Jumbo CD Rates
For people that want to invest with large lump sums of money they should look into jumbo CDs as a sound investment. These accounts are setup for large sums of money and jumbo CD rates typically offer the highest CD rates. If you want to invest in a jumbo CD you’re going to need to meet the bank’s minimum deposit requirement for such accounts. This amount is typically set at $100,000 but can vary from bank to bank. Be sure to know what the minimum deposit is for the jumbo CD rate that’s advertised. Jumbo CD rates should beat the pants off of any savings account rates you might find.
Not all jumbo CD rates are created equal. The rate you’re given is dependent on the bank you deal with, the length of the term you’re looking at, and the amount of money you’re dealing with. In the hay day of jumbo CDs, the best jumbo CD rates were set at 5.5% APY, but those rates have since dropped. Make sure you know what the rate advertised is. There’s interest rate and then there’s an annual percentage yield. Annual percentage yields are higher because they take into account the compounding of interest over the course of a year. Most banks advertise their APY as it makes their accounts sound better.
If you’re interested in jumbo CDs, be sure to check out our CD rates page for searchable rate tables. You can also search our website for IRA CD rates for your retirement.
Most banks that offer jumbo CDs compound interest on a monthly basis. Some banks will compound their interest quarterly so you should make sure you know which your bank is doing. You want them to compound monthly over quarterly. The more frequently they compound interest the better it is for your money. An interest rate that’s compounded frequently will lead to a higher annual percentage yield over an account that isn’t compounded as often.