Best 6-month CD rates – August 2022

For many savers, a six-month certificate of deposit is the sweet spot, allowing them to tuck away money long enough to earn a higher rate while still providing a shorter withdrawal horizon than CDs that require a commitment of a year or more. A six-month CD can also be useful for creating the initial step in a CD ladder.

If you want to know how much interest you could earn on a six-month CD, use Bankrate’s CD calculator, which is designed to help you estimate potential earnings. Six months may not seem long, but it’s enough time to help get you on track toward your savings goals.

Summary of Best 6-Month CD Rates August 2022

Note: Annual percentage yields (APYs) shown are as of July 27, 2022. Rates for some products may vary by region.

*Rate is unavailable in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.

Compare the top widely available six-month CD rates, then calculate how much interest you would earn when your CD matures.

Savers looking to get a little extra boost and lock in a yield for a set period often consider certificates of deposit. A CD can help you work toward your savings goals, whether they’re long or short term.

CD yields tend to follow the path of Treasurys and may be impacted by Federal Reserve actions. However, once you lock in a yield, you can expect it to be consistent for the entire term of the CD — even if rates fall.

Here’s what you need to know about using a six-month CD to your advantage.

Bankrate’s guide to choosing the right CD rate

Why you can trust Bankrate

Bankrate has more than four decades of experience in financial publishing, so you know you’re getting information you can trust. Bankrate was born in 1976 as “Bank Rate Monitor,” a print publisher for the banking industry, and has been online since 1996. Hundreds of top publications rely on Bankrate. Outlets such as The Wall Street Journal, USA Today, The New York Times, CNBC and Bloomberg depend on Bankrate as the trusted source of financial rates and information.

Methodology for Bankrate’s Best CD Rates

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 Federal Deposit Insurance Corp. (FDIC) or by the National Credit Union Administration (NCUA).

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.

Top banks offering 6-month CD rates for August 2022

Live Oak Bank: 1.85% APY, $2,500 minimum deposit to open

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.

TAB Bank: 1.75% APY, $1,000 minimum deposit

TAB Bank was established in 1998 in Ogden, Utah, as a banking service inside truck stops. It serves both businesses and individual customers.

TAB Bank offers CDs in eight terms, from six months to five years, as well as checking, savings and money market accounts.

Limelight Bank: 1.55% APY, $1,000 minimum deposit

Limelight Bank is a division of Capital Community Bank, with headquarters in Provo, Utah.

Limelight Bank offers CDs only on its website and requires a $1,000 minimum deposit on the four terms it offers. You’ll have to look elsewhere if you’re seeking a CD with a term of longer than three years.

Synchrony Bank: 1.50% APY, $0 minimum deposit

Synchrony Bank offers competitive yields across 12 terms. All standard CD terms typically offered by banks and credit unions are available.

Synchrony also offers a savings account, which features a competitive APY and no minimum balance requirement, and a money market account.

Marcus by Goldman Sachs: 1.50% APY, $500 minimum deposit

Marcus by Goldman Sachs is the online consumer banking unit of Goldman Sachs Bank USA. Marcus offers nine terms of fixed-rate CDs, ranging from six months to six years, with competitive rates. It also has three no-penalty CD terms.

Marcus also offers a savings account that pays a competitive yield.

Sallie Mae Bank: 1.50% APY, $2,500 minimum deposit

Sallie Mae Bank was established in 2005 and became a stand-alone consumer banking business in 2014.

The Salt Lake City-based bank offers 11 terms of CDs, along with savings and money market accounts. All deposit products pay competitive yields. Sallie Mae’s other financial products include credit cards and student loans.

Popular Direct: 1.50% APY, $10,000 minimum deposit

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.

BMO Harris Bank: 1.40% APY, $1,000 minimum deposit to open

BMO Harris offers online accounts and operates more than 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin. It’s based in Chicago.

BMO Harris offers 10 CD terms ranging from three months to five years, each requiring a minimum $1,000 deposit to open. It also offers several CD specials with very competitive rates. The competitive rates offered on CDs with terms six months and longer are unavailable to residents of states where BMO has branches.

Randolph-Brooks Federal Credit Union: 1.36% APY, $1,000 minimum deposit

Randolph-Brooks Federal Credit Union was established in 1952 and is headquartered in Live Oak, Texas. It operates in four major markets: Austin, Dallas-Fort Worth, Corpus Christi and San Antonio.

It offers CDs in terms ranging from six months to seven years. The minimum deposit is $1,000.

Bethpage Federal Credit Union: 1.25% APY, $50 minimum deposit

Bethpage Federal Credit Union was founded in 1941 for employees of aircraft-maker Grumman.

The credit union is based in Bethpage, New York, and has more than 400,000 members. It offers nine terms of CDs ranging from three months to five years. Bethpage also offers a 39-month bump-up CD.

First Internet Bank of Indiana: 1.16% APY, $1,000 minimum deposit

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.

Quontic Bank: 1.15% APY, $500 minimum deposit to open

Quontic Bank is an online bank that offers four terms of CDs: six months, one year, two years and three years. All CDs require a minimum of $500 to open.

Quontic Bank also offers a high-yield savings account and money market account. Both pay competitive yields and have low minimum opening deposits.

Citibank: 1.10% APY, $500 minimum deposit

Citibank is one of the largest banks in the U.S. It offers fixed-rate CDs, a step-up CD and a no-penalty CD.

Citibank CD minimum deposits vary based on your location. The minimum is $500 in most markets, but ranges up to $2,500 in others.

Citibank’s Citi Accelerate Savings also has a competitive yield, but is available only in certain markets.

Ally Bank: 1.00% APY, $0 minimum opening deposit

In 2009, GMAC Bank became Ally Bank. Ally Bank is headquartered in Sandy, Utah. It has 2.5 million deposits customers.

Ally Bank has seven terms of CDs, a no-penalty CD and two terms of a Raise Your Rate CD. It also offers a savings account, an interest-bearing checking account and a money market account.

Capital One: 1.00% APY, $0 minimum opening deposit

Capital One is an online bank and also has a brick-and-mortar presence, with 333 branches and about 50 Capital One cafes.

It offers nine competitive terms of regular CDs. Capital One CDs and its 360 Performance Savings account don’t have minimum balance requirements. Capital One is based in McLean, Virginia.

TIAA Bank: 1.00% APY, $1,000 minimum deposit

TIAA Bank is a division of TIAA FSB and has 10 branches, all in Florida.

TIAA offers CD terms ranging from three months to five years. It also offers a bump-rate CD, which allows a one-time rate bump if rates go higher. For customers with large deposits who need FDIC coverage that exceeds the $250,000 limit, TIAA Bank offers a service that spreads money around to a network of banks to expand insurance coverage.

Finding the best 6-month CD rates

To find the best six-month CD rates, savers should ask: How much yield can I reasonably expect to earn; and in which direction are interest rates headed?

The shorter the length of the CD term, the less interest you can expect to earn. To find the best six-month CD rates, evaluate offers from online banks and credit unions. Avoid accounts with high fees and minimum deposit requirements.

6-month CD FAQs

Who should open a 6-month CD?

Six months is one of the shortest terms available for savers interested in CDs. It’s a product that’s best for consumers with specific short-term goals who are looking for a temporary place to keep money to be used soon for a specific purpose, like a wedding, vacation or down payment on a home. A six-month CD could also be a place to keep cash that you’re hoping to put into a riskier investment vehicle.

The longer the term of your CD, the higher the yield you’ll likely earn. That means six-month CD yields are typically relatively low. Consider whether it makes more sense to keep your money in a more liquid account, like a savings or money market account. That way, you won’t run the risk of losing interest if you need the money you stashed away before the six-month time clock runs out.

Comparing 6-month CDs vs. other savings vehicles

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

6-month CD vs. savings account

Because you’re willing to keep your money in a CD for a set period of time, you usually end up with a higher rate with a CD than a savings account.

However, savings accounts are more accessible. With a savings account, you won’t face the early withdrawal penalties like you do if you tap your six-month CD before it matures.

6-month CD vs. money market account

There’s a good chance you’ll get a better yield on a six-month CD than with a money market account. So, if you’re looking for a better yield in a safe account, it can make sense to use a CD instead of a money market account.

On the other hand, a money market account is much more accessible than a six-month CD. You might even be able to use a debit card to access the funds in the money market account — something you can’t do with a CD.

6-month CD vs. 1-year CD vs. 5-year CD

Better yields are generally available on CDs with longer maturities. So, if you’re willing to lock up your money for a year — or even up to five years — you could receive a better rate.

However, the advantage of a six-month CD is that you know you’ll be able to access the money in a shorter time frame. Because a CD typically comes with 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.

How to make the most of a 6-month CD

A six-month CD works well with short-term savings goals. If you want to set money aside for a specific purpose, but you’re worried that you’ll be tempted to tap into the funds, a six-month CD can help make the money harder to get to. You can keep the money safe in an FDIC-insured (or NCUA-insured) account until it’s needed.

You can also make use of a six-month CD in an emergency fund ladder. By setting up a CD ladder that includes shorter-term CDs, it’s possible to take advantage of slightly higher yields while knowing that a portion of your money will be available for unexpected expenses in the near future.

Maximize the power of compound interest

Anyone struggling to save money could benefit from having a six-month CD. Because you could face an early withdrawal penalty, you may be less tempted to tap into your savings prematurely.

Annual percentage yield, or APY, includes the effect of compounding. It’s the interest earned on your initial deposit in addition to the interest earned on top of other interest earnings.

Things to keep in mind with a 6-month CD

Before you get a six-month CD, it’s important to understand the potential drawbacks. The early withdrawal penalty is probably the biggest issue. If you access your funds before the six months are up, you’ll pay a penalty.

Plus, the yield often isn’t much higher on a six-month CD than you’d see with a traditional savings account. Shop around for the highest rates, but you might need to meet high deposit minimums in order to take advantage of the best yields.

Recap: Best 6-month CD rates

• Live Oak Bank: 1.85% APY, $2,500 minimum deposit
• TAB Bank: 1.75% APY, $1,000 minimum deposit
• Limelight Bank: 1.55% APY, $1,000 minimum deposit
• Synchrony Bank: 1.50% APY, $0 minimum deposit
• Marcus by Goldman Sachs: 1.50% APY, $500 minimum deposit
• Sallie Mae Bank: 1.50% APY, $2,500 minimum deposit
• Popular Direct: 1.50% APY, $10,000 minimum deposit
• BMO Harris: 1.40% APY, $1,000 minimum deposit*
• Randolph Brooks Federal Credit Union: 1.36% APY, $1,000 minimum deposit
• Bethpage Federal Credit Union: 1.25% APY, $50 minimum deposit
• First Internet Bank of Indiana: 1.16% APY, $1,000 minimum deposit
• Quontic Bank: 1.15% APY, $500 minimum deposit
• Citibank: 1.10% APY, $500 minimum deposit
• Ally Bank: 1.00% APY, $0 minimum deposit
• Capital One: 1.00% APY, $0 minimum deposit
• TIAA Bank: 1.00% APY, $1,000 minimum deposit

*Rate is unavailable in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.

Learn more about other CD terms:

• Best 9-month CD rates
• Best 1-year CD rates
• Best 18-month CD rates