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6 best jumbo CD rates

These banks and credit unions offer the best rates on high-deposit CDs.

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Michael Benninger

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Compare the 6 best jumbo CD rates

The best jumbo CD rates offer the opportunity to earn significant interest on various terms, ranging from a few months to several years. The term “jumbo” is typically associated with CDs that require a minimum opening deposit of $100,000, but this isn’t always the case. Some institutions advertise jumbo CDs for $50,000, while others offer $100,000 CDs without mentioning the word jumbo. Also, regional credit unions tend to offer higher APYs on jumbo CDs than national banks.

We researched jumbo CDs from more than 20 financial institutions when compiling this list. And after evaluating the providers based on their APYs, term lengths and accessibility options, we found that these banks and credit unions have the best jumbo CDs.

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CIT Bank Jumbo CDs

2.4
★★★★★

Finder score

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While the best rates for jumbo CDs are typically found at credit unions with membership requirements, CIT Bank Jumbo CDs are available to everyone. But you'll need to open an account online and CIT Bank only offers jumbo CD terms as short as 24 months.

Blue Federal Credit Union CDs

3.5
★★★★★

Finder score

Blue Federal Credit Union CDs that are more flexible than the traditional bank. For example, its 30-month expandable CDs let you add money to your CD throughout your term. But like most credit unions, you'll need to qualify for membership and open an account with a $5 minimum deposit.

Superior Choice Credit Union Share Certificates

4.8
★★★★★

Finder score

Superior Choice Credit Union Share Certificates CDs, also known as share certificates, have some of the highest interest rates around with APYs as high as 5.5% on balances $500 and over. It also has a wide range of terms ranging from three months to seven years. But like most credit unions, you'll need to qualify for membership.

Wings Financial Credit Union CDs

5
★★★★★

Finder score

Wings Financial Credit Union CDs offers a unique feature on some of its CDs. While some banks, like Ally Bank, let you increase your APY to a higher interest rate within a short period, like 10 or 15 days from account opening, Wings Financial allows you to bump your rate one time during the entire CD term when you choose a Step-Up CD. But unless you live in Minnesota, a physical branch is hard to come by.

Consumers Credit Union CDs

4.8
★★★★★

Finder score

While many credit unions have strict membership eligibility rules, Consumers Credit Union CDs is easy to join by becoming a member of the Consumers Cooperative Association by paying a one-time $5 fee. Once you qualify for credit union membership, you'll need to open a savings account, which has a $5 minimum deposit, to open a CD.

Kinecta Federal Credit Union Jumbo CDs

3.9
★★★★★

Finder score

While CDs lock away your money until your term is up, Kinecta Federal Credit Union Jumbo CDs lets you borrow against your funds. And you'll enjoy a one-time rate adjustment if rates go up during your CD's term. Unfortunately, you can't open a Kinecta Federal Credit Union Jumbo CDs online.

Five factors to consider when comparing the best jumbo CDs

When comparing jumbo CDs, keep the following in mind:

  1. 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.
  2. Terms. Consider carefully how long you want to have your balance locked into a savings account. Terms typically range from three months to five years, but some institutions offer terms as short as one month and as long as 20 years. Jumbo CDs with longer terms almost always have better interest rates than CDs with shorter terms.
  3. Minimum deposits. Most jumbo CDs have minimum deposits of $100,000 or more, but some banks advertise jumbo CDs for $50,000. Make sure you look for an account that has a minimum deposit that aligns with your needs.
  4. Fees. Most jumbo CDs don’t have monthly fees, but you’ll want to look for one with reasonable early withdrawal penalties, so you’re not hit as hard if you need to withdraw funds early.
  5. Accessibility. Credit unions tend to offer better interest rates than banks on jumbo CDs, but they also have strict requirements regarding membership. If you’re looking to earn as much interest as possible, look for credit unions that make it easy for anyone to open an account.

Pros of jumbo CDs

Here are the biggest benefits associated with jumbo CDs.

  • 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 piggy bank.
  • 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. If you choose a federally insured bank, your deposits are insured. But your funds are only insured up to $250,000.

Cons of jumbo CDs

Jumbo CDs also have some drawbacks you should keep in mind.

  • Higher minimum deposit. While standard CDs typically have an opening deposit around $1,000, jumbo CDs generally require a higher commitment of at least $100,000.
  • Restrictive. 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 due to early withdrawal penalties. In rare instances, you may even lose 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.
  • Taxes. Any interest you earn with a jumbo CD is considered taxable income, and you’ll need to report it to the IRS when tax time rolls around.

    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 length 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 usually earn higher interest rates.

    3 jumbo CD penalties to watch out for

    Before opening an account, consider the following fees associated with a jumbo CD.

    1. Early withdrawal penalty. Most banks charge a penalty equivalent to a set number of days’ worth of interest if you need to tap into your CD before the term is up. For example, a 1-year CD may have an early withdrawal penalty equal to 180 days’ worth of interest. And depending on when you need to access your cash, if your accrued interest is less than the penalty amount, the difference may come out of your principal.
    2. Bank check. While you can usually withdraw your money from a CD for free by initiating an ACH transfer to a bank account, some banks charge a fee if you need your money via official bank check.
    3. Wire transfers. Many CDs charge a fee if you fund or withdraw your principal using a wire transfer. And this fee is separate from whatever your bank may charge.

    Are jumbo CDs worth it?

    Jumbo CDs are worth it if you’re looking for a safe way to steadily grow a large amount of money without any degree of risk. They’re best for people who have at least $100,000 of uninvested funds sitting in a low-interest savings account. But jumbo CDs aren’t a smart choice as your primary savings account because if you need to access the funds in a pinch, you may sacrifice all of the interest you’ve earned.

    4 alternatives to jumbo CDs

    If you’re not sure a jumbo CD is right for you, consider these four alternatives.

    1. Standard CDs. While some banks reserve their highest interest rates for high balances, many standard CDs have competitive APY with opening deposits as low as $0 to $500.
    2. Brokerage account. When you invest your funds in a brokerage account, you could earn a much better return than you would with a jumbo CD. But depending on how aggressive of an investor you are, you could also be putting your money at risk.
    3. Cash management account. The best cash management accounts (CMAs) let you earn interest on your money without restricting your access to it. But CMAs generally offer much lower APYs than jumbo CDs.
    4. High-yield savings account. With a high-yield savings account, you could earn a decent APY on your nest egg. But most of the institutions that provide these accounts offer lower APYs on high balances.

    Are jumbo CDs safe?

    Yes. Jumbo CDs are safe as long as you don’t have more than $250,000 in the account. This is because banks that offer jumbo CDs are only insured by the FDIC for up to that amount. So if the bank fails, you could potentially lose any cash that exceeds that amount, but your principal will remain safe.

    Keep in mind that the $250,000 limit applies to the total of all of your accounts at a financial institution. For example, if you took out three separate $100,000 CDs at the same bank, you’d have $300,000 in savings, with $250,000 of it federally insured.

    Bottom line

    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.

    Picture: Shutterstock

    Michael Benninger's headshot
    Staff writer

    Michael Benninger is lead editor of banking at Forbes Advisor and a former writer at Finder, specializing in banking. His work and analysis has been featured in Business Insider, Yahoo Finance, GoBankingRates and the Los Angeles Times, among other top media. He holds a B.A. in business administration and marketing from Rowan University in New Jersey. See full bio

    Michael's expertise
    Michael has written 45 Finder guides across topics including:
    • Kids’ banking products
    • Cash management accounts
    • Fintechs and neobanks
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