Best jumbo CD rates for May 2024: Earn up to 5.49%

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If you have a chunk of change to invest or save, you may want to consider a jumbo CD. These certificates of deposit often require a higher initial deposit than regular CDs. But in return, they often offer higher interest rates. 

We look at some of the best banks and credit unions offering jumbo CDs, comparing their rates, terms, and minimum deposit requirements

Top Jumbo CD rates

Here are the best Jumbo CD rates as of May 2024. 

My eBanc

Rates:

• 6 months APY: 5.49%
• 12 months APY: 5.41%
• 18 months APY: 5.00% 
• 24 months APY: 4.85%
• 36 months APY: 3.98%

My eBanc is an online bank that offers a range of personal banking products, including checking and savings accounts, loans, and CDs. As an online bank, My eBanc can offer competitive rates, including on its jumbo CDs, which offer up to 5.49% with a minimum deposit of $50,000. 

My eBanc is a good choice for those comfortable with online banking and prioritizing competitive rates. But, if you prefer in-person banking or require more complex financial services, you may want to consider another option.

State Department Federal Credit Union

Rates:

• 6-month APY: 4.40%
• 12-month APY: 5.20%
• 15-month APY: 5.41%
• 24-month APY: 4.63% 

State Department Federal Credit Union (SDFCU) is a credit union that primarily serves U.S. Department of State employees, their families, and other select groups. SDFCU also offers checking and savings accounts, loans, and investment products. 

Their jumbo CDs offer an APY of up to 5.41% with a minimum deposit of $100,000. If you are eligible for membership with SDFCU and value personalized service, this credit union may be a good fit for you. 

Credit One Bank

Rates:

• 6-month APY: 5.10%
• 12-month APY: 5.35%
• 18-month APY: 4.75%
• 24-month APY: 4.30% 
• 36-month APY: 4.15%
• 48-month APY: 4.05%
• 60-month APY: 4.00%

Credit One Bank is an online bank that offers credit cards alongside other banking services such as CDs and savings accounts. Their jumbo CDs offer an APY of up to 5.35% with a minimum deposit of $100,000. 

Credit One Bank is known for its rates and easy online application process, making it a good choice for those who are comfortable with online banking and want access to various CD terms.

Suncoast Federal Credit Union

Rates:

• 6-month APY: 4.25%
• 12-month APY: 5.25%
• 18-month APY: 4.90%
• 24-month APY: 4.90%
• 36-month APY: 3.85%
• 48-month APY: 3.95%
• 60-month APY: 4.05%

Suncoast Federal Credit Union is a credit union based in Florida that serves members in 39 counties along the Gulf Coast. They also offer checking and savings accounts, loans, and investment products. Their Jumbo CDs offer an APY of up to 5.25% with a minimum deposit of $100,000. CDs also come in a range of term lengths, from six months to five years. 

USAA

Rates:

• 30-150 days APY: 0.05%
• 182-day APY: 5.05%
• 7-month APY: 0.05%
• 270-day APY: 4.90%
• 1-year APY: 4.80%
• 15-month APY: 4.70%
• 18-month APY: 4.60%
• 2-year APY: 4.40%
• 30-month APY: 2.75%
• 4-5 year APY: 2.50%
• 7-year APY: 2.02%

USAA is a financial services company primarily serving military members, veterans, and their families. They offer a wide range of banking, insurance, and investment products and are known for their excellent customer service. Their Jumbo CDs offer an APY of up to 5.05% with a minimum deposit of $95,000.

USAA offers a more diverse range of CD terms unlike other financial institutions, from 30 days to seven years. 

Navy Federal Credit Union

Rates:

• 3-month APY: 2.80%
• 12-month APY: 4.85%
• 18-month APY: 4.55%
• 24-month APY: 4.25%

Navy Federal Credit Union is the largest credit union in the world, serving military members, veterans, and their families. They also provide many other services, including checking and savings accounts, loans, and investment products.

Their Jumbo CDs offer an APY of up to 4.85% with a minimum deposit of $100,000. CD terms range from three months to two years. 

Apple Federal Credit Union

Rates:

• 12-month APY: 4.75%
• 36-month APY: 4.05% 
• 60-month APY: 4.05%

Apple Federal Credit Union is a credit union based in Northern Virginia that serves members in the Washington, D.C., area. Their jumbo CDs offer up to 4.75% APY with a minimum deposit of $50,000. 

SchoolsFirst Federal Credit Union

Rates: 

• 30-day APY: 3.15% 
• 3-5 month APY: 4.05%
• 6-11 month APY: 4.30%
• 12-59 month APY: 4.50%
• 60-month APY: 4.65%

SchoolsFirst Federal Credit Union is a credit union based in Southern California that serves school employees and their families. Their Jumbo CDs offer an APY of up to 4.65% with a minimum deposit of $250,000 — one of the highest on the market. CD terms range from 30 days to five years. 

What is a jumbo CD? 

A jumbo CD is a type of CD that requires a higher minimum deposit than a traditional CD, typically $100,000 or more. In return for this higher deposit, jumbo CDs offer high interest rates.

Like a regular CD, you agree to keep your money in the jumbo CD for the full term in exchange for interest. Terms often range from a few months to a few years. You may need to pay a penalty if you withdraw the money before the CD matures. 

Most jumbo CDs are insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) for up to $250,000 per person, per account. This means that your funds are protected if the institution fails.

Jumbo CD vs. traditional CD

One of the main differences between a Jumbo CD and a traditional CD is the minimum deposit requirement. While traditional CDs require an initial deposit of around $500-$1,000, Jumbo CDs often require $100,000 or more.

Because of the higher deposit requirement, Jumbo CDs often offer higher interest rates than traditional CDs. If you have more money to invest, you can earn more money on your savings over the term of the CD through a jumbo CD.

Early withdrawal penalties on a jumbo CD

Like traditional CDs, Jumbo CDs often impose penalties if you withdraw your funds before the term ends. These penalties vary depending on the institution and the length of the CD term.

For example, if you withdraw your money from a 5-year jumbo CD after only one year, you may be subject to a penalty of 12 months' worth of interest. This can reduce your earnings and negate the benefits of the higher interest rate.

Before committing to a jumbo CD, consider your financial goals and liquidity needs. If you think you need the money before the end of the CD term, a CD may not be the right choice.

Benefits of jumbo CDs

Jumbo CDs can offer several key benefits for investors and savers, including:

• Higher interest rates: Because of the higher minimum deposit requirement, jumbo CDs often offer higher interest rates than traditional CDs.
• Safety and stability: Like traditional CDs, jumbo CDs are FDIC-insured (or NCUA-insured for credit unions) up to $250,000 per person, per account, providing a low-risk option for your savings.
• Predictable returns: Jumbo CDs offer a fixed interest rate and term, which means you know exactly how much you'll earn over the life of the CD.
• Diversification: Jumbo CDs can help diversify your investment portfolio and provide a stable source of income.

Should you open a jumbo CD?

Jumbo CDs are best for those who have a large sum of money to invest and don't need immediate access to their funds.

One of the main advantages of jumbo CDs is that they often offer higher interest rates than traditional CDs or other types of savings accounts. This can make them an attractive option to maximize your earnings. 

But remember that jumbo CDs often require a higher initial deposit, often $100,000 or more. They also require you to commit your money for a set period of time, and early withdrawals may result in penalties.

Alternatives to jumbo CDs

While jumbo CDs can be a good option for those with significant savings, they may not be the right choice for everyone. Here are a few alternatives to consider:

• High-yield savings accounts: Like jumbo CDs, high-yield savings accounts offer higher interest rates than traditional savings accounts. However, they also offer greater liquidity, allowing you to access your funds without penalty.
• Money market accounts: Money market accounts are similar to high-yield savings accounts but may offer check-writing privileges.
• Treasury bills: Treasury bills are short-term government securities that offer a fixed rate of return. They are considered one of the safest investments available, as the U.S. government backs them.
• Bonds: Bonds are longer-term investments that offer a fixed rate of return. They can be issued by corporations, municipalities, or the federal government and offer varying levels of risk and return.

Factors to consider when choosing a jumbo CD

When shopping for the best CD, there are several factors to consider beyond just the interest rate. These include:

• Minimum deposit requirement: Jumbo CDs typically require a higher minimum deposit than traditional CDs, ranging from $50,000 to $100,000 or more.
• Term length: Jumbo CDs can range from a few months to several years. Generally, longer-term CDs offer higher interest rates but require you to lock up your money for longer.
• Early withdrawal penalties: Like traditional CDs, Jumbo CDs may impose penalties if you withdraw your funds before the end of the term. It's important to understand these penalties before committing to a Jumbo CD.
• Bank reputation and financial stability: When depositing a large sum of money into a jumbo CD, choosing a reputable bank or credit union is important.

How to maximize your CD returns

If you're looking to get the most out of your CD, there are several strategies you can use to maximize your returns. Here are a few tips to consider:

• Shop around for the best rates: Don't just settle for the first CD you find. Compare rates from multiple banks and credit unions to ensure you get the best possible return. 
• Consider laddering your CDs: CD laddering involves investing in multiple CDs with different maturity dates. This allows you to take advantage of higher rates on longer-term CDs while still maintaining some liquidity.
• Keep an eye on early withdrawal penalties: While it's generally best to hold your CD until maturity, unexpected expenses can arise. Understand the early withdrawal penalties for any CD you're considering.
• Reinvest your earnings: When your CD matures, don't just cash out your earnings. Instead, reinvest them in a new CD to continue growing your savings.

The bottom line 

Jumbo CDs can be an attractive way to maximize your savings while enjoying the safety and stability of a CD. With higher minimum deposit requirements and often higher interest rates than traditional CDs, Jumbo CDs can help you reach your savings goals faster.

When shopping for the best CD, it's important to consider factors like minimum deposit requirements, term length, and early withdrawal penalties. By comparing your options, you can ensure that your money is working hard for you now and in the future.

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.