Looking for a great way to save your money? Put your money into a jumbo CD and watch it grow. A Certificate of Deposit is essentially an agreement between you and the bank. You're lending your money to the bank and in return, they return the money back to you with Interest. There are many different options as far as Time is concerned. You have agreements for as long as seven years and agreements as short as 30 days. Jumbo CD's are so named because the minimum deposit for a Jumbo CD is $100,000. So if you have a large sum of money you are looking to put away for the future, choosing the right jumbo CD can help you get more from your money through interest rates that the banks pays you. Read on to learn more.
The best part about jumbo CDs in that they have on average a higher rate of return than a normal CD rate for the same time invested (the term of the CD). And like any bank account, all accounts in US Financial Institutions such as Banks & Credit Unions are insured by the FDIC & the NCUA for up to $250,000. One such jumbo CD comes from M.Y. Safra Bank. Based out of New York City, MYS Bank offers Jumbo CD's for as short as 30 days at 1.1%. They also offer long-term notes starting at 2.6% for three years and up to 3.25% for seven years.
Another good option for a great rate is Veridian Credit Union which is based out of Waterloo, Iowa. For the short-term seekers, Veridian offers a seven-month Jumbo CD for 1.4%. For the investors for the long-haul, Veridian has a 39-month Jumbo CD for 2.379%. Veridian also offers a limited-time special on two specific terms, both long and short. An 18-month term for 3.016% and a term for 41 months with a 3.407% rate.
Based out of Manhattan, Kansas; KS State Bank is a great option for Jumbo CD's. Like the others above, they have a wide range of terms to select from. You can go as short as one year for a rate of 2.72% or you can go with a five-year term for a rate of 3.31%. For those who have the Capital to make such an investment, it's one of the safest investments that you can make. Let's use the last Bank mentioned as an example to see how much interest you stand to make. On a $100,000 deposit, on a five-year term with a 3.31% rate, you would make $17,682.48 in interest upon CD Maturation. For a $250,000 deposit with the same numbers, you'd get $44,206.20 in interest!
So, as you can see, Jumbo CD's can be the vehicle to make a safe and consistent return on investment. For those who can make such a deposit and have the time to invest, you should investigate this as a viable option. Provided you have the funds, a jumbo CD is a great investment for your future and your family's.