With inflation pinching budgets, you might be looking for places to store your cash to outpace it. One risk-free option to consider is a jumbo CD, with rates that can earn you returns as high as 4.5% in a quick maturity window.
CD rates have dipped slightly, after the Federal Reserve lowered interest rates three times in 2024. However, the Fed didn't continue its rate-cutting campaign into 2025, refraining from lowering rates at all three meetings, including their latest in June.
While more rate cuts might be on the way later this year, for now, savers have some time to lock in an excellent rate.
The best part about CDs? They come with fixed interest rates. Even if you do lock one in and the Fed lowers rates, it won't impact you.
As you can see from the Bankrate tool, you can earn excellent rates on CDs:
What is a jumbo CD?
A jumbo CD account is practically the same as a regular CD account, with one main difference — jumbo CD accounts require a higher minimum deposit to open.
Typically, most banks require a deposit of $100,000, but this number varies from bank to bank. You'll also have shorter maturity dates, usually from six months to one year.
How do you find the best jumbo CD rates?
To find the best rate, you need to follow a few steps, including choosing the right bank and deciding which factors work best for you.
- Choose an online bank: Typically, online banks offer more competitive rates than those at traditional banks. This means you’ll likely have to forgo a brick-and-mortar bank for an online institution if you want to open one of the top-earning CD accounts available.
- Make sure your cash is secure: Your account should be FDIC or NCUA insured, so your money stays safe even if your bank or credit union fails. The FDIC protects up to $250,000 in individual deposit accounts, and the NCUA protects up to $250,000 per credit union member.
- Compare APY across accounts: While many jumbo CD accounts offer impressive rates, you could potentially find higher yields among other CD accounts, with varying deposit requirements and term lengths.
- Choose the right term: If you withdraw funds from your CD account before the term is through, you'll likely be charged a withdrawal fee that can offset any interest you’ve earned on your savings (unless you have a no-penalty CD). When choosing an account, make sure you won't have to access your cash until the CD matures.
Here are some of the top-earning jumbo CD accounts available for a range of term lengths:
Account |
APY |
Min. Deposit |
Term |
|---|---|---|---|
4.10% |
$100,000 |
13 months |
|
4.45% |
$50,000 |
7 months |
|
4.45% |
$50,000 |
12 months |
|
4.35% |
$25,000 |
12 months |
|
4.35% |
$100,000 |
12 months |
|
4.35% |
$100,000 |
12 months |
|
4.15% |
$100,000 |
12 months |
|
4.10% |
$75,000 |
6 months |
Bottom line on jumbo CD rates
Jumbo CDs are an excellent option for risk-averse savers. You'll earn a guaranteed rate of return, and even if the Fed lowers rates in the future, if you lock one in now, it won't impact you.
Remember that if you need your money before your term expires, banks charge penalties for closing your CD before your maturity date. Only buy a jumbo CD if you're confident you won't need the money before the term expires.
