Banks that offer the best jumbo CD rates. Advancial – 3-month CD, 0.76% APY, 6-month CD, 0.84%. Jumbo CD rates vary from 0.08% for 30 days up to 1.11% for a five year term. The minimum deposit is $95,000 up to a maximum of $174,999. Besides great jumbo CD rates and terms, USAA offers tools.

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.

3% Cd Rates Fdic Insured

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?

Best Jumbo Cd Rates In Texas

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

Jumbo CD Rates

Jumbo CDs allow customers with large sums of money to make a tidy return on a low-risk investment.

Like a regular CD, jumbo CDs require locking up some of your cash for a predetermined period of time, in exchange for some of the highest interest rates in the financial industry. Plus, jumbo CDs are usually negotiable, meaning you can sell them to someone else. They typically – but not always – come with a minimum deposit of at least $100,000 and your funds are locked up for a predetermined period of time, usually between six months and five years.

3.5% Cd Rates Today

Best jumbo CDs of July 2020

CIT Bank – Max APY 1.05%, min. deposit: $100,000

CIT Bank is an online bank that offers competitive CD rates or shorter terms. It also has no fees for opening your jumbo CD account. Jumbo CDs from CIT Bank vary from six months to five years with a minimum deposit of $100,000 and a maximum 1.75% APY, which is better than many other national banks’ APYs.

Golden 1 Credit Union –Max APY 1.60%, min. deposit: $100,000

Golden 1 Credit Union has been around since 1933 with open membership to all Californians. It has more than 72 branches in California and has a minimum deposit of $100,000 for jumbo CDs and a maximum APY of 2.00%, which is higher than many credit unions around the country. If you live outside California, you can still join if you’re a family member of an existing Golden 1 member or a member of a select employee group.

Merrick Bank – Max APY 0.85%, min. deposit: $25,000

Merrick Bank has a low minimum deposit on its CDs of only $25,000, but a high APY of 1.87%. Merrick also has six-month, 12-month, 18-month and 24-month terms, 24/7 account access, no hidden fees and all CDs are FDIC-insured up to the maximum allowed by law.

USAA – Max APY 0.66%, min. deposit: $95,000

USAA offers standard, jumbo and super jumbo CDs for military members and their families. Jumbo CD rates vary from 0.08% for 30 days up to 1.11% for a five year term. The minimum deposit is $95,000 up to a maximum of $174,999. Besides great jumbo CD rates and terms, USAA offers tools and advice on a variety of financial products.

First Horizon – Max APY 0.25%, min. deposit: $100,000

Unlike most other providers, First Horizon offers jumbo CDs only to small and commercial businesses for owners to make a low-risk return on investments for terms from seven days to one year. Its jumbo CDs have a maximum APY of 1.60% and a minimum deposit of $100,000. Interest is credited at maturity, so one-year CD customers won’t see their earnings until the end of the term.

Compare the best jumbo CDs of 2020

Jumbo CDs vs regular CDs

If you’re trying to make a decision between a jumbo CD vs. a regular CD, you’ll have to take a look at how much money you want to invest. While both of these products tend to have similar loan terms, the minimum deposit on a jumbo CD is often much higher–but not always. Most regular CDs only require a deposit amount of between $500 and $1,000, or sometimes no minimum deposit requirement at all, while jumbo CDs can start as high as $100,000.

Jumbo CDs vs high-yield savings accounts

As the name suggests, high-yield savings accounts offer higher interest rates than traditional savings accounts. Still, the rates they offer are not usually as high as what you might find with a CD, particularly jumbo or super jumbo CDs. However, high-yield savings accounts are much more flexible than CDs. While it’s true you can only make six withdrawals per month with a savings account, you can make withdrawals whenever you want. However, with a CD, you must wait for the term to expire or face early withdrawal penalties. It’s best to invest in a jumbo CD when you’re 100% sure you won’t need to touch your cash for the entire term.

Jumbo CDs vs money market accounts

Money market accounts are similar to savings accounts. While there are limits on the amount of withdrawals you can make per month (six), as long as you stay within those limits there are no penalties for accessing your money like with CDs that charge early withdrawal penalties. Plus, some money market accounts come with the ability to write checks or access your money via a debit card. A jumbo CD comes with none of these benefits, but will often provide a higher interest rate in exchange for locking up your cash for a set period of time.

Pros and cons of jumbo CDs

Pros:

• High interest rates
• Low-risk for high investment
• Can be used as collateral

Cons

• High minimum deposit
• Low liquidity for large investment
• Not good for CD laddering

Are jumbo CDs meant to be short-term?

While jumbo CDs offer flexible terms, most are not meant to be short-term. Although some providers offer high APYs on shorter terms, most jumbo CDs have better rates for longer terms. And, while savings accounts are best if you want to put your money away for shorter periods of time, a CD can help you save for a purchase or expense a few years down the road. Some providers, like CIT Bank don’t offer CDs for terms less than one year, while others like First Horizon offer a seven-day CD term.

Jumbo CD penalties

Best Jumbo Cd Rates 1 Year

CDs require you to leave your money in the account for a certain length of time. If you withdraw your money from your CD prior to the end of the term, you will likely face an early withdrawal penalty.

Best Jumbo Cd Rates In Usa

Sometimes banks will have different penalties on different term lengths, and some will charge a minimum penalty no matter when you access your funds. Some examples of early withdrawal penalties include:

This is just an example and is not reflective of all withdrawal penalties by all CD providers.

The final word

Best Jumbo Cd Rates In Michigan

Before you put your money into a CD, make sure you know the pros and cons and you are clear about your long-term objectives. Jumbo CDs offer a better return on your money than most savings accounts, but they are meant to be long-term investments. If you pull out your money before the end of the predetermined term, you’ll face early withdrawal penalties. But, if you have a large sum of money and you’re not certain you want to invest in stocks or other insecure investment, the fixed APY on jumbo CDs may be what you’re looking for.