A 1-year jumbo IRA CD (certificate of deposit) is a time deposit, FDIC-insured to $250,000 per person, with a fixed maturity date of one year. It usually pays higher interest than a savings account and a penalty is charged for withdrawing funds before the maturity date. Jumbo CDs have a very high minimum -- $100,000 is common -- and they pay higher rates than smaller-denomination CDs.
