Best Jumbo CD Rates for July 2024

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Jumbo CDs can offer high interest for minimal risk. Find out who has the best jumbo CD rates.

Who has some of the best rates on CDs?

If you have a lot to save, a jumbo CD is a safe way to lock in high interest rates. And with very little risk.

Whether you're saving for a major purchase or looking to maximize your returns, of course, you'll want the highest APY possible.

What Is a Jumbo CD?

A jumbo CD is a certificate of deposit (CD) with higher minimum deposit requirements (typically $100,000). In exchange for the large deposit, jumbo CDs often pay higher rates than a regular CD.

A CD is a savings account with a fixed deposit and fixed term. The catch—you cannot withdraw your money before the end of term. In return, you get a higher rate than a plain savings account.

Note: You don't need to specifically use a jumbo CD. You can use a regular CD account too, if you like the term and rate.

Are jumbo CDs secure?
Yes. Jumbo CDs are federally insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) for banks and National Credit Union Administration (NCUA) for credit unions.

Best 3-month CD

Who has the best rates for 3 month CDs?

Best 6-month CD

Who has the best rates for 6 month CDs?

Best 9-month CD

Who has the best rates for 9 month CDs?

Best 1-year CD

Who has the best rates for 12 month CDs?

Best 18-month CD

Who has the best rates for 18 month CDs?

Best 2-year CD

Who has the best rates for 2 year CDs?

Best 3-year CD

Who has the best rates for 36 month CDs?

Best 5-year CD

Who has the best rates for 5 year CDs?

Would you be willing to commit to a longer-term contract for higher Jumbo CD rates?

Are Jumbo CDs Worth It?

A jumbo CD could be worth it if you have a lot to save for a short-term goal, and you don't want to risk losing the money (like in the stock market). Your rate is locked, so it's a great option for stable and guaranteed returns.

In general, you'll want to get a jumbo CD when interest rates are at their highest. With a high rate, you can cover the opportunity cost of locking away your money for months or years.

But, how do you know if locked in an APY at a good time? You can estimate it by looking out for changes in the Fed Funds rate or the Treasury yield. Jumbo CD rates typically move with the Fed Funds rate and the Treasury yield.

How important is the interest rate factor while choosing a Jumbo CD?

Jumbo CDs Pros and Cons

A jumbo CD is a commitment. So before you commit, it's important to understand the pros and cons.


  • Locked in high interest rates.
    Your rate stays the same regardless of the market changes. If you open one when interest rates are high, you'll still get the high APY even when rates fall.

  • Low-risk.
    A jumbo CD is a super-safe, low-risk investment. CDs are not volatile like the stock market. Your returns are guaranteed.

  • Deposit insurance.
    Jumbo CDs are federally insured for up to $250,000 (either by the FDIC or NCUA) in case your bank or credit union fails.


  • Early withdrawal penalties.
    Your money is locked in and early withdrawal will cost you. For example, say a 6-month jumbo CD has penalties worth 3 months' interest. If you need to withdraw in 2 months, you will be at a loss.

  • Interest rate risk.
    If you open a jumbo CD and lock in a rate just before the market rate climbs up, you'll miss out on better APYs. With such a huge amount of money locked up, even a small increase in APY can be worth a lot.

    When is the best time to get a jumbo CD?
    In general, the best time to get a jumbo CD is when the APY is high. That way, you'll lock in a high interest rate for a long term. Generally, when the yield increases, you'll also see the jumbo CD APY go up.

  • Inflation.
    In times of high inflation, your money in a jumbo CD may not grow fast enough to keep up with inflation.

  • Limited liquidity.
    Unlike normal savings accounts, you can't add more money to your jumbo CD. Nor can you pull out your money without incurring penalties.

    If you'll need money in a pinch or want to rethink your investment, having your money tied up may not be ideal.

What type of financial institution do you prefer for Jumbo CDs?

How to Choose the Best Jumbo CD

If you're shopping for jumbo CDs, here's a checklist you can go through.

What is the APY?
As with any investment, maximizing the APY or rate of return is key. You should always look out for jumbo CDs with high APY.

Use the National Rates and Rate Caps updates published by the FDIC to see if you are getting a good rate on your jumbo CD. Basically, it says how high the rate can be per CD term.

What is the term?
Choose a term that matches your goal. Luckily, there are multiple jumbo CD terms to choose from, from as short as 1 month to as long as 10 years.

How much is the early withdrawal penalty?
If you need to withdraw early, you'll want to minimize your costs. Look for jumbo CDs with lower penalties.

Are there unique features?
Pay attention to the fine print. You'd want to take advantage of (or avoid) some features when comparing jumbo CDs. Some examples are below.

  • No Penalty CD: Lets you withdraw early without penalty.
  • Bump-up CD: Typically, this lets you increase your rate once during the CD term. This is great if rates go up!
  • Callable option: The bank or credit union will have the right to recall your CD at their discretion.
  • Variable rate: Your rate may change with the market. Avoid this if you don't like being unpredictable.

The best CD should be one that best addresses your needs and preferences.

Jumbo CD Alternatives

A jumbo CD might not tick all your boxes. Luckily, there are other low-risk investments. Here are some jumbo CD alternatives:

  • High-Yield Savings Accounts.
    High-yield savings accounts offer competitive interest rates (sometimes, higher than a jumbo CD) and the flexibility to withdraw money at any time. However, the rate can change at any time.

    Compare Savings Account Offers

  • Money Market Accounts (MMA).
    Money market accounts are like a savings account with some checking features. They also offer high-interest rates. Plus, many MMAs come with a debit card and allow you to write checks, so there's more flexibility.

    Compare Money Market Account Offers

  • Regular CDs.
    Don't discount regular CDs as an alternative! Some regular CDs offer competitive rates too, and for minimal to no deposit requirements.

  • Treasury Securities.
    Treasury bills, notes, and bonds offer fixed interest rates. Plus, these are backed in full faith by the government. This makes them safe and reliable for long-term investments.

  • Municipal Bonds.
    These are bonds issued by state and local governments that often offer tax-free interest payments. Since these are backed by the government, your money is safe too.

  • Blue-chip Stocks.
    Investing in large, stable, and reputable companies is a good alternative too. You can receive a stable income from dividends. Also, you can liquidate your stocks anytime for a small fee.

At the end of the day, you'll have to choose an investment that best fits your plans and circumstances.


What is APY?
APY stands for Annual Percentage Yield. It takes compound interest into account and reflects the total earnings on an investment in a period of a year. It is also known as the effective annual rate.

What is a Certificate of Deposit?
A certificate of deposit is a type of savings account where you hold a fixed amount of money for a fixed amount of time. In exchange, you are paid higher interest than a simple savings account.

Are Jumbo CDs taxed?
Yes, you are required to pay taxes on interest income greater than $10 per year on your CD.

Will Jumbo CD rates go up?
You can make an educated guess by observing the treasury yield. Jumbo CD rates will typically follow the movement of the treasury yield. But, there is no guarantee that jumbo CD rates will go up or down.

You can monitor Interest Rate Statistics as published by the U.S. Department of the Treasury.

What is a CD Ladder?
Simply put, a CD ladder is a strategy that splits up your money into multiple CDs with different rates and terms. The idea is to have your CDs mature at regular intervals. This allows you to flexibly use or reinvest your fund every maturity.

Check your potential returns on your CD using this CD Ladder Calculator.

What the Experts Say

CreditDonkey asked a panel of industry experts to answer readers' most pressing questions. Here's what they said:

Should I get a Jumbo CD?

Getting a jumbo CD is a safe and stable option to grow your money passively. If you want to add jumbo CDs to your portfolio, remember to consider the rate, terms, and penalties when choosing the best ones for you.

You must be committed to lock up your money for a fixed period though. If you're not sure about your liquidity needs yet, it may be worth checking other investment options.

Write to Rue Atanacio at Follow us on Twitter and Facebook for our latest posts.

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