Best 6-Month CD Rates of July 2024: Short-Term Savings, Smart Returns

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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 1.81% 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 TotalDirectBank 6 Month CD APY available at 5.51%.

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

Best 6-Month CDs

• TotalDirectBank 6 Month CD: 5.51% APY
• EagleBank 6 Month CD: 5.40% APY
• Newtek Bank 6 Month CD: 5.35% APY
• Bask Bank 6 Month CD: 5.35% APY
• Popular Direct 6 Month CD: 5.35% APY
• Western Alliance Bank 6 Month CD, powered by Raisin: 5.30% APY
• Vio Bank 6 Month CD: 5.25% APY
• America First Credit Union 6 Month Certificate: 5.25% APY
• Dow Credit Union 6 Month Simple CD: 5.21% APY
• MYSB Direct 6 Month CD: 5.16% APY
• Rising Bank 6 Month CD: 5.10% APY

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 2-year 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.

TotalDirectBank 6 Month CD

TotalDirectBank CDs may be a good choice if you're searching for a variety of short-term CDs with high interest rates. The 3-month, 6-month, and 1-year 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, Somoa, Guam, the Northern Mariana Islands, or US Virgin Islands.

APY for 6-month CD.5.51% APY

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

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 as long as you don't live in California, Vermont, or Nevada.

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: 5.40% APY

6-month CD early withdrawal penalty: 3 months of interest

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: 5.35% APY

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

Newtek Bank Savings 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: 5.35% APY

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

Bask Bank Review

Popular Direct 6 Month CD

Popular Direct, the online division of Popular Bank, pays high CD rates overall. It also compounds interest daily, which helps grow your money more quickly than monthly or quarterly compounding.

You need at least $10,000 to open a CD with Popular Direct. It also charges relatively high early withdrawal penalties.

APY for a 6-month term: 5.35% APY

6-month CD early withdrawal penalty: 120 days of simple interest

Popular Direct Review

Western Alliance Bank 6 Month CD

The Western Alliance Bank 6 Month CD, powered by Raisin offers a competitive interest rate and has a $1 minimum opening deposit. Raisin is an online platform that allows you to find, fund, and manage multiple high-yield savings accounts, money market accounts, and CDs from different bank and credit unions.

While Raisin is a great option for different types of savings accounts, you'll want to consider other options if you want to open a checking account.

APY for 6-month CD: 5.30% APY

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

Raisin Review

Vio Bank 6 Month CD

Vio Bank's 6-month CD has good rates. It also requires a low minimum opening deposit of $500, and offers CD term lengths up to 10 years, significantly longer than standard term lengths. You're looking for long-term CDs, or if you're interested in opening a CD with a low minimum opening deposit, Vio Bank might be a good pick for you.

However, Vio Bank doesn't have 24/7 customer service. If you're interested in a bank that does offer 24/7 service, you might be better off with another bank.

APY for a 6-month term: 5.25% APY

6-month CD early withdrawal penalty: 1% of the funds withdrawn, plus a $25 fee

Vio Bank Review

America First Credit Union 6 Month Certificate

America First Credit Union only requires $500 to open a 6-month CD, 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: 5.25% APY

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

America First Credit Union Review

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:5.21% APY

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

MYSB Direct 6 Month CD

 MYSB Direct pays a high interest rate on an online 6-month term and also offers one of the best 18-month CD rates.

The bank compounds interest monthly, not daily. Depending on how much money you plan to keep in a CD, this may or may not make a significant difference.

APY for a 6-month term: 5.16% APY

CD early withdrawal penalty: 90 days of interest

Rising Bank 6 Month CD

Rising Bank could be a good option if you have at least $1,000 to open an account. The online bank offers a competitive interest rate on a variety of short-term CDs, including a 6-month term.

Rising Bank CDs compound interest every three months. Other financial institution may compound interest monthly or daily. Depending on your account balance, this could make a significant difference in how much you earn during the term.

Interest for 6-month CD: 5.10% APY

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

Rising Bank Review

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:

City National Bank of Florida has an B- rating because it has two customer complaints filed against the business that it hasn't responded to.

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

Raisin has an B+ rating from the BBB. The rating is due to several complaints filed against the business.

MYSB Direct's parent bank, M.Y.Safra Bank, has an NR rating from the BBB because the BBB doesn't have enough information to rate the bank.

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.

Popular Bank has been involved in two recent public controversies. In 2023, the Federal Reserve Board required Popular Bank to pay a $2.3 million fine, claiming it processed Payment Protection Program loans even though potential instances of fraud were detected and not reporting the potential fraud in a timely manner.

In 2022, the U.S. Department of Treasury's Office of Foreign Assets Control required Banco Popular de Puerto Rico — the bank's Puerto Rico locations — to pay over $255,000 in a settlement that accused the bank of violating Venezuela Sanctions Regulations when processing transactions with two Venezuelan government employees.

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 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:

BI

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, certified financial planner 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, certified financial planner 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:

• 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 mission is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don't have to.

First, we researched to find over 20 banks and credit unions that offered 6-month CDs. Then, we reviewed each institution using our CD rating 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.

Sophia Acevedo

Banking Editor

Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, and budgeting and saving. She is highly knowledgeable about long-term trends in rates and offers at banks across the U.S.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circumstances and overcoming their fears around money.ExpertiseSophia's expertise includes:

• Bank accounts
• Savings and CD rate trends
• Budgeting
• Saving
• How banks operate

EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.

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Kit Pulliam

Personal Finance Insider editorial fellow

Kit Pulliam (they/them) is a banking expert who specializes in certificates of deposit, savings accounts, and checking accounts. They’ve been reporting, editing, and fact-checking personal finance stories for more than four years.ExperienceKit has spent their career making complicated concepts more accessible to the average person. As a tutor in math and reading comprehension after college, they melded the certainty of numbers with the flexibility of words, a skill that has served them in the personal finance field since. Before Business Insider, Kit was an editorial specialist for Tax Analysts, diving into the tax code to help readers get the best information about a confusing but necessary subject.They find banking similar to taxes in that way: There are some things everyone needs to know because just about everyone needs to work with a bank — and you don’t want to end up with an account that doesn’t serve your needs.As interest rates change, they enjoy the fast pace of reviewing rates for products like CDs and high-yield savings, which can change daily and have a direct impact on readers’ money.ExpertiseTheir expertise includes:

• Certificates of deposit
• Savings accounts
• Checking accounts
• CD rates
• Bank reviews

EducationKit is an alumnus of Vanderbilt University, where they studied English and psychology and received the Jum C. Nunnally Honors Research Award for their senior thesis.Outside personal finance, Kit enjoys reading, film, video games, and cross stitching. They are based in the DC area.

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Evelyn He

Compliance and Operations Associate

Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.

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