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A jumbo CD is a type of CD with a high minimum deposit that pays a higher interest rate than a regular CD. A jumbo CD may be worthwhile if you have more than $100,000.
Jumbo CDs aren’t common, and ones that pay high interest rates are even less common. Below, you’ll find our top picks in jumbo CDs, which have either competitive interest rates or a variety of terms.
Navy Federal Credit Union Standard Certificate
Why it stands out: You’ll earn the highest rates with a $100,000 minimum. However, Navy Federal’s rates are still regardless of your account balance. Navy Federal compounds your interest daily like most banks would, unlike many credit unions that compound monthly. Navy Federal also offers terms for up to 7 years, while many banks cap out at 5 years.
Term length options: 3 months to 7 years
What to look out for: You or a family member must have ties to the military for you to become a member of Navy Federal. Or you can join by living with a Navy Federal member, or by being a Department of Defense civilian personnel or contractor.
Consumers Credit Union Jumbo Certificate Account
Why it stands out: Consumers Credit Union pays competitive rates on jumbo CDs, especially for longer terms. Consumers makes it easier to become a member than most credit unions do — you just have pay $5 to join the Consumers Cooperative Association, then deposit $5 in a Consumers savings account. Unlike most credit unions, Consumers compounds interest daily, meaning you can earn more money in the long run.
Term length options: 91 days to 5 years
What to look out for: Consumers Credit Union doesn’t have any major downfalls, but you might earn a higher rate at another institution, depending on the term length.
CIT Bank Jumbo Certificate of Deposit
Why it stands out: CIT Bank pays good rates on jumbo CDs, and it charges standard early withdrawal penalties should you need to take out money before your CD matures.
Term length options: 2 years to 5 years
What to look out for: Your only choices are a 2-year, 3-year, 4-year, or 5-year jumbo CD. If you want other term lengths, you can either choose another institution or open another type of CD with CIT Bank.
USAA Jumbo Certificate of Deposit
Why it stands out: USAA has a wider range of term lengths than most banks, which makes it easy to find a jumbo CD that fits your needs. It also pays good rates on longer-term CDs.
Term length options: 30 days to 7 years
What to look out for: The other institutions on our list compound interest daily, but USAA only compounds interest monthly. This limits how much you’ll earn over the months or years.
Bank trustworthiness and BBB ratings
We’ve compared each company’s Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. Here is each company’s score:
InstitutionBBB ratingNavy Federal NRConsumersA+CIT Bank A-USAAA-
Navy Federal has an NR rating from the BBB because it is responding to previously closed complaints. CIT Bank and USAA have an A- rating because they haven’t responded to customer complaints.
Navy Federal, CIT Bank, and USAA have also been involved in recent public scandals.
In 2020, a Navy Federal employee stated the lender pressured mortgage underwriters to approve loans even if they didn’t have sufficient reason to believe applicants could repay the loans. The employee filed a lawsuit and said Navy Federal retaliated against her whistleblowing by changing her job duties. She dropped the case in late 2020.
In 2019, the Department of Housing and Urban Development sided with the California Reinvestment Coalition in its allegations against a division of CIT Bank called OneWest Bank. The CRC stated OneWest discriminated against Latinx and Black people in Los Angeles. Although OneWest never admitted to the discrimination, the bank did agree to pay over $7 million in the settlement.
In 2020, the Office of the Comptroller of the Currency said USAA broke the law by failing to establish and carry out an efficient compliance risk management program and IT risk governance program.
In 2019, the Bureau of Consumer Financial Protection required USAA to pay $12 million in a settlement that stated USAA did not stop automatic payments when customers requested.
Frequently asked questions
What is a jumbo CD?
A jumbo CD is a certificate of deposit that requires a high minimum deposit — usually around $100,000. As a reward for placing this large deposit, you’ll earn a higher interest rate than you would on a regular CD.
What’s the difference between a jumbo CD and regular CD?
The main distinctions are that a jumbo CD requires a higher deposit, and it usually pays a higher rate. Some banks also offer different term lengths for its jumbo and regular CDs. For example, CIT Bank’s shortest term for a jumbo CD is 2 years, but you can get a CIT regular CD with a term as short as 6 months.
What are the pros of a jumbo CD?
Higher interest rates. In many cases, banks pay higher interest rates on jumbo CDs than on regular CDs.
Guaranteed rate of return. You’re putting a lot of money into a jumbo CD. If you were to put that money into a riskier investment, such as the stock market, you wouldn’t know how much you’d end up with in a few months or years. With a jumbo CD, you know exactly how much you’ll earn.
What are the cons of a jumbo CD?
Higher minimum deposits. Regular CDs typically require a few hundred or a few thousand dollars, but you’ll need around $100,000 to open a jumbo CD.
The rate isn’t always better. Banks usually pay higher rates on jumbo CDs — but not always. Also, you could find a different bank that pays better rates on regular CDs than a certain bank pays on jumbo CDs.
Inflation. Depending on how long you store money in a CD and how high the rate is, the interest rate might not keep up with inflation.
Consider investing instead. Everyone’s financial situation is different. Playing it safe by putting $100,000 in a CD could be the right move for you. But if you put money in riskier investments, you might earn more in the long run.
Is a jumbo CD a good investment?
CDs aren’t generally considered investments the same way something like an index fund, which puts your money into the stock market, is. Instead, a CD is typically viewed as a type of savings account, and your potential for losses and gains — your risk — is much more limited. Because the stock market is risky, experts generally don’t advise investing money you’ll need in the next five years. In the case of a stock market drop, you wouldn’t have time to make up your losses.
If you need to access your money in three years and want a guaranteed rate of return, a 3-year jumbo CD is a better choice than a different type of investment account.
If you’re comfortable parting with your money for longer and want to take more risk with your money, then you may want to invest in the stock market. One way to do this is through tax-advantaged retirement accounts, like a 401(k) or IRA, which grows your money over decades. Another is through brokerage accounts, which are useful tools to build long-term wealth, but can’t guarantee a given return like a CD can.
There is such a thing as an IRA CD, which is sort of a combo savings/investment account. It’s a safe investment tool that may be a worthwhile option for people who are close to retirement age.