What Counts as a Jumbo CD?
A jumbo CD is simply a CD with a high minimum deposit — traditionally $100,000, though some banks set it at $50,000. In exchange for the large, stable deposit, banks sometimes offer a small rate premium over their standard CDs. The math is identical to a regular CD; only the minimums differ.
Watch the FDIC Limit
FDIC insurance covers $250,000 per depositor, per bank, per ownership category. A $300,000 jumbo CD at a single bank leaves $50,000 uninsured. Simple fixes: split the money across two banks, or use joint ownership (a joint account is insured up to $500,000).
Is a Jumbo CD Worth It?
- Compare first — online banks' regular CDs often beat brick-and-mortar jumbo rates.
- The rate premium for jumbo status is often just 0.05–0.15%, so shop the whole market rather than fixating on the jumbo label.
- For very large amounts, a CD ladder spreads both interest-rate risk and insurance coverage.