of financial institutions use the money you put in the bank for good; eco-friendly banks help the environment, while CDFIs provide financial services to underserved banking populations. Opening a CD with one of these financial institutions can be an easy way to support causes you care about.
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.
First Tech Federal Credit Union 6 Month CD
First Tech Federal Credit Union is a credit union anyone can join. Not only does it offer one of the best rates on its 6-month CD along with Bellco Credit Union, but it also doesn't charge early withdrawal penalties for its 6-month CD as long as you don't withdraw money within the first six days or withdraw within 6 days of making another partial withdrawal. It also has a low minimum opening deposit of $500.
You'll need to use new money to fund its 6-month CD; if you already have a First Tech Federal Credit Union account that you keep most or all of your money in, this might not be a good choice for you.
The easiest way to join First Tech Federal Credit Union is to become a member of the Computer History Museum or Financial Fitness Association. Joining the former costs $15, while joining the latter costs $8. You can join both organizations as part of your application process. Other ways you can become a First Tech member include working for a select employer group, working for the state of Oregon, living or working in a specific area of Oregon, or having a family or household member who's already a part of First Tech.
APY for 6-month CD: 4.75% APY
6-month CD early withdrawal penalty: 7 days of simple interest if withdrawn during the first six days or withdrawn within 6 days of another withdrawal; otherwise, none
Bellco Credit Union 6 Month CD
Bellco Credit Union is a credit union anyone in the U.S. can join and it offers a strong rate on its 6-month CD. It also has a low minimum opening deposit of $500.
The easiest way to join Bellco is by joining the Bellco Foundation. You'll need to make a $5 donation as part of the joining process. You can also be eligible to join the credit union by living in certain parts of Colorado, by working for one of Bellco's select employee groups, or by having a family member who's already part of the credit union.
APY for 6-month CD: 4.75% APY
6-month CD early withdrawal penalty: 90 days of interest
Rising Bank 6 Month CD
Rising Bank could be a good option if you have at least $1,000 to open an account. The online bank offers a competitive interest rate on a variety of short-term CDs, including a 6-month term.
Rising Bank CDs compound interest every three months. Other financial institution may compound interest monthly or daily. Depending on your account balance, this could make a significant difference in how much you earn during the term.
Interest for 6-month CD: 4.70% APY
6-month CD early withdrawal penalty: 90 days of interest
Popular Direct 6 Month CD
Popular Direct, the online division of Popular Bank, pays high CD rates overall. It also compounds interest daily, which helps grow your money more quickly than monthly or quarterly compounding.
You need at least $10,000 to open a CD with Popular Direct. It also charges relatively high early withdrawal penalties.
APY for a 6-month term: 4.61% APY
6-month CD early withdrawal penalty: 120 days of simple interest
TotalBank 6 Month CD
TotalBank CDs may be a good choice if you're searching for a variety of short-term CDs with high interest rates. The 3-month and 6-month 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, Samoa, Guam, the Northern Mariana Islands, or U.S. Virgin Islands.
APY for 6-month CD: 4.61% APY
6-month CD early withdrawal penalty: 30 days of interest
Limelight Bank 6 Month Online CD
Limelight Bank is an online division of CCBank, and it offers good rates on its 6-month CD.
Limelight Bank doesn't offer very many term lengths for its CDs; it only has 6-month, 1-year, 18-month, and 3-year CDs. The bank doesn't offer other types of bank accounts, either. If you're hoping to open CDs with term lengths over 3 years, or if you're looking for a primary bank, you might prefer another option.
APY for 6-month CD: 4.55% APY
6-month CD early withdrawal penalty: 90 days of interest
CIBC Agility 6 Month CD
CIBC Bank USA, the U.S. division of the Toronto-based bank Canadian Imperial Bank of Commerce, has a competitive CD rate on its 6-month term.
CIBC Bank USA has an online savings account and CDs that you can open from anywhere in the U.S. To open a checking account or money market account in the U.S., you must live in a state that has a banking center. Banking centers are located in select cities in California, Florida, Illinois, Michigan, Missouri, and Wisconsin.
APY for a 6-month term: 4.51% APY
6-month CD early withdrawal penalty: 30 days of simple interest
Signature Federal Credit Union 6 Month Certificate
Signature Federal Credit Union offers a strong rate on its 6-month CD. It also offers several other CD term lengths with strong rates, including its 3-month CD and 18-month CD. If you're hoping to open a CD ladder only using CDs from one bank, Signature Federal Credit Union could be a good choice.
Signature Federal Credit Union is pretty easy to join by credit union standards. The easiest way to join is to become a member of the American Consumer Council, which you can do for free. You can also join by working for one of the credit union's select employer groups, by having a household member or family member who's already part of Signature Federal Credit Union, or by having a specific title as an employee of the United States Postal Service.
Interest for 6-month CD: 4.50% APY
6-month CD early withdrawal penalty: no early withdrawal penalty
Signature Federal Credit Union Review
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.
Here is each company's score:
| Institution | BBB rating |
| First Tech Federal Credit Union | A+ |
| Bellco Credit Union | A+ |
| TotalBank | A- |
| Rising Bank | A+ (rating for its parent bank, Midwest Bank Centre) |
| Limelight Bank | A+ (rating for its parent bank, CCBank) |
| Popular Direct | A+ (rating for its parent bank, Popular) |
| CIBC Agility | A+ |
| Signature Federal Credit Union | B- |
TotalBank has an A- rating from the BBB because it hasn't responded to a customer complaint.
Signature Federal Credit Union has a B- rating from the BBB because it hasn't responded to some customer complaints.
One of our top choices has been involved in a recent controversy.
In 2023, Bellco Credit Union settled with the Colorado attorney general's office along with Canvas Credit Union. The attorney general's office says that Bellco and Canvas were not refunding unearned GAP fees for its loan customers who paid off their car loans early or had their cars repossessed and auctioned before the end of the loan. The Colorado attorney general's office provided $4 million in refunds for Colorado borrowers from funds that both credit unions paid.
In 2023, the Federal Reserve Board fined Popular Direct's parent bank, Popular Bank, $2.3 million. The Federal Reserve Board said the fine was because Popular Bank processed six Paycheck Protection Program loans that had significant signs of potential fraud.
What Makes 6-Month CD Rates Fluctuate?
Role of the Federal Reserve
CD rates are often impacted by changes in the federal funds rate. The Federal Reserve has a committee that holds meetings where members discuss potential changes to the federal funds rate.
Generally, CD rates rise when the federal funds rate goes up, and CD rates drop when the federal funds rate goes down. Paying attention to upcoming Fed meetings can help you keep track of when the federal funds rate changes.
Economic Trends and Market Conditions
Short-term CD rates are higher than long-term CD rates because of the current economic environment. Usually, it's the opposite: long-term CDs tend to offer better rates because you're keeping money in an account for a longer period of time, which benefits the bank.
When the Fed starts cutting rates, CD rates overall will drop more significantly and CD rate trends may change.
Institution-Specific Offers
Banks and credit unions may offer special promotional CDs occasionally to appeal to customers. Currently, many promotional CDs tend to be shorter terms.
How to Maximize Returns with the Best 6-Month CD
To maximize returns on a 6-month CD, make sure to avoid early withdrawal penalties, which can reduce your total interest earnings. Experts recommend choosing a CD term based on your financial goals so you have a purpose assigned to your money and can minimize the chance of needing to make a last-minute withdrawal.
Reviewing the CD forecast for 2025 may also help with deciding when to lock in a CD rate and which type of account to open.
6-Month CD FAQs
The highest-paying 6-month CD offers 4.75% APY. This CD rate is offered by First Tech Federal Credit Union and Bellco Credit Union.
Banks typically offer long-term CDs with higher rates than 6-month terms because you're leaving money locked in an account for a longer period of time. However, in the current economic environment, 6-month CD rates are actually higher than long-term CDs. The Fed cut rates three times in 2024 and is expected to cut rates more in 2025. You'll see likely 6-month CD rates start declining as a result.
A 6-month CD may be a smart choice if you'd like to earn a competitive interest rate on a short-term, fixed-interest savings account. 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.
The best 6-month CD rates can change at any time. The top rates for 6-month CD rates also change more frequently than longer terms because they are more susceptible to market fluctuations.
A 6-month CD is a low-risk bank account. It could be a good option for first-time investors if they are specifically looking for a safe investment. CDs offer low returns, though, so you might consider other investment options if you want to earn higher returns and take on more risk.
When comparing 6-month, 1-year, and 5-year CDs, you can find the best CD rates offered by 6-month CDs. In general, 6-month CDs are the best for people with short-term savings goals, 1-year CDs are best for people with short- to mid-length savings goals, and 5-year CDs are best for people with long-term savings goals.
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, Business 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, CFP® professional and vice president of coaching strategy at OfColor:
- 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, banking editor, Business 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, CFP® professional 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® professional:
- 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, Business 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: How We Selected the Best 6-Month CDs
Business Insider's personal finance team regularly monitors 160 banks and credit unions to find which ones offer the most competitive 6-month CD rates nationally.
Then, we reviewed each institution using our bank account methodology to find the most well-rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, interest rates and miscellaneous features. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, security, and ethics.
Each feature is scored from 0 to 5, although some features have a larger weight percentage than others. We add up these scores and calculate the weighted average to determine the account's total rating.
The highest rating possible is five stars. The lowest rating possible is one star.
*Earn 4.75% APY when you deposit at least $250 per month, earn 3.75% standard APY if minimum isn't met.
**Accounts with $250,000 or less will earn 4.35% APY, accounts with over $250,000 will earn 4.65% APY . Rate are determined by balance tiers and amount deposited.
***0.25% APY on balances under $5,000. Rates as of 12/20/2024. CIT Bank is a division of First-Citizens Bank & Trust Company, a member of the Federal Deposit Insurance Corporation (FDIC), which means your deposit accounts are insured up to $250,000 per depositor, for each account ownership category. Deposits held under the names First Citizens Bank & Trust Company and CIT Bank are not separately insured but must be combined for purposes of determining whether a depositor has exceeded the federal insurance deposit limit.
****The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank's discretion. Refer to product's website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
*****SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
