The best six-month CD for savers who don't want to wait a full year to tap into their funds (2024)

Editor's Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC will update as changes are made public.

Certificates of deposits(CDs) stand out from other savings accounts most notably for offering a fixed interest rate for the entire length of the CD term. This means that your money grows without the risk of yourrate dropping(which can happen with a high-yield savings account), and you are guaranteed a return without worrying about thevolatility of the stock market.

For those just dipping to their toe into the CD savings pool, it's best to start with a short-term CD. Once you put money into your account, that one-time deposit is locked away until the CD term is up (unless you want to pay a withdrawal penalty fee). Typically, you can't make any additional contributions either during your CD term.

A three-month CD is great for beginners but if you're looking for a slightly longer term, a six-month CD can be a good option. You'll earn a bit more interest during the extra three months, but you don't have to wait a full year to tap into your funds.

The iGObanking High-Yield iGOcd® ranks on CNBC Select's list of the top CD savings accounts because, with a fixed 0.60% APY, it offers an interest rate that's more than five times the national six-month CD average.

Below, we take a closer look at the six-monthiGObanking High-Yield iGOcd by breaking down its annual percentage yield (APY), access to your cash, perks and fees so you can decide if this savings account is right for you.

• APY
• Access to your cash
• Perks
• Fees
• Bottom line

The iGObanking High-Yield iGOcd currently offers a fixed 0.60% APY on its six-month CD. With the national average rate for a six-month CD at0.11% APY,according to the FDIC, this is more than five times the national average.

iGObanking compounds interest daily and credits it to your account monthly. Note that when you have a CD term less than a year, the APY is still calculated as if you were holding that money in the account for a year, giving you a portion of that interest. Generally, longer term CDs — with a larger deposit and a higher interest rate — will earn you the most money.

iGObanking is the online banking division of Flushing Bank, a commercial bank with branches throughout New York. For those interested in more than just CDs, it offers a variety of products online, including savings, checking and money market accounts.

Just like other traditional and high-yield CDs, users don't have access to their cash until their CD term length is up (unless they withdraw early for a penalty fee).

Once your six-month term length ends, your iGObanking High-Yield iGOcd renews automatically at the current interest rate being offered by iGObanking at that time. You can also access your money, add additional funds to your CD or transfer your matured CD (including interest) to another iGObanking online account or another account at a different financial institution.

For interested savers, iGObanking's website has a thoroughFAQ section (which not all online banks offering CDs have).

As a standout feature, iGObanking offersGiftsforBanking CDs that offer longer term lengths and higher interest rates for customers looking to make bigger deposits. Customers are also rewarded with a free present from the bank's gift catalog, such as sporting equipment and vacations. A minimum balance of $25,000 is required to open a GiftsforBanking CD, and the value of the gift increases with the more money you deposit.

You'll need to complete an online application to open an iGObanking High-Yield iGOcd. Come prepared with your Social Security number or ITIN/TIN, a valid mailing address (P.O. boxes are not accepted) and your current U.S. bank accountand routing number for making the initial deposit.

The minimum deposit is $1,000 to open and start earning interest with a six-month iGObanking High-Yield iGOcd. Though this is on the higher end of the online CDs we rated in our top five (some require only a $500 deposit or even zero), opening deposits for CDs could go much higher. There are no monthly maintenance fees, which is typical of CDs.

If you withdraw your money early, you could get hit with a penalty fee equal to three months of simpleinterest(versus compound interest) on the amount you withdraw. This early withdrawal penalty fee is less strict than others, some which make users pay all the interest earned during their CD term.

The six-month iGObanking High-Yield iGOcd earns savers a higher-than-average interest rate and the option to earn even higher (plus free gifts) through its GiftsforBankingCDs. Any questions you have are likely answered in the website's thorough FAQ section.

While the early withdrawal penalty fee is less strict than others, we suggest waiting your until your six-month CD term is up before touching your funds. Luckily, six months isn't too long. For a shorter term, choose CNBC Select's favorite three-month BrioDirect High-Rate CD, and for a bit longer term, the one-year CFG Community Bank CD.

To determine which certificates of deposit (CDs) offer the best return on your money,CNBC Selectanalyzed dozens of CD accounts offered by online and brick-and-mortar banks, including large credit unions. We narrowed down our ranking by only considering those high-yield or traditional CDs that offer competitive APYs, or higher-than-average rates, as well as low minimum deposits requiring $1,000 or less to open an account and zero monthly maintenance fees (which is typical of CDs).

We did not include CDs offered by credit unions on this list, as well as specialty CD types like no-penalty CDs (for easy withdrawals), add-on CDs (for making additional contributions), jumbo CDs (for large deposits) and IRA CDs (for retirement).

When rating our top five CD accounts, we ranked the best in the following categories: three-month CD, six-month CD, one-year CD, three-year CD and five-year CD.

While the accounts we chose in this article consistently rank as having some of the highest APY rates, we also compared each CD account on a range of features, including penalties for early withdrawal, website and mobile features, insurance policies and customer reviews when available. We also considered users' deposit options and the frequency with which the interest compounds.

All of the CD accounts included on this list are FDIC-insured up to $250,000 per person. If you are opening a joint account CD with a spouse, the insurance limit is doubled.

The rates and fee structures banks advertise for their CD accounts are not guaranteed forever. They are subject to change without notice and they often fluctuate in accordance with the Fed rate. If you open a CD account, however, you are locked into that APY offered at account opening for the entire term length.

Your earnings depend on the CD term length, the amount you deposit, the APY offered when you opened the account and any associated fees. Generally, a longer term with a larger deposit and a higher interest rate will earn you the most money. Any early withdrawals may result in penalty fees that lower your principal balance/earnings.

To open a CD account for the first time at a bank, most banks and institutions require a deposit of new money, meaning you can't transfer money you already had in an account at that bank.