If you have a traditional savings account, you know that the interest you’ll earn on these financial products is typically minimal. In fact, the national average savings account interest rate is just 0.45%. And, that creates a problem. 

0.45% is significantly lower than the current 3.4% inflation rate. That means any money stored in these accounts will lose buying power over time. But, a certificate of deposit (CD) can help you earn more. Even short-term options, like those with six-month terms, are offering compelling returns. 

But, how much interest would you earn if you opened a six-month CD? That depends on the interest rate you open the account with and the amount of money you deposit. 

Open a six-month CD to generate stronger returns now. 

How much interest would a 6-month CD earn now?

Some of today’s leading six-month CD returns are as follows: 

• Popular Direct: 5.30% APY
• TAB Bank: 5.27% APY
• America First Credit Union: 5.25% APY  

As you can see, all of these accounts offer APYs above the current inflation rate (3.4%). That means they all produce a positive inflation-adjusted return. But, how much interest will you earn if you open one? Find out below: 

$1,000 

• At 5.30%: You would earn $26.16 in interest for a total of $1,026.16 after six months. 
• At 5.27%: You would earn $26.01 in interest for a total of $1,026.01 after six months. 
• At 5.25%: You would earn $25.91 in interest for a total of $1,025.91 after six months. 

$2,500

• At 5.30%: You would earn $65.39 in interest for a total of $2,565.39 after six months. 
• At 5.27%: You would earn $65.03 in interest for a total of $2,565.03 after six months. 
• At 5.25%: You would earn $64.79 in interest for a total of $2,564.79 after six months. 

$5,000

• At 5.30%: You would earn $130.79 in interest for a total of $5,130.79 after six months. 
• At 5.27%: You would earn $130.06 in interest for a total of $5,130.06 after six months. 
• At 5.25%: You would earn $129.57 in interest for a total of $5,129.57 after six months.

$10,000 

• At 5.30%: You would earn $261.58 in interest for a total of $10,261.58 after six months. 
• At 5.27%: You would earn $260.12 in interest for a total of $10,260.12 after six months. 
• At 5.25%: You would earn $259.14 in interest for a total of $10,259.14 after six months. 

Earn more with a six-month CD today. 

Why you should open a 6-month CD now according to experts

We asked finance experts why a six-month CD makes sense right now and here’s what they told us: 

6-month CDs have high interest rates right now

“A six-month CD might make sense right now because CD rates are higher now than they have been in the past 10 years,” explains James Sanford, founder of the financial planning firm, Sanford Financial Services. 

6-month CDs come with short-term liquidity

“Six-month CDs are beneficial because after the six months, an investor can shop for even better rates,” says Sanford. “Also, in most cases, the funds are fully liquid at the end of the six months without any fees or penalties.” So, when you choose a six-month CD, you don’t have to worry about locking your money up for too long. 

That’s important because “it allows you the flexibility to observe the rate environment and make it through the election since it’s not an extensive commitment,” explains Matt Willer, managing director of capital markets at the financial management firm, Phoenix Capital Group Holdings.

Short-term CDs are paying higher returns than long-term CDs

“Six-month CD rates are generally higher than CDs with longer terms,” says Sanford. So, if you want to earn the best return possible, a six-month CD can be a wise choice. 

This may be your last chance to get such a high rate in this cycle

Interest rates are cyclical, meaning they will rise and fall. Locking in your six-month CD now may be a wise idea because “it’s likely the last iteration in this interest rate cycle where you can lock in the rate levels that you are seeing today,” says Willer. “I’d suspect in 6 months bank rates of return on CDs are lower.”

CDs offer fixed returns

You’ll know your rate of return for the entire term of the account as soon as you open a CD. That’s because “CDs generate fixed interest rates that are typically higher than a traditional savings account,” explains Brian Kelly, senior vice president and retail market manager at Rockland Trust Bank. 

Open a six-month CD to take advantage of these perks now. 

The bottom line

A six-month CD can produce anywhere from $26.16 to $261.58 in interest over its term, or more, depending on how much money you deposit and the interest rate you open the account with. And, now is a compelling time to open one. With high interest rates, liquidity within six months and the idea that rates could fall ahead, a six-month CD could be a smart move. Compare your options now. 

Joshua Rodriguez

Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, two dogs and two ducks.