How Much Money Should You Keep In A CD?

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If you’re considering opening a certificate of deposit (CD), you might first be thinking about why you want to open one. That, of course, depends on a variety of factors, such as where you’re opening your account, your financial goals and how much money you have.

When it comes to determining how much money you should keep in a CD, such factors include:

• Saving enough to at least meet the CD’s minimum requirement to open the account.
• Confidence that you won’t need to withdraw your money during the CD’s term (otherwise, you’ll likely incur an early withdrawal penalty).
• If you’re saving for a shorter-term goal, such as for a down payment on a car, deposit enough money to reach that goal, or to hit the goal from interest earned on the CD.
• If you’re saving for a longer-term goal, such as retirement, save a smaller portion of your money in CDs, but allocate a larger amount of your savings in other investments, such as a dividend stock fund or an index fund, that have the potential to earn much higher returns over time.

What is the minimum deposit for a CD?

Most CDs require at least $500 to $1,000 to open, though some have no minimum deposit requirements.

Here are the minimum deposit requirements for some major banks.

Note: Minimum deposits shown above are as of Aug. 26, 2025.

It’s important to note that some financial institutions offer tiered interest rates. This means that consumers can earn higher interest rates by meeting higher minimum deposit amounts.

Also, keep in mind that there may be different minimums for various types of CDs, such as no-penalty or bump-up CDs.

Jumbo CDs vs. traditional CDs

You may benefit from a top-yielding jumbo CD if you’re looking to deposit $100,000 or more. Jumbo CDs typically require at least a $100,000 deposit. Locking that money up for a year or two could be beneficial to someone who may otherwise be tempted to spend it. Like any type of CD, you’ll want to make sure the money will stay in the CD for its term.

Jumbo CDs aren’t that common, but you’ll be able to find them at some banks and credit unions. You’ll either see them called a jumbo CD or see a rate tier of $100,000 or more with a higher yield.

Keep in mind: Just because they’re called jumbo CDs, that doesn’t necessarily mean the yield will be “jumbo.” Some banks pay the same yield on their jumbo CDs as they do with their traditional CDs with the same terms. A bank that pays a competitive yield on all balances might have a higher annual percentage yield (APY) than a CD marketed as a jumbo CD, so keep an eye on the rates and terms financial institutions offer on regular and jumbo CDs.

How many CDs can you have?

There’s no limit as to the how many CDs you can have at once, although you might be limited on the number you have at one bank or credit union. Your savings strategy is a better indicator when it comes to determining how many CDs you want in your financial portfolio. A CD ladder, for example, enables you to invest in multiple CDs with staggered maturity dates. This savings strategy is designed to help you earn higher interest rates typically offered by longer-term CDs, while maintaining periodic access to portions of your money.

Even though the sky’s the limit on how many CDs you can have at one time, you may want to diversify your savings across multiple types of investments so you’re not keeping your money all in one place. But if you go all-in on CDs, make sure they’re at banks that are insured by the Federal Deposit Insurance Corp. (FDIC), which guarantees that your money is safe for up to a limit of $250,000 per depositor, per FDIC-insured bank, per ownership category (the same insurance protections apply for credit unions that are members of the National Credit Union Administration (NCUA).

Be careful not to lock up too much money

CDs offer a guaranteed rate of return and an opportunity to boost your savings, provided you keep your money in the CD until it matures. Because it’s difficult to predict what the interest rate environment will be in the future, especially if you’re in a rising interest rate economy as we were in 2022-2024, you wouldn’t want to put too much money in a long-term CD in the event rates increase. In that case, the CD ladder strategy is one way to keep up with potential rate gains.

Not keeping up with inflation is also a potential concern when you have money locked in at a certain yield. If you’re in a situation where inflation outpaces yields, it would be worth investing your money in a higher-yielding deposit account, or focusing on paying down debt instead. In today’s economy, it’s possible that a CD with a fixed-rate yield opened now could outpace inflation in the future.

Interest attained by investing in CDs is also taxable, another reason why you want to earn the highest yield possible — to make up for taxes on your gain. “If the jumbo CD is not held in a tax-deferred retirement account, taxes from interest will dampen the return and purchasing power even more,” says Alano Massi, certified financial planner and managing director for Palm Capital Management in Westlake, California.

What’s more, once you tie up your money in a CD, you’re stuck until it comes due, unless you don’t mind paying an early withdrawal penalty.