Editor's Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC Select will update as changes are made public.
For those who want to lock in the current market's high certificates of deposit (CD) rates but need access to that cash in a short amount of time, a six-month CD can be just right.
After just half a year, you can grow your savings more so than you can in a traditional savings account and even in some high-yield savings accounts. Plus, with a CD, the fixed interest rate guarantees the return you're offered when you sign up; with a high-yield savings account, your variable interest rate can change at any time.
To determine which six-month CDsare best, CNBC Selectanalyzed and compared dozens of CD accounts. The ones we selected for our ranking all offer APYs well above the national six-month CD average of 1.49%. All of the banks on this list are FDIC- or NCUA-insured, the latter if a credit union. (Seeour methodologyfor more information on how we chose the best six-month CD accounts.)
Best six-month CD rates of May 2024
- Best overall: Bank5 Connect - 5.50% APY
- Best from a big bank: Marcus by Goldman Sachs® - 5.25% APY
- Best for no minimum deposit: BMO Alto - 5.50% APY
- Best for a large deposit: Popular Direct - 5.25% APY
- Best from a credit union: Signature Federal Credit Union (FCU) - 5.50% APY
Compare offers to find the best CD
Best overall
Bank5 Connect CDs
Bank5 Connect is a Member FDIC.
Annual Percentage Yield (APY)
From 0.85% to 5.50% APY
Terms
From 6 months to 36 months
Minimum deposit
$500
Monthly fee
None
Early withdrawal penalty fee
There's an early withdrawal penalty equal to 3 months of interest for CDs with terms less than one year, and an early withdrawal penalty equal to 6 months of interest for CDs with terms of one year or greater
Terms apply.
Pros
- Above-average APYs
- Range of CD terms
- No monthly fee
- Offers "24 Month Investment CD" to add funds during CD term
Cons
- $500 minimum deposit
- You can't access your money before your CD term ends
- Early withdrawal penalty fees apply
- No physical branch locations
[ Jump to more details ]
Best from a big bank
Marcus by Goldman Sachs® CDs
Marcus by Goldman Sachs® is a brand of Goldman Sachs Bank USA, a Member FDIC.
Annual Percentage Yield (APY)
From 3.90% to 4.90% APY
Terms
From 6 months to 6 years
Minimum deposit
$500
Monthly fee
None
Early withdrawal penalty fee
If you withdraw the balance entire principal amount from your CD account prior to maturity, you'll be charged anearly withdrawal penaltybased on the term of your CD and the principal (except in the case of a No-Penalty CD). Here's how early withdrawal penalties are calculated:
Early Withdrawal Penalty = Interest Rate ÷ 365 (or 366) × Penalty Days × Original Principal Balance
Terms apply.
Pros
- Above-average APYs
- Range of CD terms
- No monthly fee
- Offers CD options to raise your APY and withdraw with no penalty
- 10-Day CD Rate Guarantee: If the rate on your CD goes up within first 10 days of opening, you'll get that rate automatically
Cons
- $500 minimum deposit
- You can't access your money before your CD term ends
- Early withdrawal penalty fees apply
- No physical branch locations
[ Jump to more details ]
Best for no minimum deposit
BMO Alto CDs
BMO Alto is a Member FDIC.
Annual Percentage Yield (APY)
From 4.50% to 5.15% APY
Terms
From 6 months to 60 months
Minimum deposit
None
Monthly fee
None
Early withdrawal penalty fee
An early withdrawal of principal before maturity will cost an early withdrawal penalty. The penalty is calculated using the interest rate applicable to the CD at the time of early withdrawal. If the amount of the penalty exceeds the amount of your accrued and unpaid interest, then a reduction of principal would be required in order to pay the penalty:
Terms apply.
Pros
- Above-average APYs
- Range of CD terms
- No minimum deposit
- No monthly fee
Cons
- You can't access your money before your CD term ends
- Early withdrawal penalty fees apply
- No physical branch locations
[ Jump to more details ]
Best for a large deposit
Popular Direct CDs
Popular Direct products are offered by Popular Bank, a Member FDIC.
Annual Percentage Yield (APY)
From 4.50% to 5.45% APY
Terms
From 3 months to 60 months
Minimum deposit
$10,000
Monthly fee
None
Early withdrawal penalty fee
For terms less than 91 days: The fee is 89 days simple interest; For terms equal to or greater than 91 days but less than 12 months: The fee is 120 days simple interest; For terms equal to or greater than 12 months but less than 36 months: The fee is 270 days simple interest; For terms equal to or greater than 36 months but less than 60 months: The fee is 365 days simple interest; For terms equal to or greater than 60 months: The fee is 730 days simple interest
Terms apply.
Pros
- Above-average APYs
- Range of CD terms
- No monthly fee
- Has physical branch locations
Cons
- $10,000 minimum deposit
- You can't access your money before your CD term ends
- Early withdrawal penalty fees apply
[ Jump to more details ]
Best from a credit union
Signature Federal Credit Union (FCU) CDs
Annual Percentage Yield (APY)
From 4.15% to 5.55% APY
Terms
From 3 months to 60 months
Minimum deposit
$500
Monthly fee
None
Early withdrawal penalty fee
A penalty may be assessed for early withdrawal of funds from CDs
Terms apply.
Pros
- Above-average APYs
- Range of CD terms
- No monthly fee
- Has physical branch locations
Cons
- $500 minimum deposit
- You can't access your money before your CD term ends
- Early withdrawal penalty fees apply
[ Jump to more details ]
More on our top six-month CDs
Bank5 Connect
Bank5 Connect's six-month CD currently offers an industry-leading 5.50% APY and the bank also offers a special add-on CD option for those who have a longer savings horizon. The "24-Month Investment CD" lets savers deposit additional funds throughout their term versus just the one deposit upfront. For the six-month CD specifically, there's a low $500 minimum deposit.
CD terms offered
6 months, 12 months, 15 months, 18 months, 21 months, 24 months, 36 months
Monthly fee
None
Early withdrawal penalty fee
There's an early withdrawal penalty equal to 3 months of interest for CDs with terms less than one year, and an early withdrawal penalty equal to 6 months of interest for CDs with terms of one year or greater
[ Return to account summary ]
Marcus by Goldman Sachs
While many of the best six-month CDs we found are offered by lesser-known banks, Marcus by Goldman Sachs® stands out for its institutional name. If you're more comfortable banking with a big name, its six-month CD is for you. It offers a nice 5.25% APY with a $500 minimum deposit.
CD terms offered
6 months, 9 months, 12 months, 18 months, 2 years, 3 years, 4 years, 5 years, 6 years
Monthly fee
None
Early withdrawal penalty fee
If you withdraw the balance of entire principal amount from your CD account before maturity, you'll be charged anearly withdrawal penaltybased on the term of your CD and the principal (except in the case of a No-Penalty CD). Here's how early withdrawal penalties are calculated:
- Less than 1 year: 90 days interest on the original principal balance at the interest rate in effect for the CD
- 1 year to 5 years: 180 days interest on the original principal balance at the interest rate in effect for the CD
- More than 5 years: 270 days interest on the original principal balance at the interest rate in effect for the CD
Early Withdrawal Penalty = Interest Rate ÷ 365 (or 366) × Penalty Days × Original Principal Balance
[ Return to account summary ]
BMO Alto
BMO Alto offers a high 5.50% APY on its six-month CD with no minimum deposit required. The zero minimum requirement lets just about any saver take advantage, no matter their balance.
CD terms offered
6 months, 12 months, 24 months, 36 months, 48 months, 60 months
Monthly fee
None
Early withdrawal penalty fee
An early withdrawal of principal before maturity will cost an early withdrawal penalty. The penalty is calculated using the interest rate applicable to the CD at the time of early withdrawal. If the amount of the penalty exceeds the amount of your accrued and unpaid interest, then a reduction of principal would be required to pay the penalty:
- 11 months or less: You'll be charged 90 days interest
- 12 months or more: You'll be charged 180 days interest
[ Return to account summary ]
Popular Direct
Popular Direct offers a solid 5.25% APY on its six-month CD with a $10,000 minimum deposit requirement. For those with large savings that they want to keep safe for a short-term goal, Popular Direct's six-month CD is a good place to park it. A 5.25% APY on a $10,000 balance would net you $259.14 in interest earnings alone over just six months.
CD terms offered
3 months, 6 months, 12 months, 18 months, 24 months, 36 months, 48 months, 60 months
Monthly fee
None
Early withdrawal penalty fee
- For terms less than 91 days: The fee is 89 days simple interest
- For terms equal to or greater than 91 days but less than 12 months: The fee is 120 days simple interest
- For terms equal to or greater than 12 months but less than 36 months: The fee is 270 days simple interest
- For terms equal to or greater than 36 months but less than 60 months: The fee is 365 days simple interest
- For terms equal to or greater than 60 months: The fee is 730 days simple interest
[ Return to account summary ]
Signature FCU
Signature Federal Credit Union (FCU) offers a six-month CD with a high 5.50% APY and just a $500 minimum. For those who rather put their cash with a credit union and get community membership perks, this is a good savings option. Anyone can become a member with a $5 deposit into the Signature FCU basic Savings account.
CD terms offered
3 months, 6 months, 9 months, 12 months, 18 months, 24 months, 36 months, 48 months, 60 months
Monthly fee
None
Early withdrawal penalty fee
A penalty may be assessed for early withdrawal of funds from CDs
[ Return to account summary ]
Compare offers to find the best CDs
FAQs
Are 6-month CDs worth it?
A six-month CD is worth it as long as you're getting a solid return and you can keep your cash locked up for six months without having to withdraw early, thus paying a penalty and forfeiting earnings.
What is an average return on a 6-month CD?
The national average return on a 6-month CD is currently 1.49%. Online banks, however, offer much higher returns — as high as 5.50% APY right now.
Who has the highest paying CD right now?
For a six-month CD, the banks on this list are currently offering the highest return at 5.50% APY. Outside of 6-month CDs, the highest rate would depend on the CD term you're looking for. Currently, though, a one-year CD is the term offering the highest return in the market.
Should I buy a CD now or wait?
Now is a great time to put your money in a CD. Because of the Federal Reserve's rate-hiking campaign over the past nearly two years, CD rates are the highest they've been in a long time. This could change, however, if the Fed starts cutting rates in 2024 — which, in turn, would prompt banks to cut their savings rates to consumers. Lock in today's high savings rates now with a CD.
Bottom line
A six-month CD is a smart savings vehicle for the short term. It keeps your cash safe, offers a fixed rate of return — and if you lock in a high rate, even better — and lets you withdraw after just half a year.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every CD review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of savings products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best six-month CDs.
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Our methodology
To determine the best six-month CDs, CNBC Select analyzed dozens of options offered by online and brick-and-mortar banks, including credit unions. We found that the APY offered by online banks and credit unions far outpaced those offered by most national brick-and-mortar banks.
When ranking the top six-month CDs, we prioritized the ones offering the highest APYs. We then compared six-month CDs by looking at their minimum deposit requirements, penalties for early withdrawals, ease of use and industry rankings. We ranked our top picks by best overall, best for no minimum deposit, best for a large deposit, best from a big bank and best from a credit union.
All of the CDs included on this list are NCUA- or FDIC-insured up to $250,000 per person. The rates and fee structures banks advertise for their CD accounts are not guaranteed forever. They are subject to change without notice and they often fluctuate in accordance with the Fed rate. If you open a CD account, however, you're often locked into that APY offered at account opening for the entire term length.
Your earnings depend on the CD term length, the amount you deposit, the APY offered when you opened the account and any associated fees. Generally, a larger deposit and a higher interest rate will earn you the most money. Any early withdrawals may result in penalty fees that lower your principal balance/earnings.
To open a CD account for the first time at a bank, most banks and institutions require a deposit of new money, meaning you can't transfer money you already had in an account at that bank.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.