cds

What is a one-year jumbo CD?

 

What is a one-year jumbo CD?

(The Bankrate.com financial term of the day is:) "One-year jumbo CD."

This also could be called a one-year jumbo certificate of deposit. It's a big, fat deposit account that's insured by the Federal Deposit Insurance Corp., or FDIC, and will typically earn higher interest than a regular old savings account. But it's also like a jumbo elephant sitting on your savings. You can't touch your money for one year -- or else you'll likely be charged a penalty. You may need at least $100,000 to open one of these accounts, which pay higher rates than smaller, not-so-jumbo CDs.

If you have a big pile of money you can afford to keep out of reach until next year, you might consider a one-year jumbo CD for a heftier payoff than you'd get with other deposit accounts.

To find the best rates on Certificates of Deposit, visit the CDs tab at Bankrate.com.

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