Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
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By
Ariana Arghandewal
Ariana Arghandewal
Travel Expert
Ariana Arghandewal is a travel rewards expert and founder of Pointchaser.com, an award-winning blog. She has over a decade of experience writing about personal finance and travel rewards. She is passionate about helping people leverage credit cards to achieve their travel goals. Her work has appeared in numerous publications, including Bankrate, Business Insider, CNN Underscored, Forbes Advisor and Lonely Planet.
Read Ariana Arghandewal's full bio
Reviewed By
Robert Thorpe
Robert Thorpe
Senior Editor
Robert is a senior editor at Newsweek, specializing in a range of personal finance topics, including credit cards, loans and banking. Prior to Newsweek, he worked at Bankrate as the lead editor for small business loans and as a credit cards writer and editor. He has also written and edited for CreditCards.com, The Points Guy and The Motley Fool Ascent.
Read Robert Thorpe's full bio
Earn more, wait less with these 6-month CDs
For the risk-averse investor, 6-month certificates of deposit (CDs) are one of the safest ways to earn a higher rate of return than most other short-term investments. CDs can offer higher rates of return than money market accounts, savings accounts and other short-term investments. The best part is that many 6-month CDs have low minimum deposit requirements, making them accessible to investors with limited funds.
Many banks and credit unions offer 6-month CDs. So how do you pick the best option for your investment needs? We’ve narrowed down the list of the best 6-month CD rates to help you decide. All of our picks are either insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).
Our Methodology
Newsweek Vault’s banking experts have done hundreds of hours of research to present you with all the latest information about your banking options. Whether you’re interested in opening a new checking account or savings account, our research spans all the top online banks, credit unions and brick-and-mortar branches.
We assessed the following five key factors to help you choose the best account for your personal finance needs.
- Associated fees
- ATM access
- Balance requirements
- Customer service
- Interest-earning potential
Our Picks for the Best 6-month CD Rates
- Best for Mobile App: Quontic Bank
- Best no minimum deposit: BMO Alto
- Best for End-of-Term Reminder: Bask Bank
- Best for CD Variety: Alliant Credit Union
- Best for Online Bank: Synchrony Bank
- Best for Bump-Rate Certificates: America First Credit Union
- Best for Short-Term CD Ladder: Sallie Mae
- Best low withdrawal penalty: Prime Alliance Bank
- Best for online banking: My eBanc
- Best for BHFCU Members: Bayer Heritage Federal Credit Union
- Best for Competitive APY: Popular Direct
- Best for Ease of Account Opening: Newtek Bank
- Best for Long-Term CD Ladder: Vio Bank
- Best for CD Specials: Mutual One Bank
Compare Vault’s Best 6-month CD Rates
Best for Mobile App
Quontic Bank
Vault Verified
APY
5.05%
Term Length
6 months
Min. Deposit Requirement
$500
Early Withdrawal Penalty
180 days interest
Why We Chose It
If you’re comfortable managing your money entirely online and want to earn competitive APYs on your savings, Quontic Bank is worth considering. You can access your Quontic Bank 6-month certificate of deposit account on the go, thanks to their highly rated Android and iOS apps. Read our Quontic Bank review.
Pros
- No monthly service fees
- Straightforward online application process
- Interest compounded daily
Cons
- Hefty early withdrawal penalty
- No physical branch locations
- Offers fewer term options compared to other banks
Best for No Minimum Deposit
BMO Alto
Vault Verified
APY
5.15%
Term Length
6 months
Min. Deposit Requirement
$0
Early Withdrawal Penalty
90 days interest
Why We Chose It
If you’re looking for a 6-month CD with no minimum investment, BMO Alto is the way to go. The bank’s CD has a $0 minimum opening deposit and no minimum balance requirements. APY rates are also highly competitive for 6-month CDs. Read our BMO Alto Bank review.
Pros
- Competitive APY on 6-month CDs
- $0 minimum opening deposit
- Wide range of term options
- CDs are available nationwide
Cons
- No branch access
- Doesn’t offer flexible CD options such as bump-up CDs
- Steep early withdrawal penalties
Best for End-of-Term Reminder
Bask Bank
Vault Verified
APY
5.15%
Term Length
6 months
Min. Deposit Requirement
$1,000
Early Withdrawal Penalty
90 days of interest
Why We Chose It
Bask Bank offers one of the highest APYs for its 6-month CD. Bask Bank also sends out a reminder 30 days before the CD maturity date, giving you plenty of time to decide if you want to withdraw funds, move to a new CD account or let it automatically renew. Read our Bask Bank review.
Pros
- Extended phone customer service hours.
- Offers one of the highest APYs for a 6-month CD
- 30-day reminder before the end of your CD term
Cons
- $1,000 minimum deposit requirement
- No branch access
- Only offers four CD terms
Best for CD Variety
Alliant Credit Union
Vault Verified
APY
5.00%
Term Length
6 months
Min. Deposit Requirement
$1,000
Early Withdrawal Penalty
Up to 90 days
Why We Chose It
Alliant offers eight CD terms, ranging from three to 60 months. Rates on all terms are competitive, and you can choose from standard certificates, traditional IRA certificates, Roth IRA certificates and SEP IRA certificates. Read our Alliant Credit Union review.
Pros
- Anyone in the U.S. can open a CD account with Alliant
- Wide range of CD terms
- Competitive CD rates
Cons
- Early withdrawal penalties are high
- $1,000 minimum deposit
- No bump-up CD or no-penalty CD
Best for Online Bank
Synchrony Bank
Vault Verified
APY
4.80%
Term Length
6 months
Min. Deposit Requirement
$0
Early Withdrawal Penalty
90 days simple interest
Why We Chose It
Synchrony offers nine terms for its standard CD. Interest can be withdrawn at any time and transferred to a Synchrony high-yield savings or money market account or a non-Synchrony Bank account. When the CD matures, you can make additional deposits during the 10-day window before it automatically renews. Read our Synchrony Bank review.
Pros
- Allows you to add funds during a 10-day grace period after maturity
- Offers nine CD terms to choose from
- No minimum deposit requirement
- Bump-up and no-penalty CDs available
Cons
- No in-person branch locations
- No CD terms longer than five years
Best for Bump-Rate Certificates
America First Credit Union
Vault Verified
APY
5.25%
Term Length
6 months
Min. Deposit Requirement
$500
Early Withdrawal Penalty
60 days of dividends
Why We Chose It
America First Credit Union offers great APYs for all its CD terms. It also offers bump-rate certificates with plenty of term options and a flexible certificate option for people who want penalty-free access to their funds.
Pros
- Broad range of terms
- Bump-rate certificates are available for all terms
- Competitive APYs
Cons
- Must open an account in person
- Branches are limited to a few states in the U.S.
Best for Short-Term CD Ladder
Sallie Mae
Vault Verified
APY
4.80%
Term Length
6 months
Min. Deposit Requirement
$2,500
Early Withdrawal Penalty
90 days simple interest
Why We Chose It
Sallie Mae CDs have 11 terms to choose from. Six of those terms are 15 months or less and currently have APYs of 5% or higher. If you’re looking to start a short-term ladder, Sallie Mae is worth a look. Read our Sallie Mae Bank review.
Pros
- Competitive APYs
- Interest compounds daily
- 11 CD terms to choose from
Cons
- $2,500 minimum opening deposit
- No terms under six months or over five years
Best Low Withdrawal Penalty
Prime Alliance Bank
Vault Verified
APY
5.30%
Term Length
6 months
Min. Deposit Requirement
$500
Early Withdrawal Penalty
30 days interest
Why We Chose It
The Prime Alliance Bank has one of the highest APYs for a 6-month CD. It also comes with one of the lowest withdrawal penalties, consisting of 30 days of interest. This is far lower than what many other banks charge.
Pros
- Low early withdrawal penalty compared to other CDs
- Above-average APY
- No monthly fees
Cons
- Limited physical locations
- Limited customer service hours
Best for $5,000 Minimum Deposit
My eBanc
Vault Verified
APY
5.20%
Term Length
6 months
Min. Deposit Requirement
$5,000
Early Withdrawal Penalty
3 months interest
Why We Chose It
The 6-month CD from My eBanc is great if you’re looking for a primarily online banking solution. This CD currently offers a 5.20% APY on deposits of $5,000 or more. Customers who deposit $50,000 or more enjoy an increased 5.57% APY. Interest compounds daily and the bank offers mobile banking for convenience.
Pros
- Option to downgrade to a withdrawal penalty-free account
- Generous 5.57% APY for deposits of $50,000 or more
- Multiple CD options
Cons
- No physical locations
- High minimum balance requirements
Best for Bayer Credit Union Members
Bayer Heritage Federal Credit Union
Vault Verified
APY
4.341%
Term Length
6 months
Min. Deposit Requirement
$100
Early Withdrawal Penalty
Earned dividend on total certificate principal or two month’s dividends on the amount withdrawn. Whichever is less.
Why We Chose It
Bayer Heritage offers Share and IRA certificates with 9 terms to choose from. If you’re looking for a 6-month CD issued by a credit union, Bayer Heritage is a great choice. Members get a generous APY with a low minimum deposit amount of $100.
Pros
- Multiple CD terms available
- Available in all 50 states
- A low $100 minimum deposit
Cons
- There isn’t a no-penalty certificate option
- Must be a member to open an account
- Lower APYs compared to other CD accounts
Best for Competitive APY
Popular Direct
Vault Verified
APY
5.30%
Term Length
6 months
Min. Deposit Requirement
$10,000
Early Withdrawal Penalty
120 days simple interest
Why We Chose It
Popular Direct offers one of the most competitive CD rates on the market, making it a solid choice if you’re looking to maximize your savings. Plus, their CDs have no monthly maintenance fees and come with a wide range of terms, from three months to five years.
Pros
- Competitive APYs
- Accessible 24/7 through mobile app
- No monthly maintenance fees
- Wide range of term lengths available
Cons
- $10,000 minimum deposit requirement
Best for Ease of Account Opening
Newtek Bank
Vault Verified
APY
5.55%
Term Length
6 months
Min. Deposit Requirement
$2,500
Early Withdrawal Penalty
90 days simple interest
Why We Chose It
The Newtek Bank CD account takes just a few minutes to open online, making it one of the fastest and most straightforward ways to get started with a new 5.55% 6-month certificate of deposit account.
Pros
- Easy to open an account online
- High interest rates
- Both fixed- and variable-rate CDs are available
Cons
- The minimum deposit required to open an account is $2,500
- No physical locations if you need in-person help
Best for Long-Term CD Ladder
Vio Bank
Vault Verified
APY
5.25%
Term Length
6 months
Min. Deposit Requirement
$500
Early Withdrawal Penalty
One percent of the amount withdrawn, plus a $25 fee
Why We Chose It
You can choose from nine CD terms that range from six months to 120 months at Vio Bank. Six of those terms are 24 months or more and currently have APYs of 2.71%, 3.44% and 4.16%. If you’re looking to start a long-term CD ladder to maximize your returns in the long run, Vio Bank is worth looking into. Read our Vio Bank review.
Pros
- Terms range from six months to ten years
- Interest compounded daily
- Relatively low minimum deposit requirements
Cons
- No special types of CDs or promotions are available
- Other online banks offer higher CD rates
- Hefty early withdrawal penalties
Best for CD Specials
Mutual One Bank
Vault Verified
APY
5.40%
Term Length
6 months
Min. Deposit Requirement
$500
Early Withdrawal Penalty
90 days simple interest
Why We Chose It
Mutual One Bank currently offers three CD specials to help you get more for your money with competitive rates. As of May 2024, you can earn 5.40% APY on a 6-month CD, 4.75% on a 7-month CD and an impressive 5.65% on a 3-month CD.
Pros
- Low early withdrawal penalty compared to other CD accounts
- Competitive APYs
- Accounts can be opened online
Cons
- Account must be funded with new money to the bank
- Only has three physical branches
- Customer service is not available on Sundays
6-month Certificate of Deposit Overview
Here’s an overview of everything you need to know about six-month certificate of deposits.
What Is a 6-Month CD?
A 6-month CD is a certificate of deposit with a fixed interest rate and a term of six months. It’s a good option for people looking to earn higher interest than traditional savings accounts but want to avoid locking their money away for longer than six months. It’s offered by banks and credit unions as a way to earn interest on your savings for a short period of time.
How Do 6-Month CDs Work?
With a 6-month CD, you deposit a certain amount of money into the account and agree not to withdraw it for a fixed term. In return, the bank or credit union pays you interest on your deposit. The interest rate for a 6-month CD is typically higher than what you would earn in a regular savings account because you are committing to keeping your money in the account for a specific period.
Who Should Get a 6-Month CD?
A 6-month CD is great for consumers who want a short-term, low-risk investment with above-average interest rates. These shorter-term CDs are a good choice if you have upcoming expenses within the next six months and want to ensure that your funds grow in the meantime. Additionally, they offer greater flexibility than longer-term CDs because you can access your money sooner and enjoy a higher annual percentage yield (APY).
Pros and Cons of 6-Month CDs
While 6-month CDs can be a great investment product for risk-averse consumers, they might not be ideal for everyone. Here are some pros and cons you should be aware of.
Pros
- Higher interest rates than many other types of savings accounts
- Relatively low-risk investments with fixed interest rates
- FDIC or NCUA (for credit unions) insurance coverage up to $250,000 per depositor
Cons
- Low returns compared to long-term investments
- Early withdrawal penalties if you pull your funds before the maturity date
- If you extend your terms beyond six months, your APY may drop
Alternatives to a 6-Month CD
There are plenty of other financial products out there if a 6-month CD doesn’t fit your goals. Here are three alternatives to consider.
High-Yield Savings Accounts
A high-yield savings account might be a better alternative to a six-month CD if you want to access your funds without penalties. Many high-yield savings accounts offer competitive APYs on par with CDs. This is especially true for many online banks like SoFi and Bask Bank.
Shorter or Longer CDs
CDs with shorter or longer terms might be a better alternative to 6-month CDs. You can enjoy the same high rate on a smaller investment, allowing you to get your funds back faster. Some long-term CDs may have lower APYs than 6-month CDs but might be a better alternative if you’re looking for a safe way to invest your money for longer.
Treasury bills
U.S. Treasury bills are short-term loans made to the government. They’re issued in increments ranging from $100 to $10 million and are typically repaid within 4 to 52 weeks, depending on the maturity date you opt for. The great thing about these investments is that they’re exempt from state income taxes and are virtually risk-free.
Frequently Asked Questions
What is the highest paying 6-month CD?
The Newtek Bank offers the highest APYs for a 6-month CD at 5.55%, much higher than what many other banks offer for similar short-term CDs. But before committing, consider other factors early withdrawal penalties and minimum deposit requirements to make sure the CD account aligns with your financial goals and needs.
Can I Lose Money on a 6-Month CD?
Most CD accounts are federally insured by the FDIC—for up to $250,000 per person, per institution. So, unless you’ve exceeded this limit, your money is unlikely to be at risk. But remember, while CDs are a low-risk way to grow your funds, you could experience losses on a 6-month CD if you withdraw funds before maturity since early withdrawal penalties could exceed the interest you’ve earned.
Are 6-Month CD Rates Worth It?
6-month CDs can be worth it for short-term savings goals since they typically offer higher rates than traditional savings accounts and even high-yield savings accounts. However, if you plan on accessing your savings regularly throughout the 6-month period, putting your money in a CD account may not be the best move since you’ll incur hefty early withdrawal penalties for doing so.
Newsweek writer Jamela Adam contributed to this post.
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Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
Ariana Arghandewal
Travel Expert
Ariana Arghandewal is a travel rewards expert and founder of Pointchaser.com, an award-winning blog. She has over a decade of experience writing about personal finance and travel rewards. She is passionate about helping people leverage credit cards to achieve their travel goals. Her work has appeared in numerous publications, including Bankrate, Business Insider, CNN Underscored, Forbes Advisor and Lonely Planet.
Read more articles by Ariana Arghandewal
