Jumbo Long-Term CDs
To be considered a Jumbo Long-Term CDs, the deposit amount has to generally exceed $100,000. With the current FDIC limit at $250,000 for deposits to be covered with 100% money back guaranteed, these long term high amount CD’s are a very safe investment.
The terms for most of these CD rates are at a fixed interest and APY for most financial institutions. Because the deposit is so large, most have interest that is accumulated on a daily basis for maximum growth. This is one of the features that make them so attractive.
Investors should always read the fine print that is associated with any kind of investment including this kind. In many cases the interest rates are on tiers while other times they are the same rate as those with lower deposit amounts.
The date of interest payout must also be considered. The only way to reach the maximum and stated APY’s is for the interest to stay on deposit attached directly to the CD. If you take the option, if offered, for the interest to be paid to another account, this will affect the overall yield of the CD.
Nearly every CD including the jumbos has a EWP or early withdraw penalty. These penalties are different for every financial institution, but most are very close. For CD’s with maturities under 1 year, the penalty is about 180 days of interest. For CD’s with maturity dates over 1 year, the penalty can be as much as 1 year’s interest.
Just because the name is Jumbo Long-Term CDs read and compared the interest rates and the APY’s. The jumbo is in reference to the deposit amount, not the interest or APY you will receive.
For additional resources about CDs on this website, please view Best Illinois CD Rates. On our other sister sites, there is information on checking bonuses at on PNC Bank Checking Bonus.
We strive to bring you the latest and most accurate data possible from the home sites of the financial institutions we name. Always remember, the bigger the risk, the larger the reward or loss. Invest with caution.
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- Best Jumbo CD Rates
- Best CD Rates 1 Year Term Credit Unions
Tags: bank cd rates, Best CD Rates, CD rate, investing, jumbo, long term, money
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