Jumbo CDs Aren’t Ideal for Most Savers. How Top Rates Compare to Less Restrictive Options

Photo to accompany a story about jumbo CD rates
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Jumbo CDs are designed for very large deposits, but they may not be the best place to keep a big sum of money for an extended period of time. 

They work like regular certificates of deposit (CDs): you can deposit your cash for a fixed term and earn a fixed interest rate over that period. But for most savers, they’re not necessary — or even worthwhile. Typically, the larger the balance you have to deposit, the higher the interest you may earn on a CD. But in today’s rising rate environment, jumbo CDs have APYs similar to regular CDs, which don’t require you to lock up massive amounts of money for a fixed term. 

Here’s what to know about jumbo CDs before you open one, and other savings options to consider first: 

Best Jumbo CD Rates for November 2022

CIT BankCredit One BankNavy Federal Credit Union
Minimum Deposit$100,000$100,000$100,000
6 MonthN/A2.60% APY0.50% APY
1 YearN/A3.35% APY3.05% APY
18 MonthN/A3.40% APY3.15% APY
2 Year0.40% APY3.50% APY3.25% APY
3 Year0.40% APY3.60% APY3.35% APY
4 Year0.50% APY3.60% APYN/A
5 Year0.50% APY3.70% APY3.40% APY

CIT Bank

CIT Bank’s jumbo CDs require a minimum $100,000 deposit and charge no maintenance fees. Though CIT separates its jumbo CD account from its regular high-yield CDs, the interest rates between these two CD types are similar. CIT offers jumbo CDs only in 2, 3, 4, and 5-year terms.

Credit One Bank

Credit One Bank offers a range of high-yield jumbo CDs with a $100,000 minimum and no fees. There’s a 10-day rate guarantee if rates increase within 10 days after opening your account, and upon maturity, you have the option to renew your jumbo CD with a 0.05% rate increase.

Navy Federal Credit Union

Navy Federal Credit Union is the largest credit union in the United States, but membership is largely limited to members of the armed forces, Department of Defense employees, and their families. Navy Federal’s CD accounts offer higher rates for jumbo deposits over $100,000 and are offered across a range of term lengths.

How We Made This List

There aren’t many banks that offer jumbo CDs. To compile this list of best jumbo CD rates, we began by searching for banks with jumbo CD offerings from our overall list of best CD accounts. Then, we added commonly reviewed and searched for jumbo CD accounts and jumbo CD accounts from any of the 30 largest banks in the country by asset which met our criteria. We eliminated any CD accounts from credit unions that limit membership to a single state or specific region.

CD accounts which are not specified by the bank as jumbo CDs but allow deposits over $100,000 were only included if the interest rate for those larger deposits were different than rates on lower deposits. Every account we include on this list is FDIC- or NCUA-insured up to $250,000 limits.

These are the best jumbo CD offers we found, but if you’re considering a CD, it’s also important to compare regular high-yield CDs. Many of them offer higher yields without the high minimum. If you do have a large sum you want to secure in a CD, a high-yield regular CD or series of CDs could be a better solution. Among the CDs on our list, those that do have maximum restrictions only limit your deposit to $250,000.

These are the top CD rates today, across similar terms as the jumbo CDs above:

Best CD Rates for November 2022

Bank0.5 year apy1 year apy1.5 year apy2 year apy3 year apy5 year apyMinium Deposit
Live Oak Bank3.75%4.25%2.00%2.00%2.00%2.00%$2500
Synchrony Bank3.50%4.15%4.25%4.30%4.30%4.30%$0
Goldman Sachs Bank USA3.25%4.00%4.15%4.25%4.00%3.80%$500
Ally Bank2.75%4.00%4.10%0.00%4.10%4.10%$0
Discover Bank2.75%4.00%4.05%4.10%4.15%4.25%$2500
TIAA Bank2.70%4.00%4.05%4.10%3.80%3.45%$1,000
Capital One2.70%4.00%4.05%4.10%4.15%4.25%$0
American Express National Bankn/a4.00%1.00%4.10%1.15%4.25%$0
Barclays Bankn/a4.00%4.05%4.10%4.15%4.25%$0
Sallie Maen/a4.25%4.35%4.40%4.50%4.55%$2500
Bread Savings (formerly Comenity Direct)n/a4.50%n/a4.50%4.50%4.75%$1,500

Note: The APYs (Annual Percentage Yield) shown are as of November 23, 2022. The APYs for some products may vary by region.

What is a Jumbo CD?

A jumbo CD is a certificate of deposit that requires a very high minimum deposit — usually around $100,000. Otherwise, this type of CD is very similar to traditional CDs. You’ll open the account at a fixed rate for a fixed term, and deposit the required minimum amount. When the CD matures, you’re guaranteed interest equal to the rate you locked in at opening. 

Also like other types of CDs, jumbo CDs charge a penalty if you withdraw from your balance before the term is up and the CD matures.

Are Jumbo CDs Worth It?

Jumbo CDs may not be the best savings choice for many people. 

For starters, the very high minimum deposit requirement can be prohibitive. And if you do have $100,000 or more saved, you may be better off investing the money in a diversified portfolio.

There are some cases in which a jumbo CD could make sense for such a large sum: retirees who want less risky options for their savings, or someone with a specific goal for the money in the short term might benefit from the guaranteed interest a jumbo CD can offer on big deposits.

But for savers with less than six figures in savings, less restrictive options — like high yield savings accounts or even traditional CDs — may be more flexible, especially as interest rates rise.

Plus, the difference today between jumbo CDs and regular CDs is minimal. In fact, some traditional CDs may offer higher interest rates over the same term length, regardless of minimum deposit.

Jumbo CDs vs Regular CDs

The biggest difference between jumbo CDs and traditional CDs is the minimum deposit requirement. Jumbo CDs are certificates of deposit (CDs) that require around $100,000 to open. 

By contrast, regular CDs have much lower minimum balance requirements. Some traditional CDs require no set minimum deposit at all, while others may range from $500 to $5,000. Depending on the balance you have to deposit, you can compare options to find the minimum deposit requirement and interest rate combo that best fits your goals. 

Even if you do have a very large sum to deposit into a CD, you don’t necessarily need to choose a jumbo CD. Regular CDs often have no maximum balance restrictions, and if they do, the limit is often tied to FDIC insurance limits of $250,000. 

Jumbo CDs vs Super Jumbo CDs

Where jumbo CDs typically require around $100,000 deposit, some financial institutions offer “super jumbo” CDs with even higher minimums — $150,000 or $175,000, for example. Like jumbo CDs, this CD types isn’t as common as traditional CDs. Super jumbo CDs may be higher than those offered on jumbo CDs and regular CDs, although they’re largely around the same today. 

What are the Risks of Jumbo CDs?

For many people, there are better savings and investment options than jumbo CDs.

Socking away $100,000 or more for years can be risky in today’s rising interest rate environment. If rates go up in the months after your jumbo CD term begins, you could quickly regret locking up your funds in a long-term certificate of deposit (CD). 

Because of the large deposits required for jumbo CDs, another thing to consider is restrictions on Federal Deposit Insurance Corporation (FDIC) insurance. CDs are safe investments because the money you deposit is insured by the FDIC against bank failure. However, this insurance is only available for up to $250,000 per account type per institution. If you plan to put more than $250,000 in a jumbo CD, you may want to consider opening multiple accounts at different banks to ensure coverage.

Another downside of jumbo CDs is the money you could lose out on by putting such a large sum in a relatively low-rate account instead of in the stock market — which poses much more risk, but also more potential reward. For example, the S&P 500 has returned an average of 8% annually since its inception in 1957 — much higher than even the best jumbo CD rates. 

Best Terms for Jumbo CDs

Terms offered for jumbo CDs vary by institution, but some of the most common are similar to any type of CD: 6 months, 1 year, 2 years, and on — up to as high as 10 years. 

Also like any other type of CD, the best term for you depends on your goals. Shorter-term CDs are often recommended by experts today over longer terms, since interest rates are rising. If you lock in a long-term CD rate today, you could lose out on potentially higher interest in just a few weeks or months as rates increase.

And for jumbo CDs with much higher minimum balance requirements, even a small difference in interest could make a big difference. Locking in a CD with a term that lasts several years could limit your options for taking advantage of higher interest rates in the not-so-distant future.