Have $100,000 in Cash? You Could Earn More Than 4% With These Jumbo CDs
Top jumbo CDs are still paying more than 4%, giving savers a chance to lock in a competitive return without taking on stock market risk.
Jumbo CDs are one of the most versatile tools for savers. If you're sitting on $100,000 and want to diversify some of your holdings into an account with guaranteed returns and above-average APYs, this is a smart consideration.
Why? Because it achieves several objectives: One, the top-earning accounts offer rates above 4%, helping you earn thousands quickly while outpacing inflation. Second, jumbo CDs don't require you to tie up money for long periods, with terms ranging from six months to one year on average.
If you want to earn a competitive return without taking on stock market risk and still have the flexibility to pursue other investments when the CD matures, here are some of the best options.
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A quick way to make thousands effortlessly
Because jumbo CD rates, terms and minimum deposits can vary widely, it pays to compare your options before locking up your cash. We looked for competitive APYs and reasonable requirements for larger deposits.
Here are the top options to consider right now:
Account |
APY |
Min. Deposit |
Term |
4.55% |
$100,000 |
13 months |
|
4.20% |
$50,000 |
6 month |
|
4.10% |
$100,000 |
12 months |
Let's use our top example, Credit One Bank. Its 13-month CD offers a 4.55% APY, which is among the most competitive rates I've found in my weekly review of savings products.
With a $100,000 deposit, you could earn about $4,938 in interest over 13 months, assuming the rate remains fixed and the interest stays in the account.
Before locking up your money in a jumbo CD, compare today's top savings account rates to make sure you're getting the best rate available for your cash.
Use the tool below to compare today's top offers:
What are the downsides of a jumbo CD?
One trade-off is that you give up the potential for higher returns in exchange for predictability. The S&P 500 has historically returned about 10% annually over long periods, but stock market returns can vary significantly from year to year.
A CD, by contrast, offers a fixed return and, when held at an FDIC-insured bank and within coverage limits, protection for your principal.
Jumbo CDs also work much like regular CDs: You agree to leave your money in the account for a set term. If you need to withdraw it before the maturity date, you may face an early withdrawal penalty, which can cost you several months' worth of interest depending on the bank's terms.
Finally, keep taxes in mind. CD interest is generally taxed as ordinary income for federal income tax purposes, so consider the after-tax return when deciding whether a jumbo CD fits your financial strategy.
Keep FDIC insurance limits in mind
A $100,000 jumbo CD is within FDIC insurance limits, but don't look at the CD in isolation. If you already have deposits at the same bank, those balances may count toward the $250,000 FDIC insurance limit per depositor, per insured bank, per ownership category.
Check your total deposits before moving a large amount of cash into a jumbo CD.
Learn more: What is FDIC insurance and how does it protect your money?
Is now a good time to lock in a jumbo CD?
Jumbo CD rates remain attractive, particularly for savers who want a predictable return on cash they won't need in the near term. With top APYs above 4%, locking in a competitive rate now can guarantee that return for the full CD term, even if interest rates fall later.
Before opening one, compare the rate with regular CDs and high-yield savings accounts, which may offer similar yields with lower minimum deposits or greater flexibility. If you can comfortably leave $100,000 untouched for the term, however, a competitive jumbo CD can provide a reliable return without taking on market risk.
If you're weighing a jumbo CD against other places to put a large amount of cash, a financial planner can help you decide how it fits into your broader savings, investment and tax strategy.
Use the tool below to connect with a vetted financial professional and get started today:
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