Jumbo CD Rates
In U.S. deposit terminology, the term Jumbo CD Rates refers to the interest rates paid on large deposits made through Jumbo CDs. Jumbo CD Rates are typically fixed, not variable.
For example, banks and financial institutions typically pay higher interest rates on time deposits and Jumbo CDs are no exception. The Jumbo CD Rate on a three month certificate of deposit from U.S. banks is currently ranging between 0.50 percent and 0.65 percent in 2011, with many banks offering daily, weekly and monthly compounding of interest returns. A minimum deposit of $100,000 is required to take advantage of the compounding features of the Jumbo CD. Jumbo CD Rates provide a safe return on investment when placed with a reputable financial institution, and they offer a viable way to store wealth for high net worth individuals, businesses and financial institutions.