How to find the best jumbo CD rates
by Ellen Cannon | Money Rates Columnist
So-called "jumbo" certificates of deposit are attractive to savers because in exchange for a $100,000 minimum deposit, you can often enjoy a higher rate than with a regular CD account.
In some cases, the interest rate on a jumbo CD can beat a regular CD by as much as 1% and even beyond, depending on the length of the term.
Jumbo CDs vs. non-jumbo accounts
So what's the best way to research and compare?
For one, MoneyRates tracks the best CD rates for you, with some rates higher than the national average.
As of Nov. 23, 2015, U.S. institutions had a national rate of 0.81% for 60-month jumbo CDs, according to the Federal Deposit Insurance Corporation. In comparison, some institutions featured on MoneyRates.com have rates higher than a 2% annual percentage yield.
However, be aware of charges if they withdraw from their jumbo savings account too early. Before investing in, say, a 5-year jumbo CD with 1.5% interest rate, smart savers need to consider that their money will be locked into that rate for the entire period, unless they want to pay an early-withdrawal penalty.
Another point to remember when investing in jumbo CD accounts: They are FDIC-insured up to $250,000 per depositor, per institution. Keep an eye on the total in your account to be sure you don’t exceed this.
Find the best jumbo CD accounts in the table below with the highest rates and great perks.
5 Yr. Term
$100000 Minimum to earn APY
Rates as of 11/29/2015
See more rates
Rates / APY terms above are current as of the date indicated. These quotes are from banks, credit unions and thrifts, some of which have paid for a link to their website. Bank, thrift and credit union deposits are insured by the FDIC or NCUA. Contact the bank for the terms and conditions that may apply to you. Rates are subject to change without notice and may not be the same at all branches.