I Have $150,000 That I Don't Need Anytime Soon, But I Don't Want to Put it in the Market. What Should I Do?

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Question: I have $150,000 that I don't need anytime soon, but I don't want to put it in the stock market. What should I do?

Answer: If you're looking for a risk-free place to store your money, my best solution is a jumbo CD. Jumbo CDs come with FDIC insurance up to $250,000 and APYs that'll outpace inflation.

However, there are a few things you want to consider before signing up for one. I'll cover key considerations, how much you can earn and why now is the right time to get one.

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How does a jumbo CD work?

A jumbo CD is a type of savings account that requires a large deposit, typically between $10,000 - $100,000. Similar to regular CDs, you'll open an account with an initial deposit and let it grow through its term.

If you need to withdraw it before the maturity date, you'll have to break your term. Doing so results in significant penalties, reducing the interest you'll earn on your investment. The longer your CD term is, the higher the penalties you'll incur.

What's beneficial about jumbo CDs is that they require shorter terms of six months to a year, so you'll have quick access back to your cash. Explore and compare options quickly using the tool below, powered by Bankrate:

Things to consider before signing up for one now

Along with making sure you can keep your money tied up in one place, you'll also want to shop around to ensure you're receiving the best rate of return.

Traditional banks usually cannot compete with online banks. Online banks don't have brick-and-mortar locations, meaning they don't have the overhead expenses, so they can offer more generous returns. While accessing your cash at the end of the term can be trickier, online banks allow you to transfer money to other accounts.

Keep in mind that many banks autorenew CDs. Set a reminder on your phone a week before the maturity date so you can explore other options, reinvest in the same CD, or cash out if rates are much lower.

The Federal Reserve issued its first rate cut of 2025 at its September meeting. When the Fed cuts rates, it lowers the returns savers can earn on all savings accounts, including jumbo CDs.

How much does a cut impact rates? Before the Fed meeting, My eBanc had a one-year jumbo CD with a 4.45% APY. After the cut, the rate is down to 4.15% APY. That 0.30 percentage-point dip may not sound like much, but on a $150,000 deposit, it’s the difference between earning $6,675 and $6,225 over 12 months — a $450 gap.

While many savings products fall when the Fed lowers rates, CDs stand out because their interest rates are fixed. That means locking in a jumbo CD now protects your return when the Fed cuts rates again, which they're projected to do this week at its October meeting.

Therefore, locking in a rate now ensures you're maximizing your savings potential, without any of the risks that the stock market offers. While you might not be able to earn as much as you would with investments, jumbo CDs can deliver substantial returns.

How much can I make with a jumbo CD?

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One of our top choices is Finworth. Finworth offers a six-month jumbo CD with a generous APY of 4.10%. Parking your $150,000 there for six months earns you $3,557.44 in earned interest. Not bad for a short investment.

A longer-term option is Prime Alliance Bank. It offers a one-year jumbo CD with a 4.15% APY. Depositing $150,000 into it earns you $6,225 in one year.

On the fence about which terms sound the best for you? My solution is to find what works best for your financial goals.

If you don’t need access to your money for a while, consider locking it into the longest jumbo CD available. Doing so guarantees you earn the highest rates of return to maximize yields.

Meanwhile, if you're unsure about tying up your money that long, opt for a short-term option. I often use short-term CDs as a way to stay on track with savings goals, and they consistently help me achieve them.

Ultimately, while savings APYs took a slight dip from the Fed cutting rates, you can still earn an exceptional return with a jumbo CD. With rates around 4% for both short-term and longer-term options, you'll earn thousands of dollars effortlessly with a $150,000 deposit.

The key is to lock them in now before the Fed cuts rates again this week. If you do, you'll stay ahead of inflation while having access to your cash quickly, which you can reinvest in another CD or consider other options that work best for your financial goals.

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.