The Best 6-Month CD Rates of April 2022

*As of April 2022, the national average APY on a 6-month CD is 0.10%, according to the FDIC.

If you want to grow your money but keep it safe from the turbulence of the stock market, a certificate of deposit (CD) may be a good option. 

A 6-month CD is a short-term CD that lets you maintain a fixed interest rate for a short period of time. It may a good option if you’re not comfortable parting with your money for more than six months.

6-month CD rates at the largest US banks

The

biggest banks

in America pay lower rates than our top picks. However, it may be important to you to bank with a company you’re familiar with. Here are the rates you’ll earn on a 6-month CD with some of the most popular institutions:

Learn more about our top picks

Why it stands out: Navy Federal Credit Union pays higher rates for higher balances, but its APY is competitive even for smaller balances. Navy Federal compounds your interest daily like most banks would, unlike many

credit unions

that compound monthly.

Interest for 6-month CD: 0.45% to 0.50% APY

6-month CD early withdrawal penalty: 90 days interest

What to look out for: You or a family member must have ties to the military for you to become a member of Navy Federal. Or you could join as a Department of Defense civilian personal or contractor, or housemate of a Navy Federal member. Also, keep in mind that you’ll need to have an account balance of at least $100,000 to earn the highest rate.

Why it stands out: First Internet Bank of Indiana pays a good rate for 6-month CDs, and contrary to what the bank’s name may lead you to believe, this online bank is available to residents of all US states.

Interest for 6-month CD: 0.50% APY

6-month CD early withdrawal penalty: 180 days interest

What to look out for: First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference. You can also find a bank that charges less for an early withdrawal from a 6-month CD.

Why it stands out: TAB Bank pays good rates and charges relatively low early withdrawal penalties. You get to choose how you receive your interest — keep it in your CD, receive a check, or transfer the money to another TAB bank account.

Interest for 6-month CD: 0.50% APY

6-month CD early withdrawal penalty: 90 days interest

What to look out for: The main downside is that you can find slightly better rates elsewhere right now.

Why it stands out: CIT Bank pays good rates for 6-month CDs, and its early withdrawal penalties are reasonable.

Interest for 6-month CD: 0.30% APY

6-month CD early withdrawal penalty: 3 months

simple interest

What to look out for: You’ll need at least $1,000 to open a CD with CIT Bank. If you don’t have a lot of money to deposit into a CD, you may prefer one of the other banks mentioned in our list. 

Why it stands out: Citibank has a competitive interest rate for 6-month CDs.

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

Interest for 6-month CD: 0.65% APY

What to look out for: Other

CD rates

at Citibank aren’t as competitive. The minimum opening deposit required for a CD also may depend on where you live. 

Why it stands out: Capital One has a competitive interest rate for 6-month CDs. There’s also no minimum opening deposit. 

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

Interest for 6-month CD: 0.50% APY

What to look out for: Your banking experience may vary depending on where you live. The bank has branches in Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington, DC. If you don’t live nearby any of these areas, your banking experience will be completely online.

Other CDs that didn’t make the cut and why

• TIAA Basic CD: TIAA offers great interest rates, but some of our top picks have lower early withdrawal penalties. 
• NBKC CD: NBKC offers competitive interest rates on long-term CDs, but its short-term CDs aren’t as strong. 
• Live Oak Bank CD: Live Oak Bank offers a competitive interest rate, but you’ll need a minimum opening deposit of $2,500. 
• Ally High Yield CD: Ally offers competitive interest rates on long-term CDs, but its short-term CDs aren’t as strong. 
• Synchrony Bank CD: Synchrony offers competitive interest rates, but some of our top picks have lower early withdrawal penalties. 
• Sallie Mae Certificate of Deposit: Sallie Mae has a competitive interest rate, but you’ll need a minimum opening deposit of $2,500. 
• Discover CD: Discover has competitive interest rates on long-term CDs, but its short-term CDs aren’t as strong. 
• Pentagon Federal Credit Union Money Market Certificate: Pentagon Federal Credit Union offers a competitive interest rate, but the early withdrawal penalties are high compared to our top picks. 
• Marcus High-Yield CD: Marcus offers competitive interest rates on long-term CDs, but its short-term CDs aren’t as strong. 
• Popular Direct CD: Popular Direct has great interest rates on long-term CDs, but its short-term CDs aren’t as strong. 
• Charles Schwab Bank Certificate of Deposit: Charles Schwab has brokered CDs, meaning Charles Schwab doesn’t actually own the CD. Instead, Charles Schwab acts as the middleman for you and the bank that owns the CD. Depending on how your bank, you may prefer open a CD directly with the financial institution.
• American Express CD: American Express offers a good interest rate, but our top picks offer even higher rates.
• BMO Harris CD: BMO Harris requires a minimum opening deposit between $1,000 to $5,000 to open a CD. 

Which bank is the most trustworthy?

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:

All our top picks except CIT Bank and Navy Federal have an A+ rating. According to the BBB, CIT Bank has a B rating. Meanwhile, Navy Federal has an NR rating because it currently reviewing previously closed complaints. 

Capital One, CIT Bank, Navy Federal, and Citi have also been involved in recent public controversies. 

In 2020, The Office of the Comptroller of Currency required Capital One to pay $80 million in a settlement that said the bank had inefficient security practices, which comprised personal information of bank credit cardholders.

In 2019, the Department of Housing and Urban Development sided with the California Reinvestment Coalition in its allegations against a division of CIT Bank called OneWest Bank. The CRC stated OneWest discriminated against Latinx and Black people in Los Angeles. Although OneWest never admitted to the discrimination, the bank did agree to pay over $7 million in the settlement.

In 2020, a Navy Federal employee stated the lender pressured mortgage underwriters to approve loans even if they didn’t have sufficient reason to believe applicants could repay the loans. The employee filed a lawsuit and said Navy Federal retaliated against her whistleblowing by changing her job duties. She dropped the case in late 2020.

In 202o, Citi was required to pay $400 million in the settlement because the

Federal Reserve

and Office of the Comptroller of the Currency stated the bank failed to recognize money laundering by its customers.

Why trust our recommendations?

Personal Finance 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.

Frequently asked questions

What is a CD?

A CD, or certificate of deposit, is a time-sensitive savings account that usually holds your money at a fixed interest rate for a specified period of time. If you don’t need immediate access to your savings, a CD can guarantee a return on your money since you lock in a fixed APY for the term of the CD.

With most institutions, you typically won’t be able to deposit more money or access your funds before the CD matures without paying a penalty.

You will, however, earn interest on the amount and have the option to collect those payments monthly or reinvest them into your CD. Most banks offer varying rates for different terms and deposit amounts — in many cases, the longer the term, the higher the rate.

At the CD’s maturity date, you’ll typically have a 10- to 14-day grace period in which you can withdraw your money and close the account or renew the term.

What is a 6-month CD?

With a 6-month CD, you stash away your money for six months and typically earn a fixed rate. You have the option to renew your CD at the end of the 6-month period, or close the account and pocket the money.

How do CD rates work?

Most CDs lock in your rate for the entire term. For example, if you open a 6-month CD at a 0.40% APY, you’ll earn 0.40% for the entire six months. If you renew your CD after it matures, you’ll earn the new rate available in six months.

There are exceptions to the fixed-rate rule. Some institutions offer variable-rate CDs or CDs that allow your rate to change after a predetermined amount of time.

Which is best: a 6-month, 1-year, or 5-year CD?

CDs with 1-year and 5-year terms pay higher rates than ones with 6-month terms. You may prefer longer terms than six months to earn better interest rates.

Ultimately, your choice will likely depend on how soon you plan to need the money. For example, if you want the money to buy a house in less than a year, a longer term isn’t the best idea.

Going for a shorter term also gives you the opportunity to snag a better APY if rates are up in a year. With a 1-year or 5-year CD, you could miss out on higher rates. But on the other hand, you could avoid lower rates with a 1-year or 5-year term if rates drop later.

Many experts recommend CD laddering. With this strategy, you open multiple CDs with different term lengths so you can take advantage of higher rates with longer terms, but also access some of your money earlier. For instance, you might open 6-month, 1-year, and 5-year CDs at the same time, which means you’ll get some of your money back in six months, then more in a year, then more in five years.

Which is better, a 6-month CD or a high-yield savings account?

The choice between a 6-month CD and high-yield savings account will depend on several factors.

First, many institutions pay higher rates on

high-yield savings accounts

than on 6-month CDs. This isn’t always the case, though, so be sure to double-check.

A CD also locks in your rate for the entire term. If rates are dropping, this could make the CD a better choice, because your savings account APY could decrease over the next few months. If rates are rising, the savings account might be a better fit, because your rate could go up. Either way, there’s a good chance rates will fluctuate over a 6-month period.

It also depends on when you’ll need to access your money. You should be able to access funds from your savings account regularly — but you’ll have to pay a fee if you need access to money from your 6-month CD before it matures. You can also continuously add money to your savings account, whereas most CDs block you from making additional deposits after opening the account. 

Which is better, a 6-month CD or a money market account?

Like with a high-yield savings account, you may prefer a money market account over a CD if you want quick access to your money. Money market account rates also fluctuate, so you may prefer a money market account if rates are rising, but a CD if rates are dropping. Still, remember that rates will likely go up or down over a 6-month term.

Many banks require higher deposits for

money market accounts

than CDs, which could affect your decision. It’s also good to remember that you can add more funds to your money market account over time, while a CD only allows an opening deposit.

Which is better, a 6-month CD or another investment account?

CDs aren’t generally considered investments the same way something like an index fund, which puts your money into the stock market, is. Instead, a CD is typically viewed as a type of savings account, and your potential for losses and gains — your risk — is much more limited. Because the stock market is risky, experts generally don’t advise investing money you’ll need in the next five years. In the case of a stock market drop, you wouldn’t have time to make up your losses.

If you need to access your money in six months and want a guaranteed rate of return, a 6-month CD is a better choice than a different type of investment account. 

If you’re comfortable parting with your money for longer and want to take more risk with your money, then you may want to invest in the stock market. One way to do this is through tax-advantaged retirement accounts, like a 401(k) or IRA, which grows your money over decades. Another is through brokerage accounts, which are useful tools to build long-term wealth, but can’t guarantee a given return like a CD can.

There is such a thing as an IRA CD, which is a sort of combo savings/investment account. It’s a safe investment tool that may be a worthwhile option for people who are close to retirement age.