Summary of Best Jumbo CD Rates for 2020
|Bank||1-year APY||3-year APY||5-year APY||Minimum Deposit||Learn More|
First Tech Federal Credit Union CD
Navy Federal Credit Union CD
Consumers Credit Union CD
State Farm Bank CD
CIT Bank CD
Last updated on February 3, 2020
We featured easy-to-join financial institutions that we've reviewed with the highest CD rates available and that require an opening minimum from $50,000 to $100,000. Higher rates might be available elsewhere.
To recap our selections...
NerdWallet's Best Jumbo CD Rates for 2020
- First Tech Federal Credit Union CD: 1.00% APY, $50,000 Minimum Balance
- Navy Federal Credit Union CD: 1.80% APY, $100,000 Minimum Balance
- Consumers Credit Union CD: 1.25% APY, $100,000 Minimum Balance
- State Farm Bank CD: 0.95% APY, $100,000 Minimum Balance
- CIT Bank CD: 1.75% APY, $100,000 Minimum Balance
Frequently asked questions
A jumbo CD is a certificate of deposit that traditionally requires a minimum deposit of $100,000. Some banks and credit unions offer jumbo CDs with lower minimums, such as $50,000. But for most people, regular CDs tend to be a better option: There’s no steep deposit requirement, and rates can be as good as or higher than jumbo CD rates.
Apart from minimums, regular and jumbo CDs are similar. They both keep money locked up for a fixed period, usually from three months to five years. In return for sacrificing access to your funds, you earn an interest rate that is usually higher than that of a regular savings account.
Typically, not by much. Current rates on jumbo CDs tend to be around 0.05% to 0.10% higher than regular CDs, while the difference between their minimum deposit requirements is huge. Jumbo CDs usually require $100,000, while regular CDs can have higher rates and a minimum deposit requirement of $500 or $5,000. Or even no minimum, especially at some online banks such as Barclays and Capital One 360.
CDs give some of the highest returns for deposit accounts, and they tend to work best for specific short-term goals, such as saving for a wedding or down payment for a home a few years down the road. (To help save for goals, look at the best five-year CD rates this month.)
But the federal deposit insurance limit for a bank account is $250,000. If you want the assurance that you will get all your money back if your bank or credit union fails, it’s best to keep your deposit, and the expected interest amount you’ll earn, at or below that limit. To make sure your money is protected, you can also open a joint account, which insures $250,000 per co-owner, or consider multiple CDs from different banks.
If you have enough savings for a jumbo CD, compare rates across both jumbo and regular CDs. In general, bigger CD minimums don’t mean higher rates.