Why Choose a 6-Month CD?
CDs offer a guaranteed rate of return, making them a safe investment option compared to riskier assets like stocks.
CIT Bank 6-Month CD
Minimum Deposit
$1,000
Rates
3.00% APY
Features
Daily compounding interest to maximize your earning potential, no account maintenance fees and FDIC insured.
Quontic Bank 6-Month CD
Minimum Deposit
$500
Rates
5.05% APY
Features
Interest is compounded daily and credited to your account monthly and no monthly service fee.
Western Alliance Bank 5-Month CD
Minimum Deposit
$1
Rates
5.30% APY
Features
Western Alliance Bank uses the secure Raisin platform to offer savings products to savers nationwide.
WECU 6-Month CD
Minimum Deposit
$1
Rates
4.95% APY
Features
WECU is a credit union that uses the secure Raisin platform to offer savings products to savers nationwide.
Ponce Bank 6-Month CD
Minimum Deposit
$1
Rates
4.00% APY
Features
Ponce Bank uses the secure Raisin platform to offer savings products to savers nationwide.
mph.bank 6-Month CD
Minimum Deposit
$1
Rates
3.00% APY
Features
mph.bank uses the secure Raisin platform to offer savings products to savers nationwide.
SkyOne CreditUnion 5-Month CD
Minimum Deposit
$1
Rates
5.20% APY
Features
SkyOne Federal Credit Union uses the secure Raisin platform to offer savings products to savers nationwide.
Sun Canyon Bank 5-Month CD
Minimum Deposit
$1
Rates
5.04% APY
Features
Sun Canyon Bank uses the secure Raisin platform to offer savings products to savers nationwide.
6-Month CD Benefits
Whether a 6-month CD is right for you depends on your individual financial goals, risk tolerance, and the current interest rate landscape. But there are a few distinct benefits to opening a 6-month CD, including:
- Potentially higher interest rates than traditional savings accounts. Often, 6-month CDs have more competitive interest rates than regular savings accounts.
- Short-term commitment. If you have money you won't need for the next six months, this option keeps your money safe while allowing you to access it relatively soon.
- Liquidity. While there are penalties for early withdrawal, 6-month CDs still provide more liquidity than longer-term options like 1-year CDs or 5-year CDs, making them suitable if you think you might need the money sooner.
Situations where a 6-month CD makes sense
Certain circumstances make investing in a 6-month the best option over longer term CDs including:
- You have a specific short-term savings goal. You want to put money aside for a planned expense in the near future like a wedding, down payment or major purchase. A short-term CD may be a better option over a high-yield savings account due to penalties for early withdrawal. Facing early withdrawal penalties can be a good deterrent to any temptation to touch your money before interest matures, unlike most savings accounts that don't impose any penalties for withdrawal.
- You anticipate interest rates might rise. Locking in a rate now can be beneficial if you think rates will increase, allowing you to secure a higher return than waiting.
- You want to temporarily park your cash. Perhaps you've sold a house or received a financial windfall, and you need a safe place to store your money for a short while before making a long-term investment decision.
Drawbacks of 6-Month CDs
- Early withdrawal penalties. Withdrawing your money before the 6-month term typically incurs an early withdrawal penalty, often equivalent to a few months' interest.
- Inflation. Be mindful that if inflation is high, the real return (your return after the effect of inflation) on a 6-month CD might be minimal or even negative.
- Alternative options. If you need immediate access to your money, a high-yield savings account could be better. If you're okay with a longer-term commitment, some longer-term CDs offer significantly higher interest rates.
Final takeaway
CDs offer a guaranteed fixed interest rate for the entire term of the deposit. This means you know exactly how much interest you'll earn, regardless of how the market fluctuates.
Even if you're simply laddering CDs as an investment strategy, some of the best CD rates are currently in the market right now to grow your money faster.