I
nvesting in certificates of deposits or CDs is a safe way of investing. Jumbo CDs offer better returns but require larger deposits. An investor should find out about high yield jumbo CD by comparing rates in order to safely determine the kind of institution to invest in. There are plenty of financial institutions such as banks that offer CDs and jumbo CDs. by their rates, it will be easy to determine which one offers the best yields.
The catch with jumbo CDs
There is a catch with jumbo CDs in that they require investors to deposit much larger incomes such as a minimum of $100,000. If such amounts are deposited in a CD account, the owner will earn a fixed interest and receive an attractive income. This is the reason why jumbo CDs are so popular. They offer great yields to investors.
Advantages of investing in jumbo CDs
There are other advantages of investing in jumbo CDs. Investors can get their money back in as little as one week with very good interest rates. This means one can make good money in just seven days. Another advantage is that CDs mature fast with the largest investment period being 6 months and the shortest being 1 week. Therefore, there are plenty of benefits investing in the jumbo CDs.
There are also some drawbacks as well. One drawback of jumbo CD investments is that there are taxes to be paid on the income accrued. Investors have to pay taxes on the interest accrued. Another is that high amounts of cash are needed to successfully invest in jumbo CDs. This might be prohibitive. The money also gets tied down for periods of time where access is not possible. To find out the high yield jumbo CD rates, an investor should ask their broker to find out or they can check with a number of other banks. This is a great way to ensure that an investor can invest in a great product and enjoy great returns.
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