Jumbo CD Rates
By Ellen Cannon
As its name implies, a jumbo CD is big. Most jumbo CDs require a $100,000 minimum investment, but they offer a higher interest rate for that money. The longer the term of the certificate of deposit, the higher the interest rate will be.
The interest rate on a jumbo CD may be about 1 percent higher than the rate on a regular CD.
Before investing in, say, a five-year jumbo CD with 1.5 percent interest rate, smart savers need to consider that their money will be locked into that rate for the entire period, unless they want to pay an early-withdrawal penalty. While it doesn’t seem likely that interest rates will rise before late 2015, if they do rise, you don’t want to be stuck with a CD paying 1.5 percent when there are others available at higher rates.
Another point to remember when investing in jumbo CDs: They are FDIC-insured up to $250,000 per account. Keep an eye on the total in your account to be sure you don’t exceed this.
MoneyRates.com scours banks to find the best CD rates, whether regular CDs or jumbos.
Rates / APY terms above are current as of the date indicated. These quotes are from banks, credit unions and thrifts, some of which have paid for a link to their website. Bank, thrift and credit union deposits are insured by the FDIC or NCUA. Contact the bank for the terms and conditions that may apply to you. Rates are subject to change without notice and may not be the same at all branches.