Best jumbo CD rates - December 2023
Matthew Goldberg is a consumer banking reporter at Bankrate. Matthew has been in financial services for more than a decade, in banking and insurance.
Marc Wojno is a seasoned and accomplished finance editor and writer with more than two decades of experience editing and writing across a variety of news platforms including newswires, newsletters, magazines and online news sites.
Before joining Bankrate, Marc was Senior Editor at CNET Money and Senior Editor of Finance for ZDNet, both Red Ventures companies, where he wrote and edited news articles and features on a variety of topics including banking, blockchain, credit cards, cryptocurrency, fintech, home equity, investing and taxes.
Robert R. Johnson, Ph.D., CFA, CAIA, is a professor of finance at Creighton University and chairman and CEO of Economic Index Associates, LLC.
Best available rates across different account types for Saturday, December 09, 2023
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What To Know First
The more money you’ve saved, the more options you generally have for earning a higher interest rate.
Those with $100,000 or more may want to consider depositing their money into a jumbo CD that’s insured through a bank insured by the Federal Deposit Insurance Corp. (FDIC) or a credit union insured by the National Credit Union Administration (NCUA). Just make sure that the CD is within insurance limits and guidelines.
- Credit One Bank – 5.25% APY for a one-year CD, $100,000 minimum deposit for APY
- Suncoast Credit Union – 5.25% APY for a one-year CD, $100,000 minimum deposit for APY
- Navy Federal Credit Union – 4.95% APY for a one-year CD, $100,000 minimum deposit for APY
- SchoolsFirst Federal Credit Union – 4.60% APY for a one-year CD, $100,000 minimum deposit for APY
Note: Annual percentage yields (APYs) shown are as of Nov. 30, 2023. Bankrate's editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products.
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The following accounts can be found at most banks and credit unions. They’re federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
Certificate of Deposit (CD)
CDs are best for individuals looking for a guaranteed rate of return that’s typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.
Checking account
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.
Savings / Money Market Accounts (MMA)
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They’re a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.
Bankrate’s picks for the top jumbo CD rates
Here are the top widely available rates for jumbo CDs. Compare these offers, then calculate how much interest you could earn when your CD comes due.
Best jumbo CD rates for 3-24 months
| Term | Institution | APY | Minimum deposit for APY |
|---|---|---|---|
| 3 months | SchoolsFirst Federal Credit Union | 4.10% | $100,000 |
| 3 months | Navy Federal Credit Union | 4.05% | $100,000 |
| 3 months | Golden 1 Credit Union | 3.10% | $100,000 |
| 6 months | Credit One Bank | 5.20% | $100,000 |
| 6 months | SchoolsFirst Federal Credit Union | 4.35% | $100,000 |
| 6 months | Suncoast Federal Credit Union | 4.25% | $100,000 |
| 1 year | Credit One Bank | 5.25% | $100,000 |
| 1 year | Suncoast Federal Credit Union | 5.25% | $100,000 |
| 1 year | Navy Federal Credit Union | 4.95% | $100,000 |
| 18 months | Credit One Bank | 5.20% | $100,000 |
| 18 months | Suncoast Federal Credit Union | 4.90% | $100,000 |
| 18 months | Navy Federal Credit Union | 4.55% | $100,000 |
| 2 years | Suncoast Federal Credit Union | 4.90% | $100,000 |
| 2 years | Credit One Bank | 4.70% | $100,000 |
| 2 years | SchoolsFirst Federal Credit Union | 4.60% | $100,000 |
Best jumbo CD rates for 3-7 years
| Term | Institution | APY | Minimum deposit for APY |
|---|---|---|---|
| 3 years | SchoolsFirst Federal Credit Union | 4.60% | $100,000 |
| 3 years | Credit One Bank | 4.35% | $100,000 |
| 3 years | Navy Federal Credit Union | 4.25% | $100,000 |
| 4 years | SchoolsFirst Federal Credit Union | 4.60% | $100,000 |
| 4 years | Credit One Bank | 4.15% | $100,000 |
| 4 years | Suncoast Federal Credit Union | 3.95% | $100,000 |
| 4 years | Golden 1 Credit Union | 3.75% | $100,000 |
| 5 years | SchoolsFirst Federal Credit Union | 4.75% | $100,000 |
| 5 years | Credit One Bank | 4.05% | $100,000 |
| 5 years | Navy Federal Credit Union | 4.05% | $100,000 |
| 5 years | Suncoast Federal Credit Union | 4.05% | $100,000 |
| 7 years | Navy Federal Credit Union | 4.05% | $100,000 |
Note: Annual percentage yields (APYs) shown are as of Nov. 30, 2023, and may vary by region for some products.
*APY may vary by region.
Jumbo CDs are typically available for savers with at least $95,000 or $100,000 to deposit. These accounts historically have provided a higher rate of return than traditional CDs. But in 2023, you should be able to find even higher APYs with much lower balance requirements.
Today’s top widely available jumbo CD pays 5.25 percent APY. Depending on the term, a jumbo CD may be a good place to invest if you’re saving money for a big-ticket item — for instance, a down payment on a house. Having a jumbo CD can also be helpful if you need collateral for a loan. Just be sure to align your goal with the term of the CD.
A closer look at the best 1-year jumbo CD rates
Credit One Bank – 5.25% APY, $100,000 minimum deposit for APY
CreditOne Bank offers eight terms of jumbo CDs. The terms range from six months to five years. It also offers two bump rate CDs.
CreditOne Bank requires a $100,000 minimum deposit for all of its CDs. CreditOne Bank has a 10-day rate guarantee on its CDs. Customers also get a 0.05 percent loyalty rate increase if they renew a CD.
Suncoast Credit Union – 5.25% APY, $100,000 minimum deposit for APY
Suncoast Credit Union was started in 1934 as Hillsborough County Teachers Credit Union. Suncoast Credit Union is the largest credit union in Florida and in early 2022 it surpassed one million members.
People who attend school, live, work or worship in a county in Florida that Suncoast Credit Union serves are welcome to join. In addition to meeting that requirement, you’ll also need to deposit at least $5 in a Suncoast savings account to become a member.
Navy Federal Credit Union – 4.95% APY, $100,000 minimum deposit for APY
Navy Federal Credit Union has more than 12 million members and is the world’s largest credit union. It has a global network of around 350 branches. Navy Federal Credit Union has its headquarters in Vienna, Virginia.
Membership at Navy Federal Credit Union is open to all Department of Defense and Coast Guard Active Duty, civilian, contract personnel, veterans and their families.
In addition to CDs, Navy Federal Credit Union also offers checking and savings accounts, loans and credit cards.
SchoolsFirst Federal Credit Union – 4.60% APY, $100,000 minimum deposit for APY
SchoolsFirst Federal Credit Union was formed by school employees in 1934, during the Great Depression, and today has 70 branches.
SchoolsFirst Federal Credit Union has low minimum balances and CD terms from as short as 30 days to as long as five years. The more money you put in your CD, the higher the APY.
What is a jumbo CD?
How to find 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.
Pros and cons of jumbo CDs
Pros
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Potentially higher APY — Most often, jumbo CDs offer a higher APY than a regular CD. If you can get a higher APY in a jumbo CD, then you should consider this option. If you’re going to put a large amount of money in a jumbo CD, make sure it offers the best APY possible. Some banks will have tiered CDs and will reward the amount of money that you deposit, to a certain limit.
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Safety — A jumbo CD is a safe option if it’s sold through an FDIC bank or an NCUA credit union — as long as you follow insurance guidelines and are within insurance limits.
Cons
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Inflation can be a concern — Jumbo CDs require a large minimum balance. If a given CD’s yield isn’t keeping up with the rate of inflation, it might not make sense to put a jumbo deposit into a CD for a long period of time.
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Non-jumbo CDs may have a better APY — Sometimes non-jumbo CDs may actually have better APYs and lower minimum balance requirements than jumbo CDs.
Jumbo CD early withdrawal penalties
Most CDs — jumbo or not — come with early withdrawal penalties for those who need access to the money before the term is up. This is because in exchange for a guaranteed rate, you’re agreeing to lock your funds in for the term of the CD.
An early withdrawal penalty can be costly since it takes away some interest and possibly also some of your principal.
Early withdrawal penalties vary depending on the bank or credit union you choose. At CIT Bank, for example, the following penalties apply when you withdraw funds before a CD’s term is up:
- CDs one year or less: three months simple interest.
- CDs more than one year to three years: six months simple interest.
- More than three years: 12 months simple interest.
Jumbo CD FAQs
-
Savers have a few alternatives to a jumbo CD.
Some banks may offer higher yields on their regular CDs than their jumbo CDs. In that case, it may make sense to go with a regular CD instead.In other cases, you may be able to find a high-yield savings account that pays a higher rate than some jumbo CDs, but note that a savings account's yield is subject to change, unlike a CD’s yield. Savvy shoppers look around for the best rate, even if it means going with another bank.
Jumbo CD vs. regular CD
A jumbo CD requires a significant opening balance — often $100,000, but sometimes less.
“Some of those … lower minimum deposits on jumbos are a vestige of back when the FDIC insurance limit was $100,000, rather than ($250,000),” says Greg McBride, CFA, Bankrate chief financial analyst. “So a jumbo CD would be issued for $95,000 to leave a little headroom for the interest earnings without breaching the FDIC insurance gap.”
A regular CD may not even have a minimum deposit and could potentially have a higher APY than a jumbo CD. -
The biggest risk to a jumbo CD is if you put a large amount of money into it and that money is not keeping up with inflation. The risk is not that you will lose principal, but that you’ll lose purchasing power if inflation is ahead of the APY you’re earning.
Another risk is that if an emergency occurs, you may have to pay an early withdrawal fee to access your money. Those can be severe enough to cause you to lose some of your principal.Each depositor at an FDIC-insured bank is insured to at least $250,000 per FDIC-insured bank. At an NCUA institution, the standard share insurance amount is $250,000 per share owner, per insured credit union, for each ownership category.
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A jumbo CD is a good investment if the APY and the time horizon fit your needs.
It’s possible to get a CD that isn’t a jumbo CD that has both a lower minimum balance and a higher APY. If this is the case, then the jumbo CD is probably not your best option. -
A jumbo CD can be either for short-term or long-term savings. "Jumbo" refers to the high minimum balance needed to open the CD. Since you’re devoting a large amount of money to the account, make sure you get the best APY possible.
“You’d be surprised how often banks pay the same rate on a jumbo as they do on a much smaller deposit,” McBride says.
When looking into jumbo CDs, compare yields as well as the minimum balance required to earn that yield. Also compare APYs across different terms.
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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.
CDs that need to be held by the account holder until they mature are non-negotiable. Generally, jumbo CDs you can purchase at a bank fit this description.
On the other hand, negotiable CDs can be sold to another party, who then has the option to resell the CD, according to the Richmond Federal Reserve. Negotiable CDs are traded in the secondary markets. A brokered CD is an example of a CD that you can sell on the secondary market.
Brokerages and independent salespeople are sometimes able to negotiate a higher rate. This may be possible if they can promise to deliver a specific dollar amount to the financial institution, according to the SEC.
Bankrate’s methodology for choosing the best CD rates
At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers and our content is thoroughly fact-checked to ensure accuracy.
Bankrate regularly surveys around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.
To find the best CDs, our editorial team analyzes various factors, such as: annual percentage yield (APY), the minimum needed to earn that APY (or to open the CD) and whether or not it is broadly available. All of the accounts on this page are insured by the Federal Deposit Insurance Corp. or the National Credit Union Share Insurance Fund.
When selecting the best CD for you, consider the purpose of the money and when you’ll need access to these funds to help you avoid early withdrawal penalties.
Banks we monitor
These financial institutions are featured in our CD rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank5 Connect, Bank of America, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Financial (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, Morgan Stanley Private Bank, Huntington National Bank, Investors Bank, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, PurePoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Synchrony Bank, TD Bank, TIAA Bank, Truist Bank, UFB Direct, U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.