August 2023’s Best 6-month CD Rates (Up to 5.35%)

August 2023's Best 6-month CD Rates (Up to 5.35%)

Our experts at Insider are always here to answer readers’ banking questions and provide unbiased product reviews. Today, we want to introduce you to a type of savings option that can help you maintain a fixed interest rate for a short period of time – the 6-month CD (Certificate of Deposit).

A 6-month CD offers a great opportunity to earn interest on your savings without committing to a long-term investment. Currently, the national average Annual Percentage Yield (APY) for a 6-month CD is 1.30% APY. However, there are exceptional options available that offer significantly higher interest rates.

One of our top picks is the Popular Direct 6 Month CD, which offers an impressive 5.35% APY. This high-interest rate is appealing, and it’s not the only one. We have compiled a list of the best 6-month CDs available right now, including other top performers like Bank5 Connect, America First Credit Union, Bask Bank, Rising Bank, First Internet Bank of Indiana, Vio Bank, and Western Alliance Bank.

What sets these top 6-month CDs apart is not just their high interest rates, but also their low minimum opening deposits and low early withdrawal penalties. This means you can start saving with as little as possible and still have flexibility if you need to access your funds earlier than expected.

You might be wondering about the safety of your money when depositing it into a 6-month CD, especially considering recent bank closures. Rest assured, our top picks for CDs are protected by FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Administration) insurance. This means your deposits are secure up to $250,000 per depositor in a bank account.

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To help you make the best decision when choosing the right 6-month CD for you, we consulted with four experts in the field: Tania Brown, a certified financial planner at SaverLife; Sophia Acevedo, a certified educator in personal finance and banking reporter for Personal Finance Insider; Roger Ma, a certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”; and Mykail James, MBA, a certified financial education instructor at BoujieBudgets.com.

According to Tania Brown, it’s important to choose a bank that is FDIC insured and fits your preferred banking experience, whether it’s a local bank for in-person transactions or an online bank for digital convenience. Sophia Acevedo suggests prioritizing factors that matter to you, such as whether a bank offers fee waivers or higher than average interest rates.

When it comes to choosing the right CD term length, Roger Ma advises considering when you need the money and comparing current CD rates to find the best match. Mykail James recommends having a clear goal for the money in the CD and selecting a term length that aligns with your timeline for that goal.

Deciding between a high-yield savings account, a money market account, or a CD can be challenging. Tania Brown suggests assessing the amount of money you want to deposit and the level of transactions you plan to have. CDs are ideal for fixed-term savings with limited access, while high-yield savings accounts and money market accounts are better for emergency funds or short-term goals.

To find the best 6-month CDs, we spent hours researching and comparing over 20 banks and credit unions based on factors like minimum opening deposits, early withdrawal penalties, interest rates, customer support availability, mobile app ratings, and ethics. Our mission at Personal Finance Insider is to help you make informed financial choices by providing comprehensive and reliable information.

If you’re interested in learning more, we have included a FAQ section on 6-month CDs, as well as reviews for each of our top picks. Popular Direct stands out with its high interest rate and daily interest compounding. Bank5 Connect is a great option with its low minimum opening deposit. America First Credit Union offers competitive rates and low early withdrawal penalties. Bask Bank has the highest interest rate for a 6-month term. Rising Bank is an excellent choice for accounts with a minimum of $1,000. First Internet Bank of Indiana pays high rates and also offers a top money market account. Vio Bank provides a competitive rate with a minimum deposit of $500. Western Alliance Bank, through Raisin, offers a high yield with a low initial deposit requirement.

If our top picks don’t meet your specific needs, we have also provided alternative options and compared their rates and features. Additionally, we have considered the trustworthiness of these institutions by looking at their Better Business Bureau scores.

Choosing the right 6-month CD can help you maximize your savings, grow your wealth, and achieve your financial goals. So take your time, do your research, and pick the best option that suits your needs. Happy saving!

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