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The July 2022 best 6-month CD rates

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BankEditor’s ratingA standout featureAPYMinimum depositNext steps
Certificate of Deposit from First Internet Bank of Indiana4 /5High interest ratesAPY: 0.60% to 3.25 %$1,000LEARN MORE
TAB Certificate of Deposit4 /5High interest rates1.75% to 3.25 % APY$1,000LEARN MORE
Citi Fixed Rate Deposit Certificates3.25 /5High interest rates0.05% to 2.3% APYFrom $500 to $2,500LEARN MORE
Capital One 360 Certificate Of Deposit (r)4.5 /5No minimum opening depositAPY: 1.00% to 2.9%NoneLEARN MORE
Quontic Certificate Of Deposit3.5 /5High interest ratesAPY: 2.00% to 3.00%$500LEARN MORE
Ally High Yield Certificate Of Deposit4.5 /5No minimum opening depositAPY: 0.60% to 2.9%NoneLEARN MORE
TIAA Basic Certificate Of Deposit4 /5High interest rates0.90% to 2.85% APR$1,000LEARN MORE
Synchrony CD4.5 /5High interest rates0.80% – 3.10% APYNoneLEARN MORE

  • 6 month CD rates at the biggest US banks
  • Find out more about our top picks
  • TAB Certificate for Deposit
  • Citi Fixed-Rate Certificates of Deposit
  • Capital One 360 Certificate Of Deposit (r)
  • Quontic Deposit Certificate
  • Ally High Yield Certificate for Deposit
  • TIAA Yield Promise(r) Certificate Of Deposit
  • Synchrony CD
  • Why Not Included in the Final Cut?
  • Which bank are you most trustworthy?
  • Why should you trust our recommendations?”
  • Frequently Asked Questions

A certificate of deposit (CD), may be an option to help you grow your money and protect it from the volatility of the stock markets.

A 6-month CD allows you to keep a fixed interest rate for a brief period. If you don’t feel comfortable spending your money for longer than six months, this may be a good choice.

The largest US banks offer 6-month CD rates

According to the FDIC, the average national APY for a 6-month CD was 0.12% as of July 2022.

It may be beneficial to bank with a company that you are familiar with. These are some rates that you can expect to earn on a 6-month CD from some of the most well-known institutions.

BankAPYNext steps
Citibank1.10%More
Capital One1%More
PNC Bank0.01% to 0.3%More
TD Bank0.05%Learn more
Bank of America0.03%Find out more
Chase Bank0.01% to 0.5%More
US Bank0.05%More
Charles Schwab Bank2.21%Learn more
Wells Fargo0.01% to 0.2%More

Find out more about our top picks

First Internet Bank of Indiana Certificate of Deposit

First Internet Bank of Indiana Certificate of Deposit

Annual Percentage Yield

APY: 0.60% to 3.25 %

Minimum Deposit Amount

$1,000

It stands out because: First Internet Bank of Indiana offers 6-month CDs at a competitive rate. And contrary to what its name might lead you to believe this bank is only available to residents of all 50 states.

Interest for 6-month CDs: 1.16% APY

6-month CD Early Withdrawal Penalty: 180 Days Interest

You should be aware that First Internet Bank of Indiana compounded your interest monthly and not daily. This will depend on how much money you have in your CD. A bank may charge less to withdraw money from an earlier 6-month CD.

TAB Certificate for Deposit

TAB Certificate for Deposit

Annual Percentage Yield

1.75% to 3.25 % APY

Minimum Deposit Amount

$1,000

TAB Bank offers excellent rates. You have the option to receive interest in a variety of ways. You can keep your money in a CD or receive a check. Or you can transfer it to another TAB bank account.

Interest for 6-month CDs: 1.75% APY

You should be aware of the following: Some top picks have lower early withdrawal fees.

Citi Fixed-Rate Certificates of Deposit

Citi Fixed-Rate Certificates of Deposit

Annual Percentage Yield

APY: 0.05% to 2.3%

Minimum Deposit Amount

From $500 to $2,500

It stands out because Citibank offers a competitive interest rates for 6-month CDs.

6-month CD Early Withdrawal Penalty: 90 Days Simple Interest

6-month CD interest: 1.10% APY

Be aware: Citibank’s CD rates aren’t always as competitive. It is possible that the minimum deposit needed to open a CD depends on where you live.

Capital One 360 Certificate Of Deposit (r)

Capital One 360 Certificate Of Deposit (r)

Annual Percentage Yield

APY: 1.00% to 2.9%

Minimum Deposit Amount

Capital One offers a competitive 6-month CD interest rate. You don’t need to make a minimum deposit.

6-month CD Early Withdrawal Penalty: 90 Days Simple Interest

6-month CD interest: 1% APY

You should be aware that your banking experience will vary depending on where and when you live. There are branches of the bank in Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia, Washington, DC, and New Jersey. You can bank online even if you are not located in these areas.

Quontic Deposit Certificate

Quontic Deposit Certificate

Annual Percentage Yield

APY: 2.00% to 3.00%

Minimum Deposit Amount

$500

It stands out because Quontic offers a competitive 6-month CD interest rate. You can also deposit $500 as a minimum opening deposit.

2.0% APY for 6-month CD

6-month CD Early Withdrawal Penalty: All Interest Earned

Be aware that Quontic has high early withdrawal penalties. You may be concerned about withdrawing money from a CD too early.

Ally High Yield Certificate for Deposit

Ally High Yield Certificate for Deposit

Annual Percentage Yield

APY: 0.60% to 2.9%

Minimum Deposit Amount

It stands out because Ally allows you to open a CD starting at $0, and you will earn a high interest rate. An Ally CD has a lower early withdrawal penalty than other top choices.

Interest for 6-month CDs: 1% APY

6-month CD Early Withdrawal Penalty: 60 Days Interest

You should be aware that Ally does not have physical branches. Instead, you will need to feel comfortable banking online only. You might also find higher interest rates at other financial institutions.

TIAA Yield Promise(r) Certificate Of Deposit

TIAA Basic Deposit Certificate

Annual Percentage Yield

APY: 0.90% to 2.85%

Minimum Deposit Amount

$1,000

It stands out because TIAA offers a competitive interest rate on its 6-month CD.

Interest for 6-month CDs: 1% APY

6-month CD early withdrawal penalty: One fourth of the total interest earned (approximately, 45 days).

You should be aware that TIAA requires a minimum $1,000 opening deposit. Some financial institutions may require lower initial deposits.

Synchrony DVD

Synchrony CD

Annual Percentage Yield

0.80% – 3.10% APY

Minimum Deposit Amount

It stands out because Syncrhony has higher CD interest rates than other financial institutions.

Interest for 6-month CDs: 1.30% APY

6-month CD Early Withdrawal Penalty: 90 Days Interest

Be aware of: While the early withdrawal penalties can be quite steep, some of our top picks have lower penalties.

Why other CDs didn’t make it to the final cut?

  • Navy Federal Credit Union Standard Certificate – While the interest rates at Navy Federal Credit Union are solid, our top picks have much higher rates.
  • Marcus by Goldman Sachs, High-Yield CD : While Marcus has a solid interest rate, some of our top picks have higher rates or lower opening deposits.
  • NBKC: NBKC offers attractive interest rates for long-term CDs but not as strong short-term CDs.
  • Live Oak Bank CD – Live Oak Bank offers an attractive interest rate but requires a minimum deposit of $2,500.
  • Sallie Mae Certificate Of Deposit: Sallie Mae offers a solid rate of interest, but you will need to make a minimum deposit of $2,500.
  • Discover CD: While Discover offers competitive rates for long-term CDs with attractive interest rates, its short-term CDs don’t offer the same strength.
  • Pentagon Federal Credit Union Money Market Certificate The interest rate at Pentagon Federal Credit Union is competitive, but early withdrawal penalties are higher than our top picks.
  • Popular Direct CD – Popular Direct offers great long-term interest rates, but not as strong short-term CDs.
  • Charles Schwab Bank certificate of deposit: Charles Schwab brokered CDs. This means Charles Schwab does not actually own the CD. Charles Schwab is a middleman between you and the bank who owns the CD. You may prefer to open a CD directly with your bank depending on the way it works.
  • American Express CD – American Express has a great interest rate. However, our top picks have even better rates.
  • BMO Harris CD – To open a CD, BMO Harris requires a minimum deposit of $1,000 to $5,000
  • CIT Bank Certificates of Deposits (CD),: We have other institutions that offer higher interest rates.

Which bank is most reliable?

We have compared the Better Business Bureau scores of each financial institution. BBB rates businesses on customer satisfaction, honesty in advertising and transparency about business practices. Here’s each company’s score

InstitutionGrade BBB
First Internet Bank of IndianaA+
TAB BankA+
CitiF
Capital OneA-
Quontic BankA+
AllyC-
TIAAA-
SynchronyA+

BBB has given Capital One, Ally and Citi a lower rating than A.

Capital One was awarded an A- rating by the BBB due to its high volume of customer complaints. Ally was given a C- rating due to the high number of customer complaints and 3 unresolved grievances against it. Citi received an F rating because of unresolved customer complaints and government actions against the company.

Recent public controversies have also involved Citibank, Capital One and TIAA.

2020: The Office of the Comptroller of Currency ordered Capital One to pay $80 millions in a settlement. This was due to the fact that Capital One had inefficient security procedures, including personal information of bank cardholders.

Citi was ordered to pay $400 million to settle the case in 2020. The settlement was made by the Federal Reserve and Office of the Comptroller of the Currency. This settlement was necessary because Citi failed to recognize money laundering from its customers.

In 2021, TIAA paid $97 Million in restitution for customers who were forced to move retirement investments to the company’s higher fees accounts.

Trust our recommendations.

Personal Finance Insider is dedicated to helping smart people make smart decisions about their money. We know that the definition of “best” can be subjective so we highlight the obvious benefits of financial products or accounts, such as high APY. However, we also outline the limitations. So that you don’t have too, we spent hours comparing the features and fine print across various products.

Questions frequently asked

What is a CD?

A certificate of deposit (or CD) is a time-sensitive savings account. It holds your money at a fixed rate of interest for a set period. A CD, or certificate of deposit, can provide a guaranteed return on your money if you don’t have immediate access to your savings. You lock in an APY fixed for the term.

Most institutions won’t allow you to deposit more money, or access your funds prior to the CD matures.

However, you will earn interest on the amount. You have the option of collecting those monthly payments or reinvesting them in your CD. Many banks offer different rates for different deposit amounts and terms. In many cases, the higher the rate, the longer the term.

You’ll usually have a 10-to-14-day grace period after the maturity date of the CD. This allows you to withdraw your money, close the account, or renew the term.

What is a 6-month CD?

A 6-month CD allows you to stash away money for 6 months at a fixed rate. You can choose to either renew your CD after the 6-month period ends or to close the account and keep the money.

What is the process of CD rates?

Most CDs lock you in to your rate for the whole term. If you have a 6-month CD with a 0.40% annual percentage rate, you will earn 0.40% over the six-month period. You’ll get the current rate if you renew your CD within six months of it maturing.

There are exceptions to this fixed-rate rule. Some institutions offer variable rate CDs, or CDs that allow you to adjust your rate after a certain time.

Which CD is better: A 6-month, 1-year or 5-year CD?

CDs with 5-year or 1-year terms have higher rates than those with 6-month terms. To earn higher interest rates, you may choose to have your term extended beyond six months.

Your decision will ultimately depend on when you need the money. If you need the money to purchase a house in a short time, it is not a good idea to go for a longer term.

If rates rise in a given year, a shorter term will give you the chance to get a better APY. Higher rates could be missed if you choose a 1-year CD or 5-year CD. If rates fall later, you can avoid paying lower rates by opting for a 1-year or 5-year CD.

Experts recommend CD laddering. This strategy allows you to open multiple CDs of different terms so that you can get higher rates and access your money sooner. You might open 6-month, 1-year and 5-year CDs simultaneously. This will allow you to get some of your money back within six months, more in one year, and more in five years.

What is better: a 6-month CD, or a high-yield savings plan?

Your decision between a 6-month CD or high-yield savings account is influenced by many factors.

First, institutions often pay higher rates for high-yield savings accounts that 6-month CDs than they do on high-yield savings account. However, this is not always true so double-check.

The rate locked in by a CD is good for the whole term. A CD could be a better option if rates drop, as your savings account APY may decrease in the coming months. The savings account may be better if rates are rising. Your rate could rise. There’s a good chance that rates will fluctuate for six months.

It all depends on how often you need to access your money. Access to your savings account funds should be possible. However, you will need to pay a fee to get money from your 6-month CD that has not yet matured. You can also add money to your savings account continuously, but most CDs prohibit you from making additional deposits once the account is opened.

Which is better: a 6-month CD, or a money-market account?

If you need quick access to your money, a money market account may be better than a CD. You may also find that rates for money market accounts fluctuate. If rates are rising, you might prefer a money-market account, while a CD is better if they are falling. Remember that rates are likely to fluctuate over a 6-month period.

Banks may require higher deposits to open money market accounts than for CDs. This could impact your decision. You should also remember that your money market account can be accessed over time with more funds than a CD, while a CD is limited to an initial deposit.

Which investment account is better: a 6-month CD, or an alternative?

CDs are not considered investments in the same way as an index funds which invests your money in the stock market. A CD is more like a savings account. Your risk is lower and you are less likely to lose or gain. Experts don’t recommend investing in money that you won’t need within the next five years, as the stock market can be risky. You wouldn’t be able to make up the losses if the stock market drops.

A 6-month CD is better than any other type of investment account if you need to access your money within six months and are looking for a guaranteed rate return.

You might consider investing in the stock market if you are comfortable with parting with your cash for a longer period of time and are willing to take on more risk. You can do this by investing in tax-advantaged retirement funds, such as a 401(k), IRA or IRA. This will allow you to grow your money over many decades. Another option is brokerage accounts. These are great tools for building long-term wealth but don’t guarantee a certain return like CDs.

An IRA CD is a combination savings/investment account. This is a safe investment option that could be worth considering for those who are near retirement.

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