One of the goals of saving money is to find solutions that help you earn more quicker. And an overlooked savings option that can help you achieve this is a jumbo CD.
Jumbo CD rates offer some of the highest returns I've found among savings accounts. They're easy to set up, and, most importantly, they don't take years to mature, with the best option giving you money back with a significant return in one year.
So, what's the catch? Unlike regular CDs, which have lower deposit minimums, jumbo CDs require you to devote a large portion of savings to them. While some banks offer them with minimum deposits of $10,000, the norm tends to be closer to $50,000 to $100,000.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
And that can be difficult to know you'll be without access to that significant chunk of money for a time. However, if you're patient, you can earn more than $4,000 in one year. I'll show you how.
This one jumbo CD earns you an excellent savings rate
If you're shopping for a risk-free savings vehicle that helps you maximize your savings quickly, you can't beat this one-year jumbo CD from Finworth, an online bank:
The minimum deposit for this account is $50,000. On its own, this could earn you $2,230 in one year. That's a fantastic return.
However, doubling your deposit to $100,000 is where you see a significant increase in your return. Doing this yields you $4,460 in total interest earned.
Sure, you'll need to tie up your money for a year. But a jumbo CD is a risk-free investment with a fixed interest rate. That means if the Federal Reserve decides to cut rates in the future, it won't impact you since your rate is locked in.
Therefore, you gain peace of mind that you'll earn a guaranteed return with no risk on your end.
How to open a jumbo CD
Jumbo CDs are easy to open. If you choose the option from Finworth, you can visit their website, sign up for an account, provide personal details and fund it through an ACH transfer.
Alternatively, you can use our Bankrate tool to shop for other options as well, if you want something with a short window of maturity:
There are a few things to consider before opening a jumbo CD. The first is that you can't access the funds until the maturity date.
You can do an early withdrawal if you need the cash, but the penalty banks impose will negate some of the earnings you receive. So make sure you're comfortable tucking it away for a bit.
On the other side, set a reminder about a week from your maturity date to determine if you want to continue on to another term, as some banks autorenew CDs.
If you choose the one-year jumbo CD from Finworth and it renews, you'll have 10 days from its maturity date to cancel the renewal.
Is now a good time for a jumbo CD?
It's a great time for you to consider it. And you might want to act soon as the winds of change could be coming.
The Fed hasn't cut rates this year. However, it's becoming clear this might not carry through the fall. While Fed Chair Jerome Powell adopts a wait-and-see approach to how tariffs impact inflation, the "dot plot" indicates the cental bank will do two quarter-point percentage cuts this year.
If the Fed does cut rates, it would lower savings rates. Thus, reducing your earning potential. That's why, as uncertainty continues to exist and rates remain high, I recommend striking while the iron is hot and you can earn more money.
The bottom line on jumbo CDs
Jumbo CDs like Finworth's can help you earn a lot of money quickly, without any risk. While they require more of an investment, the maturity dates are much quicker than some other CD options, giving you a tight window to make more money.
Moreover, given we're still unsure of how the Federal Reserve will handle rate cuts in the future, it means now is the perfect time to lock in a higher rate, while they're still here.
Related content
-
Stock Market Today: Stocks Slip Ahead of Big Earnings, Inflation WeekPerhaps uncertainty about tariffs, inflation, interest rates and economic growth can only be answered with earnings.
-
Ask the Editor — Tax Questions on "The One Big Beautiful Bill Act"Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on the new tax law.
-
The Anti-Prime Day Deals Guide to Everyday Essentials Worth Stocking Up on at Walmart, Target and Sam's ClubSkip Amazon and shop these anti-Prime Day deals at Walmart, Target or Sam's Club to save on all of your household essentials.
-
Amtrak Joins Prime Day With Deals on Fares — But You’ll Have to Act FastPrime members can score 20% off midweek fares — what travelers should know before booking.
-
Florida Revives Popular Home-Hardening Program With $280M in New FundingA major infusion of state funds revives Florida's flagship home-hardening grant program to protect homeowners and potentially lower insurance costs.
-
TSA Expands Precheck Benefits for Military, Gold Star Families and VeteransEnhanced "Serve with Honor, Travel with Ease" initiative lowers barriers to expedited screening for service members and their loved ones.
-
The Hated TSA Shoe Removal Rule Was Finally Phased OutAfter nearly 20 years, the TSA is ending its shoes-off policy. Travelers will still need a Real ID, and advanced screening remains in place. Here’s what to expect on your next flight.
-
Last Chance to Shop These Under-$100 Prime Day Deals for a Smarter, Safer Home: Ring Doorbells, Nest Thermostats, Leak Detectors and MoreThese under-$100 Prime Day deals on Ring, Blink, Nest and other top smart home brands are disappearing after today.
-
Forget Prime Day: Top Walmart Anti-Prime Deals You Can't MissWalmart Deals runs through July 13, giving shoppers two extra days compared to Amazon Prime. Here are the best anti-Prime deals to consider.
-
46 Anti-Prime Day Tech Deals You Should Get from Best Buy's Black Friday in July Sale InsteadApple, Blink, Garmin, Samsung and more leading tech brands are on sale at Best Buy's competing Prime Day sale this week.
