The Best 6-Month CD Rates of June 2022
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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
As of June 2022, the national average APY on a 6-month CD is 0.12%, according to the FDIC.
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:
| Bank | APY | Next steps |
| Citibank | 1.10% | Learn more |
| Capital One | 0.75% | Learn more |
| PNC Bank | 0.01% to 0.03% | Learn more |
| TD Bank | 0.05% | Learn more |
| Bank of America | 0.03% | Learn more |
| Chase Bank | 0.01% to 0.05% | Learn more |
| US Bank | 0.05% | Learn more |
| Charles Schwab Bank | 2.26% | Learn more |
| Wells Fargo | 0.01% to 0.02% | Learn more |
Learn more about our top picks
First Internet Bank of Indiana Certificate of Deposit
- Competitive APY
- Standard early withdrawal penalties
- $1,000 opening deposit
- Interest is compounded monthly, not daily
- Terms ranging from 3 months to 5 years
- 90 days interest early withdrawal penalty for 3-month term; 180 days interest for 6-18 month term; 365 days interest for 24-60 month term
- Interest is compounded monthly and paid monthly
- Member FDIC
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: 0.90% 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.
TAB Certificate of Deposit
- Competitive APY
- Low-to-standard early withdrawal penalties
- Choose to keep accumulated interest in CD, receive a check, or transfer to another TAB account
- No terms under 6 months or over 5 years
- $1,000 minimum deposit
- Terms from 6 months to 5 years
- Early withdrawal penalties are as follows: 90 days interest for terms of 12 months or less, 180 days interest for terms over 12 months
- Interest compounds daily to maximize earnings
- FDIC insured
Why it stands out: TAB Bank pays good rates. 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: 1.20% APY
6-month CD early withdrawal penalty: 90 days interest
What to look out for: Some of our other top picks have lower early withdrawal penalties.
Citi Fixed Rate Certificates of Deposit
- Range of CD terms
- Relatively low early withdrawal penalties
- Rates vary depending on term
- $500 to $2,500 opening deposit, depending on your state of residence
- Must visit a branch to deposit more than $10,000
- BBB gives Citi an F in trustworthiness
- Terms ranging from 3 months to 5 years
- Early withdrawal penalties ranging from 90 to 180 days interest
- Earn 0.65% APY on a 6-month CD; Earn 1.50% APY on an 11-month CD; Earn 1.01% APY on a 5-year CD
- Earn 0.05% APY on other CD terms between 3 months and 10 months; Earn 0.10% APY on other CD terms between 1 year and 4 years
- $500 opening deposit in most US states; $1,000 in California and Nevada; $2,500 in Maryland, Virginia, Florida, and DC
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: 1.10% 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.
Capital One 360 Certificate of Deposit®
- Competitive APY
- No minimum deposit
- Low-to-standard early withdrawal penalties
- No jumbo or no-penalty CDs
- Terms ranging from 6 months to 5 years
- No minimum deposit
- Early withdrawal penalties ranging from 3 to 6 months interest
- Compounding interest to maximize your earnings
- FDIC insured
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: 0.75% 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.
Quontic Certificate of Deposit
- Competitive APY
- $500 opening deposit
- Limited term options
- High early withdrawal penalties
- Term lengths: 6 months, 1 year, 2 years, 3 years, 5 years
- Early withdrawal penalties: All interest earned for terms under 1 year, 1 year of interest for 1-year terms, 2 years of interest for terms of 2 years or longer
- Interest compounded daily, paid monthly
- FDIC insured
Why it stands out: Quontic pays a competitive interest rate on its 6-month CD. It also has a $500 minimum opening deposit.
Interest for 6-month CD: 1.26% APY
6-month CD early withdrawal penalty: All interest earned
What to look out for: Quontic charges high early withdrawal penalties. If you are worried about taking money from a CD early, you may prefer one of our other top picks.
Ally High Yield Certificate of Deposit
- High APY
- No minimum opening deposit
- No monthly service fees
- Savings buckets help you save for different goals
- Surprise savings transfers help you save extra money from your checking account
- No physical branch locations
- No way to deposit cash
- Create separate savings buckets in a savings account
- Link to your Ally checking account and enroll in surprise savings transfers to have extra money transferred to savings three times per week
- Interest compounded daily, paid monthly
- FDIC insured
Why it stands out: Ally lets you open a CD with $0 and you'll earn a great interest rate. The early withdrawal penalties for an Ally CD are a bit lower than some of our other top picks.
Interest for 6-month CD: 0.75% APY
6-month CD early withdrawal penalty: 60 days interest
What to look out for: Ally doesn't have any physical branches, so you'll have to be comfortable with online-only banking. Other financial institutions may also offer higher interest rates right now.
TIAA Yield Pledge® Certificate of Deposit
- Competitive APY
- Interest compounds daily
- $1,000 minimum deposit
- No term over 5 years
- Standard-to-high early withdrawal penalties
- Bank online or in person if you live in certain parts of Florida
- Term lengths ranging from 3 months to 5 years
- Early withdrawal penalties ranging from 22 days to 456 days simple interest
- Interest compounded daily, paid monthly
- FDIC insured
Why it stands out: TIAA pays a competitive interest rate for its 6-month CD.
Interest for 6-month CD: 1.10% APY
6-month CD early withdrawal penalty: One-fourth of total interest earned (approximately 45 days)
What to look out for: TIAA requires a minimum opening deposit of $1,000. Other financial institutions may have lower initial deposits.
Synchrony CD
- Competitive APY
- Variety of term lengths
- No minimum deposit
- No terms over 5 years
- Standard-to-high early withdrawal penalties
- Terms ranging from 3 months to 5 years
- Early withdrawal penalty of 90 days simple interest for terms of 12 months or less; 180 days simple interest for terms over 12 months but under 48 months; 365 days interest for terms of 48+ months
- Interest compounded daily, paid monthly
- FDIC insured
Why it stands out: Syncrhony pays higher interest rates on CDs than many other financial institutions.
Interest for 6-month CD: 1.05% APY
6-month CD early withdrawal penalty: 90 days interest
What to look out for: The early withdrawal penalties are a bit steep, but some of our other top picks have lower penalties.
Other CDs that didn't make the cut and why
- Navy Federal Credit Union Standard Certificate: Navy Federal Credit Union has solid interest rates, but our top picks have higher interest rates.
- Marcus by Goldman Sachs High-Yield CD: Marcus offers a solid interest rate but some of our top picks offer higher rates or lower minimum opening deposits.
- 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.
- Sallie Mae Certificate of Deposit: Sallie Mae has a solid 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.
- 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.
- CIT Bank Certificate of Deposits (CD): Other institutions on our list offer higher interest rates right now.
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:
| Institution | BBB Grade |
| First Internet Bank of Indiana | A+ |
| TAB Bank | A+ |
| Citi | F |
| Capital One | A- |
| Quontic Bank | A+ |
| Ally | C- |
| TIAA | A+ |
| Synchrony | NR |
Capital One, Ally, Citi, and Synchrony have lower than A rating from the BBB.
According to the BBB, Capital One received an A- rating due to the volume of customer complaints. Ally received a C- due to a high volume of customer complaints and 3 unresolved complaints filed against the business. Citi has an F rating due to unresolved complaints and government action taken against the business. Synchrony has an NR rating because its profile is currently being updated.
Capital One 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 2020, 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.
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