When you have hundreds of thousands of dollars at your disposal, your investment options can seem endless. If you’re looking to diversify your portfolio and minimize risk, consider buying a jumbo CD.

Jumbo CDs are typically available for savers with at least $100,000 to deposit. In the past, these accounts provided a higher rate of return than traditional CDs. But with interest rates still at the low end of the spectrum, good deals on jumbo CDs can be hard to find.

The best 5-year jumbo CDs pay more than two times the national average of 0.99 percent APY, according to Bankrate’s most recent national survey of banks and thrifts.

Today’s top nationally available jumbo CDs pay at least 2.43 percent APY. This may be a good place to invest if you’re saving money for a big ticket item or a large down payment on a house. Having a jumbo CD can also be helpful if you need collateral for a loan.

Finding the best jumbo CD rates

If you only go as far as your local bank to find CDs, you could be leaving money on the table. That’s why shopping around and comparing rates is key.

Online-only banks typically offer competitive CD yields because they have no branches to maintain. Credit unions often have favorable rates for savers as well. If you focus on the institutions that are federally insured, you’ll be able to reclaim your funds (up to $250,000) even if your bank shuts its doors.

Generally, longer CD terms offer higher yields. If you’re looking for the best jumbo CD rates, start by checking out accounts that mature within five years.

Here are the top nationally available rates for jumbo CDs. Compare these offers, then calculate how much interest you could earn when your CD comes due.

Top nationally available 60-month jumbo CD rates
Institution APY Minimum deposit
Hope Federal Credit Union 2.43% $100,000
Michigan State University Federal Credit Union 2.38% $100,000
Synchrony Bank 2.35% $100,000
EverBank 2.30% $100,000
First Internet Bank of Indiana 2.30% $100,000

Top account details

  • Hope Federal Credit Union is one of the largest credit unions in Mississippi. Anyone in the U.S. can join and open a share certificate. The membership fee is $25. The credit union earned one out of five stars on Bankrate’s latest Safe & Sound Ratings, which measures the financial health of banks and credit unions throughout the United States. However, all deposits are backed by the National Credit Union Administration.
  • Michigan State University Federal Credit Union was founded as the Michigan State College Employees Credit Union in 1937. Membership is open to employees of select groups and students, alumni, faculty and staff of Michigan State University and Oakland University. Anyone outside of the state can join through the Michigan United Conservation Clubs. The credit union earned four out of five stars from Safe & Sound.
  • Synchrony Bank is based in Draper, Utah. It’s part of Synchrony Financial, a consumer financial services company. The bank earned five out of five stars from Safe & Sound.
  • EverBank is a division of TIAA and provides multiple financial services including banking and investment products. Headquartered in Jacksonville, Florida, the bank operates online and has 10 branches. EverBank earned three out of five stars from Safe & Sound.
  • First Internet Bank of Indiana first opened in 1999. Although it is headquartered in Fishers, Indiana, it serves customers nationwide. It earned four out of five stars from Safe & Sound.

Consider your tax bite

Having a jumbo CD could leave you with a giant tax bill. The interest you earn will be taxed as ordinary income.

Calculate your potential tax bite and decide whether you should put part of your money elsewhere. Capital gains are taxed at a lower rate, so investing some of your savings in stocks and other securities could reduce what you owe Uncle Sam.

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