Bank CD Rates

To find the best Jumbo CD rates, an investor must know what a Jumbo CD is. One thing for sure, it does not have big ears and it does not fly. A jumbo CD is similar to a regular CD but the deposit amount is considerably larger. Most minimum deposits for a jumbo CD are over $100,000.

The terms of a jumbo CD are generally the same as a standard CD. These are low risk time deposits that give a fixed rate of return for a specified length of time. Most terms are between 3 months to 6 years. There are terms as short as 7 days and as long as 10 years, but these are unusual and are not available at every financial institution.

Currently there are 3 jumbo bank CD rates that have an interest rate of 3.25% for a 5 year CD.  They are from Discover Bank, OneWest Bank FSB, and State Bank of India. The minimum deposit for each one of these is $100,000. There are different APYs associated with these CDs. The one from Discovery Bank has an APY of 3.30% and was posted on 12/22/09. The CD from OneWest Bank FSB has an APY of 3.30% and was also posted on 12/22/09. The CD from the State bank of India has a lower APY at 3.29% and this rate was posted on 12/22/09.

These are better than the average jumbo CD rate for a 5 year term which has an interest rate of 2.713% with an average 2.745% APY. But to receive a jumbo rate, they all require a minimum deposit of $100,000. There are banks that have a lower minimum deposit like Advanta Bank, but the deposit is still out of reach for most Americans at $90,000.

The Jumbo CD rates are easy to find, but for the amount gains as compared to the amount you loan to the bank, there are better investments.