Current 6-Month CD Rates in the United States 2026

Understanding 6-Month Certificates of Deposit (CDs)

A certificate of deposit (CD) is a time-bound deposit product offered by banks and credit unions. Investors deposit funds for a specified term, commonly ranging from a few months to several years, receiving a fixed interest rate in exchange. A 6-month CD is a short-term option, providing a balance between accessible investment duration and typically higher interest rates compared to standard savings accounts.

How 6-Month CDs Work

When you open a 6-month CD, you agree to keep money deposited for six months. At maturity, you receive the principal plus interest accrued at a fixed annual percentage yield (APY). Early withdrawals often incur penalties that may reduce overall returns.

Benefits and Considerations

• Predictable returns: Fixed interest rate for the term.
• Safety: Deposits are usually insured up to $250,000 by the FDIC (banks) or NCUA (credit unions).
• Shorter commitment: Less exposure to interest rate fluctuations compared to longer terms.

However, access to funds during the 6-month period is limited without penalties, and rates may not keep pace with inflation.

Interest Rate Environment in the United States (2026)

As of early 2026, the Federal Reserve has maintained stable benchmark interest rates following a series of adjustments in prior years. This stability has contributed to relatively consistent yields in fixed-income instruments, including CDs. The 6-month CD rates are generally in the range of approximately 4.0% to 4.35% APY depending on the financial institution and deposit size.

Interest rates may fluctuate depending on macroeconomic factors such as inflation trends, Federal Reserve monetary policy changes, and market demand for credit.

Typical Terms and Conditions for 6-Month CDs

Minimum Deposit Requirements

Minimum deposit amounts for 6-month CDs vary but commonly start around $500 to $1,000. Some institutions may require higher minimums, especially for promotional rates.

Early Withdrawal Penalties

If funds are withdrawn before maturity, financial institutions typically apply a penalty. This penalty is often expressed as a forfeiture of a portion of the interest earned—commonly equivalent to one or two months of interest. In some cases, penalties may reduce the principal if the withdrawal is very early.

Interest Payment Methods

Interest can be paid at maturity or periodically (e.g., monthly or quarterly) depending on the CD terms. The method of interest payment may affect compounding and overall return.

Typical Costs in United States (2026)

When considering a 6-month CD in the United States, typical terms and rates include:

• Basic option: Minimum deposit around $500-$1,000 with APYs near 4.00% - suitable for smaller savers seeking higher return than a regular savings account.
• Standard option: Deposits from $1,000 to $10,000 offering APYs roughly between 4.10% and 4.25% - includes a broad selection of online and brick-and-mortar institutions.
• Premium option: Larger deposits above $10,000 may yield APYs up to approximately 4.35% - often requiring higher minimum deposits and sometimes offering flexible terms such as no-penalty early withdrawal.

Comparing 6-Month CDs to Other Short-Term Savings Options

Savings Accounts

Savings accounts offer more liquidity but generally lower interest rates than CDs. APYs for savings accounts in 2026 typically range from 0.50% to 1.50%. They are suitable for emergency funds or variable cash needs.

Money Market Accounts

Money market accounts may provide limited check-writing ability and somewhat higher interest rates than savings accounts, usually in the 1.00% to 2.00% range. They offer moderate liquidity but less predictability in rates compared to CDs.

Treasury Bills

Short-term U.S. Treasury bills are government-backed securities with maturities from a few weeks up to one year. These usually offer competitive yields near or slightly higher than CDs, with the benefit of federal tax exemption on interest. They trade on secondary markets, providing liquidity options absent in CDs.

Factors to Consider When Selecting a 6-Month CD

• Interest rate environment: Locking in a rate during periods of rising or stable rates can protect returns.
• Liquidity needs: Understanding potential penalties and timing needs.
• FDIC or NCUA insurance: Verifying deposit insurance ensures principal protection.
• Institution type: Banks and credit unions offer CDs; rates and terms may vary.
• Compounding frequency: More frequent compounding can slightly increase effective returns.

Summary

Six-month CDs in the United States in 2026 provide a fixed-term saving option with generally higher rates than regular savings accounts. They offer balance between return and access, though early withdrawal penalties apply. Rates range approximately from 4.0% to 4.35% APY depending on institution and deposit size. When selecting a CD, considerations include deposit size, liquidity needs, and current interest rate trends.