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Best Jumbo CD Rates

Jumbo CDs have higher minimum deposits, but not necessarily higher APYs

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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 Corp. (FDIC) or the National Credit Union Administration (NCUA).

Scroll down for the top jumbo CD rates, plus non-jumbo CD rates for the same term, as of Dec. 2, 2022.

Best Jumbo CD Rates of December 2022

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) 3.26% $100,000 3 months of interest
3 Months (2–4 months included) MapleMark Bank (90 days) 3.35% $25,000 1 month of interest
JUMBO 6 Months (5–9 months included) Michigan State University Federal Credit Union (6–11 months) 4.26% $100,000 3 months of interest
6 Months (5–9 months included) Andrews Federal Credit Union (7 months) 5.00% $1,000 3 months of interest
JUMBO 1 Year (10–14 months included) Michigan State University Federal Credit Union 4.86% $100,000 3 months of interest
1 Year (10–14 months included) Spectra Credit Union (14 months) 4.85% $5,000 90 days of dividends
JUMBO 18 Months (15–20 months included) Michigan State University Federal Credit Union 4.76% $100,000 6 months of interest
18 Months (15–20 months included) Brilliant Bank (15 months) 4.85% $1,000 50% of interest
JUMBO 2 Years (21–29 months included) Michigan State University Federal Credit Union (13–23 months) 4.86% $100,000 6 months of interest
2 Years (21–29 months included) SkyOne Federal Credit Union (22 months) 5.00% $1,000 One penalty-free withdrawal, 6 months of interest thereafter
JUMBO 3 Years (30–41 months included) Michigan State University Federal Credit Union (24–35 months) 4.66% $100,000 6 months of interest
3 Years (30–41 months included) Department of Commerce Federal Credit Union (36–47 months) 4.67% $25,000 180 days of dividends
JUMBO 4 Years (42–53 months included) Interior Federal Credit Union 4.59% $100,000 12 months of interest
4 Years (42–53 months included) Department of Commerce Federal Credit Union (48–59 months) 4.69% $25,000 180 days of dividends
JUMBO 5 Years (54–66 months included) Interior Federal Credit Union 4.70% $100,000 12 months of interest
5 Years (54–66 months included) Department of Commerce Federal Credit Union (60–84 months) 4.80% $25,000 180 days of dividends

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.

Best 3-Month, 6-Month, 18-Month, 1-Year, 2-Year, and 3-Year Jumbo CDs : Michigan State University Federal Credit Union

Just like its namesake, Michigan State University Federal Credit Union is based out of East 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 also can 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.

Best 4-Year and 5-Year Jumbo CDs : Interior Federal Credit Union

Based out of the U.S. Department of the Interior Building in Washington, D.C., Interior Federal Credit Union was established in 1935. Members can do their banking online, at over 5,500 shared branches nationwide, or more than 55,000 shared ATM locations nationwide.

Membership is available to individuals or the family of individuals employed by the DOI, one of its bureaus, or one of its contractors. Bureaus of the DOI include the National Park Service, Bureau of Reclamation, U.S. Geological Survey, Bureau of Indian Affairs, Bureau of Ocean Energy Management Regulation and Enforcement (BOEMRE), Bureau of Land Management, Office of Surface Mining, and U.S. Fish and Wildlife Service. Employees, volunteers, or partners of numerous other groups also are eligible for membership. A full list is available on Interior FCU’s website.

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.

  • 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

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.

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.

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.

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.

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.

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.

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