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.
Best CD Rates by Term
Click on each term length below to discover which banks and credit unions are offering the highest CD rates.
5 Year CD Rates
| Bank | APY | Min Deposit |
|---|---|---|
| Synchrony Bank | 4.00% APY | $0 |
| LendingClub Bank | 3.90% APY | $2,500 |
| America First Credit Union | 3.85% APY | $500 |
| Fidelity Investments | 3.80% APY | $1,000 |
| Navy Federal Credit Union | 3.80% APY | $1,000 |
| Sallie Mae Bank | 3.75% APY | $2,500 |
| Marcus by Goldman Sachs® | 3.75% APY | $500 |
| First Internet Bank | 3.67% APY | $1,000 |
| Alliant Credit Union | 3.65% APY | $1,000 |
| CFG Community Bank | 3.60% APY | $500 |
3 Year CD Rates
| Bank | APY | Min Deposit |
|---|---|---|
| Navy Federal Credit Union | 4.00% APY | $1,000 |
| America First Credit Union | 4.00% APY | $500 |
| CCBank | 3.95% APY | $1,000 |
| Marcus by Goldman Sachs® | 3.90% APY | $500 |
| Synchrony Bank | 3.90% APY | $0 |
| Fidelity Investments | 3.85% APY | $1,000 |
| First Internet Bank | 3.77% APY | $1,000 |
| Connexus Credit Union | 3.69% APY | $5,000 |
| CFG Community Bank | 3.65% APY | $500 |
| Delta Community Credit Union | 3.65% APY | $1,000 |
12 Month CD Rates
| Bank | APY | Min Deposit |
|---|---|---|
| America First Credit Union | 5.00% APY | $500 |
| Delta Community Credit Union | 4.75% APY | $1,000 |
| Navy Federal Credit Union | 4.70% APY | $50 |
| America First Credit Union | 4.50% APY | $500 |
| CCBank | 4.50% APY | $1,000 |
| Valley Bank | 4.50% APY | $500 |
| First Internet Bank | 4.42% APY | $1,000 |
| American Express | 4.35% APY | $0 |
| Alliant Credit Union | 4.30% APY | $1,000 |
| Navy Federal Credit Union | 4.30% APY | $1,000 |
6 Month CD Rates
| Bank | APY | Min Deposit |
|---|---|---|
| Bank5 Connect | 4.95% APY | $500 |
| LendingClub Bank | 4.70% APY | $2,500 |
| CCBank | 4.65% APY | $1,000 |
| America First Credit Union | 4.60% APY | $500 |
| Quontic Bank | 4.60% APY | $500 |
| Barclays Bank | 4.50% APY | $0 |
| Service Credit Union | 4.50% APY | $500 |
| Alliant Credit Union | 4.45% APY | $1,000 |
| Ally Bank | 4.40% APY | $0 |
| First Internet Bank | 4.35% APY | $1,000 |
3 Month CD Rates
| Bank | APY | Min Deposit |
|---|---|---|
| America First Credit Union | 4.70% APY | $500 |
| Fidelity Investments | 4.55% APY | $1,000 |
| Alliant Credit Union | 4.25% APY | $1,000 |
| EverBank | 3.95% APY | $1,000 |
| First Internet Bank | 3.72% APY | $1,000 |
| Ally Bank | 3.00% APY | $0 |
| Live Oak Bank | 3.00% APY | $2,500 |
| Navy Federal Credit Union | 2.75% APY | $1,000 |
| Discover Bank | 2.00% APY | $0 |
| Service Credit Union | 0.80% APY | $500 |
The Best Jumbo CD Rates from Top Banks for November 2024
Here are our favorite jumbo CD options to explore today:
- CommunityWide Federal Credit Union
- CIT Bank
- Capital One 360
- Discover Bank
- Michigan State University FCU
- Blue Federal Credit Union
- Chevron Federal Credit Union
- SchoolsFirst Federal Credit Union
- Wings Financial Credit Union
- SuperiorChoice Credit Union
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
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.
- Minimum Deposit: $1,000
- Term: 12 months
- Learn More: Check out CommunityWide’s CDs
CIT Bank
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.
- Minimum Deposit: $100,000
- Term: 2-5 years
- Learn More: Check out CIT Bank CDs
Continue Reading:
Capital One 360
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) is one of the most competitive on the market.
But it’s still a relatively strong return.
- Minimum Deposit: NA
- Term: 12 months
- Learn More: Capital One 360’s CDs
Continue Reading:
Discover® Bank
Discover is largely known for its credit cards. However, the Discover® Bank CD program boasts a comparatively high APY, 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 only a slightly higher APY.
I recommend keeping your money locked up in a 12-month term unless you are looking for guaranteed stability throughout a longer period.
- Minimum Deposit: $0
- Term: 12 months
- Learn More: Check out Discovers CDs
Continue Reading:
Michigan State University Federal Credit Union
Michigan State University Federal Credit Union offers a variety of CDs in three, six, and 13-84 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.
- Minimum Deposit: $100,000
- Term: 18 months
- Learn More: Check out Michigan State University FCU CDs
Blue Federal Credit Union
Blue Federal Credit Union offers various options for CD terms, depending on how much money you are looking to invest and how long you want to lock it up.
They offer CDs in the following rate tiers: $1,000 to $49,000; $50,000 to $99,999.99; $100,000+
Their rates are a little 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.
- Minimum Deposit: $1,000 – $100,000+
- Term: 12 months
- Learn More: Check out Blue Federal Credit Union CDs
Chevron Federal Credit Union
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 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.
- Minimum Deposit: $500, $50,000, $100,000 or $250,000
- Term: 12 months
- Learn More: Check out Chevron Financial Credit Union CDs
SchoolsFirst Federal Credit Union
Like Chevron, SchoolsFirst also offers share certificates with a slightly reduced APY when compared to high yield savings accounts.
It should be noted that dividend rates and APY spike significantly when jumping to at least 12 to 17 months.
And if you’re willing to keep at least $100,000 locked in for 60 months, you can usually see a higher rate.
So, it’s a flexible program with higher payouts, the more you’re willing to set aside.
- Minimum Deposit: $100,000
- Term: 12 months
- Learn More: Check out SchoolsFirst Federal Credit Union CD
Wings Financial Credit Union
Wings Financial Credit Union is now offering a decent APY on its share certificates.
Their best rates come on their 5 year jumbo cd products.
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 a solid cd rate for the market right now.
- APY: 2.68%
- Minimum Deposit: $100,000
- Term: 60 months
- Learn More: Check out Wings Financial Credit Union CD
SuperiorChoice Credit Union
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.
They are currently running an 11-month CD promotion. With this particular find, the APY is excellent, especially given the current market conditions.
If you’re looking for a safe short-term investment, this could be a good fit for you.
- Minimum Deposit: $100,000
- Term: 11 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!
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