Jumbo certificates of deposit (CDs) usually require a large amount of money (think $100,000) and sometimes can 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 annual percentage yields (APYs) offered on non-jumbo CDs often are higher than those of many jumbo CDs.
We review more than 150 banks and credit unions every weekday to find the best rates on jumbo CD rates with minimum deposits of $50,000 or more. All accounts that make our list are insured by either the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).
Here are the best jumbo CD rates, plus non-jumbo CD rates for the same term, as of Sept. 21, 2021.
Best Jumbo CD Rates
|Term||Bank or Credit Union||APY||Minimum Deposit||Early Withdrawal Penalty|
|JUMBO 3 Months (2–4 months included)||Michigan State University Federal Credit Union (3–5 months)||0.40%||$100,000||3 months of interest|
|3 Months (2–4 months included)||Chevron Federal Credit Union and Spectrum Federal Credit Union (tie)||0.50%||$500||3 months of interest|
|JUMBO 6 Months (5–9 months included)||Michigan State University Federal Credit Union (6–11 months)||0.50%||$100,000||3 months of interest|
|6 Months (5–9 months included)||CommunityWide Federal Credit Union||0.70%||$1,000||Complex formula; exercise caution|
|JUMBO 1 Year (10–14 months included)||Superior Choice Credit Union||0.80%||$100,000||6 months of interest|
|1 Year (10–14 months included)||Lafayette Federal Credit Union||0.80%||$500||6 months of interest|
|JUMBO 18 Months (15–20 months included)||Consumers Credit Union (20 months)||0.90%||$100,000||4 months of interest|
|18 Months (15–20 months included)||USAlliance Federal Credit Union||1.00%||$500||12 months of interest|
|JUMBO 2 Years (21–29 months included)||Superior Choice Credit Union||0.90%||$100,000||6 months of interest|
|2 Years (21–29 months included)||MAC Federal Credit Union||0.95%||$500||3 months of interest|
|JUMBO 3 Years (30–41 months included)||Heartland Credit Union||1.10%||$100,000||180 days of dividends|
|3 Years (30–41 months included)||Heartland Credit Union||1.05%||$25,000||180 days of dividends|
|JUMBO 4 Years (42–53 months included)||Heartland Credit Union||1.16%||$100,000||180 days of dividends|
|4 Years (42–53 months included)||Abound Credit Union (47 months)||1.40%||$500||6 months of interest|
|JUMBO 5 Years (54–66 months included)||Superior Choice Credit Union||1.40%||$100,000||12 months of interest|
|5 Years (54–66 months included)||Abound Credit Union (59 months)||1.35%||$500||12 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 the institutions behind each of the best jumbo CD rates in our table above. (For more information on the banks and credit unions offering the best non-jumbo rates, see our list of the best CD rates.)
Just like its namesake, Michigan State University Federal Credit Union is based out of Lansing, Michigan. Interestingly, it claims to be the largest university-based credit union in the world, and if you don’t qualify with some connection to Michigan State University, you can also join by paying a $10 membership fee (which will be donated to the MSU Alumni Association). Additionally, there’s no fee to open an account at the credit union, but you will need to deposit at least $5 into a Spartan Saver account.
Superior Choice Credit Union (SCCU)—based in Superior, Wisconsin—has been serving the financial needs of its member/owners since 1932. Although this cooperative primarily serves residents and employees of more than 15 counties adjacent to Superior, anyone can join by becoming a member of the American Consumer Council, which costs as little as $8. You’ll also need to establish and maintain a savings account with a minimum balance of $5.
Superior Choice Credit Union boasts a full range of financial services including checking, savings, money market, and health savings accounts; bank loans and mortgages; credit cards; and more. SCCU offers CDs with terms ranging from three months to five years. It even has a “Next Gen” or “youth certificate” with a $25 minimum deposit.
Consumers Credit Union is based out of Gurnee, Illinois, and has more than 100,000 members. You can become a member by joining the Consumers Cooperative Association for a $5 fee, which you can do while you complete your account application. In addition, you’ll need to keep at least $5 in a savings account.
Consumers Credit Union has an even wider range of financial products than most other credit unions. It offers several types of insurance (such as car, home, and life insurance), just about any type of loan you could want, and credit cards—and that’s even before you get to the regular accounts like checking and savings accounts.
Heartland Credit Union began in 1948 as Hutchinson Teachers Credit Union in Hutchinson, Kansas, with 14 members and $315 in assets. The credit union has seven physical branches in Hutchinson, Wichita, and the surrounding areas in Kansas, but anyone can manage an account through online banking or the CO-OP ATM network.
Membership is available nationwide to anyone working in or retired from nearly two dozen broadly defined professions. Those not certain of their eligibility are encouraged to contact the credit union directly.
What Are Jumbo CDs?
A jumbo CD is a special CD that generally requires a large minimum deposit. There isn’t a set standard for how large a deposit you need to make to open a jumbo CD. It varies by bank or credit union and commonly ranges from $50,000 to $100,000 or more.
On average, jumbo CD rates are slightly higher than rates on regular CDs of the same term length. This is to get you to deposit more money with the banks or credit unions offering them. They typically 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 often can find 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 on 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 at a financial institution where your deposits are insured by the FDIC or NCUA.
Jumbo CDs often are recommended if you need a safe investment for a larger sum of money and your time horizon is a few or even several years away. 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 another big expense on the horizon.
Jumbo CDs sometimes are marketed as a way to save for retirement because they’re among the highest-earning accounts at many banks and credit unions and are 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.
What Are the Risks of Jumbo CDs?
The biggest risk of saving in jumbo CDs, in the long run, is that your earnings may not outpace inflation. Earning a rate below the inflation level isn’t a big deal with most savings as 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 aside some of your earnings 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 early withdrawal penalties to access your money if you need it before the term expires. Early withdrawal fees typically are 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 more money overall.
What Are the Pros and Cons of Jumbo CDs?
Insured by the FDIC or NCUA
Slightly better rates within the same bank or credit union
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, exchange-traded funds, or mutual funds.
For example, if you deposited $100,000 in a 5-year jumbo CD with an APY of 2% compounded annually, you’d earn $10,408 in interest by the time the CD matures. But if you invest the same amount in the stock market instead, with an annual return of 7%, you’d earn $40,255—a whopping $29,847 more.
You also can 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-yield 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. 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 prefer instant account access, we have partnered with the following banks to bring you the high-yield savings and money market account offers displayed in the table.
FDIC. "Weekly National Rates and Rate Caps - Weekly Update." Accessed Sept. 21, 2021.