A jumbo certificate of deposit, like its standard CD counterpart, locks in a fixed rate of interest with terms that generally range from six months to five years. However, a jumbo CD can require a substantial initial deposit -- as much as $100,000 in most cases. Â
Jumbo CDs also aren’t offered by as many banks and credit unions. But CNET has compiled the best jumbo CDs available to make it easier to compare your options. With more interest rate cuts expected, it's wise to lock in a competitive annual percentage yield, or APY, now and enjoy guaranteed returns for your CD’s entire term.
Today’s best jumbo CDs offer a variety of terms with rates as high as 4.73% APY. Compare the options below to our best high-yield CDs to find the CD that best suits your needs.
CNET's picks for the best jumbo CD rates
These jumbo CDs require a minimum initial deposit of $50,000 to open.
| Term | Apple FederalCredit Union | ConnexusCredit Union | Credit OneBank | Rising Bank | State DepartmentFederal Credit Union |
| 1-year | 4.36% | 3.86% | 4.55% | N/A | 4.73% |
| 2-year | N/A | 3.99% | 4.10% | 3.25% | 4.37% |
| 3-year | 3.65% | 3.79% | 4.00% | N/A | 4.11% |
| 5-year | 3.85% | 3.60% | 4.00% | N/A | 4.11% |
Rates as of Oct. 29, 2024.
Apple Federal Credit Union
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.Â
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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.Â
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.Â
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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.Â
Connexus Credit Union
Connexus Credit Union offers select terms for jumbo CDs including 12-, 24-, 36-, 48- and 60-month. Right now, its 24-month CD has the highest APY: 3.99%. 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.
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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-, 24-, 36-, 48- and 60-month. Right now, its 24-month CD has the highest APY: 3.99%. 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.
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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 a 12-month jumbo CD with a 4.55% 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).
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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 a 12-month jumbo CD with a 4.55% 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).
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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
Rising Bank offers high-yield CDs with competitive rates and one jumbo CD: a two-year term with a 3.25% 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.
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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.Â
Rising Bank offers high-yield CDs with competitive rates and one jumbo CD: a two-year term with a 3.25% 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.
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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.Â
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. A minimum $100,000 deposit is required to open an account. Rates range from 4.11% up to 4.73%. You’ll forgo between one and six months of interest if you withdraw money before the term ends.
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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. A minimum $100,000 deposit is required to open an account. Rates range from 4.11% up to 4.73%. You’ll forgo between one and six months of interest if you withdraw money before the term ends.
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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.
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.Â
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 insure only 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 CDsÂ
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, as rates start to drop following the Fed's recent rate cut, long-term jumbo CDs are ranking roughly on par or slightly lower than the best traditional high-yield CDs.
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.Â
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.
Pros and cons of jumbo CDs
Pros
- Jumbo CDs offer a fixed interest rate.
- A one-year jumbo CD offers a much higher interest rate than the average savings rate -- 0.45%.
- 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 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.
FAQs
Your CD won’t lose value unless you withdraw funds before the CD term ends. Then you’ll lose only 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.Â
Jumbo CDs have both long- and short-term options, typically spanning one 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.Â
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
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
