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Best 6-month CD rates - October 2023

Best available rates across different account types for Wednesday, October 04, 2023

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Bankrate's picks for the best 6-month CD rates

Popular Direct

Popular Direct_logo
Rating: 4 stars out of 5
4.0

Overview

Popular Direct CDs are for established savers, since the CDs have a $10,000 minimum deposit requirement. The CDs come in eight fixed terms ranging from three months to five years.

Popular Direct’s High-Rise savings account also offers a competitive yield and requires a $5,000 minimum deposit. All Popular Direct deposit accounts are opened through Popular Bank.
Invest Rate
5.51% APY
Loan
$10,000 minimum deposit

Bank5 Connect

Bank5 Connect_logo
Rating: 4.7 stars out of 5
4.7

Overview

Bank5 Connect is an online division of BankFive, a community bank in Massachusetts that dates to 1855.

Bank5 Connect offers six terms of CDs, a savings account and a checking account. It is a member of the Depositors Insurance Fund (DIF), which protects savers whose deposits exceed the $250,000 insurance limit of the Federal Deposit Insurance Corp. (FDIC).
Invest Rate
5.50% APY
Loan
$500 minimum deposit

Vio Bank

Vio Bank_logo
Rating: 4.7 stars out of 5
4.7

Overview

Vio Bank is an online-only bank that is a division of MidFirst Bank, based in Oklahoma City. It offers CDs and a high-yield savings account with competitive rates. CD terms range from six months to 10 years.
Invest Rate
5.35% APY
Loan
$500 minimum deposit

America First Credit Union

America First Credit Union_logo
Rating: 4.2 stars out of 5
4.2

Overview

America First Credit Union was founded in 1939 in Salt Lake City. It has CDs with terms ranging from three months to five years. The minimum opening deposit for CDs is $500.

It also offers a variety of checking and savings accounts.
Invest Rate
5.30% APY
Loan
$500 minimum deposit

First Internet Bank of Indiana

First Internet Bank of Indiana_logo
Rating: 4.6 stars out of 5
4.6

Overview

First Internet Bank of Indiana is an FDIC-insured financial institution that operates online and has no branches. It opened in 1999 and offers products in all 50 states.

First Internet Bank offers eight terms of CDs, a money market savings account with a competitive yield, a savings account and two checking accounts.
Invest Rate
5.22% APY
Loan
$1,000 minimum deposit

Live Oak Bank

Live Oak Bank_logo
Rating: 4.7 stars out of 5
4.7

Overview

Live Oak Bank offers seven terms of CDs, ranging from six months to five years.

The Wilmington, North Carolina-based bank also has a savings account that pays a competitive yield.
Invest Rate
5.20% APY
Loan
$2,500 minimum deposit

Quontic Bank

Quontic Bank_logo
Rating: 3.8 stars out of 5
3.8

Overview

Quontic Bank is an online bank that offers CDs as well as savings, money market and checking accounts.

A $500 minimum deposit is required to open a Quontic Bank CD and five terms are offered, ranging from six months to five years.
Invest Rate
5.05% APY
Loan
$500 minimum deposit

TAB Bank

TAB Bank_logo
Rating: 4.1 stars out of 5
4.1

Overview

TAB Bank was established in 1998 in Ogden, Utah, as a banking service inside truck stops. TAB (Transportation Alliance Bank) serves businesses and individual customers.

It offers several checking accounts, a couple of savings account options, a money market account and CDs in eight terms, from six months to five years.
Invest Rate
5.02% APY
Loan
$1,000 minimum deposit

CIT Bank

CIT Bank_logo
Rating: 4.8 stars out of 5
4.8

Overview

CIT Bank, an online bank, became a subsidiary of First Citizens Bank following the completion of a merger in January 2022. CIT Bank offers eight terms of regular CDs and four terms of jumbo CDs, as well as an 11-month no-penalty CD.

CIT Bank also offers savings and money market accounts.
Invest Rate
5.00% APY
Loan
$1,000 minimum deposit

LendingClub Bank

LendingClub Bank_logo
Rating: 4.2 stars out of 5
4.2

Overview

LendingClub is an online bank that offers six terms of CDs ranging from six months to five years. A $2,500 minimum deposit is required.

In addition to CDs, LendingClub offers a high-yield savings account and a rewards checking account.
Invest Rate
5.00% APY
Loan
$2,500 minimum deposit
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In the news

The Federal Reserve didn’t raise rates for a 12th time in the latest cycle at its September 2023 meeting. It’s unclear whether the Fed will be raising rates again in 2023. After 11 rate increases, a long-term CD might be worth considering, in this current rate environment. That can help you build a CD ladder for the long term.

But in the short term, a six-month CD can earn more than a top-yielding savings account.

How to find the best 6-month CD rates

Traditionally, CDs with longer maturities offer higher yields. But in this current rate environment, shorter-term CDs are proving to have the highest yields. 

The national average on any deposit product is usually much lower than the highest yields available. That’s why shopping around for a competitive yield is so important.

Bankrate’s editorial team looks at around 70 banks and credit unions when it determines the top APYs. And you see top APYs from these financial institutions, which are all banks insured by the Federal Deposit Insurance Corp. (FDIC) and credit unions insured by the National Credit Union Administration (NCUA).

Top six-month CDs generally have higher APYs than top savings accounts. It’s possible for some CDs – especially one-year CDs and 18-month CDs – to have higher APYs than six-month CDs. But generally, two-year CDs and CDs with longer terms have lower APYs in the current rate environment. 

In addition to a competitive APY, you’ll also want to consider minimum deposit requirements and early withdrawal penalties. 

The advantage of a six-month CD is that you know you’ll be able to access the money in a shorter time frame. Since a CD typically has an early withdrawal penalty, you have to be willing to keep your money in the CD until the end of the term or lose out on some of the interest earnings.

When should you get a 6-month CD?

A six-month CD is great for someone who needs to keep money safe – and untouched – for a term of six months as CDs have early withdrawal penalties. This should be money that you can’t afford to lose. You might consider investing some of your money in riskier, higher-yielding investments such as stocks, provided you can afford the risk because such investments can earn much more than an FDIC- or NCUA-insured CD with a guaranteed APY. But you could also lose all of your money in an investment.

For those times when you’re unsure about when you’ll need access to your money, a high-yield savings account at an FDIC-insured bank is always a smart place for your money. Just make sure you’re within the FDIC’s guidelines and following the FDIC’s rules

A six-month CD can be the perfect option for someone who doesn’t need the money for a period of half a year, and is tempted to spend the money. The realization that there’s an early withdrawal penalty attached to your CD might be the proper reminder to leave your money untouched, and let it earn interest.

Alternatives to 6-month CDs

When considering a six-month CD, compare it to other available accounts to determine when other options might be a better decision. Some alternatives to consider:

  • Savings accounts: With a savings account, you won’t face the early withdrawal penalties like you do if you break your six-month CD before it matures.
  • Money market accounts: These accounts allow you to access your money in ways that you can’t with a CD. And there’s a good chance you’ll get a better yield on a six-month CD earning a top yield than with a money market account.

6-month CD FAQs

Research methodology

At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers and our content is thoroughly fact-checked to ensure accuracy.

Bankrate regularly surveys around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.

To find the best CDs, our editorial team analyzes various factors, such as: annual percentage yield (APY), the minimum needed to earn that APY (or to open the CD) and whether or not it is broadly available. All of the accounts on this page are insured by the Federal Deposit Insurance Corp. or the National Credit Union Share Insurance Fund.

When selecting the best CD for you, consider the purpose of the money and when you’ll need access to these funds to help you avoid early withdrawal penalties.

Banks we monitor

These financial institutions are featured in our CD rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank5 Connect, Bank of America, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO, Bread Financial (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, Morgan Stanley Private Bank, Huntington National Bank, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Synchrony Bank, TD Bank, TIAA Bank, Truist Bank, UFB Direct, U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.