The Best 6-Monthly CD Rates January 2023
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The national average annual percentage yield (APY) for a 6-month CD as of December 2022 was 0.65% according to the FDIC. However, there are some online banksRight now, you can get a 6-month CD with a 3.90% APY or higher.
A 6-month CD allows you to keep a fixed interest rate for a brief period. If you don’t feel comfortable spending your money for more then six months, this may be a good option. Here are our top picks of 6-month CDs.
6-month CD rates at the biggest US banks
Here are the rates for a 6-month CD with some of our most popular institutions.
Compare our top choices for 6-month CDs
Editor’s rating
Editor’s rating
Low minimum opening deposit
Editor’s rating
Low minimum opening deposit
Editor’s rating
Learn more
Visit the website of First Internet Bank of Indiana
Learn more
Website of Bethpage Federal Credit Union
Certificate of Deposit by First Internet Bank of Indiana
Annual Percentage Yield
2.02% to 4.755%
Minimum Deposit Amount
$1,000
Certificate of Deposit by First Internet Bank of Indiana
Annual Percentage Yield
2.02% to 4.755%
Minimum Deposit Amount
$1,000
Visit the website of First Internet Bank of Indiana
Details
Annual Percentage Yield
2.2% to 4.75 %
Minimum Deposit Amount
$1,000
Pros & Cons
Highlights
Additional Reading
It is unique: First Internet Bank of IndianaThis bank offers a 6-month CD at a great rate. And, contrary to what the bank’s title may lead you believe, it is open to all residents of all 50 states.
Interest on a 6-month CD 4.39% APY
6-month CD early withdrawal penalty180-day interest
What to watch out for:First Internet Bank of Indiana will compound your interest monthly and not daily. This can make a difference depending on how much money is in the CD. A bank may charge less to withdraw money from an earlier 6-month CD.
Bask Bank Certificate Of Deposit
Annual Percentage Yield
4.1% to 4.45%
Minimum Deposit Amount
$1,000
Bask Bank Certificate Of Deposit
Annual Percentage Yield
4.10% to 4.45%
Minimum Deposit Amount
$1,000
Details
Annual Percentage Yield
4.1% to 4.45%
Minimum Deposit Amount
$1,000
Pros & Cons
Highlights
Additional Reading
Why it stands out Bask BankA 6-month CD offers a high rate of interest.
Interest on a 6-month CD 4.30% APY
6-month CD early withdrawal penaltySimple interest for 90 Days
What to watch out for:Bask Bank only offers CD terms for a limited number of customers. You might prefer another institution for a CD term of more than 2 years.
Bethpage Federal Credit Union Certificate Account
Annual Percentage Yield
2.25% to 4.5%
Minimum Deposit Amount
$50
Bethpage Federal Credit Union Certificate Account
Annual Percentage Yield
2.25% – 4.50%
Minimum Deposit Amount
$50
Website of Bethpage Federal Credit Union
Details
Annual Percentage Yield
2.25% to 4.5%
Minimum Deposit Amount
$50
Pros & Cons
Highlights
Additional Reading
Why it stands out Bethpage Federal Credit Union certificates are available with as little as $50 upfront. They also offer high interest rates and can be opened with as low as $50.
Interest on a 6-month CD 4.00% APY
6-month CD early withdrawal penalty 90-day interest
What to watch out for: Credit unions require members to open bank accounts. You only need to open an account to join Bethpage FCU Bethpage Federal Credit Union Savings Account account with $5.
Annual Percentage Yield
2.25% to 4.6%
Minimum Deposit Amount
$0
Annual Percentage Yield
2.25% – 4.60%
Minimum Deposit Amount
$0
Details
Annual Percentage Yield
2.25% to 4.6%
Minimum Deposit Amount
$0
Pros & Cons
Highlights
Additional Reading
Why it stands out SynchronyCDs are subject to higher interest rates than many other financial institutions.
Interest on a 6-month CD 3.90% APY
6-month CD early withdrawal penalty 90-day interest
What to watch out for:Consider whether you have a preference for how you withdraw money from a CD. To cash out your CD at Synchrony, call customer service.
Other CDs that didn’t make it to the cut and why
- Rising Bank Certificate of DepositRising Bank pays good interest rates on CDs but our top picks have higher current interest rates.
- Sallie Mae Certificate of Deposit: Sallie Mae has a high interest rate, but you’ll need a minimum opening deposit of $2,500.
- Marcus by Goldman Sachs High-Yield CDMarcus will let you open an account starting at $500. Our top picks, however, have higher interest rates.
- Live Oak Bank Certificate of DepositLive Oak Bank offers a competitive rate of interest, but you will need to have at least $2,500 to open a new account. It was also involved in a recent public controversy, while our top picks have not.
- Bank5 Connect High-Yield Certificate of DepositBank5 Connect requires a minimum deposit to open an account, but other institutions on the list offer higher rates for 6-month CDs.
- TAB Certificate of DepositTAB Bank offers an attractive interest rate. But, our top picks have even higher rates.
- Ally High Yield Certificate of Deposit: Ally has a low minimum opening deposit, but our top picks pay higher interest rates.
- Capital One 360 Certificate of Deposit®: Capital One has a low minimum opening deposit, but our top picks pay higher interest rates.
- Nationwide CD: CDs nationwide have a low minimum deposit, but our top choices pay higher interest rates.
- Quontic Certificate of DepositQuontic offers a 6-month CD with a good interest rate. However, our top picks have lower early withdrawal penalties and higher interest rates.
- TIAA Basic Certificate of DepositTIAA offers CDs with solid interest rates, but our top picks have higher rates of return and lower opening deposits.
- Citi Fixed Rate Certificates of DepositCitipay has good rates, but the top picks have even better rates.
- Navy Federal Credit Union Standard CertificateNavy Federal Credit Union offers solid interest rates, but the top picks have higher rates.
- NBKC CDNBKC offers competitive rates for long-term CDs but not as strong for short-term CDs.
- Discover CDDiscover has competitive long-term interest rates, but its short term CDs have lower rates. To get a CD, you will also need $2,500.
- Pentagon Federal Credit Union Money Market CertificateThe interest rate at Pentagon Federal Credit Union can be competitive. However, the penalties for early withdrawal are much higher than those at our top picks.
- Popular Direct CDPopular Direct offers great interest rates for long-term CDs but not as strong for short-term CDs. To open a CD you will also need at minimum $10,000
- Charles Schwab Bank Certificate of DepositCharles Schwab has interacted with CD banks, so Charles Schwab does not actually own the CD. Charles Schwab is a broker between you and your bank to open the CD. Depending on the way your bank handles CDs, you may prefer opening a CD directly with them.
- American Express CDAmerican Express offers a competitive interest rate. However, our top picks offer much higher rates.
- BMO Harris CDBMO Harris requires a minimum of $1,000 to $5,000 in order to open a CD.
- CIT Bank Term Certificate of Deposits (CD): Other institutions in our list offer higher interest rate on 6-month CDs.
BBB ratings and bank trustworthiness
We’ve compared the financial institution’s offerings. Better Business Bureau score. The BBB rates businesses on the basis of customer complaints, honesty and transparency, as well as honesty in advertising.
Here’s the score for each company:
With the exception of Bask Bank, all of our top picks have a minimum A+ rating from BBB.
Bask Bank was awarded a D- rating from the BBB because it’s received 13 customer complaints on the BBB website and it hasn’t responded to one customer complaint. Texas Capital Bank, the parent company of the BBB, has however, an A+ rating from the BBB.
BBB ratings don’t necessarily mean that they are the only way to go. You can also read customer reviews online or speak to current customers to find out if the company is right for you.
Trust our recommendations.
Personal Finance Insider’s mission to help smart people make the best financial decisions is to help them do so. 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 the features and fine print of different products so that you don’t have.
Frequently Asked Questions
A 6-month CD allows you to stash away your money for six month and earn a fixed rate. You have the option of renewing your CD at the end the 6-month period or closing the account to take the money.
A CD is a good option if you don’t need immediate access. It locks in a fixed annual percentage yield for the term.
Most institutions won’t allow you to deposit more money or get access to your funds prior the CD matures. without paying a penalty.
Most CDs lock you in to your rate for the entire term. A 6-month CD at a 3.90% Annual Percentage Rate (APY) will earn you 3.90% for the six-months. You’ll get the new rate if you renew your CD within six months of it maturing.
There are exceptions from the fixed-rate rule. Some institutions offer variable rate CDs or CDs that allow your rate to change after a predetermined amount of time.
CDs with 1-yearAnd 5-yearTerm rates are higher than those with 6-month terms. You might prefer a longer term than six months to get better interest rates.
The time frame in which you will need the money will determine your decision. If you need the money to buy a house within a year, then a longer term isn’t the best option.
If rates rise in a given year, a shorter term will give you the chance to get a better APY. Higher rates could be missed if you choose a 1-year CD or 5-year CD. If rates fall later, you can avoid lower rates by opting for a 1-year term or a 5-year term.
Many experts recommend CD laddering. This strategy allows you to open multiple CDs with different terms so that you can get higher rates and access your money sooner. You might open 6-month, 1-year and 5-year CDs simultaneously. This will allow you to get some of your money back within six months, more in a year, and more in five years.
You have the option of a CD for 6 months or a CD for 6 months. high-yield savings accountMany factors can influence the final result.
First, institutions may pay higher rates for high-yield savings accounts that 6-month CDs than on high-yield savings account. This is not always the case though so make sure to double-check.
A CD locks in your rate for the entire term. A CD could be a better option if rates are falling, as your savings account APY may decrease over the next few month. A savings account might be better for you if rates rise, as your rate may go up. Rates will fluctuate over 6-months, so it doesn’t matter what.
It also depends on the time you 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 continue adding money to your savings accounts, although most CDs prevent you from making additional deposits.
You may prefer a money market accountA CD is more convenient than a money market account if you need to have quick access your money. The rates of money market accounts can fluctuate so you might prefer a money-market account if rates go up, but a CD when rates drop. However, rates are likely to change over a 6-month time period.
Banks may require higher deposits to open money market accounts than CDs. This could impact your decision. A good reminder is that you can add more money to your money market account over the course of time, while a CD will only allow an opening deposit.
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. Experts generally advise against investing money that you will not need within the next five years, because the stock market is highly risky. In the event of a stock-market drop, you won’t be able to make up your lost profits.
A 6-month CD is a better option than any other type investment account if you need access to your money in six month and you want a guaranteed rate return.
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 is to invest in tax-advantaged retirement funds, such as a 401k or IRA. These accounts allow you to grow your money for decades. Another option is through brokerage accountsThese are valuable tools to build long-term wealth but they can’t guarantee a return like a CD.
There is such a thing as an IRA CDThis account is a combination savings/investment account. It is a safe investment option that could be worth considering for those nearing retirement.
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