Best Jumbo CD Rates of 2020

A higher minimum deposit doesn’t necessarily mean a higher APY

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Jumbo CDs usually require a large amount of money (think $100,000) and can sometimes offer even higher interest rates than regular CDs, but usually only within a given bank. However, banks and credit unions often compete more for the best CD rates for regular, non-jumbo CDs, and so—as you’ll see below—the highest APYs offered on non-jumbo CDs are often higher than that of most jumbo CDs. 

Each week, we review over 150 nationally available banks and credit unions to find the best jumbo CD rates with minimum deposits of $50,000 or more. We track APYs daily but re-evaluate the list weekly, and all accounts that make our list are insured by either the FDIC or the NCUA. Here are the best jumbo CD rates, plus non-jumbo CD rates for the same term, as of March 26, 2020.

APYs are changing rapidly amid widespread uncertainty about the economy and financial markets. The Balance is monitoring rates and updating them accordingly.

Best Jumbo CD Rates

Term Bank or Credit Union APY Minimum Deposit Early Withdrawal Penalty
JUMBO
3 Months

(2-4 months included)
Ideal Credit Union
(3-month)
1.00% $70,000 3 months of interest
3 Months
(2-4 months included)
Chevron Federal Credit Union
(3-month)
1.55% $500 3 months of interest
JUMBO
6 Months

(5-9 months included)
Air Force Federal Credit Union
(6-month)
1.50% $100,000 50% of interest foregone by not reaching maturity
6 Months
(5-9 months included)
Marcus by Goldman Sachs
(7-month)
1.70% $500 3 months of interest
JUMBO
1 Year

(10-14 months included)
Affinity Federal Credit Union
(14-month)
2.00% $100,000 3 months of interest
1 Year
(10-14 months included)
Chevron Federal Credit Union
(13-month)
2.10% $500 3 months of interest
JUMBO
18 Months

(15-20 months included)
Premier America Credit Union
(18-month)
1.80% $100,000 3 months of interest
18 Months
(15-20 months included)
American Express
(18-month)
1.90% $0 9 months of interest
JUMBO
2 Years

(21-29 months included)
Hughes Federal Credit Union
(29-month)
2.12% $99,000 6 months of interest (minimum $50)
2 Years
(21-29 months included)
Chevron Federal Credit Union
(2-year)
2.20% $500 6 months of interest
JUMBO
3 Years

(30-41 months included)
Hughes Federal Credit Union
(3-year)
2.22% $99,000 6 months of interest ($50 minimum)
3 Years
(30-41 months included)
Premier America Credit Union
(3-year)
2.05% $25,000 6 months of interest
JUMBO
4 Years

(42-53 months included)
Premier America Credit Union
(4-year)
2.25% $100,000 6 months of interest
4 Years
(42-53 months included)
Premier America Credit Union
(4-year)
2.20% $25,000 6 months of interest
JUMBO
5 Years

(54-69 months included)
Premier America Credit Union
(5-year)
2.30% $100,000 6 months of interest
5 Years
(54-69 months included)
Premier America Credit Union
(5-year)
2.30% $25,000 6 months of interest

If you’re looking for 10-year CDs, it’s best to look at our list for the best 10-year CD rates for non-jumbo CDs because there just aren’t many options for 10-year jumbo CDs.

If the steep deposit isn’t too much for you, here’s what to know about a few of the best jumbo CD rates in our table above.

Ideal Credit Union: Best 3-Month Jumbo CD

Ideal Credit Union is a Minnesota-based credit union that was established for postal workers in St. Paul in 1926. Today, anyone can join by making a one-time $5 donation to the John D. Miller Foundation. Besides CDs, Ideal offers checking and savings accounts, loans and credit cards, business banking, and more. You’ll also need to keep at least $1 in savings.

Credit unions have certain membership requirements. On this list, we’ve only included nationally-available credit unions that anyone can join, but you may need to jump through some hoops first by joining an associated organization and paying an additional fee, in addition to keeping a savings account open with a small balance. Remember: This extra cost could eat into your returns.

Air Force Federal Credit Union: Best 6-Month Jumbo CD

San Antonio, Texas-based Air Force Federal Credit Union has a strong history (it’s been around since 1952) and a number of financial products ranging from checking and savings accounts, to insurance and loans. CD terms range from six months to seven years, which may make membership worthwhile. 

AFFCU has over 5,000 shared branches nationwide, with more than 47,000 members, many of whom are not in the military and are scattered across the globe. If you’re not in the military or affiliated with the eligible groups for membership, you can join the Airman Heritage Foundation for $25. You’ll also need $5 in savings to buy a CD.

Affinity Federal Credit Union: Best 1-Year Jumbo CD

Affinity Federal Credit Union is another institution that offers a wide variety of services, ranging from insurance and investing to credit cards and bank accounts. There are many ways you can become eligible for membership, but if no other options work, you can simply donate $5 to Connecticut Jump$tart or the New Jersey Coalition for Financial Education. You can even do this while you’re filling out your application for membership. You’ll also need to keep at least $5 in savings. Affinity Federal Credit Union is based out of Basking Ridge, New Jersey, but has branches in Connecticut and New York, too.

Premier America Credit Union: Best 18-Month, 4-Year, and 5-Year Jumbo CDs

With more than 100,000 members, 63-year-old Premier America is one of the nation’s top credit unions. You can become eligible for membership simply by first joining the Thousand Oaks Alliance for the Arts for free. (You’ll also need to open a savings account with at least a $5 deposit.) Though the credit union is based in California, members can use the 5,000+ branches nationwide in its shared network. 

From checking and savings accounts to loans and credit cards, there is a variety of banking products from which to choose at Premier America. Certificates are available in terms ranging from three months to five years.

Hughes Federal Credit Union: Best 2- and 3-Year Jumbo CDs

Hughes Federal Credit Union was founded in 1952 to serve employees of the Hughes Aircraft Company (yes, the very same Howard Hughes of aviation legend). Today it’s based in Tucson, Arizona, and has over 132,000 members. Although it only operates branches in Arizona, you can open an account from anywhere online, provided you meet the membership criteria. These include living, working, or attending school in Tucson, being employed by a certain partner company, or being related to an existing member of the credit union. If you don’t qualify in one of those ways, you can also join by donating at least $10 to one of four organizations, such as the Friends of the Oro Valley Library. You’ll also need to keep a relatively high amount—at least $50—in a savings account.

What Are Jumbo CDs?

A jumbo CD is a special CD that generally requires a very large minimum deposit. There isn’t a set standard for how large of a deposit you need to make to open a jumbo CD. It varies by bank or credit union and can range from $50,000 all the way up to $100,000 or more. The FDIC commonly considers CDs of at least $100,000 to be a jumbo CD. 

Banks and credit unions often offer slightly higher rates on jumbo CDs in a bid to get you to deposit more money with them. They’ll also potentially offer higher rates for jumbo CDs with longer term lengths, just like with regular CDs. 

There’s a bit of a twist here, though. While individual banks and credit unions may offer better rates on jumbo CDs, you can usually find much better rates on regular CDs if you’re willing to shop around. This is because banks and credit unions often compete with each other and offer promotional rates on regular CDs more often than jumbo CDs. 

It’s sort of like the difference between fast-food burgers and gourmet burgers: Fast-food burger chains compete with each other more often on price so you can get a better deal pretty frequently, whereas it may be tough to find coupons or sales on gourmet burgers. 

Even better, there’s usually nothing that says you can’t open one of these normal, high-APY CDs with an amount of cash that would qualify as a jumbo deposit. You would just earn more interest by the time the CD matures.

Are Jumbo CDs Safe?

Jumbo CDs are as safe as any other CD. They’re still insured up to $250,000 per institution by the FDIC (for banks) or the NCUA (for credit unions). 

“A financial services professional should recommend a jumbo CD to a client when they need a safe investment,” Colin Slabach, Assistant Professor of Retirement at The American College of Financial Services, told The Balance via email. “A safe investment is necessary when the time horizon is only a few years away.” 

Let’s think about this for a second. If you have the money and you’re not risking your other financial goals, a jumbo CD can be a great way to save up for a down payment on a house in an area with a high cost of living, for your child’s college education in a few years, or for some other big expense on the looming horizon.

However, jumbo CDs are often marketed as popular ways to save for retirement because they’re among the highest-earning accounts at many banks and credit unions, and because they’re insured. In fact, many banks and credit unions offer special jumbo IRA CDs just for these savers. But just because you’re guaranteed not to lose your money doesn’t mean that there aren’t risks on the flipside. 

What Are the Risks of Jumbo CDs?

The biggest risk of saving in jumbo CDs, in the long run, is that your earnings most likely won’t outpace inflation. Inflation has historically been between 2% and 3% in the last 20 years. In other words, if you’re not earning at least 3% on your investment, you’re either running in place or falling behind the pack. And today, most jumbo CDs don’t offer anywhere close to that amount. 

Earning a rate below the inflation level isn’t a big deal with most savings since they’re not meant to sustain you forever. But with something like your kid’s college tuition or your retirement savings, it can mean a world of difference. 

When your jumbo CD’s term is up you’ll owe taxes on your earnings, and jumbo CDs can earn a lot of interest. Speak with your tax professional, because it may be a good idea to set some of your earnings aside to pay your taxes at the end of the year.

Another risk is having so much money tied up in one place. If you’re a billionaire, a jumbo CD is probably chump change. But if you’re like the rest of us, a jumbo CD could make up a substantial part of your net worth and that’s risky because it ties up a bigger part of your cash in something that’ll cost you a hefty price in penalty fees to access early if you need it. The early withdrawal fees are typically the same or similar for both non-jumbo and jumbo CDs, but because jumbo CDs require larger amounts in general, the early withdrawal penalties can add up to a very large amount of money. 

What Are the Pros and Cons of Jumbo CDs?

Pros
  • Insured up to $250,000 by the FDIC or NCUA

  • Slightly better rates within the same bank or credit union

Cons
  • Requires a much larger deposit size than other types of CDs or savings accounts

  • Early withdrawal penalties will add up to a much higher dollar amount

  • May require tying up a big part of your net worth in a non-liquid account

  • May not match the returns of alternative investments, like the stock market

  • Can get better rates on non-jumbo CDs from competing banks or credit unions

What Are the Alternatives to a Jumbo CD?

There are many alternatives to jumbo CDs. If you’re interested in really putting your money to work, you may want to consider stock market investments such as individual stocks, index funds, ETFs, or mutual funds. 

For example, if you deposited $100,000 in a 5-year jumbo CD with an APY of 2.50%, you’d earn $13,141 in interest by the time the CD matures. But if you invest that amount in the stock market instead, with an annual return of 7%, you’d earn $40,255—a whopping $27,114 more. 

You can also lose a lot of money in the stock market, so don’t invest anything you can’t afford to lose immediately. Most people invest in the stock market with long-term goals in mind. It’s important to know your risk tolerance before investing any money.

Another option is a high-interest savings account. Depending on the term length of the jumbo CD you’re interested in, you could earn more with a top-rated, high-interest savings account instead. It’s a similar story with money market accounts, many of which offer higher rates than jumbo CDs and still let you access your cash without penalty when you want. 

If you’re interested in growing your money, but in an account more liquid than a CD and with a lower required minimum deposit, consider the money market accounts below, which we partnered with QuinStreet to bring you.