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These banks and credit unions offer the highest payout on 6-month CDs
By
Daniel Kurt
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Full Bio
Daniel has 10+ years of experience reporting on investments and personal finance for outlets like AARP Bulletin and Exceptional magazine, in addition to being a column writer for Fatherly.
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Updated May 19, 2023
Reviewed by
Thomas Brock
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Reviewed byThomas Brock
Full Bio
Thomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas including investing, insurance portfolio management, finance and accounting, personal investment and financial planning advice, and development of educational materials about life insurance and annuities.
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Fact checked byFernando Flores
We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. The APYs listed below are up to date as of the date of publication on this article. Our methodology consists of reviewing CD rates every weekday morning and updating the information below accordingly. Certificates of deposit (CDs) can be a good way to safely earn interest if you don't need immediate access to your cash. And a 6-month CD might provide the perfect deposit vehicle if your saving horizon is short. These are the top certificate of deposit rates available from our partners, followed by a ranking of some of the best CD rates nationwide. We've ranked the highest-paying CDs with approximately 6-month terms (includes terms from 5 to 9 months) by drawing on the most current rate data from about 200 banks and credit unions that offer certificate products nationwide. Those requiring a minimum deposit of up to $25,000 are eligible for our list. In cases where more than one institution pays the same top rate, we've prioritized CDs by the shortest term, then the CD requiring a smaller minimum deposit. Then, if there's still a tie, the institutions are listed alphabetically. Detailed information on these top-paying, nationally available 6-month CDs is provided, including specifics about minimum deposits and early withdrawal penalties. Information is also provided on how to easily join the credit union for credit union CDs. Best CD Rates *Online accounts from Brilliant Bank are not available to residents of Arkansas, Kansas, Missouri, and Oklahoma. * Some Bank5 Connect products are not available to residents of Massachusetts or Rhode Island. Certificates of deposit (CDs) are financial products that provide a fixed rate of interest on your deposit as long as you leave your money with the bank or credit union for a specified period of time. CDs come in maturities as short as three months and as long as ten years. In general, the longer the duration of the CD, the higher the rate of interest the financial institution is willing to offer. Although 6-month CDs (and even 9-month certificates) don't tie up your money for very long, they also don't offer the kind of yields you would find with a longer maturity. Virtually all CDs are offered by federally insured banks or credit unions. Almost all bank certificates are protected by FDIC insurance, while those offered by credit unions are typically guaranteed by the NCUA. This means that deposits up to $250,000 are secure, even if the institution itself falls into financial trouble. It's always a good idea to check that the bank or credit union offers this protection. Just look for the FDIC or NCUA logo. Depository institutions set their own interest rates for CDs, and those rates can differ dramatically from one bank or credit union to another. According to the data we compile from about 200 CD-issuing institutions across the country, the top certificates pay three or four times more than the industry average for products of the same duration, and sometimes even eight to ten times more. So it's a good idea to shop around and find one that pays on the higher end of the spectrum. Every CD has a specific maturity, the date when you're allowed to withdraw your funds without paying a penalty. Banks and credit unions typically offer a range of certificates that appeal to customers with either a short-term savings horizon (as is the case with a 6-month CD) or a long-term horizon. For each CD duration, the institution will publish the annual percentage yield, or APY, which reflects the percentage of interest paid on the account, given the nominal interest rate and the frequency with which that interest is compounded. Most CDs use compound interest, which slightly increases the yield. In the case of a certificate that compounds daily, the annual interest rate is divided by 365 and multiplied by the balance to determine the interest payout. That daily interest accrual is then added to the balance when calculating the next day's interest. Interest is usually credited to the account monthly or quarterly. Most financial institutions will deduct some of the interest that's accrued in your account if you withdraw funds from a CD before the maturity date. Losing three, or even six, months' worth of interest is fairly typical in the case of a 6-month CD, so there's a strong incentive to leave your money untouched until the certificate reaches maturity. Some places offer "penalty-free" CDs, but there's a rub: they tend to offer lower yields than standard CDs. What's more, they often require that you pull out the entire balance and close the account if you make an early withdrawal. All banks and credit unions charge a penalty for early CD withdrawals. Investigating whether an institution's penalty policy is mild, reasonable, or onerous is important before you commit to a CD, and it can help you choose between two otherwise comparable certificates. CDs tend to offer significantly higher yields than traditional savings and money market accounts, even in a low-interest rate environment. A 6-month CDs may be a good option if you know that you won't need access to your funds for at least six to nine months. That includes people saving for a down payment on a home or setting aside funds for a big trip. Like savings accounts, almost all CDs are FDIC- or NCUA-insured. So you can't lose your principal at one of these institutions as long as your deposit doesn't exceed $250,000. By contrast, investing in stocks and even corporate bonds can be risky in that short of a time window. Should they lose value over a six-month stretch, you'll have to incur a loss. Perhaps the greatest disadvantage is that you cannot access your money in an emergency, at least without penalty, if you've saved it in a CD. You might also be stuck with a lower interest rate than the prevailing rate if you lock in to a rate when you establish the CD, then the economy changes and rates rise nationally. One alternative to CDs that you might consider for short-term needs are high-yield savings accounts like those offered by Ally, Marcus and other online banks. Generally, their yields are only slightly lower than those of CDs, but there's no limitation on when you can pull your money out. Just make sure you check their minimum balance requirements and fee schedules to make sure you don't take a hit when and if you make a large withdrawal. Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide, and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the CD's minimum initial deposit must not exceed $25,000. Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology. Best 6-Month CD Rates
NASA Federal Credit Union – 5.50% APY
Great River Federal Credit Union – 5.33% APY
TotalDirectBank – 5.11% APY
USAlliance Financial – 5.10% APY
First Internet Bank – 5.06% APY
Vio Bank – 5.05% APY
Veridian Credit Union - 5.05% APY
Brilliant Bank – 5.05% APY*
Merrick Bank – 5.05% APY
My eBanc – 5.01% APY
Apple Federal Credit Union – 5.00% APY
American Bank – 5.00% APY
Heritage Bank – 5.00% APY
Synchrony Bank – 5.00% APY
Bank5 Connect – 5.00% APY*
Mountain America Credit Union – 5.00% APY
Prime Alliance Bank – 5.00% APY
CIT Bank – 5.00% APY
CommunityWide Federal Credit Union - 5.00% APY
iGObanking – 5.00% APY
Rising Bank – 5.00% APY
Banesco USA - 5.00% APY
Home Savings Bank – 5.00% APY
Frequently Asked Questions
What Is a 6-Month CD?
How Does a 6-Month CD work?
What Happens If You Take Your Money Out Early?
Who Are 6-Month CDs Good For?
What Is a Disadvantage in Putting Your Money into a CD?
Rate Collection Methodology Disclosure
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FDIC. "Fact Sheet."