If you have some money to save but do not want your money locked away for a long period of time, a 6 month CD may be a great option. Six month CDs are a great place to invest for short-term financial obligations, like a wedding or family vacation. In this post, we will provide you the list of the Best 6-Month CD Rates available today for 2021.
First, we will explain what CDs are about and how they work.
Next, we will explain the reasons why you may want to consider putting your money in a CD.
Also, we will discuss whether a 6 month CD is worth it.
Finally, we will review the Best 6-Month CD Rates and also provide you with alternatives to the 6-Month CD Rates.
This post will cover:
- What is a Certificate of Deposit?
- Why Put Your Money in a CD?
- Is a 6 month CD worth it?
- Best 6-Month CD Rates – 2021
- Alternatives to a 6-Month CD
- Best 6-Month CD Rates Summary
What is a Certificate of Deposit?
A Certificate of deposit (CD) is a type of deposit account that often pays a higher interest rate than a standard savings account in exchange for restricting access to your funds during the CD term.
CD terms often vary, depending on the financial institution but are between three months and five years. As long as you keep the money in CD during the entire term, you will earn the APY you were promised.
However, if you should take your money out before maturity or term, and you will most likely incur a penalty.
In addition, if you take your money out early, you also might have to forfeit a portion of the interest you earned, depending on the bank’s policy.
Why Put Your Money in a CD?
If you have some cash to save and want to earn more than you would with a standard savings account, certificates of deposit can be a good option.
Furthermore, many CDs with terms of at least 12 months offer rates that are higher than the best savings accounts.
For example, if you put $5,000 in a CD that earns 2.6% APY for a one-year term, your balance would increase by more than $130.
You should consider a CD if you are certain you won’t need to access your cash for several months or years, depending on the goal you have for that money.
Smaller, local banks or credit unions often offer better rates than the big national institutions.
Also, online-only banks can offer great CD rates because of their lower expenses.
Finally, putting your money in a CD is risk-free in the sense that you can put up to $250,000 in CDs and will never lose that money as long as your account is with an FDIC bank insured NCUA insured credit union.
Is a 6 month CD worth it?
In general, CDs are good for people who want to earn a better interest rate on their money (versus a regular savings account) but do not want their money locked away for a longer period.
The national average APY for 6-mo CDs is typically higher than that for savings accounts.
This type of CD is best if you are saving for a goal that is coming up soon.
For example, you could use a 6-month CD to save for a summer vacation.
However, if say you are saving for a down payment on a house five years from now, it’s better to look into a longer-term CD, which typically provides a higher rate.
Best 6-Month CD Rates – 2021
Here are the banks and credit unions with the best 6-month CD rates today.
You can also find below in the summary section links to each bank’s CD page for your convenience.
| Bank/Institution | APY | Minimum To Open |
| CommunityWide Federal Credit Union | 0.75% | $1,000 |
| La Capitol Federal Credit Union | 0.70% | $2,500 |
| Lafayette Federal Credit Union | 0.70% | $500 |
| GreenState Credit Union (8-month) | 0.65% | $1,000 |
| Chevron Federal Credit Union | 0.60% | $500 |
| Latino Credit Union | 0.60% | $500 |
| Spectrum Federal Credit Union | 0.60% | $500 |
| Quontic Bank | 0.60% | $500 |
| Evansville Teachers Federal Credit Union | 0.60% | $1,000 |
| EBSB Direct | 0.60% | $1,000 |
| Limelight Bank | 0.50% | $1,000 |
| First Internet Bank of Indiana | 0.45% | $1,000 |
| Pawtucket Credit Union | 0.40% | $1,000 |
| EmigrantDirect | 0.40% | $1,000 |
| Navy Federal Credit Union | 0.40% | $1,000 |
| TAB Bank | 0.40% | $1,000 |
| Consumers Credit Union | 0.40% | $250 |
| Bethpage Federal Credit Union | 0.40% | $50 |
| Bank5 Connect | 0.35% | $500 |
| Randolph-Brooks FCU | 0.35% | $1,000 |
| SchoolsFirst Federal Credit Union | 0.30% | $500 |
| MySavingsDirect | 0.30% | $1,000 |
| Sallie Mae Bank | 0.30% | $2,500 |
| CIT Bank | 0.30% | $1,000 |
| Live Oak Bank | 0.25% | $2,500 |
| Ally Bank | 0.25% | No minimum deposit |
| NBKC Bank | 0.25% | $1,000 |
Alternatives to a 6-Month CD
If you do not want to lock your money in a 6-Month CD but still want to get a better yield on your money than a regular savings account or leaving your money in a checking account, here are some alternatives to consider:
Three-month CD
One option is to consider Three-month CDs. Many banks offer these and some offer CDs in even shorter term lengths.
However, since it’s for a shorter term, the interest rate on the CD is lower than the 6 months.
High Yield Savings Account
If you’re not sure about locking your money away, you can also always choose a high-yield savings account.
Many banks and credit unions offer high-yield savings accounts with higher rates than short-term CD lengths.
No-penalty CDs
As you may already know, when you withdraw your money from a CD before the term expires, you generally pay a penalty of at least several months’ of interest earned.
Some banks and financial institutions allow you to withdraw your money before the term expires, with no penalty.
However, the trade-off for this service is that the rates on these no-penalty CDs may be a little lower than the regular CDs.
The following three banks offer no-penalty CDs:
- Marcus by Goldman Sachs Bank
- CIT Bank
- Ally Bank
- CitiBank
Best 6-Month CD Rates Summary
CommunityWide Federal Credit Union
0.75% APY, $1,000 Minimum Deposit
La Capitol Federal Credit Union
0.70% APY, $2,500 Minimum Deposit
Lafayette Credit Union
(7-month) 0.70% APY, $500 Minimum Deposit
GreenState Credit Union
(8-month) 0.65% APY, $1,000 Minimum Deposit
Chevron Federal Credit Union
0.60% APY, $500 Minimum Deposit
Latino Community Credit Union
0.60% APY, $500 Minimum Deposit
Spectrum Federal Credit Union
0.60% APY, $500 Minimum Deposit
Quontic Bank
0.60% APY, $500 Minimum Deposit
Evansville Teachers Federal Credit Union
0.60% APY, $1,000 Minimum Deposit
EBSB Direct
0.60% APY, $1,000 Minimum Deposit
Limelight Bank
0.50% APY, $1,000 Minimum Deposit
First Internet Bank of Indiana
0.45% APY, $1,000 Minimum Deposit
Pawtucket Credit Union
0.40% APY, $1,000 Minimum Deposit
EmigrantDirect
0.40% APY, $1,000 Minimum Deposit
NASA Federal Credit Union
0.40% APY, $1,000 Minimum Deposit
TAB Bank
0.40% APY, $1,000 Minimum Deposit
Consumers Credit Union
0.40% APY, $250 Minimum Deposit
Bethpage Federal Credit Union
0.40% APY, $50 Minimum Deposit
Bank5 Connect
0.35% APY, $500 Minimum Deposit
Randolph-Brooks FCU
0.35% APY, $1,000 Minimum Deposit
SchoolsFirst Federal Credit Union
0.30% APY, $500 Minimum Deposit
MySavingsDirect
0.30% APY, $1,000 Minimum Deposit
Sallie Mae Bank
0.30% APY, $1,000 Minimum Deposit
CIT Bank
0.30% APY, $1,000 Minimum Deposit
Live Oak Bank
0.25% APY, $2,500 Minimum Deposit
Ally Bank
0.25% APY, No minimum deposit
NBKC Bank
0.25% APY, $1,000 Minimum Deposit
Questions?
We hope this post on Best 6-Month CD Rates was helpful.
If you have further questions about CDs, Banking, or personal finance in general, please let us know in the comments section below.
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