Best 6-Month CD Rates for July 2024

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Contributor, Benzinga
July 18, 2024

The best 6-month CD rate is offered by TotalDirectBank, providing a 5.51% APY.

Investing in a CD allows you to earn passive income from money you don’t need access to during the CD term. It’s a wise way to take your emergency fund and place it in a risk-free place to help it grow. You can shop for the best interest rates using CD Valet or Benzinga’s top 10 list to find the best 6-month CD rates to safely grow your money.

Quick Look: The Best 6-Month CD Rates

  • Best for Highest Rate CD: TotalDirectBank – 5.51% APY
  • Best for Low Minimum Deposit Requirement: DR Bank – 5.5% APY
  • Best for Building a CD Ladder: INOVA Federal Credit Union – 5.35% APY
  • Best for Short-term CDs: Bask Bank – 5.35% APY
  • Best for Variable Rate CD: Newtek Bank – 5.35% APY
  • Best for Multimillion Dollar Insurance: Sun Canyon Bank – 5.25% APY
  • Best for Access to 24/7 Support: Popular Direct – 5.35% APY
  • Best for Penalty-free CD: Climate First Bank – 5.34% APY
  • Best for Minimal Early Withdrawal Penalties: Prime Alliance Bank – 5.3% APY
  • Best for Up to 4-year CD Terms: Able Banking – 5.3% APY

Best 6-Month CD Rates

We’ve compiled a list of the leading 6-month CD rates to help you earn interest on your short-term savings. Here’s your list of the best rates and the financial institution where you’ll find them.

1. Best for Highest Rate CD: TotalDirectBank

If you’re looking for the best 6-month CD based on the highest APY, TotalDirectBank has it. Earn 5.51% APY for six months. The catch is you’ll need a minimum of $25,000 to hold in the account. But if you have the money, you’ll earn $679.52 during the term. The maximum you can place in the CD is $1 million. 

Why We Love It: TotalDirectBank is an online-only bank from City National Bank. It has been in operation since 1970, giving it stability and proving its ability to withstand the test of time.

2. Best for Low Minimum Deposit Requirement: DR Bank

Earn 5.5% APY on your 6-month CD even if you only have $500 to invest. In 6 months, you can grow your savings with $13.57 in interest and reinvest that money in another CD to keep it growing. 

Why We Love It: While the bank has two physical locations, you can set up and manage your CD account entirely online.

3. Best for Building a CD Ladder: INOVA Federal Credit Union

Open an INOVA Federal Credit Union account to enjoy 5.35% APY on your CD account. You only need to place $200 in the account. You can create a nice CD ladder using INOVA with terms up to 6 years. A 6-year CD earns you 4% APY. Regardless of your chosen term, the minimum deposit requirement is $200.

Why We Love It: Get creative with how you invest your savings with varying CD terms. While shorter terms offer higher interest rates, longer terms will help ensure your money is productive for years.

4. Best for Short-term CDs: Bask Bank

Get short-term CD accounts from Bask Bank to help your money grow even if you think you’ll need it in a few months. Bask Bank offers CDs as short as three months. Whether you choose a 3-month or 6-month CD, you can earn 5.35% APY. You will need a minimum deposit of $1,000 within 10 days of opening the account.

Why We Love It: Options for CD rates from three months to 24 months with rates no less than 4.75% make this an attractive option for managing your money.

5. Best for Variable Rate CD: Newtek Bank

Earn 5.35% APY on a 6-month CD through Newtek Bank. Or invest in a 24-month variable rate CD to get the most competitive interest rates each month based on the U.S. Treasury Bill rates. Your monthly rate will change automatically, allowing you to watch your money grow over time.

Why We Love It: Various CD options help you place your money where it makes the most sense for you at that time. The option to purchase a variable-rate CD is unique.

6. Best for Multimillion Dollar Insurance: Sun Canyon Bank

When you have a large nest egg you want to protect while still earning interest, Sun Canyon Bank is a good option. With ICS and CDARS services, you can get multimillion-dollar protection for your funds while earning as much as 5.25% APY. CD terms range from six months to two years.

Why We Love It: While most banks only offer FDIC insurance for up to $250,000, Sun Canyon Bank can protect millions, making it a safe place to protect your funds.

Popular Direct is there to help you with a customer care team that is available 24/7. As an arm of Popular Bank, Popular Direct has a rich century-long history. It is one of the largest U.S. banks based on assets. Choose from various CD terms, including a 6-month CD that earns you 5.35% APY. You will need $10,000 to place in the account, though.

Why We Love It: Terms ranging from 6 to 18 months from a bank committed to its customers make this an attractive option.

8. Best for Penalty-free CD: Climate First Bank

Climate First Bank is an attractive short-term CD option with a minimum deposit of $500 and the option to withdraw your money early without penalties. You can earn 5.34% APY on your account with a personal or business CD. Enjoy CD options with terms of up to 25 months to select the best money-growing option.

Why We Love It: Penalty-free withdrawals make this a unique CD option and help provide access to your funds regardless of the timing.

9. Best for Minimal Early Withdrawal Penalties: Prime Alliance Bank

If you’re unsure when you’ll need your funds but want to place them in a CD account to help them grow while you wait, a 6-month CD with Prime Alliance is a safe bet. That’s because you only lose 1-month of interest if you withdraw the funds early. That means this can be a short-term place to hold your funds until you potentially need them for large purchases. Plus, you can enjoy 5.3% APY.

Why We Love It: Prime Alliance Bank's minimal penalties on early withdrawals make It a good choice for short-term funds.

10. Best for Up to 4-year CD Terms: Able Banking

Earn 5.3% APY on a 6-month CD. Or choose from other terms for up to 4 years. Place various amounts of your emergency fund in CDs with different terms to help it grow while keeping parts of it accessible just in case. You will need $5,000 to meet the minimum deposit requirement.

Why We Love It: Build a CD ladder using the various terms available with an Able Banking CD account.

What Is a 6-Month CD?

A certificate of deposit is a financial product that allows you to earn monthly interest and grow your money with passive income. Most CDs come with a fixed interest rate and a set term. A 6-month CD is a CD that you must hold for six months or face penalties for early withdrawals.

CD accounts often range from three months to 10 years. Long-term CDs have lower rates but allow you to lock in that rate for long if you believe interest rates are on their way down. 

Because CD accounts are bank products, they have $250,000 in FDIC insurance, meaning your money is protected even if the bank you’ve placed it in fails. 

Pros and Cons of 6-Month CDs

Review these pros and cons before placing your funds in a 6-month CD to ensure the term is right.


  • Rate lock for six months: While the interest rate on a savings account can fluctuate monthly, the rate on a CD is locked for the full term you select.
  • You cannot spend money held in the account: If you’re saving for a specific purchase or toward a goal, placing the funds in a CD account can remove the temptation to spend them.
  • Higher interest rate than a savings account: In most circumstances, you’ll earn more savings on the funds you hold in a CD than you will in a traditional bank account.
  • Minimal risk: Losing the funds held in a CD account is unlikely. While you’ll be getting nice returns on the funds, no stock market downturn or another outside factor can lead to losing your money if you select an institution with FDIC or NCUA insurance.


  • Early withdrawal penalty: You should make sure you don’t need access to the funds during the 6-month term, or you might pay a penalty for removing the money early. In those circumstances, placing the money in a savings account would have been better because you won’t lose interest once you remove it.
  • Must place all funds in the account simultaneously: Most CDs only allow you to add money once at the onset. That means that you can’t add funds as you make them. In contrast, a high-yield savings account allows for ongoing deposits.
  • Rates could increase, but your rates are locked: Often, with short-term CD accounts, a locked rate is not bad. However, rates can increase during the term, and you’ll be locked in at the original rates from when you opened the account.
  • Such short terms can lead to regrets: When rates go down, you might regret only going with a 6-month CD because your locked rate will be much higher than current market options. That’s one reason why a CD ladder makes sense for many consumers.

How to Find the Best 6-Month CD Rates

You should review your options at many institutions to find the best CD rates. The best 6-month rates will vary daily as the federal funds rate increases or decreases. While rates are a major factor in determining the best 6-month CD account, consider these other features that could help you open the best account based on your needs.

  • Minimum deposit requirements: Each financial institution has its minimum deposit requirements. Many accounts with higher rates require a larger investment.
  • Early withdrawal penalties: If you’re unsure when you’ll need the funds, opening an account with no early withdrawal penalties might be a good move. That way, you can ensure that you can get your money without paying penalties. 
  • CD type: You can choose from various CD types, including variable CDs, no-penalty CDs, and IRA CDs. Look for the financial institution that offers the type you need.
  • Membership with a credit union: Some of the best CD rates come from credit unions with specific membership requirements. You might not be able to access those accounts without meeting those requirements.
  • FDIC insurance: Before opening a CD account, ensure your bank has FDIC insurance to protect your funds if the bank or credit union suffers financial hardships.

Alternatives to 6-Month CDs

If you are unsure whether a 6-month CD is right for you, consider these alternatives to grow your savings.

  • Longer CDs: A longer CD will offer locked rates for a longer term, which means you can enjoy a fixed rate and not worry about researching new terms in just a few months.
  • Shorter CDs: Perhaps you’re in the market for a car or house and want to grow your funds while you shop. A shorter CD might make more sense so you know you won’t pay early withdrawal penalties.
  • High-yield savings account: A high-yield savings account might be a better option if you always want access to the funds. While your monthly interest rate will fluctuate, you won’t be stressed about removing the money anytime soon.
  • Bonds: You can invest your funds in bonds, such as U.S. Treasury I bonds or a bond mutual fund. T-bills are a way to lend the federal government money for four weeks up to one year.

Earn 5% Interest in Just 6 Months

With a 6-month CD, you can earn good interest on your savings with minimal risk that you’ll need to withdraw the funds early since it is such a short term. While you won’t have a long rate lock period, you can earn nice returns with minimal risk to start earning passive income from your savings.

Frequently Asked Questions 


Who has the highest 6-month CD rate?


TotalDirectBank has the highest 6-month CD rate at 5.51% APY.


Are there any 6% CDs out there?


There are 6% CD rates, but you’ll have to shop around based on your state. Financial Partners Credit Union offers an eight-month CD for California residents, and City Credit Union offers a 6-month CD for Texas residents.


Who is offering a 5% CD rate?


Many institutions currently offer a 5% CD rate. Your best bet is to go with an online bank or a credit union.


Are there any 7% CDs?


No, there are not any 7% CDs currently.

Rebekah Brately

About Rebekah Brately

Rebekah Brately is an investment writer passionate about helping people learn more about how to grow their wealth. She has more than 12 years of writing experience, focused on technology, travel, family and finance. Her work has been published in Benzinga, Hearst Bay Area, FreightWaves and Dallas Observer publications.