Best 6-Month CD Rates: Up to 4.25% for July 2025

6-Month CD Rate Trends

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%.

6-month CD National Rate, 2020 to 2025

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.

How Much Can You Earn With a 6-Month CD?

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.

Source: Curinos LLC, July 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?

How to Find the Best 6-Month CD

Here are a few smart tips to help you choose the best CD account to stash your cash while earning a high yield:

• Shop for the best rate. You can find six‑month CDs paying higher-than-average rates by comparing rates from several financial institutions.
• Check minimum deposit requirements. Most banks require a minimum deposit between $500 and $2,500 to open a CD account, though some have no minimum at all. Jumbo CDs can require $100,000 or more. Higher deposit amounts often result in higher yields, but some banks assign the same rate to all accounts.
• Make sure you won't need the money. If you need to withdraw funds before the CD matures, you'll likely face an early withdrawal penalty. Penalties vary, but generally you'll lose some of the interest earned or pay a small fee.

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.

Is Now a Good Time to Get a 6-Month CD?

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.

Pros and Cons of 6-Month CDs

A six-month CD may deliver valuable benefits like higher yields than other CD terms, but you should also be aware of the drawbacks.

Learn more: The Pros and Cons of Certificates of Deposit (CDs)

Alternatives to 6-Month CDs

Before opening a six-month CD, consider other options that may be a better fit for your situation, including:

• CDs with different terms: If you're unsure whether you'll need the money in six months, a three-month CD might be a more comfortable starting point. And even if you can find a short-term CD that offers higher yields, you might consider a long-term CD now to secure a solid rate before they potentially fall. If you anticipate rates will rise, you can start with a short-term CD and then reinvest your money into a longer-term CD later to lock in a higher yield.
• High-yield savings account: These accounts usually pay out much higher yields than traditional savings accounts and, unlike CDs, you can generally withdraw funds at any time penalty-free. Be aware, however, that some banks and credit unions limit the number of transactions you can make in a month. The best high-yield savings accounts offer APYs in the 4% to 5% range.
• Money market account: These accounts offer lower APYs than six-month CDs, but they combine the best features of savings and checking accounts. Money market accounts earn interest like a savings account and most allow you to write checks and use a debit card.
• Treasury securities: These low-risk investments, including Treasury bills, notes and bonds, are issued by the U.S. Department of the Treasury. If you're looking for a safe place to keep your money, you can rest assured knowing it's backed by the full faith and credit of the U.S. government.

Frequently Asked Questions

The Bottom Line

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.