Can a jumbo CD lose value?

Your CD won't lose value unless you withdraw funds before the CD term ends. Then you’ll lose only interest -- which can be a few weeks or months, depending on the bank and CD term. And as long your jumbo CD is at a bank or credit union that's FDIC- or NCUA-insured, your funds are protected for up to $250,000 (including compounded interest). If you want to make a larger deposit, you may need to buy CDs at multiple institutions to ensure your total investment is insured.

What are alternatives to a jumbo CD?

Jumbo CD terms vary from three months to five years. Usually, jumbo CDs with longer terms pay higher interest rates. However, there are other types of accounts to consider, including savings accounts , high-yield savings accounts and I bonds .

Are jumbo CDs taxable?

Yes, the IRS will tax interest earned on a CD that exceeds $10 as income, but it’s best to speak with a tax professional to understand what that means for your taxes.

Are jumbo CDs usually long- or short-term investments?

Jumbo CDs have both long- and short-term options, typically spanning one to five years. Depending on the bank, you might find a jumbo CD with a term as short as a few months and as long as a decade.

Table of Contents

CNET’s picks for the best jumbo CD rates
What is a jumbo CD and how does it work?
Jumbo CDs vs. traditional CDs
Pros and cons of jumbo CDs
FAQs
Methodology

Why You Can Trust CNET Money

Money Banking

Article updated on Oct 30, 2024

Earn Up to 4.73% APY With a Jumbo CD While You Still Can

Have a large lump sum to deposit? Consider these jumbo CDs with competitive rates.

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Article updated on Oct 30, 2024

A certificate of deposit lets you earn interest on a sum of money with a fixed annual percentage yield, or APY, over a fixed period of time, or term. CDs are a good savings option to park money for a few months or years with minimal risk of losing your earnings.

If you need to access the money before it fully matures, you’ll often pay an early withdrawal penalty that can reduce your interest earnings. Most CD options require a single deposit and don’t allow additional deposits, so you’ll need to gather your funds before opening an account. When you’re ready to open a CD, compare the best terms and rates among local credit unions and banks to find the right fit for your savings.

Table of Contents

CNET’s picks for the best jumbo CD rates
What is a jumbo CD and how does it work?
Jumbo CDs vs. traditional CDs
Pros and cons of jumbo CDs
FAQs
Methodology

Best Jumbo CD Rates

Apple Federal Credit Union $50,000 Min. deposit to open
Connexus Credit Union $100,000 Min. deposit to open
Credit One Bank $100,000 Min. deposit to open
Rising Bank $100,000 Min. deposit to open
State Department Federal Credit Union $100,000 Min. deposit to open

Helpful Definitions

Certificate of deposit (CD)

A type of savings account in which a lump-sum deposit accrues interest at a fixed rate for a fixed term, usually with an early withdrawal penalty.

Annual percentage yield (APY)

A CD’s interest rate that represents the return from the compounded interest you’ll earn in 12 months on your deposit. The higher the APY, the faster your money grows.

CD term

The fixed period in which your deposit earns interest. The maturity date is the end of the term, which can range from one month to 10 years or more.

Early withdrawal penalty

The fee for withdrawing your CD funds before maturity, often equalling a period's worth of interest, which varies by institution and length of CD term.

Share certificate

Similar to a CD, but issued by a credit union, in which a credit union member deposits a lump sum that accrues interest for a fixed term.

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Table of Contents

CNET’s picks for the best jumbo CD rates
What is a jumbo CD and how does it work?
Jumbo CDs vs. traditional CDs
Pros and cons of jumbo CDs
FAQs
Methodology

Written by

Toni Husbands

Staff Writer