How to Find the Best Jumbo CD Rates
by Ellen Cannon | Money Rates Columnist
So-called "jumbo" certificates of deposit are attractive to savers because in exchange for a $100,000 minimum deposit, you can often enjoy a higher rate than with a regular CD account.
In some cases, the interest rate on a jumbo CD can beat a regular CD by as much as 1% and even beyond, depending on the length of the term.
Jumbo CD rates vs. non-jumbo rates
So what's the best way to research and compare?
For one, MoneyRates tracks the best CD rates for you, with some rates higher than the national average.
U.S. institutions had a national average of 0.23% for 1 year CD rates for jumbo accounts, according to the Federal Deposit Insurance Corporation update on May 9, 2016. In comparison, some institutions featured on MoneyRates.com have rates higher than a 2% annual percentage yield.
Investing in jumbo CD rates? Beware of early withdrawal penalities
However, be aware of charges if you withdraw from your jumbo savings account too early. Before investing in, say, a 5 year jumbo CD with 1.5% 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.
Another point to remember when investing in jumbo CD accounts: CDs have FDIC insurance coverage up to $250,000 per depositor, per institution. Keep an eye on the total in your account to be sure you don’t exceed this.
Compare jumbo accounts in the table below to find the highest jumbo CD rates and great perks.