With interest rates shifting over the last few years, it can be hard to keep track of the best places to keep your money. So is a 6-month certificate of deposit (CD) a good idea?

Right now, the annual percentage yields (APYs) on the best 6-month CDs hover around 4.00% to 4.50%. These rates definitely seem attractive, but let's break down whether a 6-month CD is the best fit for you.

Why consider a 6-month CD in 2025?

A 6-month CD offers a guaranteed return on your money over a short period. You lock in a fixed interest rate, and when it matures in six months, you get your principal plus interest. It's a safe option with no market risk.

Pros of a 6-month CD:

• Fixed interest rate (no surprises!)
• FDIC insured up to $250,000 per depositor, per bank
• Ideal for short-term savings goals

However, the catch is that your money is locked away for six months. Withdraw early, and you'll likely face a penalty.

Our Picks for the Best High-Yield Savings Accounts of 2025

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.70% Rate info 3.70% annual percentage yield as of February 24, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.70% Rate info 3.70% annual percentage yield as of February 24, 2025. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.70% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.70% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Barclays Tiered Savings Member FDIC. APY 4.15% Rate info Balances less than $250,000 earn 4.15%, and balances greater than $250,000 earn 4.40% APY. Min. to earn $0 Open Account for Barclays Tiered Savings On Barclays' Secure Website. Member FDIC.	4.15% Rate info Balances less than $250,000 earn 4.15%, and balances greater than $250,000 earn 4.40% APY.	$0	Open Account for Barclays Tiered Savings On Barclays' Secure Website.

High-yield savings accounts: The flexible alternative

If flexibility is your priority, a high-yield savings account (HYSA) might be more appealing. HYSAs currently offer competitive APYs around 4.00%, plus, your money remains accessible, allowing you to withdraw it without penalty.

Why choose an HYSA?

• Instant access to your money
• Competitive interest rates
• FDIC insurance for peace of mind

If rates rise later in 2025, keeping your money in an HYSA allows you to stay nimble and take advantage of better opportunities. On the flipside, if the Federal Reserve cuts rates, it's likely your HYSA rate drops, too.

6-month CD vs. HYSA: Which should you choose?

So, how do you decide between a 6-month CD and a high-yield savings account? It comes down to your financial goals and market outlook.

Choose a 6-month CD if:

• You want a guaranteed return without market volatility.
• You don't need immediate access to your cash.
• You believe interest rates will drop, and locking in today's 4.00% to 4.50% rates sounds appealing.

Explore top-rated 6-month CDs offering up to 4.50% APY here.

Opt for an HYSA if:

• You want flexibility to access funds anytime.
• You think interest rates might climb, and you want to keep options open.
• You prefer liquidity without worrying about early withdrawal penalties.

Compare the best high-yield savings accounts with rates up to 4.50% now.

Decide today what's right for you

Both options have strong selling points. A 6-month CD locks in today's rates and offers security, while an HYSA provides flexibility and competitive returns. The choice hinges on your short-term needs and interest rate predictions.

Making a confident choice today can mean more financial peace of mind tomorrow. Take a closer look at the latest rates and see which option better aligns with your 2025 financial goals.