Best 6-Month CD Rates of November 2024: Earn 5% APY

Q: Are there 6% CD rates?

It may be possible to find 6% CD rates , but rates fluctuate based on economic conditions. Instead of aiming for a specific number, focus on finding the best available rate at the time.

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Key Takeaways

What is a 6-month CD?
6-month CD rates today
Pros and cons of 6-month CDs
How much can you earn with a 6-month CD?
How to choose the best 6-month CD rates
How to open a 6-month CD
Is a 6-month CD worth it?
Alternatives to a 6-month CD
FAQ: Best 6-month CD rates
Related topics

On This Page

Key Takeaways
What is a 6-month CD?
6-month CD rates today
Pros and cons of 6-month CDs
How much can you earn with a 6-month CD?
How to choose the best 6-month CD rates
How to open a 6-month CD
Is a 6-month CD worth it?
Alternatives to a 6-month CD
FAQ: Best 6-month CD rates
Related topics

By Imogen Sharma - Finance Contributor + 1 other

Reviewed By Blake Esken - Los Angeles Times

Six-month CDs offer a short-term commitment with fixed, predictable returns at higher interest rates than traditional savings accounts.
This makes them ideal for achieving short-term financial goals while maximizing your earnings.
FDIC data shows that the average APY for six-month CDs is currently around 1.75%.
Some CDs, however, offer APYs up to 5%. This creates an opportunity to earn significantly higher returns on your investment.

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rates_last_updated

4.50%

6 months

$min_deposit

Why We Like It

The Barclays 6-month CD is a great option for short-term savers seeking both flexibility and growth. It offers a competitive interest rate without locking your money away for too long, and its daily compounding feature allows your balance to grow faster than accounts with monthly or annual compounding. Plus, with no maintenance fees or minimum balance requirements, it’s accessible to a wide range of savers.

Since Barclays operates entirely online, there are no physical branches. However, if you’re comfortable managing your finances digitally, this CD provides a convenient blend of growth potential and easy access to your funds.

Competitive APY
No minimum deposit required
Initial deposit isn’t due until 14 days after account opening
Insured by the FDIC

Must maintain a balance that would earn at least 1 cent if you want the interest to post to your account
Early-withdrawal penalty
No physical branch locations

LEARN MORE FDIC Insured
rates_last_updated

apy%

6 months

$min_deposit

Why We Like It

The Valley Direct six-month CD is a good option if you want to grow your savings in a short time. It offers a competitive interest rate, and its $500 minimum deposit makes it accessible to many investors.

You must fund the CD with “new money,” meaning the deposit must come from an external account. No additional deposits can be made until the CD matures, which might limit flexibility.

The maximum deposit is $500,000, making it suitable for large investments. However, if you need to access your funds before the term ends, you’ll face a penalty equal to 90 days’ interest on the amount withdrawn.

One drawback is the lack of weekend customer support. Also, interest compounds quarterly, which is less frequent than some CDs with monthly or weekly compounding.

Overall, this CD is a solid choice for short-term investing if you’re comfortable locking up your funds for six months.

Competitive APY
Accessible minimum deposit
No maintenance fees

Must deposit new money
Limited customer support
Quarterly compounding

LEARN MORE

FDIC Insured
rates_last_updated

apy%

6 months

$min_deposit

Why We Like It

The Bask Bank six-month CD is a great choice if you’re looking to invest short-term while earning a competitive interest rate. Since interest compounds daily, your savings grow faster compared to CDs that compound less often. You also have 10 business days to fund your account, so you don’t need to deposit right away.

When the CD matures, you have 10 days to withdraw your money, add more funds, or move to another Bask Bank CD. This flexibility is useful if you like to reassess your finances every six months.

However, the $1,000 minimum deposit means this CD is better suited for those who can comfortably set aside that amount. If you withdraw early, there’s a penalty of three months’ interest, so be sure you won’t need the funds before the term ends. You also can’t add more money after the initial deposit, so any additional savings will have to wait until the CD matures.

In short, the Bask Bank six-month CD is a good option for short-term growth without a long-term commitment, as long as you’re okay with the early withdrawal penalties and funding limits.

Competitive APY
Interest compounds daily
No monthly maintenance fees
Insured by the FDIC

$1,000 minimum opening deposit
Early withdrawal penalty equal to 3 months of interest

LEARN MORE FDIC Insured
Rates rates_last_updated

4.45%

6 months

min_deposit

Why We Like It

The Quontic six-month CD is a great option if you’re looking for competitive rates and are comfortable with online banking. With a minimum opening deposit of $500, it’s accessible for many and provides an easy entry point into short-term savings.

You’ll benefit from a competitive APY, and interest is compounded daily. Plus, there’s a 10-day grace period after maturity for penalty-free withdrawals, which gives you some flexibility when the CD matures.

However, if you withdraw your money before the six months are up, you’ll forfeit all the interest earned. This penalty is larger than what most other banks charge.

Quontic is also a digital-only bank, meaning there are no physical branches or cash deposit options. However, their mobile app, available on iOS and Android, is user-friendly and offers helpful tools for managing your account.

Overall, the Quontic six-month CD is a practical choice if you’re looking for strong rates and don’t mind handling everything online.

No monthly service fee
Takes less than 3 minutes to open an account
Innovative online tools
Insured by the FDIC
Accessible minimum deposit

High early withdrawal penalty
No physical branch locations
Doesn’t accept cash deposits

What is a 6-month CD?

A six-month CD is a type of savings account that helps your money grow faster without tying it up for years. However, there’s a catch. You can’t touch that money for six months. In exchange for your patience, the best CDs reward you with a higher interest rate than you would typically get from a regular savings account.

Who benefits most from a six-month CD?

Goal-oriented savers: Whether it’s a down payment, a vacation fund or an emergency cushion, a six-month CD is suited to those with a clear near-future savings target.
The “just in case” crowd: If you want the security of extra cash set aside for unexpected expenses but know you might need it within the next six months, a CD is a smart compromise. The shorter term reduces the risk of incurring hefty penalties if you do need to withdraw cash early.
Impulse buyers: A six-month CD can help you resist those tempting but unnecessary purchases by making your savings a little less accessible.

How do 6-month CD rates work?

Let’s demystify how a CD impacts your hard-earned money:

APY: The annual percentage yield gives you an idea of how much your money could grow over a year. With a six-month CD, you’ll earn half of that APY.
Compounding frequency: Daily compounding means your interest starts earning its own interest sooner, helping your savings grow slightly faster.
Maturity date: This is the end of your six-month term. Typically, you’ll have options such as withdrawing your funds plus interest, rolling over your balance into a new CD or letting it sit at the then-current rate.

Withdrawing funds before the maturity date usually comes with a penalty from the bank. These penalties will offset some or all of the interest earned, so be very careful. A six-month CD is best suited for money you’re confident you won’t need within that time frame.

6-month CD rates today

In September, the Federal Reserve lowered the target range for the federal funds rate by half a percentage point, bringing it to between 4.75% and 5%. This marks the first rate cut since March 2020.

As a result of this decision, consumers are seeing six-month CD rates starting to decline. If you’re thinking about investing in CDs, it’s crucial to be aware that this trend indicates rates may keep falling. To take advantage of the remaining high rates, secure a CD now before they drop even further.

Pros and cons of 6-month CDs

Guaranteed return on your investment for the term
Low risk of losing money compared to stocks
Potentially higher interest rates than a traditional savings account
Less restrictive than longer-term CDs

Lower interest rates than longer-term CDs and savings accounts
Limited access to your money until the term ends
Potential for interest rates to decrease during the six months

How much can you earn with a 6-month CD?

APY can be somewhat misleading when it comes to CDs with terms shorter than a year. Keep in mind, APY is an annual percentage, and you’re looking at a six-month investment.

Let’s take a look at the estimated interest earnings if you invest $5,000 over six months with sone of our top picks for six-month CDs:

Bank Name	APY	6-month CD earnings on $5,000
Valley Direct	5.00%	$123
Bask Bank	4.70%	$116
Barclays	4.50%	$110

APYs are correct as of November 2024. The calculations shown are just a simple example. Always seek advice from a qualified professional before making important financial decisions or long-term agreements.

Try using our CD calculator to see how much you could earn with a six-month CD.

How to choose the best 6-month CD rates

Choosing the right six-month CD can be a smart way to grow your savings while keeping money accessible in the near future. Here are the most important factors to look at when comparing different options.

APY

APY is the interest rate you’ll earn over a full year, expressed as a percentage. It’s essentially the growth rate of your savings in the CD. There’s a catch with six-month CDs, though. Unlike one-year CDs, as your money is locked up for half a year, you only earn half of the advertised APY.

For example, Valley Direct offers a 5% APY on a six-month CD. Over those six months, you’d actually earn around 2.5% interest on your deposit.

Early withdrawal penalty

An early withdrawal penalty is a fee your bank charges if you withdraw your money from the CD before the maturity date of six months. Penalties vary, but they always offset any interest you earn, so avoiding them is paramount.

Imagine you open a six-month CD with a $1,000 deposit and a 3% early withdrawal penalty. If you needed the money after three months and withdrew it, the bank might subtract three months’ worth of interest, around $15, as a penalty.

Compounding schedule

The compounding schedule reflects how often interest gets added back to your principal balance.

With daily compounding APY, your interest is calculated and added to your balance each day. This means you earn interest on your interest, creating a snowball effect. Weekly or monthly compounding are also good options, while simple interest, calculated once at maturity, is less advantageous.

The impact of compounding frequency is more noticeable over longer terms, but can still give your six-month CD earnings a small boost.

Safety

CDs offered by FDIC-insured banks and NCUA-insured credit unions are protected against bank failure, up to $250,000 per depositor, per insured institution. This guarantees you’ll get your money back, even if the bank encounters financial difficulties.

Peace of mind matters. Always confirm that your chosen bank or credit union is FDIC or NCUA-insured before opening a CD.

Minimum deposit requirement

Many CDs require a minimum deposit to open the account, but some have lower or even no minimum deposit requirements such as the one offered by Synchrony Bank, making them more accessible. If you have several hundred dollars to save, look for a CD with a low or no minimum deposit requirement.

CD term

CD term is the length of time your money is locked up in the CD. While six-month CDs are a common option, you can also get three-month CDs or CDs with terms of several years.

Generally, CDs with longer terms offer higher APYs. That said, a six-month CD strikes a good balance between getting a better return than a regular savings account and making your money accessible soon.

How to open a 6-month CD

Opening a six-month CD is a straightforward process.

Here’s what you can expect:

Choose a bank or credit union
Gather personal information, including personal details, proof of identity and your funding source
Open the account
Fund your CD
Confirmation and tracking

Is a 6-month CD worth it?

A six-month CD can be a smart financial move if:

You have short-term savings goals, such as a vacation or deposit on a big-ticket item
You’re conservative with your investments and like a near-certain guarantee of returns
You’re certain you won’t need the cash within six months

Alternatives to a 6-month CD

Here are a couple of alternative savings options to consider, along with how interest rates typically stack up.

High-yield savings accounts

This type of savings account typically offers higher interest rates than a standard savings account. However, even the best high-yield savings accounts have APYs that are variable and could tank at any time.

Money market accounts

The best money market accounts provide higher-than-average APYs because banks use the funds for highly liquid, short-term and low-risk assets. The downside of a money market vs a savings account is that they usually come with higher minimum balance requirements.

FAQ: Best 6-month CD rates

Is a 6-month CD worth it?

A six-month CD is a savvy choice if you have a short-term savings goal, as CDs typically offer higher rates than savings accounts. Just be sure you won’t need the money before the term ends.

How is a 6-month CD compounded?

With CDs, interest is compounded daily, weekly or monthly. Daily compounding is the best as compounding interest is like earning interest on your interest. It’s often referred to as ‘interest on interest’ and can significantly boost your earnings over time, especially with longer investments.

What is the average rate of a 6-month CD?

According to the FDIC, the average rate of a six-month CD is 1.75% APY. At this rate, a $10,000 CD would earn approximately $87 over the term, and a $50,000 CD would earn around $436.

Are there 6% CD rates?

It may be possible to find 6% CD rates, but rates fluctuate based on economic conditions. Instead of aiming for a specific number, focus on finding the best available rate at the time.

About the Author

Imogen Sharma Finance Contributor

Imogen Sharma is an experienced writer, specializing in business, culture, and financial guidance for young adults. She has contributed to articles for Varo Bank, Lendzi, MoneyTips and Indeed, providing invaluable insights into budgeting, financial planning, and lines of credit.

As a dedicated self-employed writer, she cherishes the opportunity to share her knowledge and experience with others, offering advice so they can master their bank accounts and secure their financial futures. Her articles, published in CMSWire, Reworked, WalletGenius and The Customer, serve as actionable guides to help people make solid financial decisions.

Prior to her writing career, Imogen honed her financial acumen in management roles, excelling in P&L analysis, budgeting and HR. During her tenure at Smith & Wollensky in London, her strategic contributions contributed to a 2% increase in EBITDA over a year, demonstrating her ability to drive financial performance and organizational success.

Imogen’s writing style combines expertise with accessibility, making complex financial topics easily understandable and actionable. With a focus on the long game, she encourages readers to approach financial matters with enthusiasm and determination.