

Before opening a certificate of deposit (CD) account, make sure you’re up to date on current CD trends for 6-month CDs and how to find the best fit for you.
The best six-month CD rates are over 4%, far surpassing the national average six-month CD rate of 2.4%, according to Curinos data in September 2025.
If you're looking for a way to earn more interest on your savings without committing to a long-term account, a six-month certificate of deposit (CD) could be the way to go. Historically, you'll earn more money by locking your savings in a long-term account, but right now, six-month CDs have some of the most competitive yields available.
Here's what to know about current rate trends, how much you can earn and how to choose the right account.
Although CD rates have fallen this year, they're still much higher than they were just a few years ago. As the chart below illustrates, six-month CD yields ranged from a dismal 0.01% to 0.09% from early 2020 through March 2022, according to the Federal Deposit Insurance Corp. (FDIC), which includes lower rates from national brick-and-mortar banks. During this time, the Federal Reserve kept interest rates low in response to the COVID-19 pandemic. While the central bank doesn't set CD rates, it often moves in tandem with the Fed's policy decisions.
There was little reason to lock up your savings in a CD earning such paltry annual percentage yields (APYs), unless you could find a top-earning CD offering an above-average rate. But that changed in March 2022, when the Fed began a series of 11 consecutive interest rate hikes, raising the federal funds rate (upper limit) from 0.25% to 5.50% to curb soaring inflation. Predictably, average six-month CD yields also climbed, from 0.09% in March 2022 to 1.30% by July 2023. And some of the best CDs during that time offered yields up to 5%.
Average six-month CD APYs have slowly declined since peaking at 1.82% in August 2024. Not surprisingly, the downward trend began after the Fed issued a 0.50% cut in September 2024, the first rate cut in over four years at the time. Since then, average yields have continued to fall modestly, but you can usually find rates substantially higher—especially through online banks and credit unions.
The amount you can earn from a six-month CD depends on how much you deposit and the rate the account pays.
For example, if you deposit $10,000 into a six-month CD with a competitive rate of 4%, you could earn $198.04 in interest. That's more than 1.5 times what you could earn from a CD with the national average rate of 2.4%, according to Curinos data.
Initial Deposit Amount | Average Rate of 2.4%* | Competitive Rate of 4% |
---|---|---|
$1,000 | $11.93 | $19.80 |
$10,000 | $119.29 | $198.04 |
$100,000 | $1,192.89 | $1,980.39 |
*Source: Curinos LLC, September 2025
Keep in mind, banks and credit unions set their own CD rates, so the return you get can vary. That's why it's important to compare rates before you open an account to ensure you get the biggest return on your savings.
The type of CD you choose may also affect how much you earn. For example, you might earn a higher rate with a jumbo CD if you can meet its larger minimum deposit requirement, such as $100,000. On the other hand, you might earn a slightly lower rate with a no-penalty CD, but it could be worth it if you're worried you'll need to withdraw your money early and want to avoid the fee.
Learn more: How Much Interest Do CDs Pay?
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Find a high-yield CD with today’s APY. Compare current APY and offers to find the best certificate of deposit for you.
Here are a few smart tips to help you choose the best CD account to stash your cash while earning a high yield:
Tip: Most CDs are federally insured, but only if they're issued by a bank or credit union insured by the FDIC or National Credit Union Administration (NCUA), respectively. Double-check the institution's membership beforehand to make sure your deposit will be protected up to the $250,000 limit per institution and per ownership category.
While no one can predict what CD rates will do with absolute certainty, now may be a smart time to open a six-month CD given the current CD trends. If the Federal Reserve lowers its rates, short-term CD rates could drop quickly, since they tend to track closely with changes to the federal funds rate.
If you've already built your emergency fund and you have extra cash you won't need for a few months, a six month CD could be a safe place to park it and lock in a solid short-term rate before a potential rate drop.
A six-month CD may deliver valuable benefits like higher yields than other CD terms, but you should also be aware of the drawbacks.
Earns a guaranteed rate: CDs provide guaranteed returns, based on the rate you lock in upon account opening. Regardless of what's going on in the market, you'll earn the full yield as long as you don't withdraw funds early.
Offers higher yields: Six-month CDs are currently offering higher APYs than most CD terms and four to 11 times more than standard savings accounts.
Allows for earlier access to funds: Since the term is only six months, you'll have access to your money much sooner than long-term CD accounts that lock your money for up to five years.
Could renew at a lower rate: If interest rates drop by the time your CD matures, you may not get as good a return when you go to open a new one.
May earn less than longer-term CDs: Longer-term CDs usually offer better rates than short-term ones because banks want to incentivize you to keep your money deposited longer.
Returns are limited: While a guaranteed rate of return is a nice perk, it caps what you can earn. If you're comfortable with more risk, other investments like stocks and mutual funds generally offer greater long-term growth.
Learn more: The Pros and Cons of Certificates of Deposit (CDs)
Before opening a CD with a term of six months, consider other options that may be a better fit for your situation, including:
Six-month CD rates can change at any time, and they vary from one financial institution to another, so it's a good idea to compare offers before locking one in.
If you decide that a six-month CD fits your timeline and savings goals, it could be a good time to lock in a good rate if you expect rates to drop soon. Just make sure you won't need the funds before the account matures, and check the early withdrawal penalty just in case something changes and you need to cash out early.
Lock in savings with a certificate of deposit—earn higher interest rates over a fixed term.
Compare accountsTim Maxwell is a former television news journalist turned personal finance writer and credit card expert with over two decades of media experience. His work has been published in Bankrate, Fox Business, Washington Post, USA Today, The Balance, MarketWatch and others. He is also the founder of the personal finance website Incomist.
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