Making Big Savings by opting for Jumbo CDs

In times of financial crisis, what can save us is a sound investment. Investments are very necessary saving plan one has to make in order to sail through unexpected economic crisis, or just to make one’s future secure. 

Investments are of different types, and are categorized depending on two factors; the time period of the investment, and the amount of money invested. There are short term investments that lasts from 3 months up to a year, and long term investments that are anywhere from a year to six years and up. Investments that amount to more than $100,000 receive very high and stable interest rates, and are known as Jumbo CDs. These investments are very lucrative for the simple reason that, the amount that is invested in the bank is high, so naturally the interest rates will be much higher than the regular CDs in the market.    

Jumbo CDs can be made use of in the best way, if it is a long term investment. If you can afford keeping a huge sum of money in the bank for some time, it is better to hold it there for as long as possible. In return to the high investment kept in the bank, you will be guaranteed a fixed high rate of interest, which makes it a very low risk investment. 

Any investment that amounts lesser than $100,000 can be insured by FDIC (Federal Deposit Insurance Corporation). Most jumbo CDs are investments above $100,000 and therefore do not come under the insurance blanket. While this might be a potential risk factor, it is still very lucrative than most other types of investments. 

If you decide on investing big, and making a profit using Jumbo CDs, you will need to be aware of the following:

• Check in all the banks you know, to get the best interest rates, for your money. Usually smaller banks offer bigger interest rates, so make sure you check in your local banks first.
• If you wish to draw up some money from your Jumbo deposit, you will have to give up the interest rates corresponding to the sum of money you withdraw.
• If you wish to terminate your jumbo deposit prematurely, there are high penalty charges affixed to it.
• If you have more than one Jumbo deposit in mind, it is better to have them for different time periods, for example, first one for two years, and second one for a little longer time period.