Best jumbo CD rates for September 2024 (2024)

Editor's Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC Select will update as changes are made public.

If you're looking for a safe place to park significant savings, a jumbo CD can be a good choice. Most jumbo CDs require a minimum deposit of at least $100,000 and offer high rates in return for depositing a big chunk of cash.

It's worth noting, however, that nowadays you can find a similarly high CD rate with a much lower minimum deposit ask, or none at all. As rates change soon, keep an eye out for how jumbo CD rates compare to standard CD accounts.

CNBC Selectcompared dozens of accounts to determine which jumbo CDsare best. Our top picks offer competitive APYs and all are FDIC- or NCUA-insured. (Seeour methodologyfor more information on how we chose the best jumbo CD accounts.)

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Luana Savings Bank is an Iowa-based bank offering a 4.42% APY on its three-month jumbo CD. The minimum deposit requirement is $100,000.

CD terms offered

3 months, 6 months, 12 months, 18 months, 24 months, 30 months, 36 months, 42 months, 48 months, 5 years, 6 years, 7 years, 8 years

Monthly fee

None

Early withdrawal penalty fee

The early withdrawal penalty equals the interest of half of the CD term (i.e., a 48-month CD will have an early withdrawal penalty of 24 months of interest)

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My eBanc offers 5.30% APY on its six-month jumbo CD and 4.60% APY on its 18-month jumbo CD. The minimum deposit requirement for all jumbo CDs at eBanc is $50,000.

CD terms offered

6 months, 11 months, 12 months, 18 months, 24 months, 36 months

Monthly fee

None

Early withdrawal penalty fee

Penalty is applicable for early withdrawal; flex CDs allow two withdrawals without penalty

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Credit One Bank is a financial services company and credit card issuer. It offers 5.15% APY on its one-year jumbo CD. The minimum deposit requirement is $100,000.

CD terms offered

6 months, 12 months, 18 months, 24 months, 36 months, 48 months, 60 months

Monthly fee

None

Early withdrawal penalty fee

A penalty may be imposed for early withdrawal

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Grow Financial Federal Credit Union offers 4.86% APY on its five-year jumbo CD. The minimum deposit requirement is $100,000. Credit union membership is available to anyone by opening a Grow Financial Federal Credit Union Basic Savings Account.

CD terms offered

6 to 11 months, 12 to 17 months, 18 to 23 months, 24 to 29 months, 30 to 35 months, 36 to 47 months, 48 to 59 months, 60 months

Monthly fee

None

Early withdrawal penalty fee

A penalty will be imposed for early withdrawals

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A certificate of deposit (CD) is a type of deposit account that earns interest. With a CD, you earn a fixed interest rate for a fixed period. CDs come with different terms, such as six months, one year or five years, and you can't touch your funds in your CD for the entirety of that specified term length unless you pay an early withdrawal penalty fee plus possibly lose out on accrued interest.

The only difference with jumbo CDs is that jumbo CDs require a larger initial investment, typically at least $100,000.

When you put your money in a CD, you earn a fixed interest rate for a specific amount of time on the money you deposit when you open an account. Term lengths typically range from three months to five years.

While a CD is similar to a savings account, the traditional CD model differs in a couple of important ways:

1. You can only deposit money into the CD once at the beginning of the term. You can't make additional contributions over the CD's term. Jumbo CDs usually have a minimum deposit requirement of at least $100,000.
2. You can't access your money before your term ends or you'll get hit with an early withdrawal penalty. The penalty fees can vary depending on your bank and your CD's term length, but it's usually the interest earned or the interest you would have earned, over a certain number of days or months. Generally, the longer the CD term length, the costlier the withdrawal penalty.

Once the CD matures (when the term is over), savers can get their money back, in addition to the interest earned over time, or move the money into a new CD. CD terms usually auto-renew at the rate offered at maturity if you don't do anything.

One of the reasons you might want to consider a CD over ahigh-yield savings accountis because savings accounts havevariable APYs, and with a CD you lock in the rate the day you open the account. This can be good if you open an account when interest rates are high. It's not so great if you open an account after the Federal Reserve slashes interest rates.

CDs typically don't come with monthly fees and are federally insured so your money is protected, which makes them one of the safest savings vehicles.

Some of the pros and cons of CDs are quite the same, and whether you see something as good or bad depends on other factors. We list what we think below.

Pros of CDs

• Fixed interest rates (a good thing when rates are high)
• You can't touch CD funds until the term is up (a good thing so you're not tempted to spend)
• DifferentCD typesallow you to have options, such asbump-up CDs(for raising your rate), no-penalty CDs (for easy withdrawals), add-on CDs (for making additional contributions), jumbo CDs (for large deposits) and IRA CDs (for retirement)

Cons of CDs

• Fixed interest rates (a bad thing when rates are low or if rates go up while you're in the middle of a CD term)
• Can't touch CD funds until the term is up (a bad thing if you need that money)
• Early withdrawal penalty fees may apply
• Can generally only deposit money into a CD once at the beginning of the term and can't make additional contributions
• Usually a minimum deposit requirement, typically $500 and up

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To determine the best jumbo CDs, CNBC Select compared dozens of options offered by online banks and credit unions. We found that many of the best jumbo CD rates are offered by credit unions, but we only considered those credit unions that had membership eligibility open to anyone.

When ranking the top jumbo CDs, we prioritized the ones offering the highest APYs. We then compared jumbo CDs by looking at their minimum deposit requirements, penalties for early withdrawals, ease of use and industry rankings. We ranked our top picks by best for three-month jumbo CD, best for six-month jumbo CD, best for one-year jumbo CD, best for 18-month jumbo CD and best for five-year jumbo CD.

All of the CDs included on this list are FDIC- or NCUA-insured up to $250,000 per person. The rates and fee structures banks advertise for their CD accounts are not guaranteed forever. They are subject to change without notice and they often fluctuate in accordance with the Fed rate. If you open a CD account, however, you're often locked into that APY offered at account opening for the entire term length.

Your earnings depend on the CD term length, the amount you deposit, the APY offered when you opened the account and any associated fees. Generally, a larger deposit and a higher interest rate will earn you the most money. Any early withdrawals may result in penalty fees that lower your principal balance/earnings.

To open a CD account for the first time at a bank, most banks and institutions require a deposit of new money, meaning you can't transfer money you already had in an account at that bank.

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