CDs are virtually risk-free savings vehicles, and their safety has two distinct facets. First, a CD offered by an FDIC bank or an NCUA credit union is federally insured. That means even if the institution fails, your deposits up to $250,000 at that institution are protected. Second, a CD's interest rate is locked. Since the bank or credit union cannot change your interest rate, you know exactly how much money you'll earn on your deposit with no surprises. And because this is a bank deposit that earns interest, you cannot lose value like a stock can in a market downturn.

When Should You Get a 6-Month CD?

CDs tend to offer higher yields than traditional savings and money market accounts, especially in a low-interest rate environment. A 6-month CD may be a good option if you know that you won't need access to your funds for at least six to nine months. That includes people saving for a down payment on a home or setting aside funds for a big trip. Like savings accounts, almost all CDs are FDIC- or NCUA-insured. So you can't lose your principal at one of these institutions as long as your deposit doesn't exceed $250,000. In contrast, investing in stocks and even corporate bonds can be risky in that short of a time window. Should they lose value over a six-month stretch, you'll have to incur a loss. Choosing a CD over a savings or money market account is also a good idea if you're worried you'll be tempted to spend some of your savings, rather than keep it in the bank, since CDs require you to keep your funds in the CD until maturity.

What Happens If You Take Your Money Out Early?

Most financial institutions will deduct some of the interest that's accrued in your account if you withdraw funds from a CD before the maturity date. Losing three, or even six, months' worth of interest is fairly typical in the case of a 6-month CD, so there's a strong incentive to leave your money untouched until the certificate reaches maturity. Some places offer "no-penalty" CDs , but there's a rub: They tend to offer lower yields than standard CDs. What's more, they often require that you pull out the entire balance and close the account if you make an early withdrawal. All banks and credit unions charge an early withdrawal penalty if you opt to withdraw CD funds before maturity. But the penalties vary widely, so it's important to investigate whether an institution's penalty policy is mild, reasonable, or onerous before you commit.

Can I Lose Money on a 6-Month CD?

Since you can't lose money on a CD due to bank failure (unless you have more than $250,000 on deposit at a single institution), CDs are exceptionally safe. There is, however, one scenario in which you could lose some of the principal of your initial deposit, but it's fortunately preventable by doing your homework. Most bank and credit union policies on early withdrawal penalties will only reduce the interest earnings on your CD. But a small number of institutions have such harsh penalty calculations that the penalty can actually deduct from your principal. These CDs are to be avoided, as you never know if an emergency will require you to cash out your CD early.

How Do You Use a 6-Month CD in a CD Ladder?

A CD ladder is an investing strategy that allows you to leverage high CD rates while maintaining ready access to your money, without paying early withdrawal fees. You divide the total amount of money you want to invest, and invest those amounts in individual CDs with different maturity dates. When a CD matures, you reinvest that money into a new CD. A 6-month CD can be used with a CD ladder in any way, depending on your needs; it could be the shortest-term account, the longest-term account, or somewhere in the middle.

Why Don't I See Any Bank Names I Recognize in Your Ranking?

The country's largest banks are often the worst payers when it comes to savings and CD interest rates. In fact, some of the biggest players pay essentially zero interest . The key is to shop around, and to be open to holding some of your savings at a different institution than where you do your primary banking. Electronic transfers between banks are very easy with online banking, so you can easily keep your checking account and a small reserve account at your primary bank, but then sock away much of your savings in a CD at another institution. Our rankings of the best CD rates will always list the best nationwide rates available that day, regardless of which institutions are advertisers or sponsors on our site.

Financial Institutions We Reviewed

We researched and reviewed over 250 banks, credit unions, and financial institutions to find the best CD rates you see above on this list. While we write individual reviews for most, we do not always write reviews for those we would not recommend. Below are the banks, credit unions, and financial institutions we researched along with links to individual company reviews to help you learn more before making a decision: 1st Source Bank, 5star Bank, ableBanking, Abound Credit Union, Achieva Credit Union, Affinity Federal Credit Union, Affinity Plus Federal Credit Union, Air Force Federal Credit Union, Alabama Credit Union, Allegacy Federal Credit Union, Alliant Credit Union, Ally Bank , Amerant Bank, American 1 Credit Union, American Express, American Heritage Credit Union, Andrews Federal Credit Union, Apple Federal Credit Union, Banco do Brasil Americas, Banesco USA, Bank of Baroda, Bank5 Connect, Bank7, Texas Capital Bank, bankESB (Easthampton Savings Bank), BankUnitedDirect, Barclays , BBVA Bank, Bellco Credit Union, Blue Federal Credit Union, BMO , BMO Alto, BrioDirect , Cadets Federal Credit Union, California Coast Credit Union, Capital One , Capitol Federal Savings Bank, CD Bank, CFG Bank, Chase Bank , Chevron Federal Credit Union, CIBC (Agility Banking), CIT Bank , Citibank , Citizens Access, Citizens Trust Bank, Colorado Federal Savings Bank, Bread Savings , Communitywide Federal Credit Union, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Corporate America Family Credit Union (CAFCU), Credit Union of Denver, Credit Union of the Rockies, Digital, Federal Credit Union, Discover Bank , DollarSavingsDirect, Dover Federal Credit Union, Dow Credit Union, Evergreen Bank Group, RocklandTrust Bank, Elements Financial, EmigrantDirect.com, Liberty Federal Credit Union, Fidelity Investments , Financial Partners Credit Union, Financial Resources Federal Credit Union, First Financial Credit Union, First Financial Northwest Bank, First Internet Bank, First National Bank of America, First Technology Federal Credit Union, Fort Bragg Federal Credit Union, Garden Savings Federal Credit Union, Georgia Banking Company, Georgia's Own Credit Union, GreenState Credit Union, Greenwood Credit Union, Grow Financial Federal Credit Union, GTE Financial, Gulf Coast Bank & Trust Company, Hanscom Federal Credit Union, Heritage Bank, Hiway Federal Credit Union, Home Loan Investment Bank, Home Savings Bank, Hope Credit Union, HSBC Direct, Hughes Federal Credit Union, Hyperion Bank, Ideal Credit Union, iGObanking, Interior Federal Credit Union, Justice Federal Credit Union, Kinecta Federal Credit Union, KS State Bank, La Capitol Federal Credit Union, Lafayette Federal Credit Union, Lake Michigan Credit Union, Langley Federal Credit Union, Latino Community Credit Union, Limelight Bank, Live Oak Bank, Luther Burbank Savings, MYSB Direct, MAC Federal Credit Union, Main Street Bank, MainStreet Bank, MapleMark Bank, Marcus by Goldman Sachs, Market USA Federal Credit Union, Matadors Community Credit Union, MECU Credit Union, Merrick Bank, Michigan State University Federal Credit Union, Mills42 Federal Credit Union, Mountain America Credit Union, MTC Federal Credit Union, MutualOne Bank, My Banking Direct, My eBanc, My Savings Direct, NASA Federal Credit Union, Nationwide by Axos Bank , Navy Federal Credit Union , nbkc, NexBank, North Country Savings Bank, Northern Bank Direct, Northfield Bank, Northpointe Bank, Nuvision Federal Credit Union, Oklahoma Central Credit Union, One American Bank, OneUnited Bank, Pacific National Bank, Paramount Bank, PARDA Federal Credit Union, Partner Colorado Credit Union, Patelco Credit Union, Pen Air Federal Credit Union, PenFed Credit Union , People's Credit Union, First Service Credit Union, Pinnacle Federal Credit Union, Popular Direct , Premier America Credit Union, Presidential Bank, FSB, Prime Alliance Bank, PSECU (Pennsylvania State Employees Credit Union), Quontic Bank, Quorum Federal Credit Union, Rising Bank, Merrimack Valley Credit Union, Salal Credit Union, Sallie Mae Bank , Santa Clara County Federal Credit Union, Signature Federal Credit Union, Spectrum Credit Union, SRP Federal Credit Union, State Bank of India Chicago, State Bank of India New York, State Bank of Texas, State Department Federal Credit Union, Summit Credit Union, Sun East Federal Credit Union, Superior Choice Credit Union, Synchrony Bank , TAB Bank, Teachers Federal Credit Union, Technology Credit Union, The Federal Savings Bank, Third Federal Savings & Loan , EverBank , TotalBank, Transportation Federal Credit Union, TruStone Financial Credit Union, UNIFY Financial Credit Union, Expedition Credit Union, United States Senate Federal Credit Union, United Texas Bank, University Federal Credit Union, US Bank , USAlliance Financial, USPS Federal Credit Union, Velocity Credit Union, VeraBank, Vio Bank , Virtual Bank, WebBank, Webster Bank, Wells Fargo , Western Vista Credit Union, Wings Financial Credit Union, XCEL Federal Credit Union, BankPurely, Umbrella Bank, giantbank.com, CapEd Credit Union, Zeal Credit Union, Finworth, Coastal1 Credit Union, Service Credit Union, National Cooperative Bank, Premier Members Credit Union, Bank of America , Flagstar Bank, 1st MidAmerica Credit Union, INOVA Federal Credit Union, Genisys Credit Union, Ivy Bank, Heartland Credit Union, Luana Savings Bank, Spectra Credit Union, Workers Credit Union, Credit Human, EFCU Financial, Poppy Bank, Credit One Bank, Vibrant Credit Union, CFBank, Department of Commerce Federal Credit Union, Seattle Bank, Crescent Bank, Pima Federal Credit Union, Cross River Bank, USAA , Great River Federal Credit Union, Brilliant Bank, Merchants Bank of Indiana, LendingClub , Chartway Credit Union, First Central Savings Bank, AgFed Credit Union, North American Savings Bank, Pelican State Credit Union, First Community Credit Union, Bask Bank, Skyla Credit Union, SkyOne Federal Credit Union, 3Rivers Federal Credit Union, Utah First Credit Union, Pasadena Federal Credit Union, Magnifi Financial, AloStar, Primis Bank, Farmers Insurance Federal Credit Union, Tampa Bay Federal Credit Union, Veridian Credit Union, Republic Bank, Salem Five Direct, All In Credit Union, Bethpage Federal Credit Union, Self-Help Federal Credit Union, Forbright Bank, Jovia Financial Credit Union, Sun Canyon Bank, Fortera Credit Union, Partners 1st Federal Credit Union, SouthEast Bank, American Bank, Newtek Bank, CBC Federal Credit Union, Vanguard , All America Bank, Amalgamated Bank, Citizens State Bank, AmBoy Direct, Republic Bank of Chicago, Oklahoma Community Credit Union, BluPeak Credit Union, Valley Direct, Bayer Heritage Federal Credit Union, First Harvest Credit Union, Orion Federal Credit Union, Wellby Financial, FedChoice Federal Credit Union, CoVantage Credit Union, Choice First Bank, Sandia Area Federal Credit Union, OMB Bank, Minnequa Works Credit Union, Securityplus Federal Credit Union, Bank of South Texas, T Bank.

Best 6-Month CD Rates for September 2024

DR Bank – 5.35% APY

Term (months): 6
Minimum deposit: $500
Early withdrawal penalty: 6 months of interest
Overview: DR Bank was founded in 2006 in Connecticut, where it still operates two branches. Accounts are available nationally through digital banking.

Climate First Bank – 5.34% APY

Term (months): 6 months
Minimum deposit: $500
Early withdrawal penalty: None
Overview: Climate First Bank was established in 2021, has three locations in Florida, and offers online banking.

My Banking Direct – 5.25% APY

Term (months): 5
Minimum deposit: $500
Early withdrawal penalty: 1 month of interest
Overview: My Banking Direct is an internet-only division of Flagstar Bank and part of New York Community Bancorp, founded in 1859 and headquartered in Hicksville, New York.

AloStar – 5.25% APY*

Term (months): 5
Minimum deposit: $10,000
Early withdrawal penalty: 3 months of interest
Overview: AloStar was established as AloStar Bank of Commerce in Birmingham, Alabama, in 2011. It was acquired in 2019 by Cadence Bank and operates as a division of Cadence Bank. Headquartered in Tupelo, Mississippi, Cadence dates back to 1876, when it was established as the Bank of Tupelo.

*Deposit must be new money, and APYs may vary in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Missouri, Puerto Rico, Tennessee, Texas, the Virgin Islands, and Washington, D.C.

Mountain America Credit Union – 5.25% APY

Term (months): 6
Minimum deposit: $500
Early withdrawal penalty: 3 months of interest
Overview: Anyone can join Mountain America by signing up for a $15 lifetime membership in the nonprofit American Consumer Council and keeping at least $5 in a savings account. Established in the 1930s, MACU is headquartered in Sandy, Utah.

MutualOne Bank – 5.25% APY

Term (months): 6
Minimum deposit: $500
Early withdrawal penalty: 3 months of interest
Overview: Dating back to 1889, MutualOne is a brick-and-mortar Massachusetts bank that offers some of its banking products online.

Merchants Bank of Indiana – 5.25% APY

Term (months): 6
Minimum deposit: $1,000
Early withdrawal penalty: 3 months of interest
Overview: FDIC-insured since 1934, Merchants Bank of Indiana operates six branches in the greater Indianapolis area, while serving online customers across the country. It is headquartered in Carmel, Indiana.

CommunityWide Federal Credit Union – 5.25% APY

Term (months): 6
Minimum deposit: $1,000
Early withdrawal penalty: Complex formula; refer to disclosures and exercise caution.
Overview: Anyone can join CommunityWide by donating $15 to the credit union's local chapter of the Marine Corps, as well as keeping $5 or more in a savings account. CommunityWide was founded in 1967, and now operates in Michigan and Indiana.

Genisys Credit Union – 5.25% APY

Term (months): 7
Minimum deposit: $500
Early withdrawal penalty: 6 months of interest
Overview: Anyone can join Genisys by making a $5 donation to the Arthritis Foundation or the Paint Creek Center for the Arts and keeping at least $5 in a member savings account. Genisys Credit Union was chartered in 1964 and is headquartered in Auburn Hills, Michigan.

Financial Partners Credit Union – 5.25% APY

Term (months): 7
Minimum deposit: $1,000
Early withdrawal penalty: 3 months of interest
Overview: Anyone can join Financial Partners if they're a member of the American Consumer Council and if they keep $25 or more in a FPCU savings account. Financial Partners Credit Union was formed in 1937 to serve employees of North American Aviation. It is headquartered in Downey, California.

First Harvest Credit Union – 5.25% APY*

Term (months): 7
Minimum deposit: $1,000
Early withdrawal penalty: 3 months of interest
Overview: Anyone is eligible for membership by agreeing to join the CrossState Credit Union Foundation, and First Harvest will cover the membership fee. Headquartered in Deptford, New Jersey, First Harvest dates back to 1940.

*Account must be funded with new money to the credit union.

Vibrant Credit Union – 5.25% APY*

Term (months): 9
Minimum deposit: $5
Early withdrawal penalty: All earned interest
Overview: Anyone can join Vibrant Credit Union through membership in the Illinois Consumer Council and by maintaining a balance of $5 in a savings account. Headquartered in Moline, Illinois, Vibrant dates back to 1935.

*Account must be funded with new money to the credit union.

Pacific National Bank – 5.25% APY

Term (months): 9
Minimum deposit: $1,000
Early withdrawal penalty: 7 days of interest if withdrawal is made within 6 days of opening account; otherwise 1 month of interest
Overview: Pacific National Bank dates back to 1982 and is headquartered in Miami, Florida.

ableBanking – 5.20% APY

Term (months): 6
Minimum deposit: $5,000
Early withdrawal penalty: 3 months of interest
Overview: This is an online division of Northeast Bank, established in 1872 and headquartered in Portland, Maine.

Pen Air Federal Credit Union – 5.15% APY

Term (months): 5
Minimum deposit: $500
Early withdrawal penalty: 3 months of interest
Overview: Anyone can join Pen Air Federal Credit Union by agreeing to a free membership in Friends of the Navy Marine Corps Relief Society and keeping at least $25 in a member savings account. Headquartered in Pensacola, Florida, Pen Air FCU dates back to 1936.

Elements Financial – 5.15% APY

Term (months): 8
Minimum deposit: $1,000
Early withdrawal penalty: 2 months of interest
Overview: Elements Financial is a credit union anyone can join by signing up for a $5 membership in the nonprofit Tru Direction and holding at least $5 in a savings account. Founded in 1930, Elements is headquartered in Indianapolis.

Compare the Best 6-Month CDs

Institution	Rate (APY)	Term	Minimum Deposit	Early Withdrawal Penalty
DR Bank	5.35%	6 months	$500	6 months of interest
Climate First Bank	5.34%	6 months	$500	None
My Banking Direct	5.25%	5 months	$2,500	1 month of interest
AloStar	5.25%	5 months	$10,000	3 months of interest
Mountain America Credit Union	5.25%	6 months	$500	3 months of interest
MutualOne Bank	5.25%	6 months	$500	3 months of interest
Merchants Bank of Indiana	5.25%	6 months	$1,000	3 months of interest
CommunityWide Federal Credit Union	5.25%	6 months	$1,000	Complex formula; exercise caution
Genisys Credit Union	5.25%	7 months	$500	6 months of interest
Financial Partners Credit Union	5.25%	7 months	$1,000	3 months of interest
First Harvest Credit Union	5.25%	7 months	$1,000	3 months of interest
Vibrant Credit Union	5.25%	9 months	$5	All earned interest
Pacific National Bank	5.25%	9 months	$1,000	7 days of interest if withdrawal is made within 6 days of opening account; otherwise 1 month of interest
ableBanking	5.20%	6 months	$5,000	3 months of interest
Pen Air Federal Credit Union	5.15%	5 months	$500	3 months of interest
Elements Financial	5.15%	8 months	$1,000	2 months of interest

CDs from Big-Name Banks and Credit Unions

Some of the biggest banks and credit unions—like those that are household names or that you see advertised in the media—don't offer the highest CD rates. When choosing a CD, we always recommend looking for one with a high interest rate, a minimum deposit that you can afford, and a term that works for your timeline. If you can't find a top nationwide CD that meets your needs, you can look at a big-name banks and credit unions. Just be sure you have done your rate homework, so you know what's a reasonably competitive rate—and who is paying peanuts.

Here are a few large banks and credit unions you may want to explore:

What Is a 6-Month CD?

Certificates of deposit (CDs) are financial products that provide a fixed interest rate on your deposit as long as you leave your money with the issuing bank or credit union for a specified period of time. Maturity periods range from as short as one month to as long as 10 years. However, terms between 6 month and 5 years are the most common.

Virtually all CDs are offered by federally insured banks or credit unions, with bank deposits protected by FDIC insurance and credit union deposits guaranteed by the National Credit Union Association (NCUA). This means that deposits up to $250,000 are secure, even if the institution itself falls into financial trouble. As a result, always check that any institution you're considering starting a relationship with is an FDIC or NCUA member.

Depository institutions set their own interest rates for CDs, and those rates can differ dramatically from one bank or credit union to another. According to the data Investopedia compiles from about 200 CD-issuing institutions across the country, the top certificates pay three to five times more than the industry average for products of the same duration—and sometimes even eight to 10 times more. So it's always smart to shop around for a certificate that pays on the higher end of the rate spectrum.

Pros and Cons of 6-Month CDs

Pros

Offers a locked rate for 6 months: Unlike a savings or money market account, whose rate can be reduced at any time, a 6-month CD is guaranteed to pay the agreed upon APY for the full six months.
Can deter temptation to spend down savings: Since withdrawing funds from a CD will incur a penalty, it can be less tempting to withdraw CD funds for an unplanned purchase than it is to dip into a liquid savings account.
May pay more than a savings account: By agreeing to a 6-month CD term, you may be able to score a higher annual percentage yield (APY) than what you can earn on a savings or money market account.
Carries almost no risk: CDs opened with an FDIC bank or NCUA credit union are federally insured against potential institution failure, meaning up to $250,000 of your deposits—per person and per institution—are protected.

Cons

Withdrawing early will incur a penalty: Anytime you request to cash out a CD before its maturity date, the bank or credit union will hit you with an early withdrawal penalty, which will reduce the interest you earned and the balance you're paid out.
Only one deposit is allowed: The amount of your CD will be the amount of your initial deposit. Except for special "add-on CDs," you cannot deposit additional funds in a CD after it's opened.
If rates rise, you'll be locked at a lower APY: If the economy is seeing rising rates, you may find you're locked into a 6-month rate that is worse than you can get with newer CDs.
If rates drop, you may regret not opening a longer CD: In a declining rate environment, you'll be happy to have your 6-month rate guaranteed, but may wish you had extended it further with a longer-term certificate.

Fast Fact

When asked in August what they would invest in if they had an extra $10,000, 9% of Investopedia readers said they would open a CD, behind individual stocks, ETFs, and stock index funds. That number is unchanged from June. While CDs sit below individual stocks as the top response (at 22%), CDs are always a good option for those looking for safer investments.

How Much Does $10,000 Earn in a 6-Month CD?

Here's how much interest you'd earn if you deposited $10,000 in a 6-month CD, at a few different APYs. CD rates change often, and locking in a high interest rate today can pay off if rates drop.

Deposit Amount	APY	Term	Earnings
$10,000	5.00%	6 months	$253.15
$10,000	5.30%	6 months	$268.54
$10,000	5.55%	6 months	$281.39

How to Find the Best 6-Month CD Rates

To make it easy for you to find the best CD rates, Investopedia tracks over 200 banks and credit unions that offer CDs. Like other CDs, the rates for 6-month CDs depend on the federal funds rate; as the federal funds rate goes up, CDs tend to, as well. If the fed rate goes up, it might be a good time to look for a new CD.

The list above features many internet-only banks and credit unions. Internet-only financial service companies tend to have lower operating costs than brick-and-mortar institutions, so they may offer better rates and lower fees.

Before deciding on one of the CDs above, you may want to explore local or regional banks and credit unions in your area. Our list of the top CDs only includes CDs that are available nationwide. Although the rates above are very good, you may find a better APY at a regional bank or credit union.

Aside from rates, here are some important CD features to look for:

Minimum opening deposit: Banks and credit unions offer CDs with a variety of minimum opening deposit requirements.
Early withdrawal penalties: Different banks impose different withdrawal penalties; if you may need to withdraw money before the term is up, consider no-penalty CDs.
CD type: CDs come in a variety of types, including promotional CDs, jumbo CDs, bump CDs, brokered CDs, no-penalty CDs, and IRA CDs. Some of these options may give you more flexibility than a conventional CD.
Membership: Credit unions offer some of the best CDs, but they all have their own membership requirements. Many are inexpensive to join.
FDIC insurance: Before you open a new account, check that the bank is FDIC-insured to protect your money.

Alternatives to 6-Month CDs

Six-month CDs are one of many savings vehicles you can choose from. Below are some other options which may suit you even better.

Shorter or Longer CDs: What CD Term Has the Best Rates?

If six months feels too long for you to give up access to your money, you could choose a shorter-term CD. Three months is a commonly offered term, and some institutions even offer 1- and 2-month CDs. Beware, however, that these ultra-short certificates often pay rates that are worse than a high-yield savings or money market account, making them a poor choice.

If instead you could stretch to a longer CD term, you may be able to snag a higher APY. But even if the APY is lower, it could be advantageous because it will be locked in for longer—which is useful if rates go down in the future. The market is full of competitive 1-year CD options, for instance, as it is one of the most popular certificate terms, but multi-year CDs will extend your rate guarantee far into the future.

See the best rates for a variety of CD terms to explore your options:

When your CD term comes to maturity, the deposit plus interest is released to you. Depending on the bank and the account, you have a few different options. You can keep the money, roll it into a new CD at the same bank, or deposit it into a new account at a different bank. If you don't make a decision, the money may be rolled into a new CD or sent to you. The bank or credit union will usually provide notice of the CD's maturity a month or two ahead of time.

Liquid Accounts

Unlike a CD, a liquid account allows you to freely deposit and withdraw funds as you like. Common types of liquid accounts include:

Savings accounts: The best high-yield savings accounts often pay rates competitive with the best CDs.
Money market accounts: The best money market accounts may rival the best CDs, as well.
Cash reserve account: Provided by brokerage firms, these accounts hold your uninvested funds and can sometimes pay rates competitive with high-yield savings and money market accounts, although in many cases they pay much less.

Depending on the rate environment, either liquid accounts or CDs may offer the best rates. Even if the savings rate you can earn is lower than the best 6-month CD, though, it comes with the no-strings-attached advantage of leaving your funds completely available.

Bonds or Bond Funds

Short-term corporate bonds: Though you can certainly buy a bond mutual fund or ETF and exit whenever you like, keep in mind that unlike CDs, corporate bonds and bond funds can lose value. Bonds are generally less risky than stocks, but their value can still go down.
U.S. Treasury I bonds: U.S. Treasury I bonds pay an interest rate pegged to beat inflation. However, these bonds are not suited to a six-month horizon as you cannot withdraw the funds for any reason during the first year.
U.S. Treasury bill: T-bills allow you to lend money to the U.S. government for a short, fixed amount of time. Considered one of the safest investments in the world, T-bills offer durations ranging from 4 weeks to 1 year.

How Are CD Rates Determined?

CD rates are determined by a number of factors, including:

The federal funds rate: CD rates (and rates on other interest-bearing deposit accounts) tend to follow the federal funds rate. As the federal rate goes up, CD rates tend to go up as well. This happens in part because when the federal rate goes up banks lend out money at higher interest, so they can pay more interest on deposit accounts.
CD term length: Longer CD terms may offer better rates than shorter terms, because you're committing to keep the money with the bank longer, but this is not always true—depending on the current rate environment, financial prospects and predictability, and the issuing bank (which may offer promotional rates for certain terms), you may find shorter terms that are equal to or better than longer terms.
Issuing bank or credit: Different banks have different operating expenses. Big banks like Citi, with massive expenses, tend to offer low rates on most of their CDs. Online banks with lower overhead, like Ally Bank, may offer better rates, and the same tends to be true of credit unions.
Competition between banks: Banks compete to attract customers, and higher APYs on CDs and deposit accounts are one way they do that.

Frequently Asked Questions

Are CDs Safe?

CDs are virtually risk-free savings vehicles, and their safety has two distinct facets. First, a CD offered by an FDIC bank or an NCUA credit union is federally insured. That means even if the institution fails, your deposits up to $250,000 at that institution are protected.
Second, a CD's interest rate is locked. Since the bank or credit union cannot change your interest rate, you know exactly how much money you'll earn on your deposit with no surprises. And because this is a bank deposit that earns interest, you cannot lose value like a stock can in a market downturn.
When Should You Get a 6-Month CD?

CDs tend to offer higher yields than traditional savings and money market accounts, especially in a low-interest rate environment. A 6-month CD may be a good option if you know that you won't need access to your funds for at least six to nine months. That includes people saving for a down payment on a home or setting aside funds for a big trip.
Like savings accounts, almost all CDs are FDIC- or NCUA-insured. So you can't lose your principal at one of these institutions as long as your deposit doesn't exceed $250,000. In contrast, investing in stocks and even corporate bonds can be risky in that short of a time window. Should they lose value over a six-month stretch, you'll have to incur a loss.
Choosing a CD over a savings or money market account is also a good idea if you're worried you'll be tempted to spend some of your savings, rather than keep it in the bank, since CDs require you to keep your funds in the CD until maturity.
What Happens If You Take Your Money Out Early?

Most financial institutions will deduct some of the interest that's accrued in your account if you withdraw funds from a CD before the maturity date. Losing three, or even six, months' worth of interest is fairly typical in the case of a 6-month CD, so there's a strong incentive to leave your money untouched until the certificate reaches maturity.
Some places offer "no-penalty" CDs, but there's a rub: They tend to offer lower yields than standard CDs. What's more, they often require that you pull out the entire balance and close the account if you make an early withdrawal.
All banks and credit unions charge an early withdrawal penalty if you opt to withdraw CD funds before maturity. But the penalties vary widely, so it's important to investigate whether an institution's penalty policy is mild, reasonable, or onerous before you commit.
Can I Lose Money on a 6-Month CD?

Since you can't lose money on a CD due to bank failure (unless you have more than $250,000 on deposit at a single institution), CDs are exceptionally safe. There is, however, one scenario in which you could lose some of the principal of your initial deposit, but it's fortunately preventable by doing your homework.
Most bank and credit union policies on early withdrawal penalties will only reduce the interest earnings on your CD. But a small number of institutions have such harsh penalty calculations that the penalty can actually deduct from your principal. These CDs are to be avoided, as you never know if an emergency will require you to cash out your CD early.
How Do You Use a 6-Month CD in a CD Ladder?

A CD ladder is an investing strategy that allows you to leverage high CD rates while maintaining ready access to your money, without paying early withdrawal fees. You divide the total amount of money you want to invest, and invest those amounts in individual CDs with different maturity dates. When a CD matures, you reinvest that money into a new CD. A 6-month CD can be used with a CD ladder in any way, depending on your needs; it could be the shortest-term account, the longest-term account, or somewhere in the middle.
Why Don't I See Any Bank Names I Recognize in Your Ranking?

The country's largest banks are often the worst payers when it comes to savings and CD interest rates. In fact, some of the biggest players pay essentially zero interest. The key is to shop around, and to be open to holding some of your savings at a different institution than where you do your primary banking. Electronic transfers between banks are very easy with online banking, so you can easily keep your checking account and a small reserve account at your primary bank, but then sock away much of your savings in a CD at another institution.
Our rankings of the best CD rates will always list the best nationwide rates available that day, regardless of which institutions are advertisers or sponsors on our site.
Financial Institutions We Reviewed

We researched and reviewed over 250 banks, credit unions, and financial institutions to find the best CD rates you see above on this list. While we write individual reviews for most, we do not always write reviews for those we would not recommend. Below are the banks, credit unions, and financial institutions we researched along with links to individual company reviews to help you learn more before making a decision:
1st Source Bank, 5star Bank, ableBanking, Abound Credit Union, Achieva Credit Union, Affinity Federal Credit Union, Affinity Plus Federal Credit Union, Air Force Federal Credit Union, Alabama Credit Union, Allegacy Federal Credit Union, Alliant Credit Union, Ally Bank, Amerant Bank, American 1 Credit Union, American Express, American Heritage Credit Union, Andrews Federal Credit Union, Apple Federal Credit Union, Banco do Brasil Americas, Banesco USA, Bank of Baroda, Bank5 Connect, Bank7, Texas Capital Bank, bankESB (Easthampton Savings Bank), BankUnitedDirect, Barclays, BBVA Bank, Bellco Credit Union, Blue Federal Credit Union, BMO, BMO Alto, BrioDirect, Cadets Federal Credit Union, California Coast Credit Union, Capital One, Capitol Federal Savings Bank, CD Bank, CFG Bank, Chase Bank, Chevron Federal Credit Union, CIBC (Agility Banking), CIT Bank, Citibank, Citizens Access, Citizens Trust Bank, Colorado Federal Savings Bank, Bread Savings, Communitywide Federal Credit Union, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Corporate America Family Credit Union (CAFCU), Credit Union of Denver, Credit Union of the Rockies, Digital, Federal Credit Union, Discover Bank, DollarSavingsDirect, Dover Federal Credit Union, Dow Credit Union, Evergreen Bank Group, RocklandTrust Bank, Elements Financial, EmigrantDirect.com, Liberty Federal Credit Union, Fidelity Investments, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Financial Credit Union, First Financial Northwest Bank, First Internet Bank, First National Bank of America, First Technology Federal Credit Union, Fort Bragg Federal Credit Union, Garden Savings Federal Credit Union, Georgia Banking Company, Georgia's Own Credit Union, GreenState Credit Union, Greenwood Credit Union, Grow Financial Federal Credit Union, GTE Financial, Gulf Coast Bank & Trust Company, Hanscom Federal Credit Union, Heritage Bank, Hiway Federal Credit Union, Home Loan Investment Bank, Home Savings Bank, Hope Credit Union, HSBC Direct, Hughes Federal Credit Union, Hyperion Bank, Ideal Credit Union, iGObanking, Interior Federal Credit Union, Justice Federal Credit Union, Kinecta Federal Credit Union, KS State Bank, La Capitol Federal Credit Union, Lafayette Federal Credit Union, Lake Michigan Credit Union, Langley Federal Credit Union, Latino Community Credit Union, Limelight Bank, Live Oak Bank, Luther Burbank Savings, MYSB Direct, MAC Federal Credit Union, Main Street Bank, MainStreet Bank, MapleMark Bank, Marcus by Goldman Sachs, Market USA Federal Credit Union, Matadors Community Credit Union, MECU Credit Union, Merrick Bank, Michigan State University Federal Credit Union, Mills42 Federal Credit Union, Mountain America Credit Union, MTC Federal Credit Union, MutualOne Bank, My Banking Direct, My eBanc, My Savings Direct, NASA Federal Credit Union, Nationwide by Axos Bank, Navy Federal Credit Union, nbkc, NexBank, North Country Savings Bank, Northern Bank Direct, Northfield Bank, Northpointe Bank, Nuvision Federal Credit Union, Oklahoma Central Credit Union, One American Bank, OneUnited Bank, Pacific National Bank, Paramount Bank, PARDA Federal Credit Union, Partner Colorado Credit Union, Patelco Credit Union, Pen Air Federal Credit Union, PenFed Credit Union, People's Credit Union, First Service Credit Union, Pinnacle Federal Credit Union, Popular Direct, Premier America Credit Union, Presidential Bank, FSB, Prime Alliance Bank, PSECU (Pennsylvania State Employees Credit Union), Quontic Bank, Quorum Federal Credit Union, Rising Bank, Merrimack Valley Credit Union, Salal Credit Union, Sallie Mae Bank, Santa Clara County Federal Credit Union, Signature Federal Credit Union, Spectrum Credit Union, SRP Federal Credit Union, State Bank of India Chicago, State Bank of India New York, State Bank of Texas, State Department Federal Credit Union, Summit Credit Union, Sun East Federal Credit Union, Superior Choice Credit Union, Synchrony Bank, TAB Bank, Teachers Federal Credit Union, Technology Credit Union, The Federal Savings Bank, Third Federal Savings & Loan, EverBank, TotalBank, Transportation Federal Credit Union, TruStone Financial Credit Union, UNIFY Financial Credit Union, Expedition Credit Union, United States Senate Federal Credit Union, United Texas Bank, University Federal Credit Union, US Bank, USAlliance Financial, USPS Federal Credit Union, Velocity Credit Union, VeraBank, Vio Bank, Virtual Bank, WebBank, Webster Bank, Wells Fargo, Western Vista Credit Union, Wings Financial Credit Union, XCEL Federal Credit Union, BankPurely, Umbrella Bank, giantbank.com, CapEd Credit Union, Zeal Credit Union, Finworth, Coastal1 Credit Union, Service Credit Union, National Cooperative Bank, Premier Members Credit Union, Bank of America, Flagstar Bank, 1st MidAmerica Credit Union, INOVA Federal Credit Union, Genisys Credit Union, Ivy Bank, Heartland Credit Union, Luana Savings Bank, Spectra Credit Union, Workers Credit Union, Credit Human, EFCU Financial, Poppy Bank, Credit One Bank, Vibrant Credit Union, CFBank, Department of Commerce Federal Credit Union, Seattle Bank, Crescent Bank, Pima Federal Credit Union, Cross River Bank, USAA, Great River Federal Credit Union, Brilliant Bank, Merchants Bank of Indiana, LendingClub, Chartway Credit Union, First Central Savings Bank, AgFed Credit Union, North American Savings Bank, Pelican State Credit Union, First Community Credit Union, Bask Bank, Skyla Credit Union, SkyOne Federal Credit Union, 3Rivers Federal Credit Union, Utah First Credit Union, Pasadena Federal Credit Union, Magnifi Financial, AloStar, Primis Bank, Farmers Insurance Federal Credit Union, Tampa Bay Federal Credit Union, Veridian Credit Union, Republic Bank, Salem Five Direct, All In Credit Union, Bethpage Federal Credit Union, Self-Help Federal Credit Union, Forbright Bank, Jovia Financial Credit Union, Sun Canyon Bank, Fortera Credit Union, Partners 1st Federal Credit Union, SouthEast Bank, American Bank, Newtek Bank, CBC Federal Credit Union, Vanguard, All America Bank, Amalgamated Bank, Citizens State Bank, AmBoy Direct, Republic Bank of Chicago, Oklahoma Community Credit Union, BluPeak Credit Union, Valley Direct, Bayer Heritage Federal Credit Union, First Harvest Credit Union, Orion Federal Credit Union, Wellby Financial, FedChoice Federal Credit Union, CoVantage Credit Union, Choice First Bank, Sandia Area Federal Credit Union, OMB Bank, Minnequa Works Credit Union, Securityplus Federal Credit Union, Bank of South Texas, T Bank.

How We Pick the Best 6-Month CDs

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide, and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), the CD's minimum initial deposit must not exceed $25,000, and any specified maximum deposit cannot be under $5,000.

Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.

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