6-month CDs still offer savers a sweet spot above 4% APY

A $35,000 six-month CD at 4.25% APY would earn about $736 and end at roughly $35,736, but 3.8% inflation leaves only about $76 of real purchasing power before taxes. The headline yield still looks appealing, yet the buying-power gain is thin once prices are taken out of the equation.

Bankrate said the best CD rates in June 2026 were still around 4% APY, with First National Bank of America, a Michigan-based bank offering CDs online nationwide, at the top tracked rate of 4.25%. National average APYs were 1.97% for 1-year CDs, 1.66% for 3-year CDs and 1.71% for 5-year CDs, and Bankrate said CDs are federally insured up to $250,000. Short-term CDs remain the part of the market where the strongest rates are concentrated.

The alternative is a high-yield savings account. Bankrate’s top savings rate was 4.10% at CIT Bank, which would generate about $710 over six months on the same $35,000, or about $51 in real purchasing power after inflation. That is only about $25 less in real gain than the top CD, while the national average savings account rate of 0.61% would produce only about $107 over the same period. The difference is flexibility as much as yield: the savings account keeps cash accessible, while the CD asks savers to give up that access for a small rate bump.

Treasurys tighten the comparison further. The Treasury’s 26-week bill rate was 3.80% on June 12, which would generate about $659 on $35,000 over six months, and the IRS says Treasury bill interest is subject to federal income tax but exempt from state and local income taxes. The FDIC’s May 18 rate-cap update showed a 6-month CD national deposit rate of 1.35% and said the cap framework is updated monthly; less well capitalized institutions cannot pay rates that significantly exceed prevailing market levels. FDIC-insured institutions reported $80.5 billion in first-quarter 2026 net income and a 1.26% return on assets, suggesting banks entered mid-2026 profitable and liquid enough to keep competing for deposits. For savers, that leaves a narrow question: whether a small, inflation-beaten premium is worth locking money up when liquid options come close.