Best Jumbo CD Rates

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Jumbo CD Rates

Jumbo CDs allow customers with large sums of money to make a tidy return on a low-risk investment.

Like a regular CD, jumbo CDs require locking up some of your cash for a predetermined period of time, in exchange for some of the highest interest rates in the financial industry. Plus, jumbo CDs are usually negotiable, meaning you can sell them to someone else. They typically – but not always – come with a minimum deposit of at least $100,000 and your funds are locked up for a predetermined period of time, usually between six months and five years.

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Best jumbo CDs of July 2020 

ProviderMin. Deposit1-Year APYMax APYEarly Withdrawal Penalty on 1-Year CD
CIT Bank$100,000N/A1.05%3 months’ simple interest (term CDs)
Golden 1 Credit Union$100,0000.30%1.60%180 days’ dividend
Merrick Bank$25,0000.65%0.85%2% of account balance or 7 days’ dividend, whichever is greater
USAA$95,0000.45%0.66%180 days’ interest
First Horizon$100,0000.02%0.25%180 days’ interest

CIT Bank – Max APY 1.05%, min. deposit: $100,000

CIT Bank is an online bank that offers competitive CD rates or shorter terms. It also has no fees for opening your jumbo CD account. Jumbo CDs from CIT Bank vary from six months to five years with a minimum deposit of $100,000 and a maximum 1.75% APY, which is better than many other national banks’ APYs. 

Golden 1 Credit Union – Max APY 1.60%, min. deposit: $100,000

Golden 1 Credit Union has been around since 1933 with open membership to all Californians. It has more than 72 branches in California and has a minimum deposit of $100,000 for jumbo CDs and a maximum APY of 2.00%, which is higher than many credit unions around the country. If you live outside California, you can still join if you’re a family member of an existing Golden 1 member or a member of a select employee  group. 

Merrick Bank – Max APY 0.85%, min. deposit: $25,000

Merrick Bank has a low minimum deposit on its CDs of only $25,000, but a high APY of 1.87%. Merrick also has six-month, 12-month, 18-month and 24-month terms, 24/7 account access, no hidden fees and all CDs are FDIC-insured up to the maximum allowed by law. 

USAA – Max APY 0.66%, min. deposit: $95,000

USAA offers standard, jumbo and super jumbo CDs for military members and their families. Jumbo CD rates vary from 0.08% for 30 days up to 1.11% for a five year term. The minimum deposit is $95,000 up to a maximum of $174,999. Besides great jumbo CD rates and terms, USAA offers tools and advice on a variety of financial products. 

First Horizon Max APY 0.25%, min. deposit: $100,000

Unlike most other providers, First Horizon offers jumbo CDs only to small and commercial businesses for owners to make a low-risk return on investments for terms from seven days to one year. Its jumbo CDs have a maximum APY of 1.60% and a minimum deposit of $100,000. Interest is credited at maturity, so one-year CD customers won’t see their earnings until the end of the term. 

Compare the best jumbo CDs of 2020 

Jumbo CDs vs regular CDs

If you’re trying to make a decision between a jumbo CD vs. a regular CD, you’ll have to take a look at how much money you want to invest. While both of these products tend to have similar loan terms, the minimum deposit on a jumbo CD is often much higher–but not always. Most regular CDs only require a deposit amount of between $500 and $1,000, or sometimes no minimum deposit requirement at all, while jumbo CDs can start as high as $100,000.

Jumbo CDs vs high-yield savings accounts

As the name suggests, high-yield savings accounts offer higher interest rates than traditional savings accounts. Still, the rates they offer are not usually as high as what you might find with a CD, particularly jumbo or super jumbo CDs. However, high-yield savings accounts are much more flexible than CDs. While it’s true you can only make six withdrawals per month with a savings account, you can make withdrawals whenever you want. However, with a CD, you must wait for the term to expire or face early withdrawal penalties. It’s best to invest in a jumbo CD when you’re 100% sure you won’t need to touch your cash for the entire term.

Jumbo CDs vs money market accounts

Money market accounts are similar to savings accounts. While there are limits on the amount of withdrawals you can make per month (six), as long as you stay within those limits there are no penalties for accessing your money like with CDs that charge early withdrawal penalties. Plus, some money market accounts come with the ability to write checks or access your money via a debit card. A jumbo CD comes with none of these benefits, but will often provide a higher interest rate in exchange for locking up your cash for a set period of time.

Pros and cons of jumbo CDs


  • High interest rates
  • Low-risk for high investment
  • Can be used as collateral


  • High minimum deposit
  • Low liquidity for large investment
  • Not good for CD laddering

Are jumbo CDs meant to be short-term? 

While jumbo CDs offer flexible terms, most are not meant to be short-term. Although some providers offer high APYs on shorter terms, most jumbo CDs have better rates for longer terms. And, while savings accounts are best if you want to put your money away for shorter periods of time, a CD can help you save for a purchase or expense a few years down the road. Some providers, like CIT Bank don’t offer CDs for terms less than one year, while others like First Horizon offer a seven-day CD term. 

Jumbo CD penalties 

CDs require you to leave your money in the account for a certain length of time. If you withdraw your money from your CD prior to the end of the term, you will likely face an early withdrawal penalty. 

Sometimes banks will have different penalties on different term lengths, and some will charge a minimum penalty no matter when you access your funds.  Some examples of early withdrawal penalties include: 

Term LengthPenalty
Less than 3 months1 month of interest
3 to 12 months3 months’ interest
12 to 24 months6 months’ interest
More than 24 months12 months’ interest

This is just an example and is not reflective of all withdrawal penalties by all CD providers.

The final word 

Before you put your money into a CD, make sure you know the pros and cons and you are clear about your long-term objectives. Jumbo CDs offer a better return on your money than most savings accounts, but they are meant to be long-term investments.  If you pull out your money before the end of the predetermined term, you’ll face early withdrawal penalties.  But, if you have a large sum of money and you’re not certain you want to invest in stocks or other insecure investment, the fixed APY on jumbo CDs may be what you’re looking for.