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.

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.

Best Jumbo CD Rates – 60 month CDs
Institution APY Minimum deposit
Hope Credit Union 2.69% $95,000
Michigan State University Federal Credit Union 2.66% $100,000
Kinecta Federal Credit Union 2.50% $100,000
Grow Financial Federal Credit Union 2.50% $100,000
Interior Federal Credit Union 2.42% $100,000

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 1.09 percent APY, according to Bankrate’s most recent national survey of banks and thrifts.

Today’s top nationally available jumbo CDs pay at least 2.69 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.

Top account details

  • Hope Credit Union is one of the largest credit unions in Mississippi. Anyone in the U.S. can join and open a share certificate. Members are required to pay a $10 lifetime membership fee and keep at least $15 in a Share (primary savings) account.
  • 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 five out of five stars in Bankrate’s review of its financial health.
  • After more than 60 years of serving customers in Manhattan Beach, California, the Hughes Aircraft Employees Federal Credit Union changed its name in 2001. Today, the institution is known as the Kinecta Federal Credit Union and offers membership to anyone across the country who joins the Consumers Cooperative Society of Santa Monica. The institution earned four out of five stars in Bankrate’s review of its financial health.
  • Grow Financial Federal Credit Union is headquartered in Tampa, Florida. Membership is open to employees of select groups and immediate family members and household members of active and retired military personnel. In Bankrate’s latest review of its financial health, the credit union earned four out of five stars.
  • Interior Federal Credit Union opened its doors in 1935. It’s headquartered in Washington D.C. and serves more than 13,000 members. Membership is open to anyone who joins the New Mexico Wildlife Federation. The credit union earned four out of five stars in Bankrate’s latest review of its financial health.

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.