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CDs are a great option for stashing away savings and maximizing returns. Common terms range from three months to five years, though these vary by financial institution. Six-month CDs offer a good balance between term length and APY, without locking away your funds for too long.
Best 6-month CD Rates
| Brand name | APY* | Min. deposit |
|---|---|---|
BMO | 5.50% | No minimum |
Quontic | 5.05% | $500 |
Synchrony Bank | 4.80% | No minimum |
Ally Bank | 4.50% | No minimum |
Discover | 4.25% | $2,500 |
CIT | 3.00% | $1,000 |
Live Oak Bank | 5.10% | $2,500 |
Capital One | 4.35% | No minimum |
Marcus by Goldman Sachs | 4.80% | $500 |
Our top recommendations for 6-month CDs
BMO Alto: Best for maximum returns
BMO 6-month CD
BMO 6-month CD
BMO Alto is the online banking branch of BMO Bank, the eighth-largest financial institution in North America with over $1.29 trillion in assets held. BMO has more than 1,000 branches across the country and more than 13 million customers globally. Through BMO Alto, the bank offers high-yield savings accounts and CDs with very competitive interest rates.
BMO Alto offers high-return CDs from six to 60 months in length, all with market-topping APYs and no minimum deposit required. Since BMO Alto is BMO’s online-only banking arm, it’s a great option for anyone looking to open an account easily in just minutes without having to visit a local bank branch.
Quontic Bank: Best for a tech-savvy customers
Quontic 6-month CD
Quontic 6-month CD
Quontic is a digital banking institution that, while based out of New York, exclusively offers online products and services to its customers in all 50 states. The neobank already holds more than $561 million in assets and was founded in 2009.
Quontic CDs range in terms from six to 60 months, all with competitive terms and a minimum opening deposit of just $500. This tech-driven bank also offers products such as access to its Metaverse and a wearable debit card ring for users who want cutting-edge tech.
CIT Bank: Best for no-penalty CDs
CIT 6-month CD
CIT 6-month CD
CIT Bank is the online subsidiary branch of First Citizens Bank, which is currently the largest family-controlled banking institution in the United States. This parent bank has more than 550 branches across 23 different states and holds over $200 billion in assets, though CIT Bank operates online only and doesn’t have physical branch locations.
CIT Bank offers great rates on shorter CD terms with a low $1,000 minimum deposit requirement. The bank also has no-penalty CDs if you want the flexibility to withdraw your money before the CD matures without incurring a fee.
Synchrony Bank: Best for no minimum deposit
Synchrony 6-month CD
Synchrony 6-month CD
Synchrony Bank is an online bank that serves more than 80 million active customer accounts. Though this bank has no brick-and-mortar branch locations, it has a robust online platform and offers a range of savings, consumer credit and investment products. Synchrony currently holds more than $117 billion in assets.
Synchrony Bank is worth a look if you’re interested in CDs with high returns, flexible terms and no minimum deposit requirement. Synchrony CD terms range from three to 60 months in length, and there’s even an 11-month no-penalty CD available, which has no early withdrawal penalties if you need to touch your funds early.
Discover: Best for long CD terms
Discover 6-month CD
Discover 6-month CD
Discover Bank is an online-only institution offering various banking products to customers across the United States. Its lack of brick-and-mortar locations doesn’t stop Discover from being a top-tier bank, though: JD Power's most recent survey found that Discover Bank earned the top overall satisfaction rating among online savings providers.
Discover CDs offer competitive rates on six-month terms with a minimum deposit of $2,500. Terms can be as long as 10 years, too, if you’re looking for a lengthier CD without the need to renew.
Live Oak Bank: Best for term options
Live Oak Bank 6-month CD
Live Oak Bank 6-month CD
Live Oak Bank is an online, cloud-based financial institution serving both business and personal customers across the United States. While Live Oak Bank specializes in small business banking and lending — and is the top SBA lender in the country — personal consumers can also benefit from competitive CD and savings account rates and easy online account access.
If you’re looking for many different CD term lengths to choose from, Live Oak Bank might be the right institution for you. You can choose between nine different terms, ranging from three to 60 months in length, each with a minimum deposit requirement of $2,500.
Ally Bank: Best for online CDs
Ally Bank 6-month CD
Ally Bank 6-month CD
Ally Bank is the largest online financial institution in the United States, offering a range of consumer products including bank accounts, CDs and loans. Ally currently serves more than 11 million customers across the country and holds assets of more than $196 billion, though the institution has no brick-and-mortar locations.
Ally Bank CD terms range from three to 60 months in length with no minimum deposit required. There are special CD terms and rates offered regularly, as well as no-penalty CDs and loyalty renewal rates.
Capital One: Best for low early withdrawal penalties
Capital One 6-month CD
Capital One 6-month CD
Capital One is a top-10 financial institution with more than $479 billion in assets. Capital One has about 300 brick-and-mortar locations to serve its more than 100 million customers nationwide. Certificates of deposit from Capital One can be purchased online and are part of the 360 suite of banking products provided by Capital One.
If you’re not interested in a no-penalty CD but like the idea of a low penalty just in case, Capital One 360 could be the solution. This institution offers CD terms from 6 to 60 months, all with competitive rates and no minimum deposit, and an early withdrawal penalty that is just 90 or 180 days’ interest even for the longest term length.
Marcus by Goldman Sachs: Best for promotional CDs
Marcus 6-month CD
Marcus 6-month CD
Marcus is the consumer-facing online savings bank of Goldman Sachs, a financial institution known internationally with more than $1.6 trillion in assets held. Though Marcus has no physical branch locations, customers can easily open competitive savings accounts and products online in just minutes.
Marcus offers many different CD terms, including no-penalty CDs and promotional terms, like a 14-month CD with 5.25% APY. There is a low deposit requirement of just $500, terms ranging from six months to six years and competitive rates on all CD products.
How we chose the best 6-month CD
We compared certificates of deposit based on the following criteria: APY, term, minimum deposit, fees and penalties for early withdrawal. We also took the search volume on the brand name or bank name and the ease of getting the CD.
Ultimately, we looked for CDs that offer the most value to customers.
Learn more about CDs:
Choosing the best 6-month CD: Where to begin
Not sure how to pick the best six-month CD for you and your savings? Here are some considerations to keep in mind and questions to ask yourself as you begin your search.
Do I need a local bank?
Many of the financial institutions mentioned here are online banks, so there is no option for in-person services. If you’re OK with opening and managing your account digitally, this can be a great trade-off for higher interest rates.
How much do I want to deposit?
Most CDs have a minimum, and often a maximum, deposit amount. The right one for you may depend on how much you have to stash away.
Am I sure I won’t need to touch those funds before six months?
If you withdraw your CD funds before the certificate reaches maturity, you’ll usually be subject to early withdrawal penalties. If you think there’s any chance you’ll need to touch this money sooner, consider a shorter CD term or a no-penalty CD option.
How will I prefer to deposit my cash?
Online banks may only offer online funding options, like ACH or wire transfers. If you have another preferred funding option, this may influence which bank is right for you.
Are 6-month CDs worth it?
A six-month CD can be well worth it if you only need to tuck your savings away for a short period of time but want to maximize your return. Be sure to consider your timeline and liquidity needs when deciding if a six-month CD is right for you.
Alternatives to 6-month CDs
Six-month CDs aren’t right for everyone. Instead, here are some alternatives that might better fit your financial needs:
- High-yield savings account: A high-yield savings account can sometimes provide you with similar returns as a CD, especially if you bank with an online institution, but gives you the flexibility of liquidity if you need to touch your money sooner.
- Money market account (MMA): Money market accounts, or MMAs, offer high-yield rates with many accessibility features, such as debit cards and/or paper checks. You can withdraw or deposit funds as needed, too.
Frequently asked questions (FAQs)
How are 6-month CDs taxed?
The interest earned from a CD is taxed as income and reported on Form 1099-INT. You’ll receive this form from your financial institution at the end of the tax year in which it was earned, and you will need to claim it as income when you file your taxes.
When do shorter CD terms make sense?
A shorter CD term may make sense if you have savings that are earmarked for a project in the near future but don’t need to touch the cash just yet. Short CD terms may also be beneficial in initially creating a CD ladder, or could be a great idea if you are locking away savings that you might need to touch should an emergency or unexpected expense arise.
AP Buyline’s content is created independently of The Associated Press newsroom. Our evaluations and opinions are not influenced by our advertising relationships, but we might earn commissions from our partners’ links in this content. Learn more about our policies and terms here.