|
You might be using an unsupported or outdated browser. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. |
SCROLL TO SITE
A six-month CD can help increase your savings without making a long-term commitment. Picking the bank or credit union with the highest annual percentage yield (APY) may seem like the simplest way to go about choosing a CD. However, it’s important to consider several other factors before investing.
We’ve compared 100 CD accounts at 70 nationally available banks and credit unions to find some of the best accounts available. See below to learn more about why we picked each account, the pros and cons, and to access individual bank reviews.
APYs and account details are accurate as of August 31, 2021.
0.55%
$500
Daily
Quontic was named best overall bank for CDs on Forbes Advisor’s Best CD Rates of 2021. It also offers innovative online and mobile tools—precisely what you would expect from an online bank. Quontic’s user-friendly mobile app is available on both iOS and Android.
Quontic Bank’s six-month CD pays a very competitive 0.55% APY. It has a relatively low minimum deposit requirement and the interest earned compounds daily.
You can fund your account by transferring money from an existing Quontic account, from another bank, by ACH transfer or by mailing a check.
Read our full Quontic Bank review.
Details
Interest is compounded daily and credited monthly. The early withdrawal penalty of the Quontic Bank six-month CD is the interest earned on the full length of the term. Once the account matures, there’s a grace period of 10 days to withdraw funds.
0.40%
$1,000
Daily
TAB Bank, founded in 1998, got its start offering banking services that focused on the trucking industry. Since then, its services have expanded to include both personal and business banking services, including checking, savings, money market and CD accounts.
TAB Bank’s six-month CD product earns a competitive 0.40% APY over the term. The up-front minimum deposit requirement is $1,000. Interest is compounded daily. You can withdraw interest any time during the term after it’s credited to your account, but withdrawing interest will reduce earnings.
TAB Bank also has online and mobile banking capabilities. Both its iOS and Android apps are very highly rated.
Read our full TAB Bank review.
Details
Interest is compounded daily and credited to the account monthly, quarterly or annually. The early withdrawal penalty is equal to 90 days of simple interest. Once the CD matures, you will have 10 days to withdraw the funds or renew the CD.
0.45%
$1,000
Daily
Limelight Bank only offers CDs, making it a much different financial institution than the others listed. The six-month CD offers a competitive 0.45% APY, along with having a modest minimum deposit requirement.
Limelight is an environmentally conscious bank and uses portions of its funds to support solar energy initiatives.
For those who prefer mobile banking, Limelight uses the app of its parent company, Capital Community Bank (CCBankUtah). It is available for both iOS and Android.
Read our full Limelight Bank review.
Details
Interest compounds daily and is credited monthly. If you withdraw money early, the penalty is 90 days of interest. Once the CD matures, there’s a 10-day grace period to withdraw funds without penalty.
0.45%
$1,000
Daily
iGObanking’s six-month CD pays 0.45% APY, a competitive rate. It has a manageable minimum deposit requirement and interest compounds daily.
Savers can withdraw interest at any time after it’s credited to your account, but there’s a penalty for withdrawing the principal.
Read our full iGObanking review.
Details
Interest is compounded daily and credits monthly. The early withdrawal penalty of the iGObanking six-month CD is three months of simple interest on the amount withdrawn. Once the account matures, there’s a grace period of seven days to withdraw funds.
0.35%
$1,000
Daily
DollarSavingsDirect, the online banking division of Emigrant Bank, offers a six-month CD that earns a more modest 0.35% APY. The initial deposit is $1,000, and interest is compounded daily and credited monthly.
There is no mobile app, but users can open and manage their CD accounts online.
Read our full DollarSavingsDirect review.
Details
The DollarSavingsDirect six-month CD earns interest daily and credits to the account monthly. If you need to withdraw funds early, the penalty is equal to 90 days of interest, earned or unearned. Once the CD has matured, there is a 10-day grace period to withdraw the funds for another use or to renew the CD.
If a six-month CD is of interest to you, it is important to consider several factors when shopping. First and foremost, consider the APY. But also consider compound interest frequency. It’s best to have a CD that compounds interest as often as possible (daily) to earn the best return on investment.
In addition, be sure to look at early withdrawal fees. These fees can be costly if you need to access your deposit before the maturity date.
Before depositing money into a CD, plan ahead. If you think you may need to access your money before the end of the six-month term, you may find that a savings account or money market account is a better option.
To create this list, Forbes Advisor analyzed 100 CD accounts across 70 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each institution on 10 data points within the categories of APY, minimums, compound interest schedule, customer experience, digital experience, available terms and overall availability. Then we analyzed each individual account by term.
The following is the weighting assigned to each category for the star rating:
CD accounts with the highest APYs rose to the top of this list. Minimum deposit requirements of $10,000 or higher affected scores negatively. Accounts with daily compounding interest schedules were scored higher than those with monthly or quarterly schedules. To appear on this list, the account must be nationally available.
A CD (certificate of deposit) is an interest-bearing, time deposit account offered by banks and credit unions. It gives savers a place to hold funds while earning interest safely. Banks and credit unions offer various types of CDs at different terms and rates. In addition to traditional CDs, there are no-penalty CDs, bump-up CDs and other types of CDs available.
Think of CDs as lending money to a bank or credit union for a set period. The financial institution holds your money for a set amount of time. In return, it pays you back your initial investment plus interest at the end of the CD’s term. Before you select your CD’s term, be sure you’ve considered how CDs fit into your saving plan.
CD rates frequently change. Traditionally, tying up your money in a longer term CD has rewarded you with a higher interest rate. However, in the current low interest rate environment, this is not necessarily true. You may find shorter terms that offer higher rates or you may receive the same APY no matter what term you choose. Forbes Advisor’s list of The Best CD Rates 2021 is updated regularly.
Brett Holzhauer is a former banking and personal finance reporter for Forbes Advisor. Previously, he was reporting at ValuePenguin and FinanceBuzz, and has been featured in numerous publications. An alum of the Walter Cronkite School of Journalism at Arizona State, when he is not reporting, Brett is likely scuba diving, golfing or watching college football. He tweets regularly at @brett_holzhauer.