A jumbo CD is a certificate of deposit that requires a high minimum deposit -- typically $100,000 -- generally in exchange for a higher annual percentage yield. However, in the high rate environment right now, many jumbo CD rates are on par with high-yield CDs you’ll find at online-only banks and credit unions.
And in some cases you can earn even more with a high-yield CD. If you’re considering depositing a large sum of money into a CD, shop around to find the best rate for your money.
CNET’s picks for the best jumbo CD rates
Not every bank offers jumbo CDs, but those that do currently have rates on par or slightly below the best high-yield CDs.
| Term | Apple Federal Credit Union | Connexus Credit Union | Credit One Bank | Rising Bank | State Department Federal Credit Union |
| 11-month | N/A | N/A | 5.75% | N/A | N/A |
| 1-year | 4.50% | 5.46% | 5.25% | N/A | 5.30% |
| 2-year | N/A | 5.26% | 4.70% | 5.35% | 4.73% |
| 3-year | 4.30% | 4.76% | 4.35% | N/A | 4.47% |
| 5-year | 4.00% | 4.16% | 4.05% | N/A | 4.47% |
Apple Federal Credit Union
- Min. deposit to open
- $50,000
You can open a 12-, 36-, or 60-month Apple Federal Credit Union jumbo CD when you deposit $50,000 or more. We like that Apple Federal CU has a lower deposit requirement than the other banks on this list, allowing you to tap into higher rates with a smaller upfront deposit. Early withdrawal penalties vary from three to six months’ worth of interest.
However, you’ll need to become a credit union member to open an account. To qualify, you need to live in select Virginia counties, attend specific schools, work at select businesses or be a member of certain organizations. You may also qualify if an immediate family member is a member. You can open an account online or at a physical branch.
You can open a 12-, 36-, or 60-month Apple Federal Credit Union jumbo CD when you deposit $50,000 or more. We like that Apple Federal CU has a lower deposit requirement than the other banks on this list, allowing you to tap into higher rates with a smaller upfront deposit. Early withdrawal penalties vary from three to six months’ worth of interest.
However, you’ll need to become a credit union member to open an account. To qualify, you need to live in select Virginia counties, attend specific schools, work at select businesses or be a member of certain organizations. You may also qualify if an immediate family member is a member. You can open an account online or at a physical branch.
Connexus Credit Union
- Min. deposit to open
- $100,000
Connexus Credit Union offers select terms for jumbo CDs including 12-, 17-, 24-, 36-, 48- and 60-month. Right now, its 17-month CD has the highest APY: 5.56%. You’ll need a minimum deposit of $100,000 to open a jumbo CD. And like most CDs, if you withdraw funds before the CD term ends, you’ll pay an early withdrawal penalty.
To open any savings account with Connexus Credit Union, you’ll need to become a member. You can sign up if you’re an employee or member of these businesses, organizations and communities. You can also join the Connexus Association with a one-time $5 association fee. Connexus has shared branches for in-person assistance.
Connexus Credit Union offers select terms for jumbo CDs including 12-, 17-, 24-, 36-, 48- and 60-month. Right now, its 17-month CD has the highest APY: 5.56%. You’ll need a minimum deposit of $100,000 to open a jumbo CD. And like most CDs, if you withdraw funds before the CD term ends, you’ll pay an early withdrawal penalty.
To open any savings account with Connexus Credit Union, you’ll need to become a member. You can sign up if you’re an employee or member of these businesses, organizations and communities. You can also join the Connexus Association with a one-time $5 association fee. Connexus has shared branches for in-person assistance.
Credit One Bank
- Min. deposit to open
- $100,000
Credit One Bank is an online bank with several jumbo CDs, including an 11-month jumbo CD with a 5.75% APY. This bank’s jumbo CDs range from six months to five years and require a $100,000 minimum deposit. We like that Credit One offers a 0.05% loyalty rate increase if you already have a CD with them (or when you renew your CD).
Credit One only operates online so you’ll need to be comfortable managing your account online or consider other banking options that have physical branches. You can call 877-825-3242 for assistance.
Credit One Bank is an online bank with several jumbo CDs, including an 11-month jumbo CD with a 5.75% APY. This bank’s jumbo CDs range from six months to five years and require a $100,000 minimum deposit. We like that Credit One offers a 0.05% loyalty rate increase if you already have a CD with them (or when you renew your CD).
Credit One only operates online so you’ll need to be comfortable managing your account online or consider other banking options that have physical branches. You can call 877-825-3242 for assistance.
Rising Bank
- Min. deposit to open
- $100,000
Rising Bank offers high-yield CDs with competitive rates and one jumbo CD: a two-year term with a 5.35% APY, and minimum deposit of $100,000. Like most jumbo CDs, there’s an early withdrawal penalty for taking the money out before the term ends.
Rising Bank is an online-only bank, so you’ll need to manage your account online. However, you can call 888-222-9484 for assistance.
Rising Bank offers high-yield CDs with competitive rates and one jumbo CD: a two-year term with a 5.35% APY, and minimum deposit of $100,000. Like most jumbo CDs, there’s an early withdrawal penalty for taking the money out before the term ends.
Rising Bank is an online-only bank, so you’ll need to manage your account online. However, you can call 888-222-9484 for assistance.
State Department Federal Credit Union
- Min. deposit to open
- $100,000
State Department Federal Credit Union offers jumbo CDs with terms ranging from six months to five years, and rates up to 5.30% APY depending on the term. A minimum $100,000 deposit is required to open an account. Rates range from 4.40% up to 5.30%. You’ll forgo between one and six months of interest if you withdraw money before the term ends.
To open an account, you’ll need to become a member of the credit union. SDFCU has a list of organizations that qualify for membership eligibility. If you don’t qualify, we recommend considering one of the other jumbo CD options above, instead.
State Department Federal Credit Union offers jumbo CDs with terms ranging from six months to five years, and rates up to 5.30% APY depending on the term. A minimum $100,000 deposit is required to open an account. Rates range from 4.40% up to 5.30%. You’ll forgo between one and six months of interest if you withdraw money before the term ends.
To open an account, you’ll need to become a member of the credit union. SDFCU has a list of organizations that qualify for membership eligibility. If you don’t qualify, we recommend considering one of the other jumbo CD options above, instead.
Pros and cons of jumbo CDs
Pros
Jumbo CDs offer a fixed interest rate.
The average one-year jumbo CD offers a much higher interest rate than the average savings rate -- 1.44% APY compared with 0.20%.
Jumbo CDs bought through banks and credit unions are insured for up to $250,000, minimizing risk of loss of the original principal.
Cons
You can lose a significant amount of the interest you’ve earned if you withdraw before the maturity date.
If interest rates continue to rise, the APY is locked into the rate set at the time of purchase which will cause you to miss out on additional growth.
The CD term restricts access to cash that you may need. If you withdraw early, a penalty will diminish your return.
What is a jumbo CD and how does it work?
A jumbo CD has a high deposit requirement, usually in exchange for a higher-than-average interest rate. Most banks require a $100,000 minimum deposit, though some banks and credit unions have lower thresholds. It’s worth noting that jumbo CDs are less common than traditional and high-yield CDs, so you’ll need to shop around to find one.
The main benefit of any CD is a fixed interest rate to guarantee a return, instead of riskier investment options, such as stocks. Most experts recommend locking in a long-term CD (those with terms over one year) in a falling rate environment. If you lock in a rate when interest rates are still increasing, you could tie up your money in an account that doesn’t tap into higher yields.
Since jumbo CDs require a higher initial deposit, you should be mindful not to deposit more than the FDIC- or NCUA-insured amount of $250,000. Most banks only insure up to this amount per account owner and account type, which means any money over $250,000 isn’t protected in the event of a bank failure.
Otherwise, CDs are considered a safe, conservative investment when bought through a bank or credit union because they’re insured.
Jumbo CDs vs. traditional CDs
Jumbo CDs require a larger minimum deposit -- typically $100,000 -- than traditional CDs. Many traditional or high-yield CDs have no minimum deposit amount, but others can range from $500 to $1,000 for traditional CDs.
In a normal rate environment, jumbo CDs might offer a better APY than traditional or high-yield CDs, giving you more of an incentive to open one. However, right now, most jumbo CD rates are equivalent or slightly lower than the best high-yield CD rate.
Otherwise, jumbo CDs work similarly to high-yield or traditional CDs. You’ll deposit a lump sum of money for a specific period of time in exchange for a fixed rate of growth. Both charge a penalty fee if you withdraw money before the maturity date.
If you’re debating between a high-yield and jumbo CD, start by choosing a bank that you feel comfortable with and weigh other factors like customer service, fees and account tools. Then compare APYs. Most importantly, make sure the account is FDIC or NCUA insured.
FAQs
Your CD won’t lose value unless you withdraw funds before the CD term ends. Then, you’ll only lose interest -- which can be a few weeks or months, depending on the bank and CD term.
And, as long your jumbo CD is at a bank or credit union that’s FDIC- or NCUA-insured, your funds are protected for up to $250,000 (including compounded interest). If you want to make a larger deposit, you may need to buy CDs at multiple institutions to ensure your total investment is insured.
Jumbo CD terms vary from three months to five years. Usually, jumbo CDs with longer terms pay higher interest rates. However, there are other types of accounts to consider, including savings accounts, high-yield savings accounts and I bonds.
Yes, the IRS will tax interest earned on a CD that exceeds $10 as income, but it’s best to speak with a tax professional to understand what that means for your taxes.
Jumbo CDs have both long- and short-term options, typically spanning one year to five years. Depending on the bank, you might find a jumbo CD with a term as short as a few months and as long as a decade.
Methodology
CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We selected the CDs with the highest APY for one-year terms from among the organizations we surveyed, and considered rates for shorter terms if one-year terms were identical or unavailable.
Banks surveyed include: Apple Federal Credit Union, Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Barclays, BMO Harris, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Citizens Access, Colorado Federal Savings Bank, Connexus Credit Union, Consumers Credit Union, Credit One Bank, Discover Bank, First Internet Bank of Indiana, First Tech Federal Credit Union, FNBO Direct, GO2bank, Golden 1 Credit Union, HSBC Bank, Huntington Bank, Lake Michigan Credit Union, LendingClub Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Nationwide (by Axos), Navy Federal Credit Union, NBKC, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, State Department Federal Credit Union, Synchrony Bank, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, USAA Bank, Vio Bank and Wells Fargo
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