How to find the best jumbo CD rates
By Ellen Cannon
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.
In some cases, the interest rate on a jumbo CD can beat a regular CD by as much as 1 percent and even beyond, depending on the length of the term.
So what's the best way to research and compare?
For one, MoneyRates tracks the best CD rates for you. As of June 2015, U.S. banks were offering jumbo CD with rates of returns as high as 2.27% APY.
But 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.
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.
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.