LearnBonds.com

Highest Jumbo CD Rates

Rate this post

What is a Jumbo CD?

A Jumbo CD (Certificate of Deposit) requires a minimum deposit of $100,000. In all other respects, a jumbo CD is no different than any other CD.

How do Jumbo CD Rates compare to CDs with lower minimum deposits?

Jumbo CDs have a reputation for providing some of the highest CD rates. On a basic level this makes sense. If you were a bank would you prefer to gather $100,000 from 10 clients or from 1 client. Serving one client would seem to be more efficient than serving 10.  However, over the last few years, banks have not needed to gather much money from depositors and have provided little incentive to put in larger deposits. When interest rates start rising, Jumbo CDs may again offer higher rates.

Do Jumbo CDs have less FDIC insurance?

The FDIC offers $250,000 of insurance per depositor, per bank. Many years ago, the FDIC only offered $100,000 of insurance per acount which meant that any Jumbo CD that had more than the minimum deposit wasn’t fully covered by FDIC insurance.

 Here are the Highest Jumbo CD Rates:

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Marc Prosser

Write first comment

Reply

Your email address is not published.