At this point, you have amassed at least five figures, and now you want to put your money aside and let it grow for a while. Investing in a diverse portfolio of stocks, bonds, and other securities that can maximize returns over the long run is a great way to do this.
Whether a jumbo certificate of deposit is the right option for your needs will be explored in this post. It is important to consider the pros and cons of investing in a jumbo CD before making a final decision.
You will learn which financial institutions are offering the best CD rates. This knowledge can be used to make informed decisions about where to put your money.
Best CD Rates by Term
Click on each term length to find out which banks and credit unions are offering the highest CD rates.
5 Year CD Rates
| Bank | APY | Min Deposit |
|---|---|---|
| GTE Financial Credit Union | 4.54% APY | $500 |
| Crescent Bank & Trust | 4.50% APY | $1,000 |
| CFG Community Bank | 4.50% APY | $500 |
| First Internet Bank | 4.39% APY | $1,000 |
| Quontic Bank | 4.30% APY | $500 |
| Barclays Bank | 4.30% APY | $0 |
| Synchrony Bank | 4.30% APY | $0 |
| Ally Bank | 4.25% APY | $0 |
| Alliant Credit Union | 4.25% APY | $1,000 |
| Navy Federal Credit Union | 4.25% APY | $100,000 |
3 Year CD Rates
| Bank | APY | Min Deposit |
|---|---|---|
| CFG Community Bank | 4.60% APY | $500 |
| Alliant Credit Union | 4.50% APY | $1,000 |
| Crescent Bank & Trust | 4.50% APY | $1,000 |
| Bread Savings™ (formerly Comenity Direct) | 4.50% APY | $1,500 |
| Sallie Mae Bank | 4.40% APY | $2,500 |
| GTE Financial Credit Union | 4.33% APY | $500 |
| Synchrony Bank | 4.30% APY | $0 |
| Marcus by Goldman Sachs® | 4.30% APY | $500 |
| Discover Bank | 4.30% APY | $2,500 |
| Barclays Bank | 4.30% APY | $0 |
12 Month CD Rates
| Bank | APY | Min Deposit |
|---|---|---|
| CFG Community Bank | 5.00% APY | $500 |
| Fidelity Investments | 4.75% APY | $1,000 |
| Bread Savings™ (formerly Comenity Direct) | 4.75% APY | $1,500 |
| Pentagon Federal Credit Union | 4.60% APY | $1,000 |
| Crescent Bank & Trust | 4.60% APY | $1,000 |
| Connexus Credit Union | 4.51% APY | $5,000 |
| Vio Bank | 4.50% APY | $500 |
| Marcus by Goldman Sachs® | 4.50% APY | $500 |
| American Express | 4.50% APY | $0 |
| Discover Bank | 4.50% APY | $2,500 |
6 Month CD Rates
| Bank | APY | Min Deposit |
|---|---|---|
| Fidelity Investments | 4.65% APY | $1,000 |
| Vio Bank | 4.25% APY | $500 |
| CIT Bank | 4.15% APY | $1,000 |
| Live Oak Bank | 4.15% APY | $2,500 |
| Marcus by Goldman Sachs® | 3.90% APY | $500 |
| First Internet Bank | 3.87% APY | $1,000 |
| Bank5 Connect | 3.80% APY | $500 |
| Quontic Bank | 3.75% APY | $500 |
| Sallie Mae Bank | 3.75% APY | $2,500 |
| Synchrony Bank | 3.75% APY | $0 |
3 Month CD Rates
| Bank | APY | Min Deposit |
|---|---|---|
| Fidelity Investments | 4.55% APY | $1,000 |
| Synchrony Bank | 2.25% APY | $0 |
| America First Credit Union | 2.25% APY | $500 |
| UFirst Credit Union | 2.25% APY | $10 |
| TIAA Bank | 2.00% APY | $1,000 |
| Discover Bank | 2.00% APY | $2,500 |
| Ally Bank | 2.00% APY | $0 |
| Financial Partners Credit Union | 1.55% APY | $100,000 |
| First Internet Bank | 1.51% APY | $1,000 |
| Financial Partners Credit Union | 1.40% APY | $1,000 |
The Best Jumbo CD Rates from Top Banks for March 2023
Here are our favoritejumbo CD options to explore today:
- CommunityWide Federal Credit Union
- CIT Bank
- Capital One 360
- Discover Bank
- Michigan State University FCU
- Blue Federal Credit Union
- Chevron Federal Credit Union
- SchoolsFirst Federal Credit Union
- Wings Financial Credit Union
- SuperiorChoice Credit Union
Not all jumbo certificates of deposit accounts will advertise themselves as Jumbo. It’s important to research various CD accounts in order to find the best jumbo certificate of deposit account.
You have to dig a little deeper to find the best financial products for your needs. To ensure you’re making the right decision, use reliable sources and do your own research.
It is important to remember that APYs are always changing, especially during uncertain financial times. It’s a good idea to stay up-to-date on current APY offerings and compare them to other options available in the market. The latest updates from across the industry are represented in this article.
Even though they may have better rates at first, jumbo CDs will not always guarantee a higher return than a traditional CD. You should compare the long-term rate of return on different CDs before making a decision.
Jumbo CD APYs are a better deal than regular CDs if you read the fine print. Take the time to research and compare different banks and their rates so that you can find the best deal for your money.
CommunityWide Federal Credit Union
The minimum deposit is $1,000 for terms ranging from six months to 60 months. CommunityWide has competitive rates for all term lengths.
It is possible to compound dividends in certificates or transfer them to another institution. They can be used to purchase additional shares or reinvested in the same security.
- APY: 3.50%
- Minimum Deposit: $1,000
- Term: 12 months
- Learn More: Check out CommunityWide’s CDs
CIT Bank
CIT Bank, member FDIC, is an online bank that is growing in popularity. 2-year CDs, 3-year CDs, 4-year CDs, and 5-year CDs are offered by the company. $500 is the minimum amount needed to open a CD account.
The 2-year and 3-year accounts have an annual percentage yield of 0.40%, and the 4-year and 5-year accounts have an annual percentage yield of 0.50%. The rates are among the highest in the industry, making them an attractive savings option.
These aren’t the highest rates on the market, but they are the lowest. With no account opening fees or maintenance fees, they are a solid choice. This bank is an excellent choice for anyone looking for a reliable financial partner because of their competitive interest rates.
If you’re already a This might be a good option for the account holder. If you are looking for a straightforward and easy to use banking experience, CIT Bank could be your ideal option.
- APY: 0.40 – 0.50%
- Minimum Deposit: $100,000
- Term: 2-5 years
- Learn More: Check out CIT Bank CDs
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Capital One 360
Capital One has many attractive features, including no minimum balance and flexible interest payments that allow the customer to decide when they are distributed. It’s an ideal choice for anyone looking to simplify their finances because it has a wide range of banking products.
The 1-year-CD is one of the most competitive on the market. Those who commit their money for a full year will get favorable returns.
It is still a strong return. The returns on this investment were better than expected.
- APY: 4.15% APY
- Minimum Deposit: NA
- Term: 12 months
- Learn More: Capital One 360’s CDs
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Discover Bank
Discover is known for its credit cards. Many consumers choose Discover credit cards because of their attractive interest rates and generous reward programs. The Discover Bank CD program has a high APY, a lower minimum deposit, and a 12-month maturity date. It’s easy to modify a savings plan with the flexible terms of the Discover Bank CD program.
Discover’s 12-month plan is a good value, even though its 30-month term has a slightly higher APY.
Unless you are looking for guaranteed stability throughout a longer period, I recommend keeping your money locked up for a year. You can take advantage of higher returns by investing in stocks, bonds, or mutual funds.
- APY: 4.50% APY
- Minimum Deposit: $25,000
- Term: 12 months
- Learn More: Check out Discovers CDs
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Michigan State University Federal Credit Union
Michigan State University Federal Credit Union offers a variety of CDs. Competitive rates can be found on these CDs, which can be opened for as little as $500.
A one-year add-on certificate is also available. The one-year add-on certificate gives students the chance to gain additional career-focused skills that can help them stand out in the job market.
There are no monthly or maintenance fees to worry about at Michigan State. The program is very affordable, making it an ideal choice for those on a budget.
- APY: 3.26
- Minimum Deposit: $100,000
- Term: 18 months
- Learn More: Check out Michigan State University FCU CDs
Blue Federal Credit Union
Blue Federal Credit Union offers various options for CD terms, depending on how much money you are looking to invest and how long you want to lock it up.
They offer CDs in the following rate tiers: $1,000 to $49,000; $50,000 to $99,999.99; $100,000+
Their rates are a little less than what you will find in a typical HYSA, but it comes with the security of a fixed rate, a nice-to-have in today’s volatile environment.
- APY: 2.20% -2.40%
- Minimum Deposit: $1,000 – $100,000+
- Term: 12 months
- Learn More: Check out Blue Federal Credit Union CDs
Chevron Federal Credit Union
The guaranteed return depends on how much you are willing to put in. Those looking to grow their money can invest in Chevron’s share certificates.
A minimum investment of $500 will yield an annual percentage yield of 3.20%, which is great for beginners. With a larger investment, the potential returns can be much higher than 3.20%.
If you have $100,000 or more on hand, then you should consider the 12-month jumbo CD, which comes with a strong APY of 3.25%, with a dividend rate of 3.20%. This is an excellent option for those who have a lot of money to invest and want to benefit from the solid return that the 12-month jumbo CD provides.
- APY: 0.85 – 1.01%
- Minimum Deposit: $500, $50,000, $100,000 or $250,000
- Term: 12 months
- Learn More: Check out Chevron Financial Credit Union CDs
SchoolsFirst Federal Credit Union
When compared to high yield savings accounts, SchoolsFirst offers share certificates with a slightly reduced APY. The minimum balance for SchoolsFirst share certificates is lower than many of the other banks, making it a great option for small savers.
When jumping to at least 12 to 17 months with an APY of 1.95% to 2.10%, dividend rates and APY spike significantly.
If you want to keep at least $100,000 locked in for 60 months, you can receive a dividend of 3.30% and an APY of 3.35%. You don’t have to pay any fees or commissions when you start with as little as $1,000.
The more you are willing to set aside, the more flexible the program will be. It’s worth considering if you want to invest for the future.
- APY: 2.10%
- Minimum Deposit: $100,000
- Term: 12 months
- Learn More: Check out SchoolsFirst Federal Credit Union CD
Wings Financial Credit Union
Wings Financial Credit Union’s share certificates are now yielding a decent rate of return. You can grow your savings and earn more with the share certificates.
The 5 year jumbo cd products have the best rates. The 5 year jumbo cd products are an excellent choice for those looking to invest their money for a long time.
It’s a long time to keep such a large sum of money locked up in a CD.
If you want to park your capital for a long time, this is a good rate.
- APY: 2.68%
- Minimum Deposit: $100,000
- Term: 60 months
- Learn More: Check out Wings Financial Credit Union CD
SuperiorChoice Credit Union
The company offers monthly dividends.
The company will give a notice and give 10 business days to cash or change the terms of the certificate.
Automatic renewal happens after 10 days. It is a convenient and flexible program. It is the perfect choice for a busy professional.
They are running a promotion. Don’t miss out on the great benefits of the 11-month CD promotion. The current market conditions make the APY excellent. In the current market, you won’t find a better deal.
This could be a good fit for you if you are looking for a short-term investment. It’s a great option for people who want to increase their portfolio’s diversity.
- APY: 3.35%
- Minimum Deposit: $100,000
- Term: 11 months
- Learn More: Check out SuperiorChoice Credit Union CD
Benefits of a Jumbo CD
Let’s take a look at some of the advantages you’ll enjoy if you sign up for a jumbo CD. One of the main benefits of a jumbo CD is that it offers you peace of mind knowing your funds are securely invested and earning more interest than a traditional savings account.
Higher Interest Rates
Jumbo CDs have higher rates than traditional CDs. Jumbo CDs are best for people who want to invest a lot of money.
Depending on how much you want to spend and how long you want to keep your money, interest rates can increase. It is important to remember that interest rates can change over time, so it’s a good idea to keep up with the current offers from financial institutions in order to get the most favorable rate.
One thing’s for sure: you’re much more likely to get a higher rate of return from a A CD account is different from a checking account or money market account. CD accounts offer more flexibility than traditional savings accounts, as you can choose from a variety of terms and lock in attractive interest rates.
Shorter Tenures
A benefit of using a jumbo CD is that they can have short term lengths, with some terms running only a few days compared to several months. If you want to take advantage of higher interest rates but don’t want to make a long-term commitment, the jumbo CD is an attractive option.
Jumbo CDs can have terms as long as 10 years.
Reduced Risk
Jumbo CDs are often used by investors because they are not subject to the same losses as stock market investments. Jumbo CDs offer a relatively safe vehicle for investors to put their money into since the principal is insured up to $250,000. CDs and stocks are both insured by the Federal Deposit Insurance Corporation. In the event of a bank failure, your money is protected with CD deposits but not with stocks.
Let’s take a closer look at some of the top-performing products on the market after you’ve learned how jumbo CDs work and the pros of using one. It’s important to compare jumbo CDs from different banks to find the best rate for your needs.
FAQs
What is a Jumbo CD?
Just like any other Certificate of Deposit (CD), a jumbo CD is a short-term savings account with a specific, fixed term and a fixed interest rate, which is also known as an annual percentage yield (APY).
When you invest in a You need to be comfortable with the idea of putting your money on hold for a specific time period in exchange for a stronger guaranteed return at the end of the savings period. Saving with a CD can help you reach your long-term savings goals.
CDs are not like checking accounts where you can access your money whenever you need it. Most CDs have an early withdrawal penalty. It is important to consider the fee or percentage of the amount withdrawn before cashing out a CD.
A jumbo CD has a higher minimum balance than a traditional CD. Your money is usually locked in for a longer period of time when you invest in a jumbo CD.
This can vary from bank to bank. It’s important to compare the different options to find out which is best for you. Minimum deposit requirements can be as low as $500 or as high as $100,000. Depending on your financial situation, the best choice for you will be.
Capital One does not have a minimum deposit amount. Customers can open an account with whatever amount of money they have on hand.
Are Jumbo CDs Secure?
Jumbo CDs are considered to be risk-free investments, as they are FDIC-insured. The National Credit Union Administration covers them.
It is not possible to lose money in a jumbo CD, but it is possible to get a lower payouts from a traditional CD.
If you want to put your money in the right place, you need to look at the market. You can maximize your potential return on investment by researching the best options available.
Are Jumbo CDs a Good Investment?
It largely depends on your financial goals and overall investment strategy. Jumbo CD returns can be used to offset potential losses in stock trading. jumbo CDs are a good way to generate steady income for stock traders who are looking todiversify their portfolios.
Savers looking to park their money for a short period of time should invest in jumbo CDs. Jumbo CDs have a higher rate of return than traditional savings accounts.
Jumbo CDs are an ideal investment vehicle for those who want to avoid risk. Jumbo CDs are an accessible option for those with limited funds because they require a minimum deposit of only $500.
Many people won’t be able to get jumbo CD accounts due to the high minimum opening deposits and minimum balance requirements. Jumbo CDs can be a great way to grow your savings quickly.
Jumbo CD Alternatives
It is important to know your options before putting your money into a jumbo CD. It’s important to shop around and compare rates before investing in a jumbo CD, as even the smallest difference in interest rate can affect your return.
Always remember: Putting any amount of money into a It’s like putting your money in jail. Digital music services will give you more freedom with your money.
As with your IRA investments, you could be looking at an early withdrawal penalty if you need immediate access to your cash.
Here are some jumbo CD alternatives to consider.
High-Yield Savings Account (HYSA)
An HYSA is an online savings account that pays roughly 20 to 25x more than the national average of a standard savings account.
For example, the online bank Ally offers a much higher APY on savings accounts than Bank of America does.
The main difference between an HYSA and a CD stands for without a binding term agreement. The user can have a great deal of flexibility with the cancellation or renewal of an HYSA.
The tradeoff is that the rates are variable and depend on how the economy is functioning and what the Federal Reserve does with interest rates.
The Federal Reserve slashed interest rates in the last year due to the Pandemic.
The main thing to remember is that you don’t want to have your money locked up when the rates go up. It’s important to keep track of the market so that you can make the most of your investments.
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Dividend-Paying Stocks
A distribution of profits is called a dividend. On a quarterly basis, dividends are paid. They are paid on a quarterly or semi-annually basis. Monthly or irregular dividends can be paid. It is possible for investors to receive their dividends in cash or reinvested into the company’s stock.
If you choose the right performing stocks, and you’re willing to handle market volatility, then you can stand to earn more over the course of a year than you would with a binding jumbo CD.
It all depends on your risk tolerance and needs. Only you or your financial advisor can make that decision. Before making a decision, it is important to consider all of your options.
Bond Funds
A bond fund is a fund that invests in bonds. They pay regular dividends and can be either short or long term. Regardless of investment goals, dividends can be a great addition to any investor’s portfolio.
CDs are considered a safe alternative to bonds funds. They can change in value. It’s important for investors to be aware of the risks associated with investing in cryptocurrencies.
If you convert short-term bonds to cash, you will have to pay capital gains tax. If you are looking for more liquid investments, you will have to pay taxes before you can access the cash from your bonds.
Is a Jumbo CD Best For You?
These are uncertain times. You may be hesitant to put your money into the stock market because of the volatile nature of it. To make an informed decision about how to invest your money, you should consider the level of risk you are comfortable with.
You can invest in a jumbo CD if you want to lock in a great APY. The certificates of deposit are insured up to $250,000.
To make sure you get the best bang for your buck, shop around and compare CDs. It’s a good idea to read online reviews before buying a CD.
Take your time and you will make the best decision for you. It is important to consider the long-term implications of your decision. Good luck!
