The best jumbo CD rates of November 2020

Best jumbo CD rates 4x3Best jumbo CD rates 4x3

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Bank APY Min. deposit Next steps

navy federal credit union

Navy Federal Credit Union

0.55% to 1.25% APY $100,000 Learn more

consumer credit union

Rewards Checking

0.35% to 0.85% APY $100,000 Learn more

cit bank logo

CIT Savings Builder

0.40% to 0.50% APY $100,000 Learn more

usaa logo


0.05% to 0.49% APY $95,000 Learn more

If you want to grow your money but keep it safe from the turbulence of the stock market, a certificate of deposit (CD) may be a good option.

“A jumbo CD is a CD with a high minimum deposit — usually around $100,000 — that pays a higher interest rate than a regular CD. You may consider a jumbo CD if you have around $100,000 and want to earn a guaranteed rate of return. Jumbo CDs often pay higher rates than regular CDs.

Jumbo CDs aren’t super common, and ones that pay high interest rates are even less common. Keep reading to learn more about the institutions paying the best rates.

  • Details
  • Pros & Cons
    • Terms ranging from 3 months to 7 years
    • Earn higher APY with a higher balance
    • Early withdrawal penalty of 90 days dividends for terms of 3 months to 1 year; 180 days dividends for terms of 1 year to 5 years; 365 days interest for terms of 6 and 7 years
    • You must have a tie to the military to become a Navy Federal Credit Union member
    • Competitive APY, even for lower balances
    • Terms up to 7 years
    • $1,000 opening deposit
    • Minimum $100k to earn highest APY with some terms
    • Standard-to-high early withdrawal penalties
    • Membership is only available to people affiliated with the military

    Why it stands out: You’ll earn the highest rates with a $100,000 minimum — but you can still earn good rates with lower balances. Navy Federal compounds your interest daily like most banks would, unlike many credit unions that compound monthly. Navy Federal also offers terms for up to 7 years, while many banks cap out at 5 years. 

    Term length options: 3 months to 7 years

    What to look out for: Membership. You or a family member must have ties to the military for you to become a member of Navy Federal. 

  • Details
  • Pros & Cons
    • Join Consumers Credit Union by paying a $5 membership fee to the Consumers Cooperative Association, then by depositing and keeping $5 in a Consumers savings account.
    • Terms ranging from 91 days to 5 years
    • Early withdrawal penalties are as follows: 60 days interest for terms of 1 year or less; 120 days interest for terms over 1 year
    • Interest compounded daily, paid monthly
    • Federally insured by the NCUA
    • Competitive interest rates
    • Compounds interest daily, more often than most credit unions
    • Low early withdrawal penalties
    • $100,000 minimum deposit
    • No terms over 5 years

    Why it stands out: Consumers Credit Union pays competitive rates on jumbo CDs, especially for longer terms. Consumers makes it easier to become a member than most credit unions do — you just have pay $5 to join the Consumers Cooperative Association, then deposit $5 in a Consumers savings account. Unlike most credit unions, Consumers compounds interest daily, meaning you can earn more money in the long run.

    Term length options: 91 days to 5 years

    What to look out for: Consumers Credit Union doesn’t have any major downfalls, but you might earn a higher rates at another institution, depending on the term length.

  • Details
  • Pros & Cons
    • Open a jumbo CD with a term of 2, 3, 4, or 5 years
    • Early withdrawal penalties are as follows: 3 months simple interest on terms under 1 year, 6 months simple interest for terms of 1 to 3 years, 12 months simple interest on terms over 3 years
    • Interest compounded daily, paid monthly
    • FDIC insured
    • Competitive APY
    • Standard early withdrawal penalties
    • Limited term length options
    • $100,000 minimum deposit

    Read Our Review Read Our ReviewA looong arrow, pointing right

    Why it stands out: CIT Bank pays good rates on jumbo CDs, and it charges standard early withdrawal penalties should you need to take out money before your CD matures.

    Term length options: 2 years to 5 years

    What to look out for: Limited term lengths. Your only choices are a 2-year, 3-year, 4-year, or 5-year jumbo CD. If you want other term lengths, you can either choose another institution or open another type of CD with CIT Bank.

  • Details
  • Pros & Cons
    • Choose from terms between 30 days and 7 years
    • Early withdrawals are as follows: 30 days interest for 30-day terms; 90 days interest for terms of 31 days to 1 year; 180 days interest for terms over a year to under 5 years; 365 days interest for terms of 5 years or more
    • Interest compounded monthly, paid monthly
    • FDIC insured
    • Competitive APY
    • Variety of term length options
    • Standard early withdrawal penalties
    • $95,000 minimum deposit
    • Less competitive rates for shorter terms
    • Interest compounded monthly, not daily

    Why it stands out: USAA has a wider range of term lengths than most banks, which makes it easy to find a jumbo CD that fits your needs. It also pays good rates on longer-term CDs.

    Term length options: 30 days to 7 years

    What to look out for: Compound interest. The other institutions on our list compound interest daily, but USAA only compounds interest monthly. This limits how much you’ll earn over the months or years.

    What is a CD?

    A CD is basically a time-sensitive savings account that holds your money at a fixed interest rate for a specified period of time. You can open one at almost any bank or credit union.

    If you don’t need immediate access to your savings, a CD can guarantee a return on your money since you lock in a fixed annual percentage yield (APY) for the term of the CD. During that period, you typically won’t be able to add additional money or access your original balance without paying a penalty.

    You will, however, earn interest on the amount and have the option to collect those payments monthly or reinvest them into your CD. Most banks offer varying rates for different terms and deposit amounts — typically, the longer the term, the higher the rate.

    At the CD’s maturity date, you’ll typically have a 10 to 14-day grace period in which you can withdraw your money and close the account or renew the term.

    What is a jumbo CD?

    A jumbo CD is a certificate of deposit that requires a high minimum deposit — usually around $100,000. As a reward for placing this large deposit, you’ll earn a higher interest rate than you would on a regular CD.

    What’s the difference between a jumbo CD and regular CD?

    The main distinctions are that a jumbo CD requires a higher deposit, and it usually pays a higher rate. Some banks also offer different term lengths for its jumbo and regular CDs. For example, CIT Bank’s shortest term for a jumbo CD is 2 years, but you can get a CIT regular CD with a term as short as 6 months.

    What are the pros of a jumbo CD?

    Higher interest rates. In many cases, banks pay higher interest rates on jumbo CDs than on regular CDs.

    Guaranteed rate of return. You’re putting a lot of money into a jumbo CD. If you were to put that money into a riskier investment, such as the stock market, you wouldn’t know how much you’d end up with in a few months or years. With a jumbo CD, you know exactly how much you’ll earn.

    What are the cons of a jumbo CD?

    Higher minimum deposits. Regular CDs typically require a few hundred or a few thousand dollars, but you’ll need around $100,000 to open a jumbo CD.

    The rate isn’t always better. Banks usually pay higher rates on jumbo CDs — but not always. Also, you could find a different bank that pays better rates on regular CDs than a certain bank pays on jumbo CDs.

    Inflation. Depending on how long you store money in a CD and how high the rate is, the interest rate might not keep up with inflation. 

    Consider investing instead. Everyone’s financial situation is different. Playing it safe by putting $100,000 in a CD could be the right move for you. But if you put money in riskier investments, you might earn more in the long run.

    Is a jumbo CD a good investment?

    CDs aren’t generally considered investments the same way something like an index fund, which puts your money into the stock market, is. Instead, a CD is typically viewed as a type of savings account, and your potential for losses and gains — your risk — is much more limited. Because the stock market is risky, experts generally don’t advise investing money you’ll need in the next five years. In the case of a stock market drop, you wouldn’t have time to make up your losses.

    If you need to access your money in three years and want a guaranteed rate of return, a 3-year jumbo CD is a better choice than a different type of investment account. 

    If you’re comfortable parting with your money for longer and want to take more risk with your money, then you may want to invest in the stock market. One way to do this is through tax-advantaged retirement accounts, like a 401(k) or IRA, which grows your money over decades. Another is through brokerage accounts, which are useful tools to build long-term wealth, but can’t guarantee a given return like a CD can.

    There is such a thing as an IRA CD, which is sort of a combo savings/investment account. It’s a safe investment tool that may be a worthwhile option for people who are close to retirement age.

    Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

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