Conservative savers generally consider certificates of deposits (CDs) as sanctuaries where their money is kept safe and they enjoy a decent yield without stomaching the risk of investing in the stock market.
You agree to deposit your money in a bank or credit union for a fixed amount of time (which can be as short as a few months or as long as several years) and get the satisfaction of knowing your money is likely earning a higher annual percentage yield (APY) than it would in a checking or savings account.
Jumbo CDs, which typically require a minimum deposit of $100,000, have traditionally promised even higher APYs for customers than regular CDs. But a combination of rising interest rates and fierce competition among banks — both online and traditional — for the deposits of customers have given rise to many normal CDs that offer a better return than jumbo CDs.
It’s not entirely clear why banks haven’t been similarly aggressive in offering higher-yield jumbo CD rates as they have with regular CDs, but one possibility is that they are interested in attracting more customers rather than big money deposits. In other words, banks would rather have the business of 100 customers each depositing $5,000 CDs than 10 customers depositing $500,000 jumbo CDs.
Regular 1-Year CD vs 1-Year Jumbo CD
Minimum Deposit Amount
Regular 3-Year CD vs 3-Year Jumbo CD
MAC Federal Credit Union
Veridian Credit Union
Minimum Deposit Amount
Regular 5-Year CD vs 5-Year Jumbo CD
Goldman Sachs Bank USA
Minimum Deposit Amount
That said, if you feel the need to go big when it comes to your CD, then you likely won’t find better rates than the ones listed below.
The top jumbo CD rates
To determine the best CDs for your jumbo-sized deposit, we turned to the database found on DepositAccounts.com, a website that like MagnifyMoney is also owned by LendingTree. For each common CD term, we assumed the customer was planning to deposit $100,000 in the account so as to include traditional jumbo CDs which typically have a higher minimum deposit needed to open. All the accounts included are also available nationwide.
You’ll notice as you read through the list of CDs we’ve selected, that some of them have minimum deposits of far less than $100,000. That’s because we’re focused on informing you of the best CD accounts for your money, no matter what the bank calls them. If your $100,000 will earn more interest in a CD you can open with a minimum deposit of $10,000, why should we exclude it from our analysis? You can rest assured we aren’t leaving out any good deals just because a financial institution’s marketing team decided not to call a CD “jumbo.”
Minimum Deposit Amount
Andrews Federal Credit Union
As of July 3, 2019
Banks that offer the best jumbo CD rates
Advancial – 3 Month Jumbo Certificate
Based out of the Dallas area, this credit union offers extremely competitive CD rates, particularly with its shorter-term products. The 3 month jumbo certificate requires a minimum deposit of $50,000 to open, but customers receive a generous 2.28% APY in return. There is however, one caveat and that’s the matter of qualifying for membership. Unlike many credit unions which allow new customers to become a member by making a convenient donation during the account application process, Advancial insists you qualify for membership by meeting one of the following criteria:
- Residing (or working or studying or going to worship) in certain parishes in Louisiana (Acadia, Avoyelles, Evangeline, Iberia, Lafayette, St. Landry, St. Martin, or Vermillion)
- Being an employee or member at select companies or organizations
- Having an immediate family member or household member fulfill one of the above qualifications
Anyone in the country can still join, but you first have to separately sign up for one of the qualifying organizations before applying for membership with Advancial. With the rates the credit union offers on its short-term CDs, it may be well worth it for many depositors. However some may balk at jumping through so many hoops. If so, there are plenty of other options for you to place your money.
Banesco USA – 6 Month CD
This Florida-based bank offers a nice rate for a short-term CD at 2.60% APY on all balances between $1,500 (the minimum needed to fund the account) and $250,000, which makes it a good choice for savers wanting to make a jumbo-sized deposit. You also get complimentary access to Banesco’s online banking in the even you want to do even more business with the bank.
MapleMark Bank – 12 month online CD
Operating in Texas and Oklahoma, MapleMark Bank saves their best CD rate on jumbo-sized balances for online customers only. A 12 month CD opened online with a balance of $25,000 or greater earns an APY of 2.85%, so if you have deep pockets and an internet connection get ready for some big-league interest.
Limelight Bank – 18 month CD
This online-only bank pledges to be one of the most eco-friendly on the market, but the green that probably interests you most is the kind that goes into your wallet thanks to its competitive 18 month CD. The account earns an APY of 2.65% on balances up to $500,000 and only requires $1,000 to open.
Comenity Direct – 24 Month CD
Although this bank has more experience in the credit card industry, they’ve branched out starting in 2018 to offer customers highly competitive savings products, such as this 2-year CD. With a minimum fund requirement of only $1,500, this certificate earns an APY of 2.70%, making it a great get for those looking to grow their savings quickly and safely.
Hughes FCU – 36 Month Jumbo CD
A credit union located in Tucson, Arizona, Hughes FCU heaps on the interest earnings for its 36 month jumbo CD. This is a true jumbo CD, with a minimum balance of $99,000, but those looking for a place to save a large sum of money are rewarded with an APY of 3.10%.
Because it is a credit union, Hughes FCU requires you to become a member before it will bank with you. You can qualify for membership by making a $10 donation to Friends of the Oro Valley Public Library, Friends of the Pima County Public Library, Friends of Green Valley Library, or Friends of Kirk-Bear Canyon Library.
GTE Financial – 48 Month Jumbo Share Certificate Special
This Floridia-based credit union might not have the catchiest name, but depositors should remember the competitive rates it offers, particularly with its 48 month jumbo add-on share certificate special. That’s a mouthful to say, but it earns 3.20%, a number that should leave you with a smile on your face.One way to join this credit union is to make a one-time $10 donation to CU Savers, a non-profit dedicated to spreading personal finance education throughout the Tampa community. This gives you an opportunity to feel good about yourself while also earning more money.
GTE Financial — 60 Month CD
This credit union offers a range of competitive CDs, and its 60-month term ranks as one of its strongest. It’s a true jumbo CD that requires a minimum fund of $100,000, but in return you earn an APY of 3.30%.
Andrews Federal Credit Union – 84 Month Certificate Special
For a long-term jumbo CD, it doesn’t get much better than this 7-year certificate special offered by Andrews Federal Credit Union. Though based in the Washington D.C. area, anyone can join this credit union through membership with the American Consumer Council, which costs $5.
This share certificate (which is just another name for a CD) earns an APY of 3.45%, the highest rate among products with a similar term. You only need $1,000 to fund the share certificate, so it’s worth looking at even if your deposit isn’t necessarily jumbo-sized.
Go jumbo or stick to regular CDs?
To be considered “jumbo,” a CD needs to require a large minimum deposit, usually $100,000, as opposed to a normal CD which may not even require a minimum deposit. The deal banks made with well-off depositors boiled down to ‘if you leave lots of your money with us in this jumbo CD, we’ll give you a higher yield than if you deposited it in a normal CD.’
It’s important to note the differences between a jumbo CD and regular CD aren’t set in stone and have more to do with how the bank or credit union markets their savings products than any hard and fast rule, says Ken Tumin, founder of DepositAccounts.com, another LendingTree-owned site.
“I’ve seen banks and credit unions with jumbo CD minimums as low as $10,000 and as high as $250,000,” Tumin told MagnifyMoney. “Even if a bank doesn’t offer jumbo CDs with high minimums, someone could still deposit a large balance into a regular CD. They just wouldn’t be earning any higher interest than someone depositing a small balance.”
As the difference in earnings from a jumbo CD and traditional CD has diminished (or disappeared completely), the drawbacks of parking so much money in a CD become more apparent. For example, the jumbo CDs with the highest APY usually require a longer period of time to mature, which means you have at least $100,000 exposed to inflation—which means you possibly end up earning less than you expected.
Withdrawal penalties on jumbo CDs
According to a recent survey, the penalties for withdrawing your money from your CD early could be serious. Some banks will even take part of your principal as a penalty.
Below are the most common penalties, according to the survey:
- 3 month CD: Three months of interest
- 6 month CD: Three months of interest
- 1 year CD: Six months of interest
- 2 year CD: Six months of interest
- 5 year CD: A year’s worth of interest
So, it’s important to be confident that you want to put your money in a CD. When you do this, you’re making an agreement with the bank to leave it there for a set period of time. If you’re unsure if you want to tie up your money for a long period of time, consider a high-yield savings account instead.
How jumbo CDs are taxed
It’s important to know that the interest you earn on your jumbo CD will be taxed as interest income, not as capital gains income.
This means that your bank or credit union will send you a 1099-INT form at the end of the year to show how much interest you earned in your jumbo CD and you will be taxed on that.
Are jumbo CDs safe?
According to the U.S. Securities and Exchange Commission: “Certificates of deposit are considered to be one of the safest savings options. A CD bought through a federally insured bank is insured up to $250,000.”
Some people prefer investing in the stock market over CDs because you can often get higher rates of returns; however, the stock market is a riskier bet, and returns are not guaranteed like those associated with CDs.
CDs are not affected by the whims of the stock market. The interest rate you agree on with your bank is the rate you will get. That interest rate, however, may not outpace inflation, meaning you may not really earn much, if anything, over time.
If you have over $100,000 and want to invest it in a jumbo CD, you have several options. Like the chart above shows, you can choose many different terms and durations for your jumbo CD. Just be sure to research the bank you invest with so you know you’re putting your money with a top-rated institution. Also, be sure that you’re comfortable with putting your money in a CD long-term because there are often penalties for withdrawing your money early.