Bigger investments for better profit with jumbo CDs

When we talk about investing in certificate of deposits, the strategy to make more money is to invest bigger and better. Although there are many different types of CDs available that are designed to meet various demands of investors, jumbo CDs offer the best returns for the money invested. Jumbo CDs earn a greater interest rate than most of its other contemporaries because the period of investment is longer and the amount usually invested are bigger. 

Jumbo CDs work well because of the following reasons:

• The interest rates obtained for an investment is always better than any other investment plan.
• Since jumbo CDs account for a considerable sum of money, the local banks will always be willing to negotiate a decent deal with the investor. Better interest rates are offered and sometimes, penalties are lowered upon withdrawal too.
• It takes lesser time to make a handsome profit out of jumbo CDs. Where most other CDs take one to two years to earn a nice profit, Jumbo CDs can equal that in less than six months. That way, the longer the CD is kept, the better the profits. 

Since jumbo CDs involve higher amounts as investments, they cannot be FDIC insured. FDIC insurance is only for CDs that fall below the $100,000 cap. Although no insurance means more chances of risk, the profit of a jumbo CD is too good to ignore. Jumbo CDs are comparatively very safe than most other high risk investments. Since most banks offer jumbo CDs, investors have a wide choice when it comes to choosing their investments. Before investing in Jumbo CDs, the following things have to be kept in mind:

• Shopping around in various banks and investment companies before buying a CD is a good idea. Since interest rates differ greatly by banks, it is better to enquire in at least three banks before choosing one.
• Jumbo CDs have higher penalties associated for early closures of the investment. So before investing in Jumbo CD, it is important to plan ahead so that the money should not be prematurely withdrawn.
• Since interest rate is applied for the total money invested, withdrawing even part of an investment will cause the interest rates to change. To enjoy complete benefit of a Jumbo CD, it is recommended that the investment in intact for the complete time period.

Any investment plan is good since it helps to have access to any amount of savings during financial difficulties. But Jumbo CDs offer that extra edge of profit for the same time period, which makes them a better investment plan.