Best 6-month CD rates of May 2024 (2024)

Summary of the top 6-month CD rates

Best 6-month CDs of 2024

When making our selections, we strongly considered the APY offered by a particular CD, as well as any hurdles you’d have to jump through in order to qualify for it. Many CDs require a minimum deposit and credit unions often have membership qualifications. The best CDs have high rates and few requirements to attain them.

Compare the best 6-month CDs

National average interest rate for CDs

The national average for six-month CDs is 1.79% as of May 20, 2024, according to the Federal Deposit Insurance Corporation (FDIC). All of the CDs on our list offer significantly higher APYs than the national average.

Finding and choosing the best 6-month CD rate

It wasn’t that long ago CDs, especially six-month CDs, paid very little. In May 2022, for instance, the average six-month CD offered a yield of 0.10%. Put $10,000 into a CD paying that yield and you’ll end up with a grand total of $5 in interest earnings. Enough for a latte.

Now you can do much better. The national average has improved to 1.79%, and you can get many multiples of that with a little bit of research. In fact, you can now earn more than 5% on your savings.

The key is to look around and be flexible.

Quick tip. Do your own research! Settling for a CD at a bank you’re familiar with can cause you to miss out on the best yields available.

The nation’s biggest banks, such as Chase and Bank of America, benefit from generations of customers and a huge marketing advantage. You can often find the best yields from online banks or credit unions, but those names tend to be unfamiliar.

Therefore, when looking for a CD, don’t be held captive by the most well-known brand. Use well-considered methodologies, like the one we employed, to familiarize yourself with as many CD options as possible.

Factors to consider when choosing a 6-month CD

Yield. Yield. Yield. And we don’t meanslow down.

Yes, there are other factors to take into account when deciding which CD is best for you, including customer experience and compounding interest schedule. (You should also be aware of your CD’s early withdrawal fee, but not necessarily let it affect your decision. If you’re genuinely concerned you’ll need the cash before your term expires, better to go with a no-penalty CD.)

All else being equal, you should opt for the CD that offers the highest yield on the market.

However, you needn’t be dogmatic about it. Let’s say there are two CDs you’re interested in, and one pays 5.50%, while the other pays 5.25%, both are near the top of the market. After six months with a $10,000 deposit, you’ll earn additional $12 in interest ($271 compared to $259) by going with the higher yielding option.

Therefore, if you like the 5.25% CD for other reasons (perhaps it's offered by a nearby credit union), then you can make that tradeoff.

However, you should never settle for a subpar yield, no matter the quality of customer service.

When do shorter CD terms make sense?

Shorter CD terms serve well when you have a short-term savings goal, when you won’t need a chunk of money for a short period and when you think deposit rates will increase even more relatively soon.

They offer flexibility that longer-term CDs don’t and, typically, higher yields than savings accounts.

Learn more: The best CD rates

They can also be used in combination with longer-term CDs to form a CD ladder, which is a savings strategy that uses staggered maturity periods so that you can optimize the yield on your savings.

Who are short-term CDs best for?

Short-term CDs are viable options for any number of savers. Someone fresh to the workforce, for instance, could use it to save up for a new car. Someone slightly older may consider short-term CDs as a depot for a family vacation or the down payment on a new home. Those nearing retirement might consider them as a vehicle to stash cash they can’t afford to lose.

No matter who uses it, and for what reason, you need to be intentional about your decision. Let’s say you’re in the market for a new house and you need to act quickly if you find your dream abode. In that case, a 6-month CD isn’t particularly useful, since you’ll have to pay a penalty if you take out the cash early.

Quick tip. Long-term CDs can make sense for you, even if they offer lower yields, if you believe interest rates will fall in the near future.

Likewise, if you’re going to make it part of your overall CD strategy, make sure you understand how to close down your account. Many CDs will automatically renew after a 10-day grace period. If you want the CD term to end, contact your bank (perhaps even in writing) a few weeks before the expiration date.

Should I open a 6-month CD or savings account?

Savings accounts, especially high-yield savings accounts, are perfect places to store your rainy-day funds. They allow you to earn relatively high interest while still being liquid.

You should always have the money accessible so that you won’t need to go into debt if something happens, like a job layoff, a broken leg or an auto collision where you’d need to pay an insurance deductible.

Once you have three-to six-months worth of your expenses amassed in a traditional or online savings account, then look into investments like CDs.

Alternatives to 6-month CDs

If your goal is to lock in a guaranteed return from a low-risk investment over a period of six months, there are few options as useful as a six-month CD. Still, you might consider some of the following:

No-penalty CD. If you’re worried that you’ll need access to your cash before the term expires, you can opt for a no-penalty CD. Marcus by Goldman Sachs currently offers one that yields 4.70%.

3-month CD (doubled). Another option is to opt for a three-month CD and then renew it when the term expires. The benefit of this strategy is that you’ll typically earn a higher yield than by opting for a no-penalty CD. Fidelity, for instance, currently has a 5.35% on its three-month option. The downside is that rates could fall by the time you need to renew your CD.

High-yield savings account. Perhaps the simplest option is to toss your savings into a, well, savings account. You can currently earn 4.50% from the Quontic Bank High Yield Savings, for instance. The problem is that convenience comes with a cost; savings account yields typically pay less than what you find with CDs.

High-yield checking account. While diminished in scope, you can still find attractive high-yield checking accounts, some of which offer yields in the same ballpark of some of our CD selections. Consumers Credit Union Rewards Checking, for instance, yields 0.10% to 5.00% APY, depending on the account balance and if certain requirements are met. This could be a good option for young savers just starting out.

Money market account (MMA). You can also consider a money market account, which is basically a hybrid of a checking and savings account. Some options pay similar yields to CDs; The Quontic Money Market Account currently offers 5.00%. However, that yield isn’t guaranteed for six months and could fall if the rate environment changes.

You’ll notice that stocks and bonds aren’t included in this list, and that’s because those securities (even bonds) carry investment risk that are unacceptable for someone considering a CD. If you want a CD, you want to know that your capital will be preserved for as long as you need it to be, and stocks and bonds cannot satisfy that aim.

Frequently asked questions (FAQs)