Best 6-Month CD Rates of September 2024: Short-Term Savings, Smart Returns (2024)

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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 CD rate on a 6-month term is 1.82% APY (Annual Percentage Yield), according to the FDIC.

However, there are much higher interest rates on 6-month CDs right now. The best CD rate for a 6-month term is 5.10% APY available at Barclays, America First Credit Union, and Quontic Bank.

We check rates daily to find the best rates for 6-month terms. Below, you'll find our top picks.

Best 6-Month CDs

• Barclays 6 Month Online CD: 5.10% APY
• America First Credit Union 6 Month Certificate: 5.10% APY
• Quontic 6 Month CD: 5.10% APY
• Bank5 Connect 6 Month High-Yield CD: 5.05% APY
• Newtek Bank 6 Month CD: 5.05% APY
• LendingClub 6 Month CD: 5.00% APY
• Bask Bank 6 Month CD: 5.00% APY
• EagleBank 6 Month CD: 5.00% APY
• TotalBank 6 Month CD: 5.00% APY
• Dow Credit Union 6 Month Simple CD: 4.90% 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.

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.

Barclays 6 Month Online CD

Barclays offers the best rate for 6-month CDs, along with America First Credit Union and Quontic Bank. It has a $0 minimum opening deposit. You'll need to put at least $0.01 into the account in the first 14 days to keep the account open, but otherwise, you're free to earn the high interest rate that compounds daily.

Barclays doesn't have specialty CDs like some of our other top picks. You may prefer a different financial institution if you want a CD that allows you to raise your interest rate, or if you want an account that does not penalize you for withdrawing funds.

APY for 6-month CD: 5.10% APY

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

Barclays Bank Review

America First Credit Union 6 Month Certificate

America First Credit Union offers one of the best rates for 6-month CDs, and you only need $500 to open it — which is less than you'll need with many institutions. It also charges relatively low early withdrawal penalties.

This credit union is a great choice if you live in certain areas in the Western United States. Membership is available to people who live, work, study, worship or volunteer in select counties of New Mexico, Nevada, Oregon, and Utah. You're also eligible to join if you work for a company on its Select Employer Group list or are a member of an affiliated association.

APY for 6-month CD: 5.10% APY

6-month CD early withdrawal penalty: 60 days of interest

America First Credit Union Review

Quontic 6 Month CD

Quontic offers one of the best rates on its 6-month CD. It also has a low minimum opening deposit of $500 and interest that compounds daily, which may make a difference depending on how much you put in your CD.

Quontic charges high early withdrawal penalties. If you think there's a chance you'll need to withdraw your money before the CD term length is up, you might want to go with another bank.

APY for 6-month CD: 5.10% APY

6-month CD early withdrawal penalty: 180 days of interest

Quontic Bank Review

Bank5 Connect 6 Month High-Yield CD

Bank5 Connect offers a strong 6-month CD with a low minimum opening deposit of $500. If you're not planning on putting a lot of money into your CD, Bank5 Connect might be a good choice for you.

Other than its 6-month CD, Bank5 Connect's CD rates aren't super high. If you want to open multiple CDs at the same bank, you might want to look elsewhere.

APY for 6-month CD: 5.05% APY

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

Bank5 Connect Review

Newtek Bank 6 Month CD

Newtek Bank CDs may be appealing if you're searching for a variety of terms that pay well above the national average. Newtek Bank also has standard early withdrawal penalties.

Newtek Bank CDs have a $2,500 minimum opening deposit. Other financial institutions may let you open a CD with less money upfront.

Interest for 6-month CD: 5.05% APY

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

Newtek Bank Savings Review

LendingClub 6 Month CD

LendingClub offers good rates on both its 6-month and 18-month CDs. If you're hoping to open multiple CDs at the same bank, LendingClub might be a good choice for you.

LendingClub requires a higher-than-average minimum opening deposit of $2,500. If you're planning on opening a CD with a smaller amount of money, you might prefer a different CD.

APY for a 6-month term: 5.00% APY

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

LendingClub Bank Review

Bask Bank 6 Month CD

Bask Bank is an excellent option if you'd like to earn a competitive interest rate on a high-yield savings account or CD. Most of its other CD terms offer great interest rates, so if you're interested in opening multiple CDs at the same bank, Bask Bank might be a good choice for you.

Bask Bank has limited CD terms. If you're looking to open a CD with a term of over two years, you might prefer another institution.

APY for 6-month CD: 5.00% APY

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

Bask Bank Review

EagleBank 6 Month CD

EagleBank CDs pay competitive interest rates for a variety of terms, including 6-month CDs.

EagleBank has locations in Maryland, Virginia, and Washington, DC, so it can be a great local banking option if you live in these areas. You can also open online CDs ranging from 6 months to 18 months if you don't live near a branch.

You'll only be able to deposit a maximum of $500,000 into a CD. Another downside to banking with EagleBank is that its mobile banking app has lackluster ratings in both the Google Play and Apple stores.

Interest for a 6-month CD: 5.00%APY

6-month CD early withdrawal penalty: 3 months of 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: 5.00% APY

6-month CD early withdrawal penalty: 30 days of interest

Dow Credit Union 6 Month Simple CD

Dow Credit Union offers a good interest rate on a 6-month Simple CD. It also has one of the best 3-month CD rates.

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.

APY for 6-month CD: 4.90% APY

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

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:

Bask Bank has a B rating from the BBB because of the number of customer complaints against the business.

Even though they have strong BBB ratings, some of our top picks do have recent public controversies.

EagleBank was required to pay a civil penalty of $10 million in a settlement in 2022 when the Securities and Exchange Commission accused the bank and former CEO and chairman Ronald D. Paul of making false and misleading statements about party loans relating to Paul's family trusts.

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.

The Fed is expected to cut rates in the future, but it isn't clear when exactly the Fed will change monetary policy. The Fed wants inflation to get closer to 2% before cutting rates.

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 2024 may also help with deciding when to lock in a CD rate and which type of account to open.

6-Month CD FAQs

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 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® 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 60 banks and credit unions to find which ones offered 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, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.