What Is the Difference Between a Jumbo CD and a Regular CD? As mentioned above, the biggest difference between Jumbo and regular CDs is the minimum amount required for the certificates. Jumbo CDs require a minimum of $100,000, while most regular CDs require only $500 or $1,000 (or, as in the cases of Capital One and Ally Bank, no minimum).

• Jumbo CD rates vary from 0.08% for 30 days up to 1.11% for a five year term. The minimum deposit is $95,000 up to a maximum of $174,999. Besides great jumbo CD rates and terms, USAA offers tools and advice on a variety of financial products.
• A jumbo certificate of deposit (or jumbo CD) is a CD that has a balance of at least $100,000. At this level, you can typically earn a higher amount of interest on your CD versus another CD with a lower deposit amount. A certificate of deposit, or CD, is a great place to store cash.
• A jumbo certificate of deposit is a CD that requires a higher minimum balance obligation than that required by traditional CDs. In return, the jumbo CD pays a higher rate of interest.

A certificate of deposit, more commonly known as a CD, is a type of bank account that pays interest in exchange for the depositor leaving their funds in the account until it matures. A jumbo CD functions in the same way, though they require a higher minimum balance to open. Interest rates are usually fixed, though some accounts offer variable rates or “bump-up” features. Jumbo CDs tend to pay higher interest rates than their standard counterparts. Although you can technically withdraw your money before the maturity date, there’s typically a hefty penalty associated with doing so.

Do you have questions about how to integrate a jumbo CD into your investment portfolio? Talk to a local financial advisor today.

Jumbo Cd

What Is a Jumbo CD?

For all intents and purposes, a jumbo CD is exactly the same as a normal CD. You start by depositing money into the account and, in exchange for leaving your money untouched, you receive a higher interest rate than you would with most savings accounts. Interest is usually compounded in regular intervals (once a day or once a month) throughout the life of the CD.

The main difference between a jumbo CD and a regular CD is that the former typically has very high minimum balance requirements. More specifically, a bank may require you to deposit $100,000 or more at account opening. Interest rates on jumbo CDs are also typically higher than those of regular CDs, which should come as no surprise given the aforementioned minimums.

Pros and Cons of Jumbo CDs

Perhaps the best benefit of a jumbo CD is the fact that you’ll receive a higher interest rate than you would on a normal CD. Since CD rates are already higher than many savings accounts, jumbo CD rates can be especially great.

Jumbo CDs are also a risk-free investment. That’s because they’re insured up to $250,000 by the FDIC. Some jumbo CDs are also offered on a short-term basis, allowing customers with big sums of idle money to earn interest over periods of time as short as a week or a month.

Like any CD, the main drawback of a jumbo CD is the fact that your money is untouchable unless you’re willing to incur a large fee. While those who typically open a jumbo CD are far from short on cash, losing access to as much as $100,000 at once is nothing to scoff at.

Bottom Line

Jumbo Cd Rates Credit Unions

If you have the money to invest in a jumbo CD, it can be one of the best investments you’ll find at a bank. Since they’re available largely risk-free because of FDIC insurance, consider whether they’d be a good fit for your investment portfolio.

Talk with your bank to see what jumbo CD options they have available, if you’re interested in investing.

Jumbo Cd Rates For $100 000

Banking Tips

• In addition to taking care of your banking needs, you should be investing and saving towards retirement. A financial advisor can help you manage these needs, and finding one doesn’t have to be hard. In fact, SmartAsset’s free tool matches you with up to three financial advisors in your area in five minutes. Get started now.
• CDs aren’t the only way you can grow your savings at a bank. Check out SmartAsset’s list of the best savings accounts to find a savings rate that can help you grow your assets.

Bankrate Cd Rates

Photo credit: ©iStock.com/SARINYAPINNGAM, ©iStock.com/LUHUANFENG