Best Jumbo CD Rates of December 2024
Updated October 28, 2024 at 4:04 am
The Federal Reserve’s rate hikes have made interest-bearing accounts like certificates of deposit (CDs) a better investment. When you invest in a CD, you lock your money away for a certain period in exchange for guaranteed earnings. This makes CDs an easy, low-risk way to grow your money.
If you have a large sum in a savings account (generally more than $100,000), consider opening a jumbo CD. Jumbo CDs have higher minimum balance requirements and earn higher interest rates. This article will explain how jumbo CDs work and outline the best jumbo CD rates today.
Our Methodology The Newsweek Vault team considered many different factors when choosing the best jumbo CD rates, including the APY, term length and whether it earns compound interest. We also looked at any promotional offers, hidden fees and minimum deposit requirements.
Our Picks - Best Overall: Alliant Credit Union
- Best For Low Minimum Deposit Requirements: State Bank of Texas
- Best For High Maximum Deposit: Rising Bank
- Best For Veterans: Navy Federal Credit Union
- Best For California Educators: SchoolsFirst Federal Credit Union
- Best Rate Guarantee: Credit One Bank
- Best Credit Union CD: Suncoast Federal Credit Union
- Best For Rate Change: State Department Federal Credit Union
- Best For Competitive Rates: My eBanc
- Best For Varying Term Lengths: Apple Federal Credit Union
- Best For 12-Month CD: Finworth
- Best For Bonus APY: Justice Federal Credit Union
12 Best Jumbo CD Rates of 2024
Best Overall
Alliant Credit Union
Vault Verified
Why We Chose It
Alliant Credit Union offers different types of jumbo certificates, including a regular share certificate and three different types of IRA certificates. Rates are competitive for all terms, especially its 12-month jumbo CD which currently earns an impressive 4.80% APY. The minimum deposit is $75,000, which is lower than what many banks and credit unions require.
Pros
- Several types available, including IRA certificates
- No penalties for monthly dividend withdrawals
- Allows joint owners and beneficiaries
Cons
- Comes with an early withdrawal penalty
- Dividends compound monthly
Best For Low Minimum Deposit Requirements
State Bank of Texas
Vault Verified
Why We Chose It
A 12-month State Bank of Texas CD comes with a competitive 5.15% APY. And you can open the CD with a minimum deposit of $50,000, which is lower than what many other banks require.
Pros
- Competitive 5.15% APY
- Promotional $50,000 minimum deposit requirement
- Comes with a fixed-rate APY
Cons
- The bank only offers one personal CD
- Only available in 12-month terms
Best For High Maximum Deposit
Rising Bank
Vault Verified
Why We Chose It
Rising Bank offers many terms, but its two-year jumbo CD is a low-risk way to earn more on your savings. You’ll earn a competitive 3.25% APY, and your interest is credited every three months.
Pros
- 3.25% APY
- Interest is credited every three months
Cons
- $100,000 minimum opening deposit
- Account maximum is $1,000,000
Best For Veterans
Navy Federal Credit Union
Vault Verified
Why We Chose It
Navy Federal Credit Union’s 12-month CD comes with a generous 4.85% APY with a minimum deposit of $100,000.
Pros
- Earn a competitive APY
- Pick from three different minimum balance options
- Dividends compound daily and are credited monthly
Cons
- $100,000 minimum balance required to earn the highest APY
- Must be a veteran, active-duty service member, Department of Defense personnel or an eligible family member to join the credit union
Best For Low Fees
SchoolsFirst Federal Credit Union
Vault Verified
Why We Chose It
SchoolsFirst Federal Credit Union offers two jumbo minimum deposit options for 60-month CDs. For a $100,000 deposit, you’ll earn a 4.50% APY or you can earn a 4.55% APY with a $250,000 deposit.
Pros
- The credit union charges minimal fees
- Five minimum balance options to choose from
Cons
- Membership is limited to individuals working in California schools
- A minimum balance of $250,000 is required to earn the highest APY
- APYs are lower than what other credit unions offer
Best Rate Guarantee
Credit One Bank
Vault Verified
Why We Chose It
Credit One Bank’s 12-month jumbo CD comes with a 5.15% APY and a 10-day rate guarantee. Plus, you can receive a 0.05% rate increase when you renew your CD.
Pros
- Credit One offers many CD term lengths
- Comes with a 10-day rate guarantee
- Receive a 0.05% Loyalty Rate increase when you renew your CD
Cons
- Minimum balance requirement of $100,000
- No brick-and-mortar locations
Best Credit Union CD
Suncoast Federal Credit Union
Vault Verified
Why We Chose It
Suncoast Federal Credit Union offers a variety of CD terms ranging from six months to five years. Its best option is a 12-month CD with a generous 5.00% APY.
Pros
- Offers several types of CDs including IRA, Roth and SEP certificates
- Smart Start certificates can be opened with as little as $50 and monthly contributions of $40
Cons
- You have to become a credit union member first
- Minimum balance requirement of $100,000
Best For Rate Change
State Department Federal Credit Union
Vault Verified
Why We Chose It
State Department Federal Credit Union offers traditional and bump-up certificates with terms ranging from six months to five years. Currently, the best option is a 15-month CD with a 5.20% APY. For the bump-up certificate you can change the rate once during the original term.
Pros
- Competitive 5.20% APY
- No service charges
- Offers a jumbo bump-up certificate
Cons
- Membership is required to open a CD
- Dividends compound quarterly
Best For Competitive Rates
My eBanc
Vault Verified
Why We Chose It
My eBanc’s Jumbo Online Time Deposit offers five terms to choose from. Two terms offer yields of 5% or higher. You can open the jumbo CD with just $50,000, and there are no maintenance fees.
Pros
- Competitive APY
- No maintenance fees
- Interest compounds daily
Cons
- Interest is only available once the CD matures
- Has an early withdrawal penalty
Best For Varying Term Lengths
Apple Federal Credit Union
Vault Verified
Why We Chose It
When you open an Apple Federal Credit Union jumbo CD, you can pick between 12, 36 and 60-month terms. Rates are competitive, and you can also get IRA certificates.
Pros
- Low minimum deposit requirements
- Comes with a highly rated mobile app
Cons
- Only three term lengths
- Comes with lower rates than what other financial institutions offer
- Comes with an early withdrawal penalty
Best for 12-Month CD
Finworth
Vault Verified
Why We Chose It
Among Finworth’s 8 jumbo CDs, the 12-month CD is the most competitive. The minimum deposit is just $50,000. Once your CD matures, you have several high-interest-rate options with varying terms to choose from.
Pros
- Competitive 12-month CD
- Minimum deposit on the lower end for jumbo CDs
Cons
- Dividends compound annually
- Maximum funding amounts on CDs
- Steep early withdrawal penalty
Best for Bonus APY
Justice Federal Credit Union
Vault Verified
Why We Chose It
When you open a Justice Federal Credit Union and are a Justice National or Beyond the Badge checking account holder, you can scoop up a bonus 0.10% APY to tack on to the already competitive interest rate. But when you transfer funds you can’t use “old money” from another Justice account. It will need to be new money transferred from an external funding source.
Pros
- Checking account holders can get a 0.10% bonus APY
- Low minimum deposit requirements
Cons
- Only one CD term
- Dividends compound quarterly
- Must be a member of the credit union to open a CD
Reliable Rates From Vault
Please note that the annual percentage yields (APYs) listed are accurate as of the date of publication. As financial rates can fluctuate, the current APYs may differ. We strive to update our data regularly to reflect these changes. For our complete methodology, please refer to the “Our Methodology” dropdown above.
Best Jumbo CD Rates By Term
| Term | Bank/Credit Union | APY | Minimum Deposit |
| 3 months | SchoolsFirst Credit Union | 4.05% | $250,000 |
| 6 months | My eBanc Jumbo Online Time Deposit | 5.30% | $50,000 |
| 9 months | Justice Federal Credit Union | 5.35% | $100,000 |
| 12 months | CreditOne Bank | 5.15% | $100,000 |
| 12 months | State Department Federal Credit Union | 5.20% | $100,000 |
| 15 months | State Department Federal Credit Union | 5.20% | $100,000 |
| 18 months | My eBanc Jumbo Online Time Deposit | 4.60% | $50,000 |
| 2 years | My eBanc Jumbo Online Time Deposit | 4.50% | $50,000 |
| 3 years | My eBanc Jumbo Online Time Deposit | 3.98% | $50,000 |
| 3 years | SchoolsFirst Credit Union | 4.40% | $250,000 |
| 4 years | SchoolsFirst Credit Union | 4.40% | $250,000 |
| 5 years | SchoolsFirst Credit Union | 4.55% | $250,000 |
Jumbo Certificate of Deposit Overview
Opening a jumbo CD is a low-risk way to earn money on your savings. Before moving forward, it’s important to understand how a jumbo CD works and who this option is best for.
What Is a Jumbo CD?
A jumbo CD usually requires a minimum deposit of $100,000 to open, though some banks may have a lower minimum balance requirement. Because jumbo CDs have such high minimum balance requirements, they also earn higher returns.
How Do Jumbo CDs Work?
When you open a jumbo CD, you agree to a specific term length typically ranging between three months and five years. You’ll leave the funds locked in the account for the entire term and earn interest on the principal.
The longer the term, the more interest you’ll earn on your investment. Once the CD has matured, the bank or credit union will return the principal. But if you need to take the funds out early, you’ll pay an early withdrawal penalty.
Jumbo CDs usually come with fixed interest rates and are FDIC-insured (or NCUA-insured if you belong to a credit union) up to $250,000. For that reason, they’re considered a risk-free investment.
Who Should Get a Jumbo CD?
Jumbo CDs may make sense for high-income savers or investors who want a low-risk way to grow their money. If you have at least $100,000 you want to invest, it may be a good time to take advantage of the highest jumbo CD rates.
In particular, jumbo CDs are a good option for someone who doesn’t foresee needing the money any time soon. The interest earned can be helpful for medium-term financial goals, like down payments or home renovations. Jumbo CDs could also be a good choice for someone who’s retired and knows they’ll need the funds in the future for living expenses.
Are There Penalties for Withdrawing Early?
Most jumbo CDs come with early withdrawal penalties, though the specifics will vary depending on your financial institution. If you withdraw money within six days of opening the CD, federal law requires that you pay at least seven days’ simple interest. And there’s no maximum penalty banks and credit unions can charge.
Most early withdrawal penalties are charged as a flat fee or a portion of the interest. Before you open a CD, read the terms and conditions so you understand how the early withdrawal penalty works.
Pros and Cons of Jumbo CDs
Here are some of the biggest advantages and disadvantages of opening a jumbo CD.
Pros
- Typically have higher APYs than traditional CDs
- Guaranteed return on your investment
- Your deposit is FDIC or NCUA-insured up to $250,000
Cons
- Usually requires a $100,000 minimum deposit
- Interest rates aren’t always higher than standard CDs
- You may find similar savings rates on high-yield savings accounts—without withdrawal restrictions
- There aren’t as many options to choose from
How To Choose the Best Jumbo CD for You
A jumbo CD can be a safe and guaranteed way to earn a return on your investment, but you want to pick the right CD for your financial situation. Here are five factors to look for in a jumbo CD:
- Minimum deposit requirements
- Interest rate
- Term length
- Early withdrawal penalties
- FDIC insurance
Minimum Deposit Requirements
Most jumbo CDs come with a $100,000 minimum deposit requirement, which can put them out of reach for many people. But you can find jumbo CDs that accept a much lower deposit.
Interest Rate
When you’re choosing a CD, you should compare the APY across different accounts. It’s a good idea to look at traditional CDs as well. Jumbo CDs generally offer higher interest rates, but not always. You may find a traditional CD with a marginally smaller interest rate that comes with fewer fees and better terms.
Term Length
When you’re opening a jumbo CD, it may be tempting to choose the longest term length available. After all, the longer your term length, the more you’ll earn in interest. But if you withdraw the money early, you’ll get hit with a penalty, which will negate most of your earnings. So, it’s important to think about what’s realistic for you.
Type of Bank
You should also consider whether you want to open the account at an online-only or brick-and-mortar bank. If you want to be able to visit the bank in person, then a brick-and-mortar bank may be the best option. But online-only accounts usually offer more competitive rates and minimal account fees.
FDIC Insurance
Before opening a jumbo CD, make sure the funds are FDIC or NCUA-insured. This ensures your money is secure even if the bank or credit union fails. Most banks and credit unions will protect up to $250,000 per account holder or member.
Frequently Asked Questions
Is a Jumbo CD a Good Investment?
Yes, jumbo CDs can be a good investment since they provide guaranteed returns and tend to pay higher rates than traditional CDs. These CDs are best for individuals who can meet the minimum deposit requirements and won’t need to withdraw the funds before the term is up. And CDs can be a good way to diversify your investments.
What Is a Good Alternative to Jumbo CDs?
With a traditional CD, you’ll have more options to choose from, and the minimum balance requirements will be much lower. Further, you may find that you’ll still earn a competitive APY with a traditional CD. If you want to avoid CDs altogether, you can also consider a high-yield savings account.
Are Jumbo CDs Taxable?
Yes, any interest you earn from a jumbo CD is considered taxable income and is subject to federal taxes. You’ll be taxed based on your marginal tax bracket, so depending on your earnings, you could end up with a substantial tax bill.
Newsweek writers Kristy Snyder and Jackie Lam contributed to this post.
Editorial Disclosure: We may receive a commission from affiliate partner links included on our site. However, this does not impact our staffs’ opinions or assessments.
