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Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

A 6-month CD is a short-term CD that lets you maintain a fixed interest rate for a short period of time. It may a good option if you’re not comfortable parting with your money for more than six months.

Here are our top picks for 6-month CDs.

6-month CD rates at the largest US banks

As of October 2022, the national average APY on a 6-month CD is 0.34%, according to the FDIC.

However, it may be important for you to bank with a company you’re familiar with. Here are the rates you’ll earn on a 6-month CD with some of the most popular institutions:

Compare our top picks for 6-month CDs

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No minimum opening deposit

Editor’s rating

4.5/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Low minimum opening deposit

Editor’s rating

4.75/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Editor’s rating

4/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Editor’s rating

4/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Editor’s rating

4.25/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star


Learn more


On Bethpage Federal Credit Union’s website


Learn more


On First Internet Bank of Indiana’s website

 


Annual Percentage Yield (APY)

1.75% APY to 3.81% APY


Minimum Deposit Amount

$0

Synchrony Synchrony CD


Annual Percentage Yield (APY)

1.75% APY to 3.81% APY


Minimum Deposit Amount

$0


Annual Percentage Yield (APY)

1.75% APY to 3.81% APY


Minimum Deposit Amount

$0

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Why it stands out: Synchrony pays higher interest rates on CDs than many other financial institutions.

Interest for 6-month CD: 2.75% APY

6-month CD early withdrawal penalty: 90 days interest

What to look out for: Synchrony is an online-only institution so it doesn’t have any branches. 

Bethpage Federal Credit Union Bethpage Federal Credit Union Certificate Account

Bethpage Federal Credit Union Certificate Account


Annual Percentage Yield (APY)

1.75% to 3.55% APY


Minimum Deposit Amount

$50

Bethpage Federal Credit Union Bethpage Federal Credit Union Certificate Account

Bethpage Federal Credit Union Certificate Account


Annual Percentage Yield (APY)

1.75% to 3.55% APY


Minimum Deposit Amount

$50

On Bethpage Federal Credit Union’s website


Annual Percentage Yield (APY)

1.75% to 3.55% APY


Minimum Deposit Amount

$50

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Why it stands out: Bethpage requires $50 to open a CD, which is much less than what most banks or credit unions require. You’ll also earn a competitive interest rate.

Interest for 6-month CD: 2.75% APY

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

What to look out for: To open an account at a credit union, you’ll have to become a member. At Bethpage Federal Credit Union, you’ll have to open a savings account with at least $5. If you’re only looking to open a CD right now, you might consider one of the other options on our list.

TAB Bank TAB Certificate of Deposit

TAB Certificate of Deposit


Annual Percentage Yield (APY)

2.69% to 3.32% APY


Minimum Deposit Amount

$1,000

TAB Bank TAB Certificate of Deposit

TAB Certificate of Deposit


Annual Percentage Yield (APY)

2.69% to 3.32% APY


Minimum Deposit Amount

$1,000


Annual Percentage Yield (APY)

2.69% to 3.32% APY


Minimum Deposit Amount

$1,000

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Why it stands out: TAB Bank pays good rates. You get to choose how you receive your interest — keep it in your CD, receive a check, or transfer the money to another TAB bank account.

Interest for 6-month CD: 2.69% APY

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

What to look out for: TAB Bank doesn’t have an ATM network. If you use an ATM by an outside ATM provider, TAB charges a $2 withdrawal fee and $1 inquiry fee. If you’re considering opening multiple types of bank accounts, you might want to keep this in mind.

First Internet Bank of Indiana First Internet Bank of Indiana Certificate of Deposit

First Internet Bank of Indiana Certificate of Deposit


Annual Percentage Yield (APY)

1.00% to 3.66% APY


Minimum Deposit Amount

$1,000

First Internet Bank of Indiana First Internet Bank of Indiana Certificate of Deposit

First Internet Bank of Indiana Certificate of Deposit


Annual Percentage Yield (APY)

1.00% to 3.66% APY


Minimum Deposit Amount

$1,000

On First Internet Bank of Indiana’s website


Annual Percentage Yield (APY)

1.00% to 3.66% APY


Minimum Deposit Amount

$1,000

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Why it stands out: First Internet Bank of Indiana pays a good rate for 6-month CDs, and contrary to what the bank’s name may lead you to believe, this online bank is available to residents of all US states.

Interest for 6-month CD: 2.63% APY

6-month CD early withdrawal penalty: 180 days interest

What to look out for: First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference. You can also find a bank that charges less for an early withdrawal from a 6-month CD.

Marcus by Goldman Sachs Marcus by Goldman Sachs High-Yield CD

Marcus by Goldman Sachs High-Yield CD


Annual Percentage Yield (APY)

2.50% to 3.50% APY


Minimum Deposit Amount

$500

Marcus by Goldman Sachs Marcus by Goldman Sachs High-Yield CD

Marcus by Goldman Sachs High-Yield CD


Annual Percentage Yield (APY)

2.50% to 3.50% APY


Minimum Deposit Amount

$500

On Marcus by Goldman Sachs’s website


Annual Percentage Yield (APY)

2.50% to 3.50% APY


Minimum Deposit Amount

$500

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Why it stands out: Most banks require a minimum of $1,000 to open a CD, but Marcus only requires $500 upfront. Marcus also pays a solid interest rate on its 6-month CD. 

Interest for 6-month CD: 2.50% APY

6-month CD early withdrawal penalty: 90 days interest

What to look out for: Marcus is an online-only bank, so you may not have easy access to your account.

Other CDs that didn’t make the cut and why

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:

All of our top picks have at least an A+ rating from the BBB. You’ll also want to consider online customer reviews and thoughts from current customers to see if a particular institution may be suitable for you.

Why trust our recommendations?

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.

Frequently asked questions

With a 6-month CD, 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.

If you don’t need immediate access to your savings, a CD can guarantee a return on your money since you lock in a fixed APY for the term of the CD.

With most institutions, you typically won’t be able to deposit more money or access your funds before the CD matures without paying a penalty.

Most CDs lock in your rate for the entire term. If you open a 6-month CD at a 2.75% APY, you’ll earn 2.75% 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.

CDs with 1-year and 5-year terms pay higher rates than ones with 6-month terms. You may prefer longer terms than six months to earn better interest rates.

Ultimately, your choice 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.

Going for a shorter term also gives you the opportunity to snag a better APY if rates are up in a year. With a 1-year or 5-year CD, you could miss out on higher rates. But on the other hand, you could avoid lower rates with a 1-year or 5-year term if rates drop later.

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. For instance, you might open 6-month, 1-year, and 5-year CDs at the same time, which means you’ll get some of your money back in six months, then more in a year, then more in five years.

The choice between a 6-month CD and high-yield savings account will depend on several factors.

First, some institutions pay higher rates on high-yield savings accounts than on 6-month CDs. This isn’t always the case, though, so be sure to double-check.

A CD also locks in your rate for the entire term. If rates are dropping, this could make the CD a better choice, because your savings account APY could decrease over the next few months. If rates are rising, the savings account might be a better fit, because your rate could go up. Either way, there’s a good chance rates will fluctuate over a 6-month period.

It also depends on when you’ll need to access your money. You should be able to access funds from your savings account regularly — but you’ll have to pay a fee if you need access to money from your 6-month CD before it matures. You can also continuously add money to your savings account, whereas most CDs block you from making additional deposits after opening the account. 

Like with a high-yield savings account, you may prefer a money market account over a CD if you want quick access to your money. Money market account rates also fluctuate, so you may prefer a money market account if rates are rising, but a CD if rates are dropping. Still, remember that rates will likely go up or down over a 6-month term.

Many banks require higher deposits for money market accounts than CDs, which could affect your decision. It’s also good to remember that you can add more funds to your money market account over time, while a CD only allows an opening deposit.

CDs aren’t generally considered investments the same way something like an index fund, which puts your money into the stock market, is. Instead, a CD is typically viewed as a type of savings account, and your potential for losses and gains — your risk — is much more limited. Because the stock market is risky, experts generally don’t advise investing money you’ll need in the next five years. In the case of a stock market drop, you wouldn’t have time to make up your losses.

If you need to access your money in six months and want a guaranteed rate of return, a 6-month CD is a better choice than a different type of investment account. 

If you’re comfortable parting with your money for longer and want to take more risk with your money, then you may want to invest in the stock market. One way to do this is through tax-advantaged retirement accounts, like a 401(k) or IRA, which grows your money over decades. Another is through brokerage accounts, which are useful tools to build long-term wealth, but can’t guarantee a given return like a CD can.

There is such a thing as an IRA CD, which is a sort of combo savings/investment account. It’s a safe investment tool that may be a worthwhile option for people who are close to retirement age.

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Regular APR

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