5 Types of Specialty CDs To Help Reach Your Financial Goals

What they are and the pros and cons of five types

Specialty certificates of deposit (CDs) offer the same guaranteed return as traditional CDs, but with features tailored to specific financial needs.

Want to lock in a higher rate with a large deposit? Safeguard your earnings if interest rates rise? Save for retirement? Some types of CD accounts may be better than others, based on your needs. Perhaps you'd prefer the flexibility to add funds over time or the freedom to withdraw early without incurring a penalty—there's a specific CD for that, too!

This guide breaks down five popular types of specialty CDs and how each can help you reach your financial goals.

Specialty CD Account Comparison Overview

Each specialty CD offers a guaranteed return, but the features vary—so understanding how they work can help you choose the one that best fits your needs.

1. Jumbo CDs

A jumbo CD requires a large minimum deposit—often around $100,000—to open. In exchange, many banks and credit unions offer a higher interest rate as a reward for locking in a significant sum for a set period. Terms for jumbo CDs typically range from three months to five years, with rates generally increasing for longer terms.

The trade-off? Tying up your money means you could miss out if interest rates climb and other investments start paying more. And if you need to withdraw funds before the CD reaches maturity, you'll likely face an early withdrawal penalty.

Ideal for: High-net-worth individuals and institutional investors—such as corporations, banks and pension funds—looking for a secure, predictable return. Jumbo CDs can also work for individuals with a sizable one-time sum to invest, like proceeds from a home sale or inheritance.

2. Bump-Up CDs

Unlike traditional CDs, which lock in a fixed interest rate until maturity, bump-up CDs let you raise your rate if the bank's CD rates increase during your term.

For example, with Synchrony Bank's Bump-Up CD, you can request a one-time rate increase to match the new higher rate—earning more for the rest of your term without triggering a withdrawal penalty. If rates drop, your original rate stays in place.

Because you're getting flexibility, starting rates are often slightly lower than with a comparable fixed-rate CD. Plus, most bump-up CDs only allow one increase (though some banks offer more), so you'll need to keep an eye on rates and make your move at the right time.

Ideal for: Investors who expect rates to rise and are committed to monitoring the market for the best time to act.

3. Add-On CDs

True to their name, add-on CDs let you increase your balance during the term—something most CDs don't allow. Instead of committing your full investment up front, you can continue adding to your CD while usually keeping the interest rate you locked in at the start, regardless of market changes.

Many add-on CD accounts also come with a lower initial deposit requirement, making them accessible to those without a large lump sum.

In exchange for the flexibility, interest rates are often lower than those of traditional fixed-term CDs. And since your rate is fixed, you won't benefit if market rates rise. Be sure to review your bank's terms—some limit how often or how much you can add.

Ideal for: Gradual savers who want to build their balance over time while earning a guaranteed rate.

4. IRA CDs

An IRA CD combines the predictable earnings of a standard CD with the tax advantages of an individual retirement account (IRA). Like other CDs, it offers a fixed interest rate for a set term, providing stability and protection from market swings as you grow your retirement savings. Because it's held within an IRA, you'll benefit from tax advantages: Earnings grow tax-deferred in a traditional IRA (taxes are paid upon withdrawal) or tax-free in a Roth IRA if withdrawal rules are met.

Withdrawals before maturity can trigger two penalties: one from the bank for ending the CD early and another from the IRS if you take the funds before retirement age without an eligible exception. And while IRA CDs offer safety, their returns are usually lower than those of growth-oriented investments, like stocks.

Ideal for: Conservative, risk-averse investors who want wealth preservation and predictable returns inside a tax-advantaged retirement account—especially those approaching retirement who prefer a low-risk alternative.

5. No-Penalty CDs

A no-penalty CD offers the security and fixed interest of a traditional CD, plus the freedom to withdraw your funds early without a fee—all gain, little pain.

Most require you to wait a set period—at least six days after funding per FDIC rules, though some banks set longer windows—before you can access your money. After that, you can withdraw your balance and keep the interest you earned.

Because of this flexibility, no-penalty CDs usually offer slightly lower interest rates than those of standard CDs. In many cases, you'll need to withdraw the entire balance at once rather than making partial withdrawals, so be sure to check your bank's terms.

Ideal for: Savers who want to earn more than a traditional savings account offers while keeping the flexibility to access their money early without a penalty.

Are You Ready To Open a Specialty CD?

Specialty CDs can deliver flexibility, higher rates or tax advantages—all while keeping your money safe with FDIC or NCUA insurance (up to $250,000 per depositor, per institution, per ownership category). You can open a specialty CD at any bank or financial institution that offers it, such as Synchrony Bank.

The key is matching the right CD type to your goals. Whether you're looking to lock in a competitive rate, keep access to your funds or grow retirement savings, there's an option designed for you. Compare your choices, choose your fit and start putting your money to work with confidence. You may even want to consult a financial advisor to discuss your goals.

Learn more about Synchrony Bank's CD products and how they might fit with your overall investment plan.

READ MORE: How to Choose Your CD Account in an Uncertain Economy