Do jumbo CD’s offer higher yield?

Certificate of Deposit or CD can be compared to opening a time deposit account with your bank. The usual issuers of CD’s are commercial banks though there are some types which can actually be bought from brokers. Like your time deposit, CD’s can not be withdrawn before the maturity date and cannot be accessed despite client demands. Also, like bank deposits, CD’s also gain interest. Depending on where and what type of CD you acquire you would be able to enjoy high yields. Remember that rates for CD’s are not universal so it is important that you go searching for the bank or issuer that can give you better if not the best rates.

There are different types of CD’s one can choose from a callable CD, short-term CD, Bear CD, Bull CD, Ladder CD and Jumbo CD. CD investors differ. There are small and big time depositors. For those who have the money, one recommended CD type is the Jumbo CD. If you are someone who is after an investment with lower risks, then Jumbo CD is the option. Jumbo CD comes in large values which is at least one hundred thousand dollars.

Maturity date for Jumbo CD ranges from three months to six years and like a bank time deposit and the rest of the CD types, you can not access your account outside its maturity date. The amount of interest a depositor receives would depend on how much he deposits and how long his money stays with the issuer. The most common buyers of Jumbo CD are big entrepreneurs. People looking for an investment that calls for high investment and high returns in just a short period of time, Jumbo CD is just the perfect investment. Jumbo CD could be a good way of investment provided you prevent yourself from accessing your account every now and then for if you do so, you’ll just wake up gaining not a single cent.

Since there is a need for huge money investment for Jumbo CD, proper protection is given to the investors and their money. The FDIC back-up such investments so you still have to feel relaxed in case your issuer is on the verge of declaring bankruptcy.

Al investments come with risk but they could at least be minimized with the right approach and understanding. Talk this out with your financial adviser to have a clearer picture of what this CD is all about.