Jumbo CD
Jumbo CD Meaning:
In U.S. deposit terminology, the term Jumbo CD refers to a large denomination Certificate of Deposit, or CD. The minimum denomination for a Jumbo CD is typically $100,000.
In U.S. deposit terminology, the term Jumbo CD refers to a large denomination Certificate of Deposit, or CD. The minimum denomination for a Jumbo CD is typically $100,000.
For example, other than its larger size, a Jumbo CD generally has the same features as a regular Certificate of Deposit, and it obligates the investor to commit the funds to the financial institution for a set period of time. Jumbo CDs typically have maturities that range between three months and six years. Financial institutions generally pay a higher rate of interest for funds that are committed for a fixed period of time. The principal and interest is usually paid out when the Certificate of Deposit matures, although it can often be rolled over. Jumbo CDs make a safe, low risk investment for individuals and business with a large amount of money to invest.
List of US Certificate of Deposit Rates (CDs) by Banks