Keep your money growing at a competitive rate.
CDs offer competitive interest rates and predictable gains, and high-deposit CDs tend to offer the most favorable terms. But high interest rates can also mean high penalties if you withdraw early.
Our top pick: CIT Bank Jumbo CDs
Compare the best jumbo CD rates
How does a jumbo CD work?
A jumbo CD is any certificate of deposit for $100,000 or more that grows your investment at a fixed interest rate over a specified period of time. You’ll know exactly how much you’re getting and when — but there are penalties if you withdraw your money early. Longer terms will be eligible for higher interest rates.
How do I compare jumbo CDs?
When deciding on a CD, consider:
- Interest rates. The higher your interest rate, the more you’ll earn. And with a $100,000 deposit, even a slight difference in interest can add up to a lot of money.
- Terms. Consider carefully how long you want to have your balance locked into a savings account — you’ll get a better interest rate if you choose a longer term. Terms can range anywhere from one month to 10 years or more.
- Interest payments. If a CD offers compound interest, that means that your interest will earn interest.
- Fees. Look for a CD account that doesn’t charge monthly fees.
- Penalties. If there’s any chance you’ll need to withdraw your money before the term is up, look for a CD with reasonable penalties.
Consider the pros and cons of a CD with a high balance
- High-interest earnings. A high-balance CD will offer a competitive, fixed interest rate.
- Incentive. Locking in your savings for a set period of time can help you keep your hands out of the piggybank.
- Flexibility. There are a lot of CD options on the market, so you can choose a term length and interest payout option that works best for you.
- Safe. You can deposit up to $250,000 at a federally insured bank knowing that no matter what happens, you’ll get your money back when your term is up.
- Restrictive. If you do find that you need the money sooner than you thought, not only might it take some time to get it, but you could be facing additional fees and penalties for early withdrawals.
What are the risks?
A jumbo CD isn’t the right option for every investor. Risks you could face include:
- Choosing inappropriate terms. If you commit to a term length you aren’t able to follow through with, you could potentially lose some or all of your earned interest — and in certain cases, even a percentage of your principal.
- Lower rates. This is a non-aggressive method of increasing your wealth. Riskier investments, like stocks or real estate, offer a higher potential for capital gains — along with a higher potential for major losses.
If you’re looking for a safe, guaranteed way to grow your income over a set period of time, consider a high-yield CD. But if you can’t commit to not touching your money for the full term length, you may be better off with a traditional savings account — or a combination of the two.
How did we choose the best CDs?
If you’ve got over $100,000 to put away, a jumbo CD could prevent you from dipping into your savings while paying a competitive interest rate on your balance. But not all jumbo CDs are the same, and the interest rate isn’t always the most important factor. We narrowed down our list of some of the best jumbo CDs by looking into key factors like APY, term options, renewal bonuses, early withdrawal penalties, fees and interest compounding periods.
Frequently asked questions