A jumbo CD is a CD with a large minimum deposit, often $100,000, though the threshold varies by bank. It works like a standard CD: you lock a fixed amount for a set term at a fixed rate. At CIT Bank, for example, the jumbo CD minimum is $100,000.

Are jumbo CD rates higher than regular CD rates?

Not necessarily. CIT Bank's jumbo CDs showed the same 0.40% to 0.50% APY as its standard Term CDs on 2- to 5-year terms when we checked on October 15, 2026 (rates dated July 1, 2026). Compare the jumbo and standard rate at the bank before committing.

Are jumbo CDs FDIC-insured?

Yes, up to $250,000 per depositor, per bank, per ownership category. A joint account with two owners is covered up to $500,000 combined. Above that, split deposits across banks or ownership categories.

What is the early withdrawal penalty on a jumbo CD?

It depends on the bank and term, as with standard CDs. Check the account agreement before opening, because the dollar cost of an early exit is large on a big balance.

Jumbo CD Rates 2026: Do They Beat Standard CDs?

A jumbo CD is a CD with a large minimum deposit, often $100,000. Whether it pays more than a standard CD depends on the bank, and in the examples we read it did not. CIT Bank’s jumbo CDs ($100,000 minimum) showed 0.40% to 0.50% APY on 2- to 5-year terms, the same rates as its standard Term CDs on those terms. Bread Savings’ CD page lists only a $1,500 minimum and EverBank’s a single $1,000 minimum across terms, with no separate jumbo tier on either. Compare the standard and jumbo rate at any bank before committing a large balance.

CIT Bank rates are as of July 1, 2026, as shown on its site October 15, 2026.

Jumbo vs. Standard CD at CIT Bank

Term	Jumbo CD ($100,000 minimum)	Standard Term CD ($1,000 minimum)
2 years	0.40%	0.40%
3 years	0.40%	0.40%
4 years	0.50%	0.50%
5 years	0.50%	0.50%

Source: CIT Bank’s jumbo CD and Term CD pages.

FDIC Coverage for Jumbo CDs

FDIC insurance covers $250,000 per depositor, per bank, per ownership category. For large deposits:

Deposit Amount	Insurance Situation	Option
$100,000	Fully insured (single account)	No action needed
$250,000	Fully insured (single account)	No action needed
$300,000	$50,000 is above the single-owner limit	Split across two banks or use another ownership category
$500,000	A joint account with two owners is covered up to $500,000 combined	Joint ownership

Ownership categories that each have their own $250,000 coverage include single accounts, joint accounts, certain retirement accounts (such as IRAs) and trust accounts, with the coverage depending on the account’s terms. Use the FDIC’s EDIE calculator for exact figures. Deposit-placement networks such as IntraFi spread large deposits across banks to extend coverage.

Jumbo CD vs. Standard CD

Feature	Jumbo CD	Standard CD
Minimum deposit	Large, set by the bank	Varies by bank
FDIC insured?	Yes, up to $250K per depositor, per bank, per category	Same
Rate premium for a large deposit	Check each bank; none at CIT Bank on the terms above	N/A

When a Jumbo CD Makes Sense

A jumbo CD is worth it only if the bank’s jumbo rate is actually higher than what you could get on a standard CD, and if the whole deposit stays within the FDIC limit (or is spread across banks). Check the dated rates in best CD rates for standard CDs at other banks.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy