If you have a large amount of money ready to invest in a certificate of deposit (CD), such as $100,000, you might think a jumbo CD is the way to go. You'd think banks and credit unions would want ꦑto attract 🐲larger deposits like that with higher rates, right?

Right now, that is true for five CD terms: 3 months, 1 year, 3 years, 4 years, and 5 years. Even so, jumbo CD rates don't always beat or even match regular CD rates.

The top rate you can earn on a jumbo CD of any term is 5.52%, and that's for a 14-month CD that requires a $50,000 deposit. And today's top rate across all terms for standard CDs is 5.65%, for a 9-month certificate that requires a $10,000 deposit, but will still pay you that rate even on a $100,000 deposit. So which is the smarter investment right now? It depends on your deposit and how long you're willing to part with your money.

Today's Top Rates for Jumbo and Regular CDs

Jumbo and regular CD rates are very close for most terms right now. The difference in what you can earn is not much when you do the math. For example, if you invested $100,000 in a 3-month jumbo CD with a rate of 5.20% APY, you'd earn $1,275.39 in interest by the time it matures. If you invested $100,000 in a 3-month regular CD with a rate of 5.16% APY, you'd earn $1,265.76 by the time the term was up. That's only a difference of $9.63—not huge.

Even if you invest for 5 years, you'd only earn about $422 more in interest with a jumbo CD, which is not that much considering the total interest you'll earn ($26,658.71 with the jumbo vs. $26,236.43 with the standard CD). So going with a jumbo CD won't always earn you that much more interest, and sometimes it will earn you less.

If you're looking to earn the highest interest rate, though, a jumbo will earn you more in five terms right now: 3 months, 1 year, 3 years, 4 years, and 5 years.

Will CD Rates Go Up or Down This Year?

Today's CD rates are the highest they've been since 2007. But the high-rate environment we're living in now can't last forever. CD rates closely follow movements in the 澳洲幸运5官方开奖结果体彩网:federal funds rate, which is set by the Federal Reserve. It's widely expected that the Fed will keep the fed funds rate where it is when it concludes its next Federal Open Market Committee (FOMC) meeting on Wednesday. This afternoon, data on fed funds futures trading showed traders betting 76% to 24% in favor of a rate pause, which is up a little from sentiment at the end of Friday.

If the Fed does pause rate hikes, CD rates will likely stay where they are until the Fed meets again in July. Come that time, the majority of traders are betting on a rate hike, as the Fed continues to try to cool inflation. So CD rates could go even higher. But either way, with them at historic highs now, it's still a great time to lock one in now—regardless of whether it's a jumbo or a regular CD.

Rate Collection Methodology Disclosure

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide, and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA&n🐈bsp;for credit unions), and the CD's minimum initial deposit must not exceed $25,000.

Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, 澳洲幸运5官方开奖结果体彩网:read our full methodology.