Jumbo Cd Rates

Jumbo CD rates tend to be slightly better than regular CD rates, on average, but these CDs come with a steep requirement. Jumbo CDs traditionally require at least $100,000 to open, though some. Jumbo certificates of deposit (CDs) usually require a large amount of money (think $100,000) and sometimes can offer even higher interest rates than regular CDs, but usually only within a given bank. We did not include CDs offered by credit unions on this list, as well as specialty CD types like no-penalty CDs (for easy withdrawals), add-on CDs (for making additional contributions), jumbo CDs. The minimum opening deposit for a regular certificate of deposit is $1,000 and a jumbo certificate of deposit minimum is $100,000. 18 month Rising CD rates are at 2.03 percent with an APY of 2.05 percent. 3-year Rising CD rates are at 2.08 percent with an APY of 2.10 percent. A jumbo CD is a CD with a high minimum deposit — usually around $100,000 — that pays a higher interest rate than a regular CD. You may consider a jumbo CD if you have around $100,000 and want.

At this point, you have managed to rack up a considerable chunk of change— at least five figures — and now you’re looking to put your money aside and let it grow for a short period of time.

This post will explore whether a jumbo certificate of deposit (CD) is the right option for your needs.

You’ll also learn which financial institutions are offering the best CD rates right now.

The Best Jumbo CD Rates

Here are our favorite jumbo CD options to explore today:

Keep in mind that not all jumbo certificates of deposit accounts will advertise themselves as “jumbo”.

As always, you have to dig a little deeper for information when searching for the best financial products for your specific needs.

It’s also important to remember that APYs are always changing — especially during uncertain financial times, such as the current COVID-19 pandemic. This article represents the latest updates from across the industry.

What’s more, jumbo CDs will not always guarantee a higher return than a traditional CD, even though they may seem to have better rates at first.

Read the fine print to ensure that the jumbo CD APYs being offered are a better deal than you could get with regular CDs.

CommunityWide Federal Credit Union 6-Month CD

CommunityWide offers a low minimum deposit of just $1,000 for terms ranging from six months to 60 months.

Dividends can compound in certificates, be deposited to another share, or be transferred to another institution.

• APY: 1.00%
• Minimum Deposit: $1,000
• Term: 6 months
• Learn More:Check out CW’s CDs

CIT Bank Jumbo CDs

CIT Bank, member FDIC, is an online bank that is growing in popularity. The company offers 2-year CDs, 3-year CDs, 4-year CDs, and 5-year CDs.

The APY on the 2-year and 3-year accounts is 0.40%, and it’s 0.50% for the 4-year and 5-year terms.

These aren’t the highest APYs on the market, but they aren’t the lowest rates either. And with no account opening fees or maintenance fees, this makes them a pretty solid choice.

If you’re already a CIT Bank account holder, this might be a good option.

• APY: 0.40 – 0.50%
• Minimum Deposit: $100,000
• Term: 2-5 years
• Learn More:Check out CIT Bank CDs

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Capital One 360 Jumbo 12-Month CD

Capital One 360 has many enticing features, including no minimum balance and flexible interest payments that allow the customer to determine when they are distributed.

Their 12-month CD (also known as a 1-year-CD), with an APY of 0.30%, is not the most competitive on the market.

But it’s still a relatively strong return.

• APY: 0.30%
• Minimum Deposit: NA
• Term: 12 months
• Learn More:Capital One 360’s CDs

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Discover Bank 12-Month High-Yield CD

Discover is largely known for its credit cards. However, the Discover Bank CD program boasts a comparatively high APY of 0.60%, a lower minimum deposit, and a 12-month maturity date.

Discover’s 12-month plan is a pretty good value, too, when considering that its longer 30-month term has an APY of just 0.70%.

I recommend keeping your money locked up in a 12-month term unless you are looking for guaranteed stability throughout a longer period.

• APY: 0.60%
• Minimum Deposit: $25,000
• Term: 12 months
• Learn More:Check out Discovers CDs

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Michigan State University Federal Credit Union 3-Month CD

Michigan State University Federal Credit Union offers a variety of CDs in three, six, and 13-23 month terms.

There is also the option for a one-year add-on certificate.

One of the great parts about Michigan State’s program is there are no monthly or maintenance fees to worry about.

• APY: 0.45%
• Minimum Deposit: $100,000
• Term: 3 months
• Learn More:Check out Michigan State University FCU CDs

Blue Federal Credit Union 6-Month CD

Blue Federal Credit Union offers various options for 6-month CD terms, depending on how much money you are looking to invest.

An APY of 0.30% is available for a minimum balance of $1,000 to $49,000.

A minimum balance of $50,000 to $99,999.99 will yield an APY of 0.40%.

Anything over $99,999.99 will yield a healthy APY of 0.50%.

This is still less than what you will find in a typical HYSA, but it comes with the security of a fixed rate — a nice-to-have in today’s volatile environment.

• APY: 0.30 – 0.50%
• Minimum Deposit: $1,000 – $100,000+
• Term: 6 months
• Learn More:Check out Blue Federal Credit Union CDs

Chevron Federal Credit Union 12-Month Jumbo CD

Chevron offers share certificates, with a guaranteed return that varies depending on how much you are willing to put in.

A 12-month, $500 minimum investment will yield an APY of 0.85% which is great for beginners.

However, if you have at least $100,000 on hand, then you’ll want to spring for the 12-month jumbo CD, which comes with a strong APY of 1.01%, with a dividend rate of 1.00%.

• APY: 0.85 – 1.01%
• Minimum Deposit: $500, $50,000 or $100,000
• Term: 12 months
• Learn More:Check out Chevron Financial Credit Union CDs

SchoolsFirst Federal Credit Union 6-Month Jumbo CD

Like Chevron, SchoolsFirst also offers share certificates but with a slightly reduced dividend rate and APY of 0.85% each for 6 to 11 months for a $100,000 deposit.

It should be noted that both spike significantly when jumping to the next tier of 12 to 17 months, with a rate of 1.14% and APY of 1.15%.

And if you’re willing to keep at least $100,000 locked in for 60 months, you can receive a dividend of 1.39% and an APY of 1.40%.

So, it’s a flexible program with higher payouts, the more you’re willing to set aside.

• APY: 0.85%
• Minimum Deposit: $100,000
• Term: 6 to 11 months
• Learn More:Check out SchoolsFirst Federal Credit Union CD

Wings Financial Credit Union 36-Month CD

Wings Financial Credit Union is now offering a generous APY of 1.16% for a term period of three years.

It’s a long time to keep such a large sum of money locked up in a CD.

But if you’re willing to park your capital for this long, this is one of the best cd rates that you’ll find on the market right now.

• APY: 1.16%
• Minimum Deposit: $100,000
• Term: 36 months
• Learn More:Check out Wings Financial Credit Union CD

SuperiorChoice Credit Union 60-Month CD

One of the nice parts about SuperiorChoice is that the company offers monthly dividends.

Plus, when a certificate comes due, the company will provide a notice and offer 10 business days to cash or change the terms of the certificate.

Automatic renewal occurs after the 10-day period. So it’s a flexible and convenient program.

With this particular fund, the 1.40% APY is excellent, especially given the current market conditions.

However, the high minimum deposit and 60-month term (5-year-jumbo-CD) is a big commitment.

If you’re looking for a safe long-term investment, this could be a good fit for you.

• APY: 1.40%
• Minimum Deposit: $100,000
• Term: 60 months
• Learn More:Check out SuperiorChoice Credit Union CD

Benefits of a Jumbo CD

Now that you have a better idea of what a jumbo CD is, let’s take a look at some of the advantages you’ll enjoy by signing up for one.

Higher Interest Rates

Jumbo CDs usually have competitive rates that are slightly higher than traditional CDs.

Interest rates typically increase depending on how much you are willing to spend and how long you are willing to keep your money in the account.

One thing’s for sure: you’re much more likely to get a higher rate of return from a CD account than with a checking account, or money market account.

Shorter Tenures

Another benefit of using a jumbo CD is they can have short term lengths, with some terms running only a few days compared to several months.

Some jumbo CDs can also come with longer terms extending as much as 10 years.

Reduced Risk

Investors often use jumbo CDs as a way to diversify their portfolios, because investments are not subject to losses like they would be in the stock market. CD deposits are also come with FDIC insurance, while stocks are not.

Now that you have a basic overview of how jumbo CDs work and the pros of using one, let’s take a closer look at some of the top-performing products on the market.

FAQs

What is a Jumbo CD?

Just like any other Certificate of Deposit (CD), a jumbo CD is a short-term savings account with a specific, fixed term and a fixed interest rate, which is also known as an annual percentage yield (APY).

When you invest in a CD, you need to be comfortable signing up with the notion that you’re essentially putting your money on hold for a specific time period in exchange for a stronger guaranteed return at the end of the savings period.

CDs are not like checking accounts where you can access your money whenever you need it. In fact, most CDs have an early withdrawal penalty.

A jumbo CD is an investment that typically involves a higher minimum balance than you would find in a traditional CD.

However, this can vary from bank to bank. Some minimum deposit requirements can be as low as $500 while others can be as high as $100,000.

Some companies, like Capital One, do not have any minimum deposit amounts at all.

Are Jumbo CDs Secure?

Jumbo CDs are considered to be risk-free investments, as they are FDIC-insured. They’re also covered by the National Credit Union Administration (NCUA).

While it’s not possible to lose money in a jumbo CD, it is possible to receive a lower payout than you would receive from a competitive traditional CD.

It’s important to scour the market and make sure that you’re putting your money in the right location.

Are Jumbo CDs a Good Investment?

It largely depends on your financial goals and overall investment strategy. High-value stock traders can use jumbo CD returns to offset potential losses during stock trading.

Jumbo CDs are also a good investment for savers looking to park their money for a short period of time before putting it somewhere else.

Ultimately, jumbo CDs will yield strong APYs while delivering security — making them an ideal investment vehicle for those who want to avoid risk.

That said, many people will not qualify for jumbo CD accounts due to the high minimum opening deposits and minimum balance requirements.

Jumbo CD Alternatives

It’s important to know your options before putting your money into a jumbo CD or any CD for that matter.

Always remember: Putting any amount of money into a CD of any kind is like putting your money in jail.

As with your IRA investments, you could be looking at an early withdrawal penalty if you need immediate access to your cash.

With that in mind, here are some jumbo CD alternatives to consider.

High-Yield Savings Account (HYSA)

An HYSA is an online savings account that pays roughly 20 to 25x more than the national average of a standard savings account.

For example, the online bank Ally offers a much higher APY on savings accounts than Bank of America does.

The main difference between an HYSA and a CD is that an HYSA comes without a binding term agreement.

The tradeoff is that HYSA rates are variable and depend on how the economy is functioning and what the Federal Reserve does with interest rates.

HYSA rates were halved in the last year due to the pandemic, as the Federal Reserve has slashed interest rates.

The main thing to remember is that you don’t want to have your money locked up when HYSA rates shoot back up.

Dividend-Paying Stocks

A dividend is a distribution of profits to shareholders. They are usually paid quarterly or semi-annually. Dividends can also be paid monthly or without a set schedule (i.e., irregular dividends).

If you choose the right performing stocks, and you’re willing to handle market volatility, then you can stand to earn more over the course of a year than you would with a binding jumbo CD.

Again, it all depends on your risk tolerance and your needs. Only you or your financial advisor can make that decision.

Bond Funds

A bond fund is a fund that invests in debt securities and government or corporate bonds. They usually pay regular dividends and can be either short or long term.

Bonds funds are considered a safe alternative to CDs. However, they can fluctuate in value.

And because short-term bonds are mutual funds, you will have to pay a capital gains tax if you convert them to cash.

Is a Jumbo CD Best For You?

These are uncertain economic times. As such, you may be hesitant to put your money into the volatile stock market or to keep all of it in a variable HYSA account.

If you’re looking for security and you want to lock in a great APY, consider investing in a jumbo CD.

Just make sure to shop around and compare CDs to make sure you’re getting the best bang for your buck.

Research your options, take your time, and you’ll make the best decision for you. Good luck!

Summary of The Best Jumbo CD Rates

The more money you have saved up, the more options you might have.

Those with around $100,000 or more can 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, but savvy shoppers can look around for the best rate, whether it's on a jumbo CD or on a regular CD.

Summary of Best Jumbo CD Rates for March 2021

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

Best Jumbo CD Rates for 3-7 years

Note: The APYs (Annual Percentage Yields) shown are as of March 1, 2021. The APYs for some products may vary by region.

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 5-year jumbo CD national average of 0.34 percent APY, according to Bankrate's most recent national survey of banks and thrifts.

Today's top widely available jumbo CDs pay 1.1 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 or a large down payment on a house. Having a jumbo CD can also be helpful if you need collateral for a loan. Just make sure you align your goal with the term of the CD.

Best 5-year jumbo CD rates details

SchoolsFirst Federal Credit Union - 1.10% APY, $100,000 minimum deposit for APY

SchoolsFirst Federal Credit Union was formed during the Great Depression in 1934. The credit union, created by school employees, 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.

Golden 1 Credit Union - 1.00% APY, $100,000 minimum deposit for APY

Golden 1 Credit Union has one million members. Its main office is in Sacramento, California and has been around since 1933. Golden 1 Credit Union has 72 branches in California. Membership to Golden 1 Credit Union is open to all Californians.

Non-Californians can join Golden 1 Credit Union if they are a registered domestic partner or family member of an existing member. They can also join if they're a member of one of the select employee groups.

Navy Federal Credit Union - 0.95% APY, $100,000 minimum deposit for APY

Navy Federal Credit Union has more than 10 million members and is the world's largest credit union. It has a global network of 345 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.

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.

Jumbo CD FAQs

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 pros of a jumbo CD

Here are two benefits of jumbo CDs.

1. Potential higher APY: Sometimes a jumbo CD may 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.
2. Safety: A jumbo CD is a safe option if it's through an FDIC bank or an NCUA credit union - as long as you follow their 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.

The cons of a jumbo CD

Here are some downsides to consider.

1. Inflation can be a concern: Jumbo CDs require a large minimum balance. In what's still considered to be a low-rate environment, in some cases it might not make sense to put a jumbo deposit into a CD for a long period of time.
2. 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.

Are jumbo CDs safe?

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.

Is a jumbo CD a good investment?

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.

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.

Are jumbo CDs usually short-term or long-term?

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.

How do jumbo CDs affect taxes

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.

Jumbo Cd Rates Wells Fargo

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.

What are the alternatives to a jumbo CD?

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.

Bankrate’s Best 5-Year Jumbo CD Rates for March 2021:

• SchoolsFirst Federal Credit Union: 1.10% APY, $100,000 minimum deposit for APY
• Golden 1 Credit Union: 1.00% APY, $100,000 minimum deposit for APY
• Navy Federal Credit Union: 0.95% APY, $100,000 minimum deposit for APY

3.5% Cd Rates Today

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