If you have at least $100,000 to invest, a jumbo certificate of deposit (CD) can provide a competitive, guaranteed return for a certain period of time. This option lets you avoid the risk inherent with investment alternatives such as stocks – but you don’t have a chance at their potential upside, either.
In this article, we at the MarketWatch Guides team will explore the leading options for the best jumbo CD rates. We’ll also explore how jumbo CDs work and when they might make sense for your personal finance needs.
Key Takeaways
- The highest jumbo CD rates are up to 5.41% APY from online banks and credit unions.
- In some cases, a standard CD may offer a higher annual percentage yield (APY) than a jumbo CD while requiring a lower minimum deposit.
- Jumbo CDs can be good for personal and institutional investors who want to minimize risk and can afford a very large deposit.
Featured CDs
The Best Jumbo CD Rates
The best Jumbo CD rates are from Credit One Bank, Alliant Credit Union, and State Department Federal Credit Union. Jumbo CDs are available in a variety of term lengths, some with higher APYs. For this list, we selected CDs with term lengths between 12 and 24 months. Here is our top picks for the best Jumbo CD rates:
- Credit One Bank – 1-Year Jumbo CD: 5.25% APY
- Alliant Credit Union – 1-Year Jumbo CD: 5.10% APY
- State Department Federal Credit Union – 1-Year Jumbo CD: 5.20% APY
- Quorum Federal Credit Union – 2-Year Jumbo CD: 4.60% APY
- Rising Bank – 2-Year Jumbo CD: 4.30% APY
We at the MarketWatch Guides research team reviewed standard and jumbo CD rates across 115 banks and credit unions.To create our list of the best jumbo CD rates, we selected CDs from financial institutions that:
- Offer a designated jumbo CD product
- Are available nationally
- Include Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA) insurance up to $250,000
- Have an interest rate that is two to three times the national average CD rate.
Credit One Bank
4.0
Credit One Bank Overview
- Jumbo CD APYs: 4% to 5.25%
- Terms: Six months to five years
- Deposit required: $100,000
Why We Like It
When Credit One Bank launched, it only offered a few credit cards. But this online bank’s selection now also includes jumbo savings and CD accounts that require a minimum $100,000 deposit. All deposit accounts feature rates beating the national averages.
The regular jumbo CDs have terms from six months to five years. If rates rise within 10 days of opening your account, Credit One offers to increase your CD rate to match it.
At nearly three times the national average, the 12-month term’s APY is one of the highest among our picks for one- to two-year jumbo CDs. The six- and 18-month terms offer high rates as well.
Credit One Bank also has 24- and 36-month jumbo bump-up CDs that allow for one potential rate hike during their terms. They have lower, yet still competitive, APYs.
The bank also offers a 0.05% loyalty rate bonus for renewing any jumbo CD. You can manage your CD via its website, but the mobile app is only for credit card customers.
Withdrawal Penalty
You’ll pay 90 days of interest for early withdrawals from CDs with terms of up to 12 months. The penalty jumps to 180 days’ interest for terms of 13 to 60 months and 365 days’ interest for longer terms. Both are fairly standard in the industry.
How To Open
Credit One Bank’s short online application requires answering financial and personal questions, verifying your email and transferring money from another bank account. You can either provide bank account details or log in with credentials for an eligible bank.
Alliant Credit Union
4.2
Alliant Credit Union Overview
- Jumbo CD APYs: 4.00% to 5.45%
- Terms: Three months to five years
- Deposit required: $75,000
Why We Like It
Unlike most credit unions, Alliant Credit Union has no branches and focuses instead on digital banking. Its current offerings include investment and deposit accounts, insurance and numerous credit products. Both its standard and jumbo CDs have very competitive rates.
Alliant offers jumbo CD terms of three to 60 months and has a below-average $75,000 minimum deposit requirement. Its 12-month jumbo CD pays the highest APY among our picks for one- to two-year terms. Depending on your needs, you can choose between regular and individual retirement account (IRA) jumbo certificates.
To manage your jumbo CD, you can use Alliant’s website, mobile apps and phone banking service. When you need help, email and phone support are available.
Withdrawal Penalty
The early withdrawal penalties are 90 days’ interest for CD terms of up to 17 months, 120 days’ interest for terms of 18 to 23 months and 180 days’ interest for longer terms.
How To Open
To open an account, you must meet Alliant’s membership requirements. If you’re not associated with an affiliated employer, existing member or eligible Chicago-area community, you can join the Alliant Credit Union Foundation for free to qualify. You’ll need a government-issued ID and proof of address for the membership application.
Providing your information and joining will give you a savings account, as well. You can apply for your jumbo CD online (except for an IRA CD), by phone or by mail. Alliant lets you fund the new account with a bank transfer, money order or check.
State Department Federal Credit Union
4.0
State Department Federal Credit Union Overview
- Jumbo CD APYs: 4.40% to 5.41%
- Terms: Six months to five years
- Deposit required: $100,000
Why We Like It
State Department Federal Credit Union (SDFCU) mainly focuses on government workers – but anyone can become eligible to join by becoming a member of the nonprofit American Consumer Council, at no charge.
In addition to six branches in Virginia and Washington, DC., SDFCU has 5,000-plus partner branches across the country. There are various credit products, deposit accounts, insurance options and planning services. Standard, jumbo and bump-up CDs are available.
Requiring a $100,000 minimum deposit, the jumbo certificates have terms of six months to five years, a similar range to other financial institutions on our list. The 12-month term features SDFCU’s best APY. While the second-lowest APY among our picks, it’s a lot higher than the national average.
For a one-time possible rate increase, SDFCU also offers jumbo bump-up CDs. These have terms of 17 or 30 months and competitive APYs.
Unlike several competitors, this credit union offers face-to-face support at its branches and through video meetings. You can also call or email. SDFCU’s website and mobile app include features such as credit score monitoring, Zelle transfers (with a compatible account) and a virtual account assistant.
Withdrawal Penalty
For jumbo CDs with terms under one year, SDFCU’s early withdrawal penalty equals up to 30 days’ interest. It’s up to 180 days’ interest for CD terms of 12 to 24 months and 360 days’ interest for longer terms.
How To Open
SDFCU’s membership criteria include being affiliated with the U.S. Department of State, another eligible organization or a current member. Another option is to join the American Consumer Council at no cost.
You’ll need proof of your address and a government-issued ID for the membership application, which you can complete online or in person. When applying, you’ll get a savings account and the option to open a jumbo CD. You’ll provide financial and personal information and fund the account through a bank transfer or other method.
Quorum Federal Credit Union
4.0
Quorum Federal Credit Union Overview
- Jumbo CD APYs: 2.20% to 5.10%
- Terms: Seven months to four years
- Deposit required: $100,000
Why We Like It
Quorum Federal Credit Union is an online institution that also has 5,000 partner branches for in-person service. It’s a single stop for deposit accounts, credit products and various other financial services. These offerings include standard and jumbo CDs.
This credit union’s jumbo CDs have terms of seven months to four years and require a $100,000 minimum balance. The 15-month jumbo CD offers an APY that ranks in the middle of our top picks for one- to two-year terms. Quorum does offer a higher APY with a seven-month CD.
Besides visiting a co-op branch, you can get support via secure messaging and phone. In addition to letting you manage your CD, Quorum’s online and mobile banking tools include features for sending Zelle transfers (with a compatible account), switching banks and moving funds.
Withdrawal Penalty
Early withdrawal penalties for Quorum’s jumbo CDs are a percentage of the withdrawn amount. You’ll pay 1% for terms of less than a year, 2% for terms of one to two years and 3% for longer terms.
How To Open
Quorum offers membership to those who are affiliated by employment or family with one of many employer groups. You can also join the Select Savers Club or American Consumer Council to get access to credit union membership.
To apply to become a member and get a jumbo CD, you’ll need bank account details for the deposit and a government-issued ID. The application is short and asks for typical financial and personal information.
Rising Bank
4.0
Rising Bank Overview
- Jumbo CD APYs: 4.30%
- Terms: Two years
- Deposit required: $100,000
Why We Like It
Rising Bank, the digital arm of the traditional Midwest Bankcentre, operates only online. It offers loans, insurance and various interest-bearing deposit accounts. The CD selection includes standard, bump-up and jumbo options, all featuring significantly above-average APYs.
Its single jumbo CD has a two-year term and a $100,000 minimum deposit requirement. Although its APY is the lowest among our picks, it’s still nearly three times the national average. Rising Bank’s standard and bump-up CDs offer more term options and chances to earn more competitive rates, especially with shorter terms.
You can securely message, email or call Rising Bank for help with your jumbo CD. The bank also has a mobile app for tracking your CD. If you open a savings or checking account as well, you can use the app for mobile check deposits and Zelle transfers.
Withdrawal Penalty
Rising Bank charges 90 days of interest for early withdrawals with a 12-month CD term or less. It increases to 180 days of interest if you have a longer-term CD.
How to Open
The online application includes steps to confirm your email, provide personal and financial information and transfer funds from a bank account. You’ll need both your bank account details and a government-issued ID if you don’t choose the bank log-in option for the deposit.
Compare the Best Jumbo CD Rates
APY*5.15% Term Length12 months Minimum Deposit$100,000 |
Alliant Credit Union 4.2 APY*5.10% Term Length12 months Minimum Deposit$75,000 |
APY*5.41% Term Length15 months Minimum Deposit$100,000 |
APY*5.10% Term Length11 months Minimum Deposit$100,000 |
4.0 APY*4.30% Term Length24 months Minimum Deposit$100,000 |
| Financial Institution | APY* | Term Length | Minimum Deposit | Compare Rates |
|---|---|---|---|---|
| 5.15% | 12 months | $100,000 | Next | |
Alliant Credit UnionNext | 5.10% | 12 months | $75,000 | Next |
| 5.41% | 15 months | $100,000 | Next | |
| 5.10% | 11 months | $100,000 | Next | |
| 4.30% | 24 months | $100,000 | Next |
| Financial Institution | APY* | Term Length | Minimum Deposit | Compare Rates |
|---|---|---|---|---|
| 5.15% | 12 months | $100,000 | Next | |
Alliant Credit UnionNext | 5.10% | 12 months | $75,000 | Next |
| 5.41% | 15 months | $100,000 | Next | |
| 5.10% | 11 months | $100,000 | Next | |
| 4.30% | 24 months | $100,000 | Next |
No results were found.
*APY valid as of July 23, 2024. Rates may vary by location.
What Is a Jumbo CD?
A jumbo CD is a term-specific account that usually requires a minimum balance of around $100,000, making it best for investors who have a significant amount of money they’re willing to commit for months or years. It can be a good choice for investors who prefer a relatively risk-free rate of return that isn’t volatile.
NCUA or FDIC insurance usually covers jumbo CD funds, making this a safe account choice for savers.
However, it is less flexible than regular savings products since banks typically don’t allow further deposits. Banks may also charge penalties if you withdraw money prior to the maturity date, which could be up to several years away. However, investors can often withdraw interest regularly, though this ultimately diminishes the amount you earn by removing the effects of compounding interest.
Jumbo CD: Who It’s Best For
Some high-net-worth individuals open these accounts for their short- or long-term savings. For instance, a jumbo CD may be appealing as a low-risk option near retirement. However, jumbo CDs are a more popular choice for institutional investors and businesses wanting to earn competitive returns on their deposits and minimize risk.
Both standard and jumbo CDs work the same in that you get a fixed rate on your deposit for a chosen term. They’re equally safe through FDIC- or NCUA-insured institutions, and early withdrawal penalties can apply. Plus, you can find many term options for both.
A key difference is the minimum deposit requirement, which some traditional CDs don’t have or only require a low amount such as $1,000. This makes them more accessible to everyday investors. It also makes it easier to open a CD ladder without needing $100,000 for each account.
Interest rates can vary for jumbo and standard CDs, and either could have the advantage depending on the bank or credit union you’re considering. Some institutions reward investors with slightly higher interest rates on jumbo CDs. However, credit unions and online banks can offer similar or higher standard CD rates for the same term. This is especially common with short-term CDs.
If you want to take advantage of competitive interest rates, but are unsure of tying your money up for numerous years, a high-yield savings account is another option available.
Many of the top high-yield savings accounts have comparable rates to jumbo CDs, but also allow you the flexibility of pulling out your money at any time. The top APYs for high-yield savings accounts mostly come from the best online banks, so you must be comfortable doing your business digitally.
Pros and Cons of Jumbo CDs
Jumbo CD rates often beat those on money market accounts and high-yield savings account rates. They may also beat standard CD rates, too. Alongside this potentially high return, you can expect a fixed rate for the entire term. This is good if you prefer predictability and want to avoid potential rate cuts. Plus, a rate hike is possible with bump-up jumbo CDs.
Safety is another major appeal. With both bank CDs and brokered CDs, your large deposit should be safe from bank failure if you’re dealing with an NCUA- or FDIC-insured institution. This coverage is for $250,000 for each depositor and account ownership category. If you have more to invest, you could just open jumbo CDs at multiple banks.
Despite their benefits, these accounts are less accessible due to high opening deposit requirements. Once you deposit the large sum, you could pay pricey early withdrawal penalties if you ever need the money before maturity. Plus, your money could earn a higher return with riskier investment alternatives, including stocks and bonds.
Pros
Competitive interest rates
Guaranteed return
Safety through deposit insurance
Cons
Large minimum deposit amounts
Early withdrawal penalties
Potential lower return than alternatives
Maximizing Your Jumbo CD Return
Here are some tips for maximizing your jumbo CD’s return:
- Consider the term length carefully: Since jumbo CDs can tie your cash up for years, consider factors such as the economy, upcoming Federal Reserve decisions and liquidity needs. Pick a term that you can commit to and that won’t cause you to miss out on a rate increase or more profitable investment options.
- Shop for rates wisely: Credit unions and online banks usually have the best jumbo CD rates. Research options through these institutions, compare rates for different terms and jumbo CD types and check for new customer promotions.
- Let your interest compound: Many financial institutions let you have your CD interest payments sent to another account. By having the interest added to the CD balance instead, you benefit from compound interest for the best account return.
- Avoid early withdrawals: Since early withdrawals can cost months or even years of interest, avoid them to maximize your jumbo CD return.
- Consider CD ladders: Spreading $100,000 or more across smaller standard CDs with varying maturity dates in a CD ladder could offer an overall higher return than one jumbo CD. By mixing short- and long-term CDs, you would also get access to your savings at different points to reinvest or spend.
The Bottom Line: Jumbo CDs
If you have the minimum deposit amount, a jumbo CD can be a profitable, safe choice for guaranteed short- or long-term savings. But before opening the account, choose a reasonable term and find a reputable financial institution that has good rates and requirements you can meet.
If a jumbo CD does not sound right for your needs, read our picks for the best CDs of 2024.
FAQ: Jumbo CD Rates
Based on our picks for one- to two-year jumbo CDs, State Department Federal Credit Union pays the most. This online institution’s 15-month jumbo CD has a 5.41% APY.
Getting 6% on a CD is uncommon, but you may find rates close to that through credit unions and online banks. For the best rates right now, look for CD terms of up to two years.
While they change often, the highest rates are often through online banks and credit unions. Available rates vary depending on the financial institution, term length, CD type and other factors.
Methodology
Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
- Savings and money market accounts (35% of total score): The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.
- Checking accounts (30% of total score): High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.
- Certificates of deposit (20% of total score): Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.
- Banking experience and access (15% of total score): Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.
All America Bank, Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Associated Bank, Axos Bank, Banesco Bank, Bank of America, Bank of Hope, Bank Purely, Bank5 Connect, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO, BMO Alto Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, CFG Bank, Charles Schwab, Charlie Financial, Chase Bank, Chime, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Consumers Credit Union, Credit One Bank, Cross River Bank, Current, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Direct, EverBank (formerly TIAA Bank), Federal Savings Bank, Fifth Third Bank, First Citizens Bank, First Internet Bank (of Indiana), First National Bank of America, First Tech Federal Credit Union, FNBO Direct, Frost Bank, Golden 1 Credit Union, Heritage Bank NA, HSBC, Huntington Bank, KeyBank, Lafayette Federal Credit Union, Lake Michigan Credit Union, LendingClub, Limelight Bank, Live Oak Bank, Lonestar Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Mercury Bank, Merrick Bank, Michigan State University Federal Credit Union, Milli, Morgan Stanley Private Bank, Mountain America Credit Union, My eBanc, MySavingsDirect, National Bank of Kansas City, Navy Federal Credit Union, NBKC Bank, North American Savings Bank (NASB), Northpointe Bank, Patelco Credit Union, PenFed Credit Union (Pentagon Federal), PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, SoFi Bank, South State Bank, Spectrum Credit Union, Spring Bank, Star One Credit Union, State Bank of Texas, State Department Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Sutton Bank, Synchrony Bank, Synovus Bank, TD Bank, Texas Capital Bank, Third Federal Savings & Loan, Transportation Alliance Bank (TAB Bank), Truist Bank, U.S. Bank, UFB Direct, Umpqua Bank, Upgrade, USAA Bank, USAlliance Financial, Valley National Bank, Varo Bank, Vio Bank, VyStar Credit Union, Webbank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank, Zynlo Bank
*Rates accurate as of July 23, 2024
**Data accurate at time of publication
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
