Compare the best 6-month CD rates

A six-month certificate of deposit helps you save money by locking it away at a higher rate than you’ll find with a traditional savings account. But watch out: If you do end up needing your money before your CD matures, you’ll pay a hefty penalty.

The best 6-month CDs

TIAA Bank Yield Pledge CD

APY: 1.65%

Required minimum deposit: $5,000

Pros

• Strong APY. Earn 1.65% interest on your total balance.
• TIAA Yield Pledge promise. TIAA checks its interest rates weekly to guarantee its CDs have one of the highest rates available.
• No monthly fee. This six-month CD doesn’t have any service fees.

Cons

• $5,000 minimum deposit. This is the highest opening deposit on our list. But there are other banks that require more.
• Limited branches. Unless you live near a branch location in Jacksonville, Florida, you’ll have to manage your account online.

Vio Bank High Yield Online CD

APY: 1.65%

Required minimum deposit: $500

Pros

• Low opening deposits. Some banks have opening deposit requirements as high as $10,000. But Vio Bank lets you open this one with as little as $500.
• 1.65% APY. Your money grows fast with this competitive interest rate.
• Quick application process. Vio Bank claims it takes less than five minutes to open a new account online.

Cons

• No live chat. Most online-only banks have a live chat feature on its website, but not Vio.
• Early withdrawal penalty. If you need to access your money before it matures, you’ll pay a fee equal to 1% of your withdrawal amount, plus $25.

First Internet Bank of Indiana

APY: 1.70%

Required minimum deposit: $1,000

Pros

• 1.70% APY. This account earns more interest than most traditional savings accounts.
• Live chat function. If you have questions about your account, simply hop online and live chat with a customer support representative.
• Available nationwide. Even though this bank is based out of Indiana, you can open this CD online from anywhere.

Cons

• High early withdrawal fees. Expect a penalty fee equal to 180 days of simple interest if you need to withdraw your money before it matures.
• Monthly compound interest. You won’t immediately earn interest on new deposits as you would with banks that compound interest daily.
• $1,000 minimum deposit. You’ll need at least $1,000 to open this CD.

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HSBC Direct CD

APY: 1.85%

Required minimum deposit: $1,000

Pros

• Daily compound interest. Each day you earn interest on yesterday’s interest, which means you grow your money faster than you would with other compounding methods.
• Renewal grace period. Once your CD matures, you have a 10-day grace period to renew, add more money, or transfer it to another bank account. If you don’t do anything, it’ll automatically renew once your grace period ends.
• Quick application process. It only takes a few minutes to open and fund this CD online.

Cons

• Fixed interest rate. Unlike other banks that offer a rate guarantee, HSBC won’t raise your rate if it increases within 10 days of account opening.
• Early withdrawal penalty. You’ll pay a fee equal to 30 days of simple interest if you need to access your money early.

Sallie Mae CD

APY: 1.75%

Required minimum deposit: $2,500

Pros

• No monthly fees. There aren’t any fees to open or maintain this account.
• 1.75% APY. This interest rate is higher than the rates offered by most traditional institutions.
• Connected accounts. If you have a savings account, credit card or student loan through Sallie Mae, you can monitor all your accounts in one place.

Cons

• Large opening deposit. This account requires a $2,500 opening deposit. While this is high, you can find banks with higher deposit requirements.
• One branch. Sallie Mae only has one branch location in Salt Lake City, Utah, so there’s limited in-person support.
• Limited customer service. The only way to get help is by phone. You won’t find any live chat or email customer support options.

Sort by:

Name	Product	3-month APY	6-month APY	9-month APY	11-month APY	1-year APY
Fidelity CDs	Fidelity CDs	1.6%	1.65%	1.7%		1.7%	More Info	Compare	loading Fetching your data...
Vanguard CD	Vanguard CD	1.55%	1.65%	1.7%		1.75%	More Info	Compare	loading Fetching your data...
Chase CD Relationship	Chase CD Relationship	0.02%	1.75%	1.25%		0.05%	More Info	Compare	loading Fetching your data...
Citi CD	Citi CD	0.05%	0.25%	0.1%	0.15%	0.5%	More Info	Compare	loading Fetching your data...
Radius Bank Short-Term CDs	Radius Bank Short-Term CDs	0.85%	0.95%	1.25%			Go to site More Info	Compare	loading Fetching your data...

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How does a 6-month CD work?

When you open a six-month CD, you agree to tuck away your savings for half a year. CDs can offer stronger interest rates than standard savings accounts as a reward for leaving it alone. You’ll pay hefty penalties for accessing your CD early, even for emergencies.

Interest payments for 6-month CDs

Most six-month certificates of deposit pay your interest when the term matures — that is, after the six months end. With select CDs, you could see interest paid monthly, but that’s more common with terms of a year or longer.

When you set up your CD, you select a bank account you’d like your interest payments deposited into. Some CDs allow interest paid into any US bank account, while others require an account within the same financial institution.

Some CDs compound interest, which means the interest is paid directly into the CD account, effectively helping you to earn interest on interest.

How do I compare 6-month CDs?

Main points to keep in mind when deciding on a CD include:

• The interest rate. Rates vary among banks, so find the strongest rate you’re eligible.
• How interest is paid. With short-term deposits, the interest earned on your balance isn’t deposited until your CD reaches maturity. If you’re looking for monthly interest payments, consider a CD term of a year or longer.
• Minimum investment. Some banks require a minimum deposit amount, particularly for high-interest CDs.
• No fees. If you’re looking at a bank that’s quoting high ongoing fees, move on to a bank that doesn’t.

Compare the best 3-month CD rates

What are the pros and cons of a CD?

Bottom line

A six-month certificate of deposit can be a useful short-term investment, especially if you’re planning a big purchase after it matures.

You’ll find a range of CD terms designed to help you save and meets your financial goals.

Frequently asked questions

• How much of a difference in interest will I see between a 6-month and a 12-month CD?

  The difference could be hefty, depending on the bank’s interest rate and how much you’re depositing. If you’re having trouble deciding how long to invest, it’s safer to go with a shorter term unless you’re sure you won’t need the money.

• Can anybody open a CD?

  Yes. In most states, you must be at least 18 years old. But an adult can open a CD and gift it to a minor.

• What do I need to open a 6-month CD?

  Most banks allow you to apply online with:

  • Government-issued ID.
  • An initial deposit from your checking account.

  Check the terms and conditions of the specific bank you’re interested to make sure you qualify.

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