To find the best 6-month CD rates, savers need to answer two questions:
- How much yield can I reasonably expect to earn?
- What direction are interest rates headed?
In general CD yields are based on interest rates set by the Federal Reserve. And those interest rates are on the rise, which means both short- and long-term CD rates have been slowly inching upward.
But rates still remain depressed after they plummeted during the last recession. That’s why it’s important to shop around for the best CD rates.
The best 6-month CDs available from banks and credit unions pay more than six times the national average of 0.22 percent APY, according to Bankrate’s most recent national survey of banks and thrifts.
Today’s top nationally available 6-month CDs pay 1.37 percent APY. This may be a good place to invest for short-term financial obligations, like a wedding or family vacation.
The lower the CD term length, the less interest you can expect to earn. To find the best 6-month CD rates, evaluate offers from online banks and credit unions. Try to avoid accounts with high fees and minimum deposit requirements.
Finding the best 6-month CD rates
Here are the top nationally available 6-month CD rates. Compare these offers, then calculate how much interest you would earn when your CD matures.
|First Internet Bank of Indiana||1.37%||$1,000|
|Live Oak Bank||1.35%||$2,500|
|Pacific National Bank||1.25%||$1,000|
|M.Y. Safra Bank||1.21%||$5,000|
Top account details
- Headquartered in Fishers, Indiana, First Internet Bank of Indiana was established in February 1999. It has no branches and became the first state-chartered, FDIC-insured financial institution to operate entirely online. First Internet Bank earned four out of five stars on Bankrate’s latest Safe & Sound Ratings, which measures the financial health of banks and credit unions throughout the United States.
- Established in 2008, Live Oak Bank is a federally-insured financial institution. Supporting small business owners is part of its mission statement. It earned five out of five stars from Safe & Sound.
- Pacific National Bank is a former subsidiary of Banco Del Pacifico Ecuador. It earned earned four out of five stars from Safe & Sound.
- M.Y. Safra Bank is headquartered in New York City. Initially established as T. Rowe Price Savings Bank, it changed its name in 2013 and moved from Baltimore, Maryland. The bank earned four out of five stars on Bankrate’s latest Safe & Sound Ratings, which measures the financial health of banks and credit unions throughout the United States.
- Nationwide Bank deposits are insured by the Federal Deposit Insurance Corp. The bank is part of Nationwide, a company providing insurance and financial services. It earned four out of five stars from Safe & Sound.
Maximize the power of compound interest
Anyone struggling to save money could benefit from having a 6-month CD. Because you could face an early withdrawal penalty, you may be less tempted to tap into your savings prematurely.
In addition to comparing rates, pay attention to how frequently interest compounds. You’ll end up with a higher yield if choose a bank that compounds interest daily versus one where interest compounds on a quarterly basis.