A certificate of deposit is generally seen as a low-risk investment. Two types of CDs are available: basic and jumbo CDs. Both investments work in similar ways. But jumbo CDs require a higher. A certificate of deposit, or CD, is a deposit account with us for a specified period of time. What is the minimum deposit amount to open a Chase CD? How is the Chase CD interest calculated? We use the daily balance method to calculate interest on your CD. This method applies a periodic rate each day to your balance. 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.

A jumbo CD is a certificate of deposit in a very large denomination, usually at a minimum of $100,000. Also called negotiable certificates of deposit, these large investments are considered low-risk, stable investments for large investors.

A jumbo CD has the same basic characteristics as a traditional certificate of deposit. They are considered 'time deposits' because they lock up an investor's principal for a set time period, typically ranging from three months to six years. In exchange for tying up principal, the investor earns a guaranteed return at a set percentage rate locked in at the time of purchase. This return is payable when the CD matures, or reaches the end of the predetermined time period.

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Like a traditional CD, a jumbo CD is considered a very low risk investment. Certificates of deposit are FDIC-insured, and therefore guarantee a return of principal. FDIC insurance, however, will only cover up to $100,000 for this type of investment, and therefore most jumbo CDs and any returns are not FDIC-insured. This caveat inherently raises their investment risk to higher than that of a traditional CD.

As with smaller denomination CDs, a jumbo CD can typically deliver a higher rate of return than comparable cash investments such as money market accounts or savings accounts. The certificate rate of return directly correlates to the amount of time that the principal remains locked. The longer that it takes a CD to mature, the higher the rate of return. For example, a six-year CD will carry a higher interest rate than the same amount of principal locked in a six-month CD. Due to the commitment of such large amounts of money, a jumbo CD rate of return is better than that of a smaller CD with the maturity date.

In exchange for a slightly higher rate of return,certificates of deposit do not have the liquidity that other savings vehicles carry. Withdrawing principal early results in penalty fees or a forfeiture of a portion of returns, and those penalties can be particularly severe with a jumbo CD.

Due to the large principal involved, jumbo CDs tend to be cash instruments for institutional investors such as banks or pension funds, both organizations with significant capital seeking stable investments. A jumbo CD can also be of value to high-net worth individuals with large cash holdings looking for a guaranteed return without need to access principal in the short term.

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We are a Certificate of Deposit (CD) management and consulting firm specializing in helping our clients find the best jumbo CD rates available nationally. We search the U.S. looking for federally insured banks (FDIC) and credit unions (NCUA).

We have been serving institutional and individual investors since 1991. The most popular terms offered are from 90-days to 5-years. We track over 200 banks and credit unions at any given time, and obtain specials throughout the week. Feel free to contact us and ask about current offers. Questions? Check out our FAQs page.

Our goal is not to just provide a rate, but truly a bridge to a better banking experience.

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Jumbo CD Investments has been serving our clients for over 25-years! We currently serve over 1,000 clients nationwide and oversee about $1.4 billion. We are located in the beautiful Sacramento area in a small town called Dixon.