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The more money you have 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 is insured through a Federal Deposit Insurance Corp. (FDIC) bank or a National Credit Union Administration (NCUA) institution. Just make sure that the CD is within insurance limits and guidelines.
What is a jumbo CD?
A jumbo CD is like a regular CD but requires a higher minimum deposit, and in exchange, it can pay a higher interest rate. Jumbo CDs usually require a deposit of at least $100,000, though some banks may require less. A bank may offer you a higher rate for depositing more money with it, and savvy shoppers should shop around for the best rate, whether it’s on a jumbo CD or on a regular CD.
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||2.60%||$100,000|
|3 months||Navy Federal Credit Union||1.30%||$100,000|
|3 months||Wells Fargo||1.01%*||$100,000|
|6 months||Credit One Bank||3.85%||$100,000|
|6 months||SchoolsFirst Federal Credit Union||3.10%||$100,000|
|1 year||Credit One Bank||4.55%||$100,000|
|1 year||Navy Federal Credit Union||4.45%||$100,000|
|1 year||SchoolsFirst Federal Credit Union||3.60%||$100,000|
|18 months||Credit One Bank||4.65%||$100,000|
|18 months||Navy Federal Credit Union||3.90%||$100,000|
|18 months||SchoolsFirst Federal Credit Union||3.90%||$100,000|
|2 years||Navy Federal Credit Union||4.25%||$100,000|
|2 years||SchoolsFirst Federal Credit Union||3.95%||$100,000|
Best jumbo CD rates for 3-7 years
|Term||Institution||APY||Minimum deposit for APY|
|3 years||Navy Federal Credit Union||4.25%||$100,000|
|3 years||SchoolsFirst Federal Credit Union||4.10%||$100,000|
|4 years||Credit One Bank||4.55%||$100,000|
|4 years||SchoolsFirst Federal Credit Union||4.20%||$100,000|
|5 years||Credit One Bank||4.65%||$100,000|
|5 years||SchoolsFirst Federal Credit Union||4.35%||$100,000|
|5 years||Navy Federal Credit Union||4.25%||$100,000|
|7 years||Navy Federal Credit Union||4.25%||$100,000|
Note: Annual percentage yields (APYs) shown are as of Jan. 5, 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 4.65 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 5-year jumbo CD rates
CreditOne Bank – 4.65% APY, $100,000 minimum deposit for APY
CreditOne Bank offers five 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.
SchoolsFirst Federal Credit Union – 4.35% APY, $100,000 minimum deposit for APY
SchoolsFirst Federal Credit Union was formed by school employees in 1934, during the Great Depression in 1934, and today has 50 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.
Navy Federal Credit Union – 4.25% 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 more than 300 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.
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.
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.
Pros and cons of jumbo CDs
Pros of a jumbo CD
Here are two benefits of jumbo CDs.
- 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.
- 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.
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.
Cons of a jumbo CD
Here are some downsides to consider.
- Inflation can be a concern: Jumbo CDs require a large minimum balance. Even though top yields increased in 2022, they’re generally not keeping up with inflation. In some cases it might not make sense to put a jumbo deposit into a CD for a long period of time.
- 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 penalties
Penalties vary depending on the bank or credit union you choose. At CIT Bank, for example, the following penalties apply:
- 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 not offer any extra interest for a jumbo CD. In that case, it may make sense to go with a regular CD instead.
In other cases, you may be able to hunt for a high-yield savings account, but note that the 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 refers to the large account opening balance required for these types of CDs. Usually, a jumbo CD has a minimum account opening balance of $100,000, but that isn’t always the minimum amount.
“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 – for a long period of time – 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 on the jumbo CD.
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.
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 higher APY. If this is the case, then the jumbo CD is not necessary.
A jumbo CD can be either for short-term or long-term savings. Jumbo refers to the minimum balance needed to open the CD. Since you’re keeping a large amount of money, make sure that 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.
So compare jumbo CDs, minimum balance requirements to get a certain APY, the APY that you’ll earn on the CD and the CD term length to make a decision.
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 generally 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.
Methodology for Bankrate’s 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 savings rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank5 Connect, Bank of America, Bank of the West, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens Access, Citizens Bank (Rhode Island), Credit One Bank, 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, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Morgan Stanley Private 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, U.S. Bank, UFB Direct, Union Bank (California), USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.