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The best jumbo CD rates for July 2022

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BankEditor’s ratingA standout featureAll terms – APYMinimum depositNext steps
Standard Certificate from Navy Federal Credit Union4 /5High interest rates0.40% to 3.05% APY$1,000LEARN MORE
Consumers Credit Union Jumbo Certificate Account4.25 /5Competitive interest rateAPY: 0.35% to 2.9%$100,000LEARN MORE
CIT Bank Jumbo Certificate Of Deposit3.25 /5Competitive interest rate0.40% to 0.5% APY$100,000LEARN MORE
USAA Jumbo Certificate Of Deposit3.75 /5Many term optionsAPY: 0.01% to 2.277%$95,000LEARN MORE

  • May 2022
  • Navy Federal Credit Union Standard Certificate
  • Consumers Credit Union Jumbo Certificate Account
  • CIT Bank Jumbo Deposit Certificate
  • USAA Jumbo Deposit Certificate
  • Which bank are you most trustworthy?

July 2022: The best jumbo CD rates

A jumbo CD is a type of CD that has a high minimum deposit and pays a higher rate of interest than regular CDs. If you have more than $100,000, a jumbo CD might be worth it.

Although jumbo CDs are rare, they are not uncommon. Those that pay high interest rates also are less common. Below are our top picks for jumbo CDs that offer competitive interest rates and a range of terms.

Navy Federal Credit Union Standard Certificate

Navy Federal Credit Union Standard Certificate

Annual Percentage Yield

0.40% to 3.05% APY

Minimum Deposit Amount

$1,000

It stands out because you’ll get the highest rates with a minimum of $100,000. Navy Federal rates do not depend on your account balance. Navy Federal compounded your interest daily, just like other banks. This is in contrast to credit unions which compound monthly. Navy Federal offers terms up to 7 year, while banks limit it at 5 years.

You have the option of a term length from 3 months up to 7 years

Important information: To become a Navy Federal member, you or your family must have ties with the military. You can also join Navy Federal by living with a Navy Federal veteran, civilian contractor or personnel from the Department of Defense.

Consumers Credit Union Jumbo Certificate account

Consumers Credit Union Jumbo Certificate account

Annual Percentage Yield

APY: 0.35% to 2.9%

Minimum Deposit Amount

$100,000

Why it is different: Consumers Credit Union offers competitive rates for jumbo CDs, particularly for longer terms. Consumers is easier than other credit unions to become members. You only need to pay $5 to join Consumers Cooperative Association and then deposit $5 into a Consumers savings accounts. Consumers compound interest every day, which means you can make more long-term.

You have the option of a term length from 91 days up to 5 years

You should be aware of the following: Consumers Credit Union has no major downfalls. However, you may earn a higher rate at another institution depending on how long your term is.

CIT Bank Jumbo Deposit Certificate

CIT Bank Jumbo Deposit Certificate

Annual Percentage Yield

0.40% to 0.5% APY

Minimum Deposit Amount

$100,000

CIT Bank stands out because it offers good rates on jumbo CDs and charges standard early withdrawal penalties if you need to withdraw money before your CD matures.

You have the option of a 2 year or 5 year term

You should be aware that you only have a 2-year, 3-year or 4-year jumbo CD. You can choose to open a different type of CD or go with another bank if you need a longer term.

USAA Jumbo Deposit Certificate

USAA Jumbo Deposit Certificate

Annual Percentage Yield

0.01% to 2.277% APY

Minimum Deposit Amount

$95,000

USAA is unique because it offers a wider selection of terms than other banks. This makes it easier to find the jumbo CD that suits your needs. You also get good rates for longer-term CDs.

You have the option of a term length from 30 days up to 7 years

You should be aware of the following: While other institutions compound interest daily, USAA only has a monthly interest rate. This limit the amount you can earn over the years or months.

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Which bank is most reliable?

We have compared each company’s Better Business Bureau score. BBB rates businesses on the basis of customer complaints, honesty in advertising and transparency about business practices. Here’s each company’s score

InstitutionRating by the BBB
Navy FederalNR
ConsumersA+
CIT BankB
USAAA+

Navy Federal is rated NR by the BBB as it responds to closed complaints. CIT Bank is rated B due to the number of customer complaints that it has received.

Recent scandals have also implicated CIT Bank, Navy Federal, and USAA.

A Navy Federal employee claimed that the lender forced mortgage underwriters into approving loans even though they had no reason to believe that applicants could repay the loans. An employee filed a lawsuit claiming that Navy Federal had changed her job duties in retaliation for her whistleblowing. The case was dropped by the employee in late 2020.

The California Reinvestment Coalition supported the Department of Housing and Urban Development’s allegations against OneWest Bank, a division of CIT Bank. CRC claimed that OneWest Bank discriminated against Latinx people and Black people in Los Angeles. Although OneWest did not admit to discrimination, it agreed to pay $7 million as part of the settlement.

The Office of the Comptroller of the Currency stated that USAA violated the law in 2020 by failing to implement a comprehensive compliance risk management program.

The Bureau of Consumer Financial Protection ordered USAA in 2019 to pay $12,000,000 as part of a settlement. This was because USAA had not stopped automatic payments when customers asked.

Questions frequently asked

What is a CD?

A CD is essentially a time-sensitive savings account. It holds your money at a fixed rate of interest for a specific time. A CD can be opened at any bank or credit union.

A CD is a great way to guarantee a return on your investment if you don’t have immediate access to your savings. You lock in an annual percentage yield (APY), for the term of your CD. You won’t normally be allowed to access your original balance or add money during that time without incurring a penalty.

However, you will earn interest on the amount. You have the option of collecting those monthly payments or reinvesting them in your CD. Many banks offer different rates for different deposit amounts and terms. Typically, the longer the term is, the higher the rate.

You’ll usually have a 10- to 14-day grace period after the maturity date of the CD. This allows you to withdraw your money, close the account, or renew the term.

What is a Jumbo CD?

A jumbo CD requires a large minimum deposit, usually $100,000. You’ll get a higher interest rate for placing a large deposit than you would with a regular CD as a reward.

What is the difference between a regular and jumbo CD?

A jumbo CD usually requires a larger deposit and pays a higher interest rate. Different terms are offered by different banks for regular and jumbo CDs. CIT Bank offers a 2 year term for its jumbo CD, but you can also get a CIT regularCD with a shorter term of 6 months.

What are the benefits of a jumbo-CD?

Higher interest rates. Banks often pay higher interest rates for jumbo CDs that regular CDs in many cases.

Guaranteed rate return. A jumbo CD is a large investment. You wouldn’t be able to predict how much money you would make if you invested that amount in a more risky investment like the stock market. A jumbo CD will give you an exact estimate of how much you’ll make.

What are the pros and cons of a jumbo-CD?

Higher minimum deposits. For regular CDs, you will need to deposit a few hundred dollars or a few thousand dollars. However, for a jumbo account, you will need approximately $100,000.

It is not always the best rate. Although jumbo CDs are usually more expensive than regular CDs, banks often pay lower rates. You might also find a bank that offers better rates for regular CDs than one bank’s for jumbo CDs.

Inflation. The interest rate may not keep pace with inflation depending on how long you save money in a CD, and how high it is.

Consider investing instead. Every person’s financial situation will be different. You might be better off playing it safe and putting $100,000 into a CD. You might make more long-term if your money is invested in riskier investments.

Is it a good investment to buy a jumbo CD?

CDs are not considered investments in the same way as an index funds which invests your money in the stock market. A CD is more like a savings account. Your risk is lower and you are less likely to lose or gain. Experts don’t recommend investing in money that you won’t need within the next five years, as the stock market can be risky. You wouldn’t be able to make up the losses if the stock market drops.

A 3-year jumbo CD can be a better option than any other type of investment account if you need access to your money within three years and want a guaranteed return.

You might consider investing in the stock market if you are comfortable with parting with your cash for a longer period of time and are willing to take on more risk. You can do this by investing in tax-advantaged retirement funds, such as a 401(k), IRA or IRA. This will allow you to grow your money over many decades. Another option is brokerage accounts. These are great tools for building long-term wealth but don’t guarantee a certain return like CDs.

An IRA CD is a combination savings/investment account. This is a safe investment option that could be worth considering for those who are near retirement.

Laura Grace Tarpley, CEPF

Personal Finance Reviews Editor

Laura Grace Tarpley (she/her), is an Insider personal finance reviews editor. Personal Finance Insider’s editor, she edits articles on mortgage rates, refinance rates and lenders. She also writes about borrowing and savings tips. She is also a Certified Education in Personal Finance (CEPF) Educator. For six years, she has been writing about personal finance. Before joining the Insider team she worked as a freelance writer on finance for companies such as SoFi and The Penny Hoarder. She was also an editor at FluentU. You can reach Laura Grace at 22******d41@1***f.com Check out the following for examples of her work. These are today’s best 30-year mortgage rates. The best online high yield savings accounts Chase checking account: Compare all five options. Learn more about Personal Finance Insider’s selections and rates.

Disclosure: This article may feature financial products and services that will help you make better decisions about your money. We don’t give investment advice nor encourage you to follow a particular investment strategy. It is entirely up to you to decide what to do with your money. We get a small percentage of any revenue generated by our commerce partners if you follow one of our recommendations. This does not affect whether or not we feature financial products and services.

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