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6 Best 6-Month CD Rates January 2020
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Summary of Best 6-Month CD Rates January 2020
| Bank | APY | Minimum Deposit | Learn More |
|---|---|---|---|
 TIAA Bank | 1.65% | $5,000 | |
 Popular Direct | 1.75% | $10,000 | |
 Vio Bank | 1.65% | $500 | |
 PurePoint® Financial | 1.70% | $10,000 | |
 Sallie Mae Bank | 1.75% | $2,500 | |
 PenFed Credit Union | 1.50% | $1,000 |
| Bank | APY | Minimum Deposit | Learn More |
|---|---|---|---|
TIAA Bank | 1.65% | $5,000 | |
Popular Direct | 1.75% | $10,000 | |
Vio Bank | 1.65% | $500 | |
PurePoint® Financial | 1.70% | $10,000 | |
Sallie Mae Bank | 1.75% | $2,500 | |
PenFed Credit Union | 1.50% | $1,000 |
TIAA Bank
APY
With $5000 minimum balance
Minimum Balance
Member, FDIC
Popular Direct
APY
With $10000 minimum balance
Minimum Balance
Member, FDIC
Vio Bank
APY
With $500 minimum balance
Minimum Balance
Member, FDIC
PurePoint® Financial
APY
With $10000 minimum balance
Minimum Balance
Member, FDIC
Sallie Mae Bank
APY
With $2500 minimum balance
Minimum Balance
Member, FDIC
PenFed Credit Union
APY
With $1000 minimum balance
Minimum Balance
Member, NCUA
» Want to see more options? Check out our list of the best CD rates overall
No-penalty CDs offer more freedom
When you withdraw your money from a CD before the term expires, you generally pay a penalty of at least several months’ of interest earned.
Some providers, however, allow you to withdraw your money before the term expires, with no penalty. Keep in mind that rates may be a little lower for these no-penalty CDs.
The following three banks offer no-penalty CDs:
- Marcus by Goldman Sachs Bank (read NerdWallet's full review)
- CIT Bank (read NerdWallet's full review)
- Ally Bank (read NerdWallet's full review)
Best 6-month CD rates:
- TIAA Bank: 1.65% APY, $5,000 minimum deposit.
- Sallie Mae Bank: 1.75% APY, $2,500 minimum deposit.
- Popular Direct: 1.75% APY, $10,000 minimum deposit.
- PurePoint Financial: 1.70% APY, $10,000 minimum deposit.
- Vio Bank: 1.65% APY, $500 minimum deposit.
- PenFed Credit Union: 1.50% APY, $1,000 minimum deposit.
Last updated on January 2, 2020
Methodology
We featured easy-to-join financial institutions that we've reviewed with the highest CD rates currently listed in NerdWallet's CD rates tool for six-month CDs. For the ZIP code and minimum deposit requirement, we used 94103 and $10,000, respectively. We also included select, standout rates from other trusted online financial institutions that we have reviewed. Higher rates might be available elsewhere.
To recap our selections...
NerdWallet's Best 6-Month CD Rates January 2020
- TIAA Bank: 1.65% APY, $5,000 Minimum Balance
- Popular Direct: 1.75% APY, $10,000 Minimum Balance
- Vio Bank: 1.65% APY, $500 Minimum Balance
- PurePoint® Financial: 1.70% APY, $10,000 Minimum Balance
- Sallie Mae Bank: 1.75% APY, $2,500 Minimum Balance
- PenFed Credit Union: 1.50% APY, $1,000 Minimum Balance
Frequently asked questions
It depends on what's more important to you: rates or access to your money. The current CD rates tend to be higher than the best savings account rates, but you sacrifice access to money in CDs. If that doesn't work for you, check out our list of best online savings accounts.
You should only get a CD if you know you won’t need those funds during its term. Pulling money out of a CD before its expiration date will likely result in an early withdrawal fee, which is typically a percentage of the interest earned.
» Thinking of a longer term for higher yields? Check out the best three-year CD rates
A CD, or certificate of deposit, is a type of savings account that keeps money locked up for a set period or term, generally three months to five years. The longer the CD term, the higher the rate tends to be. See this month's best six-month CD rates.
CD rates are quoted as an annual percentage yield, or APY, which is how much the account earns in one year including compound interest. Banks generally compound interest monthly or daily.
» See what CDs can earn with our CD calculator
It depends on the level of risk you want to take. Investment, or brokerage, accounts can have higher returns than CDs, but CDs guarantee returns. They're typically federally insured for up to $250,000 and offer fixed interest rates. Brokerage accounts can be riskier, since you aren’t protected against losses. See this month's best six-month CD rates.
