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PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiIHNyYz1odHRwczovL3N0YXRpYy5teWZpbmFuY2UuY29tL3dpZGdldC9teUZpbmFuY2Vfdmlld3BvcnRfZGV0ZWN0aW9uLmpzPjwvc2NyaXB0PjxzY3JpcHQgYXN5bmMgdHlwZT0idGV4dC9qYXZhc2NyaXB0Ij5teWZpV2F0Y2hXaWRnZXQoJ215ZmlXaWRnZXRfMycpO215ZmlXYXRjaFdpZGdldCgnbXlmaVdpZGdldF8xJyk7bXlmaVdhdGNoV2lkZ2V0KCdteWZpV2lkZ2V0XzInKTs8L3NjcmlwdD4=Jean Folger is a freelance writer and editor with a knack for tackling complex subjects using simple language. She’s passionate about helping people make better financial choices so they have more money and time to spend on the things that matter most. In her 15+ years as a freelance writer and editor, she’s specialized in real estate, retirement, investing, and other personal finance topics. Jean has written extensively for SFGate, Business Insider, The Motley Fool, Opendoor, Prudential, Investopedia, and more. She co-founded PowerZone Trading, which has provided award-winning software, consulting, and strategy development services to active traders and investors since 2004. Jean graduated with a bachelor's degree from Ohio University. Previously, Jean was a licensed real estate broker, an English teacher, and an adventure travel trip leader. And, she’s also the proud parent of a Team USA Olympic athlete.Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research.Mobile app users, click here for the best viewing experience.The 10-second guide to 6-month CDsYou’ll find the highest interest rates these days on short-term CDs, including 6-month CDs.Six-month CDs are ideal for growing your money for an upcoming goal, like a vacation.The best 6-month CD rates typically require larger minimum deposits.—Best 6-month CD rates for September 2023CDs can be an excellent way to safely earn interest on money you won't need right away. A 6-month CD is one of the shortest terms available, making it ideal for stashing cash for a short-term goal, like a vacation or a new mountain bike. While longer-term CDs traditionally offer the highest APYs, the best 6-month CD rates are topping 5% APY. That means you can earn one of the top CD rates with a minimum time commitment. TIP: Remember that APYs represent what you'll earn in a year (APY means annual percentage yield). Shorter-term CDs, including 6-month ones, will earn less than the full APY. Of course, the best 6-month CD rate might come with a high minimum deposit or steep early withdrawal penalty. For this reason, it's essential to shop around to find a CD that works for your budget and situation. To help you get started, we’ve scoured the best banks and the best online banks to find some of today's top 6-month CD rates. Merrick Bank: 5.50% APY Minimum deposit: $25,000 Yes, the minimum deposit is very high. But if you can afford to stash $25,000 away for six months, you could earn $678.30 in interest.ProsYou can choose monthly interest payouts. ConsThe minimum deposit is prohibitively high for some savers.Customer service is closed on weekends and holidays. The early withdrawal penalty is 90 days of interest. Learn more about the 6-month CD at Merrick Bank.Popular Direct: 5.35% APYMinimum deposit: $10,000 Popular Direct also has a high minimum deposit requirement, albeit not quite as steep as the one at Merrick Bank. In six months, this CD would earn $264.01 in interest on a $10,000 deposit.ProsInterest compounds daily.Customer service is available 24/7 by phone.ConsThe minimum deposit is higher than most online banks.The early withdrawal penalty is 120 days of interest. Learn more about the 6-month CD at Popular Direct.First Internet Bank of Indiana: 5.22% APYMinimum deposit: $1,000 The rate on the 6-month term is especially excellent right now, but if you’re looking for something else, it’s not hard to browse alternatives on FIBC’s simple, direct website. ProsIt's easy to find transparent product information on the website. Opening an account is quick and easy.ConsThe minimum deposit is higher than some online banks.The early withdrawal penalty is 180 days of interest, the steepest we've seen. Learn more about the 6-month CD at First Internet Bank of Indiana.BMO Alto: 5.20% APYMinimum deposit: $0With no minimum deposit requirement, BMO Alto’s 6-month CD is a great way to get a relatively fast return on even a small amount of money.ProsYou can choose monthly interest payouts.Customer service is available 24/7 by phone.ConsThe early withdrawal penalty is 90 days of interest.You can't use any BMO Harris branches as a BMO Alto customer.Learn more about the 6-month CD at BMO Alto.CIT Bank: 5.00% APYMinimum deposit: $1,000The interest rates on most of CIT Bank’s other CD terms aren’t impressive in the context of today’s high-rate environment. However, the 6-month CD provides a solid rate without requiring much commitment.ProsInterest compounds daily. It's easy to open and fund an account. ConsMost CD terms have 0.50% or lower rates, so you wouldn't want to build a CD ladder.The early withdrawal penalty is three months of interest. Learn more about the 6-month CD at CIT Bank.Synchrony Bank: 4.90% APYMinimum deposit: $0Synchrony Bank is known primarily as a credit card issuer for branded cards, but right now it’s also offering excellent rates on CDs. While there are slightly higher rates on this list, the $0 minimum deposit requirement makes this 6-month CD an accessible option for more savers.ProsThe mobile app is highly rated. Bump-up, no-penalty, and IRA CDs are available.ConsThe early withdrawal penalty is 90 days of interest at the current rate.You can find slightly higher rates elsewhere.Learn more about the 6-month CD at Synchrony Bank.Alliant Credit Union: 4.75% APYMinimum deposit: $1,000 There are enough ways to join Alliant Credit Union that anyone can find a path to membership that works for them. If you deposit the minimum in its 6-month certificate (what credit unions call CDs), you’ll earn $23.47 over the term.ProsUnlike many credit unions, anyone can become a member. Standard, jumbo, and IRA certificates are available.ConsThe minimum deposit is higher than some online banks.The early withdrawal penalty is 90 days of interest.Learn more about the 6-month CD at Alliant Credit Union.Bethpage Federal Credit Union: 4.75% APYMinimum deposit: $50Bethpage Federal Credit Union is another credit union with low barriers to entry: All you need to do is open a savings account with a $5 deposit. Once you do that, you can open a 6-month CD with as little as $50.ProsUnlike many credit unions, anyone can become a member.The minimum deposit is lower than many online banks. Standard, bump-up, and IRA CDs are available.ConsThe early withdrawal penalty is 90 days of interest.You can find higher rates elsewhere.Learn more about the 6-month CD at Bethpage Federal Credit Union.6-month CD FAQsWhat is a 6-month CD?A 6-month CD (or "share certificate" in credit union parlance) is a certificate of deposit that pays a fixed interest rate for six months. You can add money to a CD just once (when you open the account), and you're expected to leave the cash alone until the CD matures. If you need your money sooner, you have to withdraw the entire amount and pay an early withdrawal penalty (an early withdrawal penalty can be worth it if you lock in a higher APY with a new CD). CDs often pay a higher APY than you can earn in a savings or money market account to encourage you to keep your cash locked up. How does a 6-month CD work?A 6-month CD works like any other CD. You can close the account and take your cash when the CD matures. Or, you can renew it at the then-current interest rate (you generally have a seven to 10-day grace period to decide what to do). Unless your bank or credit union hears otherwise, it will renew the CD automatically after the grace period for a similar term at an APY that could be higher or lower than the original CD. Some banks let you withdraw your interest each month. This can be a good option if you want the income, but keep in mind that it reduces the APY since you won’t earn interest on the interest (also known as compound interest). Otherwise, you'll receive your deposit and the accrued interest when you close the CD. What is considered a good 6-month CD rate right now?The national average rate on a 6-month CD is 1.34%, according to the FDIC. However, you would be leaving money on the table at that rate. The best 6-month CDs are offering rates of 5.00% APY and above. By comparison, some of the best high-yield savings accounts are also paying upwards of 5.00% APY. Who should open a 6-month CD?Unlike most investments, CDs are federally insured for up to $250,000 (or $500,000 for joint accounts) when held at FDIC-member banks and NCUA-member credit unions. This makes CDs an excellent choice if you're looking for a safe place to park your cash and earn interest. A 6-month CD makes sense if you're saving for a short-term goal like a car down payment and want to keep your cash out of reach. It's also worth considering if your money is earning next to nothing elsewhere, like your piggy bank or a low-interest bank account. A 6-month CD is also a good choice if you hope to invest the money in a riskier investment soon but are still researching your options.Other CD terms to considerIf you like the idea of putting your money in a high-yield CD but prefer a longer term, consider a one-, two-, three-, four-, or five-year CD. Be sure to pay close attention to the rates for each CD length: Some banks offer one or two CDs at excellent rates, with low (or even poor) rates on the rest of the lineup. For example, a bank might offer 5.00% APY on one CD and 0.05% APY on everything else. Of course, if six months seems too long, a 3-month CD may be worth considering. No matter which CD term you choose, remember that you can generally find the best rates at online banks and credit unions (you might have to switch banks to get the top APYs). TIP: If you're looking for an investment that keeps up with inflation, consider a Series I savings bond, a type of US Treasury security offering a return that fluctuates with the inflation rate. Is a 6-month CD worth it?A 6-month CD can be worth it when you want to maximize your short-term savings with a guaranteed APY. As a bonus, short-term CDs are earning higher APYs than many longer-term CDs right now. It's also worth considering a 6-month CD as part of a CD ladder—a strategy where you divide your deposit into multiple CDs with different maturities. Of course, 6-month CDs aren't right for everyone. Consider other options if you need access to your cash sooner or are comfortable taking on more risk in exchange for potentially higher returns. Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as the Home and Financial Services Editor for the Hearst E-Commerce team. Email her at lauren.williamson@hearst.com.