Best Jumbo CD Rates [2024] And Mistakes to Avoid

The federal interest rate has been rising quickly, reaching 5.33% in August 2023. 

And how could that affect you? For one thing, it means you can now earn over 5.00% APY on a jumbo CD.

That’s great news! But to take advantage, you need more information. 

Below, I’ll tell you which banks and credit unions are offering the best jumbo CD rates. I’ll also explain exactly what Jumbo CDs are all about and help you avoid costly mistakes.

With the right approach, jumbo CDs could become an important part of your wealth-building strategy!

What is a Jumbo CD?

A certificate of deposit (CD) is a type of deposit where you give your money to a bank or credit union for an agreed-on amount of time, and earn interest in return.

It’s sort of like putting your money in a savings account, but with one major difference: With a CD, you lose access to your funds until the term is over (unless you pay a penalty).

CDs often pay higher interest rates than basic savings accounts or money market accounts and the interest rate is guaranteed. 

But what about a “jumbo” CD? 

Well, it’s exactly what it sounds like. A CD that requires a jumbo-sized deposit. There’s no official threshold for what defines a jumbo CD, but some require as much as $100,000. 

The best jumbo CD rates can be pretty high – over 5.00% annual percentage yield (APY) at the time of this publication. And CD accounts are insured by the FDIC, so unless you invest a boatload of money, there’s practically no risk.

Decent returns with little risk. Now that’s the recipe for an attractive investment! Read more about what makes this the best way to invest money.

How to Pick The Best Jumbo CD

There are three factors to consider when choosing jumbo CDs:

1. The term. This determines how long you’ll have to wait before you get your money back. 

2. The APY.  This is the percentage of your money that you’ll earn in interest over the course of a year. The higher, the better!

3. The minimum deposit to earn the highest APY. With jumbo CDs, you often have to deposit upwards of $100,000 to earn the highest APY. But some financial institutions will surprise you by offering excellent rates for smaller deposits.

Best Jumbo CD Rates

Now that you know what to look for, here are the best jumbo CD rates available now!

1 – CIT Bank

Term: 6 months

APY: 5.00%

Minimum Deposit to Earn APY: $1,000

CIT bank is an interesting case because the “standard” CDs earn up to 5.00% APY, while the jumbo CDs max out at only 0.50% APY.

So let’s focus on those “standard” CD options first. You get the best rates for terms between 6 and 18 months:

• 6 months – 5.00% APY
• 14 months – 4.65% APY
• 18 months – 4.60% APY

Longer-term CDs are also available, but they all pay 0.50% APY or less. 

And what about the actual “jumbo” CDs? Well, the minimum deposit is $100,000, and the rate depends on the terms you select. With shorter terms, like 2 or 3 years, you can earn 0.40% APY. The longer terms, 4 or 5 years, earn 0.50% APY. 

Typically, jumbo CDs pay higher rates, but it’s always best to check the regular CD rates, too!

Click here to learn more about CIT Bank.

2 – Navy Federal Credit Union

Term: 18 months

APY: 4.55%

Minimum Deposit to Earn APY: $100,000

At Navy Federal Credit Union, the best jumbo CD rate is currently 4.55% APY, and you’ll have to deposit at least 100K to get it.

But here’s the thing: You can get as high as 4.20% APY even if you deposit just $1,000. So you don’t need to reach the “jumbo” level to earn some serious interest.

Navy Federal Credit Union is designed specifically for those who serve, and it’s only available if you meet one of these requirements:

• Active duty, retired military, and veterans
• Department of Defense civilians
• Immediate relatives of military personnel

Does that apply to you? If so, thank you for your service! Also, take a closer look at those lucrative CDs from Navy Federal Credit Union!

3 – Credit One Bank

Term: 13 months

APY: 5.35%

Minimum Deposit to Earn APY: $100,000 

There’s so much to like about the jumbo CD from Capital One Bank.

First of all, 5.35% APY is definitely one of the best jumbo CD rates you’re going to find, even at a time when interest rates are generally high. 

You can choose terms between 6-60 months. Keep in mind it’s the 13-month option that gives you a 5.35% APY. 

Another option is a Bump-Up Jumbo CD. This is a type of CD that Credit One Bank allows you to adjust your rate once during the term, which could prove lucrative if rates keep rising!

And then there are other generous perks, such as:

• If the interest rate for new Credit One Bank CDs increases within 10 days of opening your account, they’ll give you the increased rate.
• If you renew your CD for a second term, your rate will automatically increase by 0.05%. 

4 – U.S. Bank

Term: 15 months

APY: 4.75%

Minimum Deposit to Earn APY: $1,000

So this CD option might not technically be “jumbo” since the minimum deposit is only $1,000, but that 4.75% APY is so great that I just had to list it here.

Besides, there’s nothing like getting “jumbo-style” interest rates without having to make a jumbo deposit!

And if you want to invest much more than $1,000, you certainly can. In fact, you can deposit up to $250,000.

U.S. Bank offers three term-length options, each with a different APY:

• 7 months – 4.55% APY
• 11 months – 4.65% APY
• 15 months – 4.75% APY 

So no matter what term you select, you’ll get one of the best jumbo CD rates available at the moment! 

5 – Ally Bank

Term: 18 months

APY: 5.00%

Minimum Deposit to Earn APY: None

The best thing about Ally Bank’s CDs is that there’s no minimum deposit. That’s rare in the world of CDs, and it gives you tons of flexibility. 

Okay, okay. So that means they’re not technically “jumbo” CDs. But I’m not here to split hairs! I’m here to help you find the best CD rates available, and Ally Bank deserves its place on this list.

Ally Bank offers seven different terms ranging from 3-60 months, each with a different APY. Current APYs (at the time of this publication) are: 

• 3 months – 2.50%
• 6 months – 3.50%
• 9 months – 4.15%
• 12 months – 4.50%
• 18 months – 5.00%
• 3 years – 4.25%
• 5 years – 4.10%

So that 18-month term is the obvious option, but as long as you choose terms longer than 6 months, you’ll get a rate right up there with the best jumbo CD rates available today! 

Pros and Cons of Jumbo CDs

Knowing the best jumbo CD rates is just half the battle. The next step is to ask yourself that all-important question:

Is a jumbo CD the right choice for my financial portfolio?

Here are the pros and cons to consider.

Pros:

• Higher yields than smaller CDs. Typically, jumbo CDs offer higher interest rates, but it depends on the financial institution. 

• Low-risk investment. The first $250,000 in most CDs is backed by the FDIC. So even if the bank were to somehow lose your money, the federal government would pay you back.

• The returns are guaranteed. This isn’t like investing in stocks, where the returns are totally up in the air. When you deposit money into a CD, you know it will earn the agreed-upon APY.

Cons:

• No chance of truly massive returns.  Even in today’s high-rate environment, you’re not going to get rich overnight with a CD. That’s why CDs have typically been considered a low-risk, low-reward investment. However, today’s rates make them more lucrative than ever before! 

• Your funds are locked away until the term is over. With a CD, the idea is that you deposit money that you won’t need in the short term. If you end up accessing the money, you’ll likely have to pay a penalty.

• High minimum deposit. With traditional jumbo CDs, you need to invest a large amount. It’s often unwise to sink too much money into a single account. 

Are Jumbo CDs Worth It?

Whether or not a jumbo CD is worth it depends on two factors:

• The specific terms of the CD
• Your financial situation

Let’s say:

1. You have lots of money to invest,
2. You can stand to lose access to your funds for a while, and
3. You’re looking for something that’s practically risk-free.

Then a jumbo CD might be perfect!

But if you want to maintain access to your money, a savings account or money-market account could be better. You can start by checking out this list of 5% interest savings accounts. 

Or if you’re willing to take on more risk in pursuit of greater returns, then stocks could be more your style. 

And what if you simply don’t have $100,000 sitting around?

Well, I’ve got good news! 

These days, some CDs offer truly impressive rates without asking for a massive minimum deposit. That means you can deposit just $1,000 (or less!) and still earn well over 4.00% APY!

Commonly Asked Questions About Jumbo CDs

Jumbo CD Rates Today?

The best jumbo CD rates today are:

• CIT Bank – 5.00% APY (6-month term)
• Credit One Bank – 5.35% APY (1-year term)
• Navy Federal Credit Union – 4.55% APY (18-month term)
• Ally Bank – 5.00% APY (18-month term)
• U.S. Bank – 4.75% APY (15-month term)

These rates are current as of June 19th, 2023. 

Highest 12-Month Jumbo CD Rates?

Some of the highest 12-month jumbo CD rates include:

• Credit One Bank – 5.35% APY
• Ally Bank – 4.50% APY
• Navy Federal Credit Union – 4.45% APY
• CIT Bank – 5.00% APY (6-month term)
• U.S. Bank – 4.65% APY (11-month term)

These rates are current as of June 19th, 2023. 

Jumbo CD Rates 1 Year?

Here are some of the best jumbo CD rates available for 1-year terms:

• Credit One Bank – 5.35% APY
• Ally Bank – 4.50% APY
• Navy Federal Credit Union – 4.45% APY
• CIT Bank – 5.00% APY (6-month term)
• U.S. Bank – 4.65% APY (11-month term)

These rates are current as of June 19th, 2023. 

Who is Paying The Most For Jumbo CD? 

Credit One Bank is paying up to 5.35% APY for a jumbo CD with a minimum deposit of $100,000 for a 13-month term (rate is current as of 6/19/2023). Also, If the interest rate for a new Credit One Bank CD increases within 10 days of opening your account, they’ll honor the increased rate. 

And if you’d like to learn which budgeting app could best help you manage your finances, check out these comparisons:

• Rocket Money vs YNAB
• Rocket Money vs Simplifi
• Rocket Money vs Copilot

Then use a net worth tracker to see how your new financial strategies are paying off. 

How High Will Jumbo CD Rates Go in 2023?

Jumbo CD interest rates will depend on the federal interest rate, which seems likely to rise. Some jumbo CDs already offer up to 5.35% APY, and it’s reasonable to assume those rates will go even higher. 

Do Jumbo CDs Pay More Interest? 

Jumbo CDs typically pay more interest than “traditional” CDs, but not always. That’s why it’s so important to look at CDs on a case-by-case basis. For example, CIT Bank is currently (as of 6/19/2023) offering CD rates as high as 5.00% APY with a minimum deposit of $1,000 for a 6-month term. 

And if you’re looking to boost your bank account quickly, check out these banks with immediate sign-up bonus.

Best Credit Union Jumbo CD Rates? 

Here are some of the best jumbo CD rates offered by credit unions:

• Navy Federal Credit Union – 4.55% APY (18-month term)
• Connexus Credit Union – 5.26% APY (1-year term)

These rates are current as of June 19th, 2023. 

Best Bank Jumbo CD Rates? 

Some banks are offering amazing jumbo CD rates, including:

• CIT Bank – 5.00% APY (6-month term)
• Credit One Bank – 5.35% APY (1-year term)
• Ally Bank – 5.00% APY (18-month term)
• U.S. Bank – 4.75% APY (15-month term)

These rates are current as of June 19th, 2023.