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A 6-month CD is a type of savings option that lets you maintain a fixed interest rate for a short period of time. The national average APY (Annual Percentage Yield) on a 6-month CD is 1.34% APY.
However, there are much higher interest rates on 6-month CDs right now. The best CD rate for a 6-month term is 6.50% APY from Local Government Federal Credit Union.
We check rates daily to find the best rates for 6-month terms. Below, you'll find our top picks.
Best 6-Month CDs
Market Leader
Local Government Federal Credit Union 6 Month Share Term Certificate: 6.50% APY
To become a member of Local Government Federal Credit Union, you must work or volunteer at the North Carolina local government. You can also join if you're a contract employee in a local government unit, an elected or appointed government official, or an immediate family member of a government employee or volunteer.
Top 6-Month CD Rates
- TotalDirectBank 6 Month CD: 5.56% APY
- Signature Federal Credit Union 6 Month Certificate: 5.50% APY
- Bank5 Connect 6 Month High-Yield CD: 5.50% APY
- Dow Credit Union 6 Month Simple CD: 5.50% APY
- Western Alliance Bank 6 Month CD, powered by Raisin: 5.41% APY
- MYSB Direct 6 Month CD: 5.36% APY
- Vio Bank 6 Month CD: 5.35% APY
- Popular Direct 6 Month CD: 5.35% APY
- America First Credit Union 6 Month Certificate: 5.30% APY
These are our picks for the best 6-month CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. Although Silicon Valley Bank, Signature Bank, and First Republic Bank have recently been shut down, 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.
Compare the Best 6-Month CDs
6-Month CD: Frequently Asked Questions
The highest 6-month CD rate is 6.50% APY available at Local Government Federal Credit Union. To join Local Government Federal Credit Union, you must work or volunteer at North Carolina local government. You may also join if you are a contract employee in a local government unit, an elected or appointed government official, or an immediate family member of a government employee or a volunteer.
A 6-month CD may be worthwhile if you'd like to earn a competitive interest rate on a short-term, fixed-interest savings account. Many CDs offer over 5% APY. 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.
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.
Most CDs lock in your rate for the entire term. If you open a 6-month CD at a 5.00% APY, you'll earn 5.00% 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.
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. 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.
6-Month CD Reviews
Local Government Federal Credit Union 6 Month Share Term Certificate
Local Government Federal Credit Union Share Term Certificates have the highest rate available for a 6-month term. The share certificates permit a low initial deposit of $250.
You also might like this credit union if you prioritize banking with a financial institution that closely serves its local community — it's designated as a community development financial institution.
To open a CD at Local Government Federal Credit Union, you must meet certain eligibility requirements. You can join if you work or volunteer for North Carolina's local government. You may also join if you are a contract employee in a local government unit, an elected or appointed government official, or an immediate family member of a government employee or a volunteer.
APY for 6-month CD: 6.50% APY
6-month CD early withdrawal penalty: Up to 90 days of interest
What to look out for: Interest isn't compounded on share certificates. Depending on your account balance, that may potentially make a significant difference. Other financial institutions compound interest quarterly, monthly, or even daily.
Local Government Federal Credit Union Review
TotalDirectBank 6 Month CD
TotalDirectBank CDs may be a good choice if you're searching for a variety of short-term CDs with high interest rates. The 3-month, 6-month, and 1-year terms, in particular, offer CD rates significantly above the national average.
APY for 6-month CD: 5.56% APY
6-month CD early withdrawal penalty: 30 days of interest
What to look out for: 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, Somoa, Guam, the Northern Mariana Islands, or US Virgin Islands.
Signature Federal Credit Union 6 Month Certificate
Signature Federal Credit Union Certificates are another great option if you'd like to bank with a credit union. You also might like this option if you'd like to get a CD with a low minimum opening deposit.
APY for 6-month CD: 5.50% APY
6-month CD early withdrawal penalty: 90 days of interest
What to look out for: Credit unions require membership to open an account. The easiest way to become a member is to enroll in the American Consumer Council. Then you'll just need to open a savings account.
Signature Federal Credit Union Review
Bank5 Connect 6 Month High-Yield CD
Bank5 Connect High-Yield CDs are a good choice if you want a CD with a low minimum opening deposit.
Bank5 Connect is the online operation of the Massachusetts-based bank Bank5. You only need $500 to get started.
Interest for 6-month CD: 5.50% APY
6-month CD early withdrawal penalty: Three months of interest on the amount withdrawn
What to look out for: You won't be eligible to open a Bank5 Connect bank account if you're a resident of Massachusetts or Rhode Island. However, you can open bank accounts at a Bank5 branch.
Dow Credit Union 6 Month Simple CD
Dow Credit Union Simple CDs are a great option if you prioritize banking with a credit union. The 6-month Simple CD pays a high interest rate, and you only need $500 to get started.
APY for 6-month CD: 5.50%
6-month CD early withdrawal penalty: 90 days of interest
What to look out for: Credit unions require membership to open an account. The easiest way to become a member of Dow Credit Union is to make a $10 donation to the Midland Area Community Foundation. The credit union also has other ways to join, such as being part of a Select Employer Group or having a family member who is a current credit union member.
Western Alliance Bank 6 Month CD
The Western Alliance Bank 6 Month CD is the highest yielding 6-month CD on Raisin.
Through Raisin, you can use one platform to find, fund, and manage multiple high-yield savings accounts and CDs from over 20 banks and credit unions. Raisin also offers other 6-month CDs that pay more than the national average.
This CD also could be a good option if you'd like to open a CD with a low initial deposit. Only $1 is required to open an account. Most banks usually require at least $1,000 to open a CD.
Interest for 6-month CD: 5.41% APY
6-month CD early withdrawal penalty: 90 days simple interest
What to look out for: Raisin doesn't offer any checking accounts, so it may not be the best option if you want to do all your banking with one company.
MYSB Direct 6 Month CD
The MYSB Direct CD is good option if you're interested in online-only banking.
MYSB Direct is an online division of M.Y. Safra Bank. It also has strong 18-month, 3-year, and 5-year terms.
Interest for 6-month CD: 5.36% APY
6-month CD early withdrawal penalty: 90 days interest
What to look out for: The bank compounds interest monthly, not daily. Depending on how much money you plan to keep in a CD, this may or may not make a significant difference.
Vio Bank 6 Month CD
Vio Bank pays high 6-month CD rates. You also might like this online bank if you want to open a CD with a minimum of $500.
Interest for 6-month CD: 5.35% APY
6-month CD early withdrawal penalty: 1% of the amount withdrawn, plus $25
What to look out for: Vio Bank has high early withdrawal penalties. Also, keep in mind Vio Bank doesn't have a checking account. If you plan on opening a checking account with the same financial institution, you might prefer one of our other top picks.
Popular Direct 6 Month CD
Popular Direct CDs pay a high interest rate, and compound interest daily.
APY for 6-month CD: 5.35% APY
6-month CD early withdrawal penalty: 120 days of simple interest
What to look out for: You'll need at least $10,000 to open a Popular Direct CD.
America First Credit Union 6 Month Certificate
America First Credit Union Certificates have a competitive interest rate.
You might like America First Credit Union if you prefer credit unions over banks. Its certificates also stand out because they have low early withdrawal penalties.
Interest for 6-month CD: 5.30% APY
6-month CD early withdrawal penalty: 60 days of interest
What to look out for: To open a bank account at a credit union, you must become a member first. You may join America First Credit Union if you live, work, worship, or volunteer in an Arizona, Idaho, Nevada, or Utah county on this list. If you have a family member or spouse that's a current member, you're also eligible.
To become a member, you must also open an America First Credit Union Share Savings Account.
America First Credit Union Review
Alternative CD options
- Rising Bank CD: Rising Bank has a solid rate on a 6-month CD, but it's just short of the rates on our list.
- Bask Bank CD: Bask Bank pays great rates on short-term CDs, but our top picks have even more competitive rates right now.
- First Internet Bank of Indiana CD: First Internet Bank of Indiana pays 5.22% APY, which is lower than the rates on our list.
- Bethpage Federal Credit Union Certificate Account: Bethpage Federal Credit Union pays a solid interest rate, but our top picks offer more competitive rates right now.
- Synchrony Bank CD: Synchrony pays high rates overall, but its 6-month CD rate falls shorts of the rates on our list.
- CIT Bank Term CD: CIT Bank's 6-month CD rate is more competitive than its other CDs, but you'll still find higher elsewhere.
- Live Oak Bank CD: Live Oak pays 4.80% APY on its 6-month term, but our top picks have even higher interest rates right now.
- TAB Bank CD: TAB Bank has solid interest rates on CDs, but you can still find more competitive interest rates at other online banks.
- LendingClub CD: LendingClub offers high CD rates, but our top picks have lower minimum opening deposits or even more competitive rates right now.
- Alliant Certificate: Alliant pays solid interest rates on CDs, but its 6-month term pays a lower rate than our top picks.
- Sallie Mae CD: Sallie Mae has a high interest rate, but you'll need a minimum opening deposit of $2,500.
- Marcus High-Yield CD: Marcus lets you open an account with $500, but our top picks have higher interest rates right now.
- Ally High Yield CD: Ally offers a variety of CDs, but our top picks pay higher interest rates.
- Capital One 360 CD: Capital One has a low minimum opening deposit, but our top picks pay higher interest rates.
- Nationwide CD: Nationwide CDs has a solid 12-month CD, but its 6-month CD isn't as strong.
- TIAA Bank Basic CD: TIAA Bank's 6-month CD isn't as strong as its long-term CDs.
- Citi Fixed Rate CD: Citi pays has good rates, but our top picks have even higher interest rates.
- Navy Federal Credit Union Standard Certificate: Navy Federal Credit Union has solid interest rates on long-term CDs, but its short-term CDs aren't as competitive.
- Discover CD: Discover has competitive interest rates on long-term CDs, but its short-term CDs aren't as strong. You'll also need at least $2,500 to get a CD.
- Pentagon Federal Credit Union Money Market Certificate: Pentagon Federal Credit Union offers a competitive interest rate, but the early withdrawal penalties are high compared to our top picks.
- Charles Schwab Bank CD: Charles Schwab has brokered CDs, meaning Charles Schwab doesn't actually own the CD. Instead, Charles Schwab acts as the middleman for you and the bank that owns the CD. Depending on how your bank, you may prefer open a CD directly with the financial institution.
- American Express CD: American Express offers a good interest rate, but our top picks offer even higher rates.
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.
Signature Federal Credit Union does not have a profile with the Bureau yet, so there are no complaints or reviews to use for evaluating the company's business practices.
Here is each company's score:
| Institution | BBB rating |
| Local Government Federal Credit Union | D- |
| TotalDirectBank | A+ (rating for its parent bank, City National Bank of Florida) |
| Dow Credit Union | A+ |
| Bank5 Connect | A+ |
| America First Credit Union | A+ |
| Vio Bank | A+ (rating for its parent bank, MidFirst Bank) |
| Popular Direct | A+ |
| MYSB Direct | NR (rating of parent bank, M.Y. Safra Bank) |
| Raisin | A- |
The BBB gave Local Government Federal Credit Union a D- rating because it has failed to respond to five customer complaints on the BBB website.
MYSB Direct received an NR ("No Rating") grade because the BBB doesn't have enough information to provide a business rating.
Raisin has an A- rating because it has received several complaints on the BBB website.
BBB ratings aren't necessarily the be-all and end-all. To see if a company is right for you, you may also read online customer reviews or talk to current customers.
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, 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, certified financial planner at SaverLife:
- 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, certified educator in personal finance, banking reporter, Personal Finance 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, certified financial planner with lifelaidout® 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:
- 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, Personal Finance 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
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.
First, we researched to find over 20 banks and credit unions that offered 6-month CDs. Then, we reviewed each institution using our CD rates methodology to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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