We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. The annual percentage yields (APYs) listed below are up to date as of the date of publication on this article. Our methodology consists of reviewing CD rates every weekday morning and updating the information below accordingly. For savers who want to sock away $100,000 or more in a virtually risk-free investment, jumbo certificates of deposit (CDs) offer a return that is both safe and predictable, if modest. To help you earn as much as you can, we've done the research for you to find the best nationally available jumbo CDs, culled from more than 50 banks and credit unions that offer jumbo CDs nationwide. Below are the top CD rates available from our partners, followed by a ranking of some of the best jumbo and regular CD rates nationwide. CD rates reached higher in 2023 than we’d seen in more than 20 years, pushed up by the Federal Reserve’s rate-hike campaign that began in March 2022 to tame decades-high inflation. For its last three meetings, however, the Fed has held the federal funds rate steady, and in its Dec. 13 rate announcement, Fed Chair Jerome Powell indicated the committee’s rate-hike cycle ismost likely complete. Further, most Fed members project that two to four rate cuts will occur by the end of 2024. Because CD rates closely follow the fed funds rate, the Fed’s current holding pattern already has caused CD rates to soften, andfurther declines are likelyover the coming weeks and months. To aid your decision, we've ranked the best jumbo CDs below. To be included in this list, a CD's minimum deposit requirement must be at least $50,000, though the majority of the top-paying jumbo CDs require $100,000. CD shoppers beware, as certificates with "jumbo" in their name aren't always your most lucrative option. As shown here, sometimes you can do better by opening a non-jumbo CD and simply putting a jumbo-sized deposit into it. In cases where more than one institution pays the same top rate, we've prioritized CDs by the shortest term, then the CD requiring a smaller minimum deposit, and if still a tie, alphabetically by institution name. Expand your search for a great rate by also checking our ranking of the best CD rates, with terms ranging from three months to 10 years. Further details on the top-paying jumbo certificate in every term are outlined below, complete with information on minimum deposits, early withdrawal penalties, and, where applicable, how you can join the credit union. When asked in December if they were choosing more or less of certain investments during recent market events,28% of Investopedia readers saidthey were leaning into CDs—just one percentage point behind the leading choice of money market funds. Additionally, 11% of readers said they would open a CD if they had an extra $10,000 to invest, in third place behind individual stocks and ETFs. Pros May pay a higher APY than standard CDs Pays a rate guaranteed not to change Offers entirely predictable earnings Is virtually risk-free Allows a single investment for one large lump sum Cons Requires a very large deposit Locks up your money until maturity Incurs a penalty if withdrawn early May have a lower rate of return than other options Always carefully review a CD's terms as provided by the bank or credit union before signing paperwork and funding the account. In particular, be sure you've reviewed the institution's early withdrawal penalty and are comfortable with it. If it seems overly harsh, such as possibly eating away at your principal investment, you should consider opening a similar CD at another institution that has a more reasonable policy. As we've mentioned, just because a CD requires a jumbo-sized deposit doesn't mean it pays a jumbo-sized rate. In fact, it's commonly true that you can earn a higher annual percentage yield (APY) by opening a standard CD and simply putting a large deposit into it as the vast majority of CDs have a very maximum investment limit (such as $250,000 or $1 million). If you want more flexibility with your money, you could instead put your funds into one of the best high-yield savings accounts or best money market accounts. That would allow you to withdraw and deposit your funds more or less anytime you want. The disadvantage, however, is that rates on these accounts are variable. That means they can go down at any time, unlike a CD rate that is fixed for the entire term. Various types of bonds are also possibilities for your cash savings. Some, like U.S. Treasury savings bonds and Treasury notes, are very similar to CDs in that the rate is typically predictable if you hold the bond until maturity. They are also backed by the federal government, so like CDs, they are exceptionally safe. U.S. Treasury I bonds are another option. But their fixed rate is only known for six months at a time, with the rate being adjusted twice a year based on the current inflation rate (hence the name I bonds). Like a CD, I bonds have an early withdrawal penalty, but it's a mild three months' worth of interest. But unlike a CD, you cannot for any reason cash in an I bond during its first 12 months. To potentially earn a little more on your investment than a CD can provide, diversified bond funds are another idea. Of course, there's always a risk that bond returns could be negative from one year to the next, so the longer your time horizon, the less risky an investment in bonds would be. If you're considering a relatively short CD term instead, like 1 to 2 years, or even less, then bonds represent a much riskier option than a CD, with no guarantee of delivering a return. If you know you won't need your funds for many years, you could consider investing in stocks instead. The upside is that you could potentially earn quite a bit more in the stock market than with a fixed CD rate. But the significant downside is that you can always lose money on equities, including scenarios where you lose most of your investment. So while CDs won't return as much as stocks that are doing well, on the flip side, CDs are guaranteed to grow with no risk of you losing your initial principal. A jumbo CD is a CD that requires a much higher initial deposit. Traditionally, the term "jumbo" has referred to CDs requiring an investment of at least $100,000. But since no banking rules or regulations stipulate what an institution can call a jumbo CD, banks and credit unions apply the term liberally according to their deposit and marketing strategy. As such, the marketplace includes jumbo CDs, or sometimes "mini jumbos," requiring just $25,000 or $50,000. Jumbo CDs work the same as regular CDs where you deposit a lump sum to receive a fixed rate of interest after a certain period of time. Aside from higher deposit requirements, jumbo CDs function in the same way as regular CDs. The depositor chooses a CD term based on how long they are willing to commit their funds and decides how much to deposit. The bank or credit union then provides an agreement documenting how much interest they will pay on the CD, what the compounding period will be, and what the penalty policy is for any withdrawals made prior to the CD's maturity date. The main difference to consider, therefore, between most conventional and jumbo CDs is the rate you can earn. Though institutions are, in theory, willing to pay higher interest on larger deposits than smaller ones, this is often not the case, with the top standard CD rates often beating out the best jumbo rates. For that reason, CD shoppers are wise to research the top current rates for both types to determine which institution's product will provide the highest return for their deposit amount. As for IRA CDs, these are certificates that behave in all the same ways as regular or jumbo CDs except that they are tax-sheltered according to the IRS' rules for IRA accounts. They are simply another type of retirement account or vehicle, and they often are used for funds a saver wants to be invested more conservatively than a securities investment offers and with a focus on capital preservation since CD balances generally do not lose principal. As tax-favored retirement products, IRA CDs involve an additional penalty policy for any withdrawals made before retirement age, along the same lines as an early withdrawal from any other kind of IRA account. Anytime you open a certificate of deposit, the terms of your agreement with the bank or credit union will include their policy on how they'll calculate a penalty should you request to withdraw the funds before the maturity date. Most typically, the early withdrawal penalty is defined as a certain number of months of earned interest, which will be deducted from your balance when you cash out. Early withdrawal penalties are typically the same whether the CD is a standard or jumbo CD. However, the penalty calculations across various institutions vary incredibly widely. Also be sure you've reviewed the early withdrawal terms before signing on the dotted line, so you can be sure the penalty is within reasonable boundaries. For instance, avoid any CD whose penalty can eat into your original principal. An investment in a jumbo CD is just as safe as a deposit made in a regular CD or any other account at the bank. That's because FDIC insurance (and NCUA insurance for credit unions) doesn't distinguish the types of deposit products it covers. Its limits are strictly defined by a dollar threshold, which is $250,00 of coverage from both the FDIC and NCUA. Note, however, that the $250,000 limit applies per person and per institution. So coverage can be increased significantly by spreading deposits across accounts held by more than one person (like two spouses) or at more than one institution. In any case, it's important to be aware of any situation where you might approach the $250,000 threshold. If you open two $100,000 CDs at one bank, for instance, but also have another $100,000 in checking and money market accounts at that same institution, $50,000 of your deposits would be unprotected by the FDIC should the bank fail. Whether the funds are in regular or jumbo CDs will have no bearing. If comparing a regular CD and a jumbo CD at the same institution, the jumbo certificate rate will usually be higher, if only by a small amount. However, what matters most to the savvy CD shopper is how much the best regular CDs in the country pay vs. the best jumbo CD, regardless of institution. And this is where standard CDs have an advantage. The number of banks and credit unions that offer regular CDs nationwide runs above 200. In contrast, only about 50 institutions market nationally available jumbo CDs. So the standard CD marketplace—and the rate competition—is about four times the size of the jumbo market. In addition, the best CD rates in the country are often special promotions and limited-time CD offers. For instance, a bank may offer one or two CD terms as specials, with an elevated rate compared to its regular array of certificates. In contrast, it is rare to encounter a jumbo CD special. Super jumbo CDs are even less common than jumbo CDs, with only a few major institutions offering a product by that name. The biggest player with a super jumbo CD on their product menu is USAA Bank, which offers regular CDs with a minimum of $1,000, jumbo CDs at $95,000, and super jumbo certificates at $175,000. There are also jumbo CDs with larger minimums than $95,000 or $100,000, even if the institutions that offer them don't call them super jumbos. The most common tier above $100,000 is a minimum deposit of $250,000. Whether or not a CD is negotiable is typically a function of how the CD was acquired, rather than whether it is standard or jumbo in size. CDs opened directly with a bank or credit union are held in the depositor's name and are rarely negotiable. They can be liquidated only according to the bank's policy on early withdrawals and the associated penalty. Alternatively, CDs can be opened through brokerage firms, and these certificates, called brokered CDs, are bought and sold on a secondary market. Instead of going to a bank to open one of these certificates, you do so via your account at a brokerage house (e.g., Vanguard, Fidelity, etc.), and multiple CDs from more than one institution can be held in a single brokerage account, making the process of tracking and managing more than one certificate much simpler. The trade-off for this convenience is two-fold. First, the rates of return on brokered CDs are usually less competitive than direct bank CDs. Second, if you want to withdraw your funds from a brokered CD, you cannot simply liquidate it and pay the bank a penalty. Instead, you must put the CD up for sale on the secondary market operated by the brokerage, and the price you receive (which depends on the current rate environment) is far from predictable. Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide, and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the CD's minimum initial deposit must not exceed $25,000. Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.In the News
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BEST NATIONAL JUMBO CDs Ranked by highest APY, then shortest term, then lowest minimum Best 3-Month Jumbo CDs Rate Term Minimum CD Bank 5.20% APY 3 months $100,000 All In Credit Union 5.17% APY 3 months $100,000 Luana Savings Bank 4.52% APY 3 months $100,000 Best non-Jumbo option: TotalDirectBank 5.66% APY 3 months $25,000 Best 6-Month Jumbo CDs Rate Term Minimum My eBanc 5.77% APY 6 months $50,000 Quorum Federal Credit Union 5.60% APY 7 months $100,000 All In Credit Union 5.59% APY 6 months $100,000 Best non-Jumbo option: INOVA Federal Credit Union 5.75% APY 8 months $200 Best 1-Year Jumbo CDs Rate Term Minimum My eBanc 5.77% APY 12 months $50,000 State Bank of Texas 5.70% APY 12 months $50,000 Finworth 5.70% APY 14 months $50,000 Best non-Jumbo option: Bank of South Texas 5.88% APY 12 months $1,000 Best 18-Month Jumbo CDs Rate Term Minimum All In Credit Union 5.80% APY 18 months $100,000 My eBanc 5.68% APY 18 months $50,000 Quorum Federal Credit Union 5.60% APY 15 months $100,000 Best non-Jumbo option: All In Credit Union 5.69% APY 18 months $1,000 Best 2-Year Jumbo CDs Rate Term Minimum All In Credit Union 5.54% APY 24 months $100,000 Skyla Credit Union 5.30% APY 24 months $50,000 Lafayette Federal Credit Union 5.30% APY 24 months $100,000 Best non-Jumbo option: All In Credit Union 5.48% APY 24 months $1,000 Best 3-Year Jumbo CDs Rate Term Minimum U.S. Senate Federal Credit Union 5.28% APY 36 months $100,000 Skyla Credit Union 5.20% APY 36 months $50,000 Lafayette Federal Credit Union 5.20% APY 36 months $100,000 Best non-Jumbo option: U.S. Senate Federal Credit Union 5.23% APY 36 months $1,000 Best 4-Year Jumbo CDs Rate Term Minimum U.S. Senate Federal Credit Union 4.86% APY 48 months $100,000 Lafayette Federal Credit Union 4.84% APY 48 months $100,000 Heartland Credit Union 4.68% APY 48 months $100,000 Best non-Jumbo option: Farmers Insurance Federal Credit Union 5.00% APY 48 months $1,000 Best 5-Year Jumbo CDs Rate Term Minimum U.S. Senate Federal Credit Union 4.92% APY 60 months $100,000 Heartland Credit Union 4.68% APY 60 months $100,000 Lafayette Federal Credit Union 4.63% APY 60 months $100,000 Best non-Jumbo option: Farmers Insurance Federal Credit Union 5.00% APY 60 months $1,000 Best 3-month jumbo CD: CD Bank – 5.20% APY
Best 6-month jumbo CD: My eBanc – 5.77% APY
Best 1-year jumbo CD: My eBanc – 5.77% APY
Best 18-month jumbo CD: All In Credit Union – 5.80% APY
Best 2-year jumbo CD: All In Credit Union – 5.54% APY
Best 3-year jumbo CD: U.S. Senate Federal Credit Union – 5.28% APY
Best 4-year jumbo CD: U.S. Senate Federal Credit Union – 4.86% APY
Best 5-year jumbo CD: U.S. Senate Federal Credit Union – 4.92% APY
Fast Fact
Pros and Cons of a Jumbo CD
Pros Explained
Cons Explained
Alternatives to a Jumbo CD
For investors whose primary concern is preserving their principal, CDs are one of several options you can weigh. And jumbo CDs can make sense when you have a large amount of cash to invest in this way. But some of the alternatives may suit your goals better. Standard (Non-Jumbo) CDs
Savings and Money Market Accounts
Treasuries
Bonds
Equities
Frequently Asked Questions
What Is a Jumbo CD?
What Is the Difference Between Regular, Jumbo, and IRA CDs?
What If I Need My Money Before the CD Reaches Maturity?
How Safe Are Jumbo CDs?
How Do Regular, Jumbo, and Super Jumbo CD Rates Compare?
Are Jumbo CDs Negotiable?
Rate Collection Methodology Disclosure
As a seasoned financial expert with a profound understanding of the intricacies of investment vehicles, particularly certificates of deposit (CDs), I bring a wealth of knowledge and experience to the discussion of jumbo CDs. My expertise is grounded in a comprehensive analysis of the financial markets, including the factors influencing CD rates, the impact of economic policies such as the Federal Reserve's rate-hike campaign, and the dynamics of inflation.
Analysis of the Article:
The provided article delves into the realm of jumbo CDs, focusing on their appeal to savers looking to invest significant sums with minimal risk. The central theme revolves around evaluating and presenting the best nationally available jumbo CDs based on annual percentage yields (APYs).
Key Concepts Discussed:
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Annual Percentage Yields (APYs):
- APY is a crucial metric in the realm of CDs, representing the effective interest rate earned on an investment over a year, accounting for compounding. The article emphasizes the importance of regularly updating APYs to provide accurate and current information to potential investors.
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Federal Reserve's Rate-Hike Campaign:
- The article highlights the impact of the Federal Reserve's rate-hike campaign initiated in March 2022 to combat high inflation. It explains how these rate adjustments influence CD rates and the subsequent softening of CD rates due to the Fed's holding pattern.
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Jumbo CDs and Risk Mitigation:
- Jumbo CDs are presented as a safe and predictable investment option for individuals looking to invest $100,000 or more. The article provides a ranking of the best jumbo CDs from various banks and credit unions.
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CD Rate Trends:
- The article outlines the trend of CD rates reaching higher levels in 2023, attributing this increase to the Federal Reserve's actions. It also anticipates potential future declines in CD rates based on the Fed's projections.
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Methodology for Ranking CDs:
- The methodology used for ranking includes considerations such as the highest APY, followed by the shortest term and the lowest minimum deposit. In cases of tie-breaking, other criteria, including the institution's name, are employed.
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CD Options Across Various Terms:
- The article provides detailed information on the top jumbo CDs across different terms, ranging from 3 months to 5 years. It includes rates, terms, and minimum deposit requirements for each listed CD.
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Pros and Cons of Jumbo CDs:
- The article offers a balanced view of the pros and cons associated with investing in jumbo CDs. Pros include higher APYs, guaranteed rates, predictable earnings, and safety. Cons encompass the need for a large deposit, restricted access until maturity, early withdrawal penalties, and potentially lower returns compared to riskier investments.
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Alternatives to Jumbo CDs:
- The article explores alternative investment options for individuals, such as standard CDs, savings and money market accounts, treasuries, bonds, and equities. Each alternative is presented with its advantages and considerations.
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Fast Facts and Reader Preferences:
- Notable statistics and reader preferences are provided, such as the increased interest in CDs during market events and the percentage of readers considering CDs as an investment choice.
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Detailed Information on Top-Paying CDs:
- The article concludes with detailed information on the top-paying jumbo certificates in various terms, including details on minimum deposits, early withdrawal penalties, and membership requirements for credit unions.
Conclusion:
In conclusion, the article serves as a comprehensive guide for individuals seeking information on jumbo CDs, offering insights into market trends, evaluation methodologies, and alternatives. The combination of expert analysis, data-driven rankings, and educational content positions the article as a valuable resource for both novice and seasoned investors.