Best 6-Month CD Rates
It’s key to evaluate several factors to find the best CD for your individual financial situation. We’ve compiled a list of some of the best 6-Month CD rates available:
Written by
Katharine Brunotts
Kate Brunotts is a financial writer currently based in Brooklyn with a strong background in personal finance and business. She is passionate about helping readers reach their financial goals and is constantly seeking out ways to expand her financial literacy. When she's not writing, Kate enjoys spending time with her loved ones and small dog, Spicy.
Last Update on Sep 27, 2023
Table of Contents
The Best 6-Month CD Rates
A certificate of deposit may make a great addition to your investment portfolio. These low-risk investments are secured and come with higher interest-earning potential than traditional savings accounts. The tradeoff? You cannot withdraw money from your CD before maturity without incurring financial penalties.
However, you can secure CDs for periods as short as six months, allowing you to earn more on your investment without sacrificing too much liquidity. Fortunately, 6-Month CD rates have experienced a dramatic increase in the past several months, so it’s a great time to seriously consider these investments. We’ve compiled a list of some of the best 6-Month CD rates available to help you find the right investment for your financial needs.
BEST OVERALL
CommunityWide Federal Credit Union CW Certificate Account
Term Variety
Ranges from 6 to 60 months
Auto-Renewal
Does not auto-renew at maturity
Account Access
A separate savings account is needed
Minimum Deposit
$1,000
CD APY 6-Month
5.25%
Interest Compounding Frequency
Monthly
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CommunityWide’s CD offers an impressive APY at 5.25% for a 6-Month certificate. The high-rated CD does require credit union membership, but the application process is fairly simple, requiring investors to start with an account with a $10 minimum deposit, along with a $4.95 fee that supports Habitat for Humanity, Goodwill, or the Marine Corps based on your stated preference.
The $1,000 entry point is fairly accessible, and with terms ranging from 6 to 60 months, it’s easy to tailor your certificate to your specialized savings goals. CommunityWide does not auto-renew your certificate of deposit at maturity, unlike many other financial institutions.
Pros:
- Highly competitive APY
- Does not auto-renew
- Wide variety of terms from 6 months to 60 months
Cons:
- Monthly compounding frequency
- Membership is required
- A separate savings account is needed to access certificates
BEST FOR LONG-TERM INVESTING
Quontic Bank Certificate of Deposit
Bank Type
Entirely online, no physical branches
Membership
Not required for account setup
Early Withdrawal
Steep penalties for withdrawing before maturity
Minimum Deposit
$500
CD APY 6-Month
5.05%
Interest Compounding Frequency
Daily
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Quontic’s online CDs offer competitive rates at 5.05% for a 6-Month CD, with an impressive daily compounding frequency. You can set up a Quontic account within minutes, and the low minimum deposit amount of $500 makes this certificate fairly accessible.
Note that this Quontic bank is entirely online, so you won’t have access to physical branches. This certificate also has tight penalties for withdrawing money prior to maturity, so you’ll want to be sure you can tuck your cash away safely before signing up for a certificate.
Pros:
- Competitive APY
- Low minimum deposit requirement
- No prior membership needed
Cons:
- Limited amount of CD term options
- No cash deposits accepted
- Steep penalties for early withdrawal
BEST ONLINE BANK CD
Sallie Mae Bank CD
Financial Tool
Compatible with SmartyPig for financial goal-setting
Customer Service
Conducted entirely online
Bank Type
Fully digital, no physical branches
Minimum Deposit
$2,500
CD APY 6-Month
4.95%
Interest Compounding Frequency
Daily
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While Sallie Mae Bank does require a higher minimum deposit of $2,500, it has a pretty competitive 6-Month CD APY rate at 4.95%. Sallie Mae’s services are also compatible with the SmartyPig savings tool, which some users might find helpful for tracking their financial progress.
Note that you cannot open a Sallie Mae checking account, so this online account will likely be used in addition to your primary financial institution. Sallie Mae is a fully digital bank, so there are no physical branches, and customer service is conducted entirely online.
Pros:
- Compatible SmartyPig financial goal-setting service
- Competitive APY
- Daily compounding frequency
Cons:
- No physical branch locations
- Higher minimum deposit
- Limited customer service window
BEST FOR ENTRY-LEVEL INVESTORS
Bethpage Federal Credit Union Certificate Account
Membership
Requires a $5 deposit into a Bethpage savings account
Banking Appointments
Virtual appointments available
Physical Branches
Limited to New York
Minimum Deposit
$50
CD APY 6-Month
4.75%
Interest Compounding Frequency
Daily
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If you’re seeking a certificate of deposit, but don’t have a lot of extra capital to tuck away, the Bethpage CD with a minimum deposit of just $50 might be a great option for you. This certificate compounds daily and has a high 6-Month APY rate of 4.75%.
You do have to become a credit union member to gain access to Bethpage’s certificates. Fortunately, this process simply requires a $5 deposit into a Bethpage savings account for approval.
Pros:
- Virtual banking appointments are available
- Low minimum deposit
- Easy membership process
Cons:
- Physical branches are limited to New York
- A savings account is needed to access certificates
- Membership required
BEST CUSTOMER SERVICE
PenFed Credit Union Money Market Certificates
Customer Service
Available 24/7, 7 days a week
Auto-Renew Option
Can pre-select during account setup
Membership
Required for account access
Minimum Deposit
$1,000
CD APY 6-Month
3.00%
Interest Compounding Frequency
Daily
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Perhaps this is one of your first times investing a couple hundred dollars, and you’re willing to forego a higher APY rate for more attentive customer service– In which case, PenFed’s 6-Month CD at 3.00% APY might be a great choice.
PenFed provides a highly rated mobile app, and most notably, customer service by phone 24/7, 7 days a week. Interest compounds daily, and you have the option to pre-select whether you’d like your CD to auto-renew at maturity while setting up your account.
Pros:
- High-tech mobile app
- Daily compounding frequency
- Notably robust customer service
Cons:
- Lower APY rate
- High early withdrawal penalties
- Membership is required
How Does A 6-Month CD Work?
A 6-Month CD is an investment product that guarantees a predetermined interest rate for the full duration of the certificate, or six months. CDs are federally insured up to $250,000 making them a secure short to medium-term investment. A certificate of deposit usually has a minimum deposit requirement, usually ranging from $50 on the low end to several thousand dollars.
One of the key benefits of CDs is that they tend to provide higher interest-earning potential than your typical savings account. However, unlike savings accounts, you cannot withdraw your principal or interest earned from your CD before maturity without financial penalty. Since your money is not liquid over the course of your CD term, it’s essential that you don’t tuck away funds you’ll need in the immediate future.
CD interest rates are set in relation to the broader economy, and your APY rate is typically fixed for the course of your certificate’s terms. This investment utilizes compound interest and can be renewed or transferred upon maturity. Note that many CDs are set to automatically renew unless redirected during the preset grace period.
The CD national average interest rate tends to rest at 1.76%. As of fall 2023, many CDs have notably high APYs, so it’s an optimal time to seriously consider investing in a certificate.
How To Choose The Right 6-Month CD
Finding the right 6-Month CD is a highly personal decision. Here are several factors to consider before committing to a certificate:
- APY: Annual Percentage Yield, otherwise known as APY, represents the amount of money you’ll earn over the course of a term, factoring in compound interest. The higher the APY rate, the more you can expect to earn in interest.
- Insurance Coverage: Consider the financial institution’s reputation before taking on an investment. It’s best to opt for certificates backed federally by the FDIC or NCUA.
- Compounding Schedule: A more frequent compounding schedule can help your investment grow faster.
- Minimum Deposit: Many CDs require a minimum deposit of several hundred or thousand dollars to open a certificate.
- Membership Requirements: Certain banks, especially more exclusive credit unions, may pose additional membership requirements outside the scope of the certificate eligibility alone.
- Customer Service: Online banks may have limited or no access to physical branch locations. Be sure to scope out your options for additional support before committing to a CD.
- Withdraw Penalties: While you should ideally avoid withdrawals from your CD to avoid penalties, it’s a good idea to know upfront what penalties and potential fees you may incur should you touch your investment before maturity.
Pros And Cons Of Investing In 6-Month CDs
6-Month CDs provide you with a secure opportunity to earn interest on your money, usually at a higher rate than a traditional savings account. You also don’t have to sacrifice too much liquidity since your CD term rate is fairly short at six months.
However, if you can part with your initial investment for longer, longer-term CDs are known to have higher APY rates. Your investment cannot be accessed during your set CD term without financial penalty. Therefore, you need to ensure you can afford your investment in your certificate for the full course of the term.
CDs can automatically renew and reflect the trends of the broader economy. It’s up to you to keep an eye on your CD’s progress and consider the current market conditions accordingly.
How To Open A 6-Month CD
Once you’ve settled on the right CD for your individual financial situation, start by double-checking to make sure you meet all the eligibility requirements. This may include, but is not limited to, minimum deposit requirements and membership to your bank or credit union of choice. Keep in mind that many credit unions require additional criteria to gain access to its certificates.
After you’ve determined your eligibility, you’ll be required to make the minimum deposit and sign off on the certificate agreement. In some cases, you’ll be asked whether you’d like to auto-renew your certificate at the end of its term, but in most cases, this is just assumed. Mark on your calendar your maturity date so that you’ll have a chance to withdraw your principal or earnings if needed at maturity.
Exploring Alternatives To 6-Month CDs
Please keep in mind that the 6-Month CD is just one term option when it comes to certificates of deposit. If you don’t need access to your investment for several months to come, you could consider a single-year CD, or multi-year CD.
You can also consider other investment options altogether, such as high-yield savings accounts. These accounts may provide you with higher interest rates than a traditional savings account while still providing more liquidity than a certificate of deposit.
Government-backed savings bonds might offer another favorable option, providing you with interest-backed earnings based on your investment over the course of several years. However, note that most bonds cannot be redeemed until at least a year after investment.
Frequently Asked Questions (FAQs)
Who Has The Highest 6-Month CD Rate?
Some of the highest 6-Month CDs as of fall 2023 exceed 5% APY, which are discussed at length above. However, APY is just one of the many considerations that should be factored into your investment decisions.
Are 6-Month CDs Worth It?
6-Month CDs can provide higher interest-earning potential than savings accounts. However, your investment has no liquidity during the term of the certificate, so it’s essential that you weigh the pros and cons of your personal financial situation.
Is 6-Month CD Better Than 1-year CD?
A 6-Month CD will provide you with access to your principal plus interest earned quicker with the shorter term. However, the longer the term, as with the 1-year CD, the higher the APY in most cases.
What Is The Best 6-Month CD Rate Right Now?
The best 6-Month CD is one that aligns with your personal financial goals. Fortunately, many CDs are at a high interest rate of around 5% APY or more as of fall 2023.
Making An Informed Decision
In short, 6-Month certificates of deposit can make a great short-term investment that will typically earn more interest than a savings account. The important thing to remember is that with any CD, your money is not liquid until maturity, so you’ll need to be sure you can set aside your investment sustainably. Make sure you have a plan in place after the maturity date, as many CDs will automatically renew after a short grace period.
As of fall 2023, CD interest-earning rates are favorably higher than usual, so it might be a good time to add a 6-Month CD to your portfolio. In any case, remember that it’s key to assess your personal financial situation and long-term goals before committing to any set of investments.
Katharine Brunotts
Author
Kate Brunotts is a financial writer currently based in Brooklyn with a strong background in personal finance and business. She is passionate about helping readers reach their financial goals and is constantly seeking out ways to expand her financial literacy. When she's not writing, Kate enjoys spending time with her loved ones and small dog, Spicy.
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