Jumbo CD Rates December 2018
Compare jumbo CD interest rates from hundreds of banks to maximize your earnings.
When it comes to finding the best CD rates, having more money to deposit can work in your favor if you focus your search on jumbo CDs.
What is a jumbo CD?
Like most businesses, banks are interested in attracting large customers, and sometimes offer special deals for people who are willing to make big deposits. A jumbo CD rate is an example of an incentive some banks offer to attract large deposits.
Traditionally, the term "jumbo CD" has been applied to CDs of $100,000 or greater. However, banks currently may set a variety of thresholds at which you can become eligible for a higher rate, with some of those thresholds being well under $100,000. In general though, the more money you have to deposit, the more high-rate deals you are likely to find.
Best CD rates for December 2018 (5-years term) : Summary of our picks
Finding which banks have the best CD rates
If you have a large amount of money you are looking to put into a CD, the following are some tips for getting a little extra out of your CD rate:
1. Upfront research can pay off for years. MoneyRates always advises that you shop around for deposit products because interest rates vary greatly from bank to bank, and being selective is especially important when it comes to CDs. Because CD rates are locked in for months or years, choosing a better rate today can pay you more well into the future.
2. Use your buying power. If you have a large deposit to make - whether it be the traditional jumbo CD threshold of $100,000 or even somewhat less than that - be sure to see if the size of your deposit would qualify you for a special CD rate. Also, when comparing CDs, be sure to use the rates that apply to the size of your planned deposit.
3. Let online tools save you time. There are many banks to choose from, and finding jumbo CD rates can be especially time-consuming because there are so many variables related to size and terms to sift through. However, MoneyRates has a tool that makes it easy for you to compare CD rates specific to the size and term you have in mind.
Specific considerations when choosing a jumbo CD
There are some precautions you should take whenever investing in a CD, and these apply especially when considering a jumbo CD:
- FDIC insurance limit. This limit is currently $250,000 per depositor per institution. Most bank customers don't have to worry about that, but if you are starting a jumbo CD you may be well on the way to reaching that limit. Not only should you make sure your CD does not exceed $250,000 (and remember, it will grow over time with interest so don't cut it too close), but if you have other accounts at the same bank make sure the total of all your deposits there does not go over the $250,000 limit.
- Early withdrawal penalty. CDs typically offer higher rates for longer term commitments, but the catch is that you are likely to pay a penalty if you take your money out early. With a jumbo CD, this means tying up a particularly large amount of your cash. Check the early withdrawal penalty before signing up, and if you are unsure whether you might need some of the money before the CD matures, consider a shorter-term CD or CD laddering.
Best jumbo CD rates found by users like you
Have you come across a jumbo CD rate better than the ones displayed by the MoneyRates table? If yes, please share them with us and your fellow MoneyRates users! This information is most helpful if you can include some details such as: the name and location of the bank, whether you opened the account online or in the branch, the APY, term of the CD, and when you opened the CD. Thank you!