This Savings Account Earns You More Than $4,000. Here's How

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.

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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?

US Federal Reserve Chair Jerome Powell speaking at podium with american flags and fed seal in the background

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.

Sean is a veteran personal finance writer, with over 10 years of experience. He's written finance guides on insurance, savings, travel and more for CNET, Bankrate and GOBankingRates.