- You can find certificates of deposit (CDs) with rates as high as 6% at a few financial institutions. However, these rates aren’t available at traditional banks.
- Typically, these high-yield 6% CDs come with maturities of 12 months or less.
- Pros of a 6% CD include locked-in interest rates and high returns. Cons include needing credit union membership and penalties for early withdrawal.
- Some financial institutions that currently offer high-yield CDs include Barclays, Sallie Mae, Valley Direct, Quontic and Bask.
- If you’re looking for alternatives, 5% CDs, high-yield savings accounts and money market accounts are other good options.
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6% CD Rates: Where to Find Them & How to Apply
Reviewed By
Blake Esken - Los Angeles Times
Our recommended CDs for maximum returns
Advertiser Disclosure
Valley Direct 6-month CD
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FDIC Insured
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APY
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Term Length
6 months
Minimum Opening Deposit
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Why We Like It
Editor's take
The Valley Direct six-month CD is an excellent option if you’re looking to boost your returns in a short time. With a competitive interest rate, it offers an appealing incentive for those willing to lock in their funds for six months. The minimum deposit is $500, which makes it accessible to a wide range of investors.
Keep in mind that you must open the CD with “new money,” meaning your funds should come from an external source. Once you open the CD, no additional deposits can be made until maturity, which could limit your flexibility.
The account comes with a maximum deposit limit of $500,000, making it suitable for significant investments. If you need to access your money early, be aware that there’s a penalty equal to 90 days’ interest on the amount withdrawn.
The lack of customer support on weekends might be inconvenient for some users. Additionally, interest is compounded quarterly, which is less frequent than some other CDs that offer monthly or even weekly compounding.
In summary, the Valley Direct six-month CD is a practical option if you’re ready to commit your funds for the full term. It’s well-suited for those focusing on short-term, high-yield investing without the need for immediate access to cash.
PROS
- Competitive APY
- Accessible minimum deposit
- No maintenance fees
CONS
- Must deposit new money
- Limited customer support
- Quarterly compounding
Sallie Mae 14-month CD
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FDIC insured
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APY
4.00%
Term Length
14 months
Minimum Opening Deposit
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Why We Like It
Editor's take
The Sallie Mae 14-month CD is a good choice for you if you want competitive returns on a relatively short investment. Interest is compounded daily, which helps your savings grow more over time.
With a minimum opening deposit of just $1, this CD is accessible for almost anyone. However, if you need to withdraw your money before the term ends, keep in mind that there’s a penalty equal to 180 days of interest, which could reduce your overall earnings.
The CD also automatically renews, so you don’t have to do anything to keep your investment going. Just remember that the interest rate and terms may change upon renewal, so it’s wise to review those details as your maturity date approaches.
In summary, the Sallie Mae 14-month CD may be a great option for you if you can commit to the full term and don’t need to access your money early.
PROS
- Competitive rates
- Automatic renewal option
- No monthly fees
- Insured by the FDIC
CONS
- No physical brances
- Fee for returned deposits
Quontic 6-month CD
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FDIC Insured
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APY
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Term Length
6 months
Minimum Opening Deposit
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Why We Like It
Editor's take
The Quontic six-month CD works well for savers who want competitive rates and are comfortable with online banking. With a $500 minimum opening deposit, it’s accessible to many and offers an easy entry into short-term savings.
You’ll get a competitive APY, and the interest earned is compounded daily. Plus, there’s a 10-day grace period after maturity for penalty-free withdrawals, which gives you some flexibility when the CD ends.
One thing to keep in mind is that if you withdraw your money before the six months are up, you’ll lose all the interest earned—a larger penalty than most other banks charge. Quontic is also a digital-only bank, so there are no physical branches or cash deposit options. However, their mobile app, available on iOS and Android, is user-friendly and packed with helpful tools for managing your account.
Overall, the Quontic six-month CD is a practical fit if you want strong rates and don’t mind handling everything online.
PROS
- No monthly service fee
- Takes less than 3 minutes to open an account
- Innovative online tools
- Insured by the FDIC
- Accessible minimum deposit
CONS
- High early withdrawal penalty
- No physical branch locations
- Doesn’t accept cash deposits
Bask Bank 6-month CD
FDIC Insured
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APY
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Term Length
6 months
Minimum Opening Deposit
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Why We Like It
Editor's take
The Bask Bank six-month CD is a great option if you want a short-term investment with a competitive interest rate. Interest compounds daily, which helps your money grow faster than with many other CDs that compound less often. Plus, you have 10 business days to fund your account after opening, so you don’t need to deposit immediately.
When the CD matures, you have a 10-day period to withdraw your funds, add more money, or switch to another Bask Bank CD. This flexibility is useful if you plan to review your financial situation every six months.
However, the $1,000 minimum deposit means this CD is best for those who can comfortably set aside that amount for six months. If you need to withdraw early, there’s a significant penalty of three months’ worth of interest. So, it’s important to be sure you won’t need access to your funds before the term ends. Additionally, you can’t add more money to the CD once it’s funded, so if you have extra savings later, you’ll need to wait until it matures to make changes.
In short, the Bask Bank six-month CD may be a good fit for you if you’re looking for short-term growth without a long-term commitment, as long as you’re okay with the early withdrawal penalties and funding restrictions.
PROS
- Competitive APY
- Interest compounds daily
- No monthly maintenance fees
- Insured by the FDIC
CONS
- $1,000 minimum opening deposit
- Early withdrawal penalty equal to 3 months of interest
Can you get 6% on a CD?
You can lock in a 6% CD rate, but you’ll need to qualify for membership with a smaller credit union or explore other types of financial institutions, as traditional banks aren’t offering these rates right now.
These 6% rates are typically for CDs maturing in 12 months or less. Financial institutions offer these attractive rates to bring in new customers but prefer not to guarantee them for longer terms.
If you find a credit union with these attractive rates, you’ll need to meet their membership requirements, which may include working for certain employers, living in specific areas, or qualifying through other criteria, such as being a military veteran or attending a local college.
Even after joining, there may be extra conditions to earn the 6% rate, like maintaining a minimum deposit or keeping your total deposit below a certain limit. Additionally, many of these rates are promotional and often exclusive to new members only.
If you don’t qualify to join a credit union offering a 6% CD rate, there are still great options. Some of the best CDs offer a 5% return, which is still a very respectable ROI.
Where can I get 6% on a CD?
Although no national banks currently offer 6% CDs, some local credit unions do provide them.
Financial Partners Credit Union
Financial Partners Credit Union offers an eight-month Special CD with a 6.50% APY. This offer is limited to new members and requires a minimum deposit of $1,000, with a maximum deposit of $5,000.
To join the credit union, you must live, work, or attend school in Orange County, San Diego County, Riverside County, Los Angeles County, South San Francisco or Alameda.
California Coast Credit Union
California Coast Credit Union is celebrating its 95th anniversary with a special 9.50% APY CD offer.
To qualify, you must live or work in San Diego, Los Angeles, Ventura, Riverside, Orange, Imperial, or San Bernardino counties. You’ll also need to deposit between $500 and $3,000, commit to a five-month CD term, and fund the account with new money (no transfers from existing accounts). Additionally, you must have an active checking account with eStatements or maintain a balance of at least $5,000 in another account type, like a money market or IRA certificate.
How much can I earn with a 6% CD?
How much you’ll earn with a 6% CD depends on a few factors, such as the amount of money you deposit and the length of the CD term.
To help you understand your potential earnings, we’ve calculated returns for a $5,000 deposit over one year.*
Earnings on a 6% CD
*The calculations shown above are just simple examples. Always seek advice from a qualified professional before making important financial decisions or long-term agreements.
Discover your potential earnings with our CD calculator.
Pros and cons of a 6% CD
Pros
- You get a very high return on your money
- 6% is much higher than the national average rate for a 12-month CD of just 1.88%
- CD funds are protected by the National Credit Union Administration for up to $250,000 (similar to FDIC protection available for bank deposits)
- Certificates of deposit are a fairly low-risk investment, with rates locked in and your funds less vulnerable to market shifts
Cons
- All current 6% CDs are offered by credit unions, which require membership
- You may have to meet other requirements to qualify for a top-tier 6% rate
- Money put into a CD is locked in for the duration of the CD’s term
- There may be penalties for withdrawing money from your CD before it matures
CD factors to consider
It’s important to consider these CD features before opening an account.
1
CD term
This is the length of time your money will be locked in the CD. Short-term CDs usually offer higher rates than long-term ones, so you’re more likely to get a 6% rate on a CD maturing in 12 months or less. CDs with longer terms, like five or 10 years, often have rates of 3.00% or lower.
2
Minimum deposit
Each institution sets its own minimum deposit requirement, which is the smallest amount needed to open a CD.
3
Maximum deposit
Some high-rate CDs have deposit limits that restrict how much you can invest. However, these limits are typically generous, with some allowing up to $25,000 or even $50,000.
Compare top CD rates
Financial institution
APY
Term length
Minimum opening deposit
More details
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5 years
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Backed by issuing insurance company
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12 months
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NCUA Insured
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6 months
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12 months
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Alternatives to 6% CDs
One important thing to note is that CDs with 5% and 6% rates are usually limited to short-terms like three-month CDs or six-month CDs. And those rates could disappear altogether once your CD has matured. Whether you’re looking for noncredit union investment options today or want to put a plan in place in case 6% CD rates dry up down the road, these alternatives may be just the ticket.
5% CDs
While 6% CDs are still relatively hard to find, 5% CDs are far more prevalent, especially at credit unions and online-only banks. This 1% dip in interest isn’t desirable, but neither is it a total disappointment. It’s still well above the national average 12-month CD interest rate of 1.88%, and it’s comparable to or slightly higher than many interest rates tied to money market and high-yield savings accounts.
Suitable for large investments
Valley Direct 6-month CD
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FDIC Insured
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APY?
apy
Term Length?
6 months
Minimum Opening Deposit?
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User-friendly online banking
Sallie Mae 14-month CD
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FDIC insured
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APY?
4.00%
Term Length?
14 months
Minimum Opening Deposit?
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Offers innovative digital tools
Quontic 6-month CD
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FDIC Insured
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APY?
disclosure
apy
Term Length?
6 months
Minimum Opening Deposit?
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High-yield savings accounts
High-yield savings accounts pay out higher-than-average interest rates. This often tiptoes into 4.00% APY or higher, with some online banks offering APY of over 5.00%. These rates line up with many of the advertised interest rates for CDs, but the two investment options have very different terms.
While a certificate of deposit is a termed account, meaning you’re essentially locking up your money for the duration of the investment, savings accounts offer more accessibility. You can make regular deposits and withdrawals without penalty, though you may be assessed fees if you exceed your institution’s monthly or yearly transaction limit.
Another difference between CDs and savings accounts is how stable your interest rate is. The interest rate you’re given when you open a CD will remain the same until the investment matures. However, saving accounts with variable APY might have interest rates that go up or down depending on the market.
Compare high-yield savings accounts
Money market accounts
Money market accounts combine the best aspects of checking and savings accounts. You’re free to make transactions, and you’ll usually get a debit card to use at ATMs and for point-of-service purchases. But there may be transaction limits you’ll need to abide by in exchange for interest rates that are significantly higher than you’d get with a regular checking or savings account.
The key benefit of a money market account compared to a CD is its flexibility. You can access your money and add to the account at will. But CDs have those locked-in interest rates and typically offer higher APY than you’d get with an MMA.
Annuity accounts
Annuity accounts are another option with appealing interest rates. They’re typically offered by insurance companies and are designed for people planning for a steady income in retirement. One example is FastBreak from Gainbridge Life Insurance Company. It offers up to 5.50% APY and allows you to withdraw up to 10% of the account value each year. However, keep in mind that the interest you earn is taxable annually, and like all annuity accounts, it’s backed by the insurance company, not the FDIC.
FAQ: 6% CD rates
What bank is paying 6% on CDs?
No banks are currently paying 6% APY on a CD. However, you can find some credit unions offering 6% CD rates.
You can also get 5% CD rates at some banks or use alternative savings approaches, such as a high-yield savings account or money market account, to maximize the return on your investment.
What are the eligibility requirements for a 6% CD?
Eligibility requirements for a 6% CD differ depending on the institution. Typically, 6% CD offers are attached to credit unions, so you’ll need to become a member of that credit union to make a deposit. You may also have to meet other guidelines, such as making a minimum deposit or agreeing to a shorter CD term.
Are there early withdrawal penalties with a 6% CD?
All certificates of deposit are considered locked investments, meaning there’s a penalty for withdrawing funds before the investment matures. The amount of that penalty can range significantly.
The minimum penalty amount is set by the federal government, but there’s no maximum penalty, meaning each institution can set top fees at whatever rate it wishes. Some banks offer no-penalty CDs, but currently, no penalty-free CDs have a 6% interest rate.
What is the highest-paying CD right now?
The highest-paying CD rate right now can be found at California Coast Credit Union. To celebrate its 95th year in business, CCCU is offering a 9.50% APY celebration certificate. This CD is only available for a five-month term, deposits must be between $500 and $3,000, and you must deposit new money (no account transfers) to open the CD.
Financial Partners Credit Union offers an eight-month CD with an interest rate of 6.50% APY, which is close to a 7% CD.
Is a 6% CD worth it?
Securing a 6% CD rate is quite advantageous, especially considering the national average interest rate on a 12-month CD is around 1.88%. You’d be stacking up more than triple the interest you’d earn on a standard account with an average APY.
The potential downsides of a 6% CD include required membership to an associated credit union and the inability to withdraw deposited funds without penalty until the CD matures.
About the Author
Alana Luna (Musselman) is a versatile storyteller with over a decade of writing experience. She is passionate about helping people build their business through unique and engaging content.
Some examples of her current freelance projects include building content strategies for small businesses, completing industry research to build case studies, crafting buyer guides and more.
She has a passion and keen ability to simplify complex ideas through storytelling to make it easier for readers to understand hard-to-digest information. To accomplish this, Alana’s writing holds strong three principles – content that educates, engages and entertains.
About the Reviewer
Blake Esken has over 15 years of experience in product management and has been a member of the Los Angeles Times staff for over five years.
As part of his role at the Los Angeles Times Commerce Team, Blake acts as the in-house reviewer and fact checker for LA Times Compare. He supervises all content for compliance and accuracy and puts to use skills he has honed through years of experience managing high-stakes projects for a range of industry-leading companies.
He has a strong background in data analysis, compliance, and communication, which allows him to support LA Times Compare through fact-checking in an effort to provide up-to-date and factual information across our content.
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