Question: I have $150,000 that I don't need anytime soon, but I don't want to put it in the stock market. What should I do?
Answer: If you're looking for a risk-free place to store your money, my best solution is a jumbo CD. Jumbo CDs come with FDIC insurance up to $250,000 and APYs that'll outpace inflation.
However, there are a few things you want to consider before signing up for one. I'll cover key considerations, how much you can earn and why now is the right time to get one.
How does a jumbo CD work?
A jumbo CD is a type of savings account that requires a large deposit, typically between $10,000 - $100,000. Similar to regular CDs, you'll open an account with an initial deposit and let it grow through its term.
If you need to withdraw it before the maturity date, you'll have to break your term. Doing so results in significant penalties, reducing the interest you'll earn on your investment. The longer your CD term is, the higher the penalties you'll incur.
What's beneficial about jumbo CDs is that they require shorter terms of six months to a year, so you'll have quick access back to your cash.
Use the tool below, powered by Bankrate, to compare today's top CD rates:
Things to consider before signing up for one now
Along with making sure you can keep your money tied up in one place, you'll also want to shop around to ensure you're receiving the best rate of return.
Traditional banks usually cannot compete with online banks. Online banks don't have brick-and-mortar locations, meaning they don't have the overhead expenses, so they can offer more generous returns. While accessing your cash at the end of the term can be trickier, online banks allow you to transfer money to other accounts.
Keep in mind that many banks auto-renew CDs. Set a reminder on your phone a week before the maturity date so you can explore other options, reinvest in the same CD, or cash out if rates are much lower.
Why consider a jumbo CD now?
The Federal Reserve has kept interest rates steady throughout 2026 as it continues balancing stubborn inflation. While policymakers have left the federal funds rate unchanged, there's considerable uncertainty about where rates will head next.
Because of that uncertainty, today's jumbo CD rates may be worth locking in if you know you won't need the money before the term ends. Unlike high-yield savings accounts, which can change their APYs at any time, CDs lock in your rate for the entire term. That means you'll continue earning the same return even if banks lower deposit rates in the future.
Even if rates remain elevated for longer, a jumbo CD still offers certainty. You'll know exactly how much interest you'll earn over the life of the CD, making it a good choice for savers who prioritize stability and predictable returns.
How much can I make with a jumbo CD?
One of our top choices is Finworth, which offers a 4.10% APY on a six-month jumbo CD with a $50,000 minimum deposit. If you deposit $150,000 and hold it for the full six-month term, you'll earn about $3,044 in interest. That's a solid return if you're looking for a shorter commitment while still earning a competitive fixed rate.
If you're comfortable locking up your money for longer, CreditOne Bank offers a 12-month jumbo CD with a 4.15% APY and a $100,000 minimum deposit. A $150,000 deposit would earn about $6,225 in interest over one year, giving you a guaranteed return while protecting your rate for the entire term.
On the fence about which terms sound the best for you? My solution is to find what works best for your financial goals.
If you don’t need access to your money for a while, consider locking it into the longest jumbo CD available. Doing so guarantees you earn the highest rates of return to maximize yields.
Meanwhile, if you're unsure about tying up your money that long, opt for a short-term option. I often use short-term CDs to stay on track with my savings goals, and they consistently help me achieve them.
Ultimately, while savings APYs took a slight dip from the Fed cutting rates, you can still earn an exceptional return with a jumbo CD. With rates around 4% for both short-term and longer-term options, you'll earn thousands of dollars effortlessly with a $150,000 deposit.
If you're saving for retirement, don't stop at choosing the right CD. A financial professional can help you create a long-term plan that balances growth, income and peace of mind.
Use this tool, powered by Bankrate, to connect with a financial professional today:
