Best Six Month Online CD Rates - May 17, 2012

Six month Certificates of Deposit (CD) rates from online banks are often above average if you are willing to open and manage your account using the Internet. Most online banks offer an online application and money can be transferred to fund the CD via an electronic transfer, check, wire, or credit card. To view rates for other CD terms, click the tabs below.

Online Banks APY Min Bal Max Bal More
Discover Bank 0.75% $2,500 _
  Discover Bank CDs
Ally Bank 0.74% $0 _
  Ally Bank CDs
ING Direct 0.60% $10,000 _
EverBank 0.60% $1,500 _
  Open a CD at EverBank today.
USAA Federal Savings Bank 0.76% $175,000 _
Acacia Federal Savings Bank 0.75% $500 _
Ascencia Bank 0.75% $500 $97,000
Colorado Federal Savings Bank 0.75% $5,000 _
OneWest Bank 0.70% $1,000 _
Nationwide Bank 0.60% $100,000 _
New Dominion Direct 0.55% $300 _
AIG Bank 0.50% $2,500 _
TotalBank 0.40% $1,000 _
Aurora Bank 0.10% $100,000 _

What to Look for in an Online CD Account:

FDIC Insurance - In order to secure the viability of the US banking system, the Federal government provides insurance to a maximum amount of $250,000 per individual per institution (or $500,000 for joint account holders). While all deposits (CDs, Checking, Savings Accounts) held in the same type of ownership are added together and insured to $250,000, funds held in different types of ownership (Individual, Joint, Trust, Retirement) may fall under separate FDIC insurance provisions. Please visit the FDIC's website to determine if your financial institution is insured and use its "ask Edie" program to determine your coverage limits. We recommend that you deposit funds in only FDIC insured institutions and that you do not exceed FDIC coverage limits. All banks listed on BestCashCow are FDIC insured.

Minimum Deposit - There is such competition for your money that the best CD rates are often available for sums as little as $500.

Term and CD Rates- Three month and six month certificates of deposit rates do not dramatically exceed those in online savings and money market accounts, and money market funds. Moreover, investors in states with higher state tax, such as New York and California, in an ordinary environment (not 2011) will perform equally well in a three-month US Treasury Bond or pre-refunded municipal bonds after they account for the fact that interest produced on those products are tax advantaged.

Generally, longer the CD term, the higher the CD rate. In general, the term you choose depends on how long you want to tie up your funds and also what you think will happen to interest rates.

Interest rates will fall. Then it is better to put money into longer-term CDs to maintain the high rate as long as possible.

Interest rates will rise. Put money into short term CDs. By keeping your cash more liquid, you can re-invest it as rates go up.

Interest rates will remain flat. In this case, going for longer-term CDs will help you maximize your interest income.

Learn more about getting the best CD rates.

Avoiding CD Pitfalls:

Early Withdrawal - Any certificate of deposit will bear substantial penalties for early withdrawal, if it is even allowed. Ordinarily, the penalty for early withdrawal will be a loss of all of your accrued interest, but there are certain circumstances where banks will also assess penalties that will result in a loss of some of your principal.

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Financial products of all nature bear inherent risks and this website is not a financial advisory service. BestCashCow.com provides information related to rates on US-based savings accounts, CD (certificates of deposit) rates, money market accounts, money market funds, government bonds, other bonds and income producing securities, commodities, equity securities, mortgage rates, home equity rates and auto loans rates, free of charge to internet users for their independent use. No financial product of any sort is endorsed. BestCashCow.com does not have any agency relationship or any affiliation – other than an advertising relationship – with any financial institution mentioned on the website. Rate information is provided by third party sources and all information related to financial health of FDIC-registered banks and NCUA-registered credit unions is provided directly by those agencies. BestCashCow.com does not verify or guarantee the accuracy of this information and specifically disclaims responsibility for errors and omissions. Please seek personalized advice on the risks and applicability to your own circumstances of any financial product from a qualified professional. © BestCashCow.com, LLC, 2012.

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