Compare High Yield Jumbo CD Rates

I nvesting in Jumbo CDs is one of the most viable investments that an individual can make. It is an investment category that is capable of producing high returns. Certificate of Deposits (CDs) refers to accounts that earn fixed interest within a fixed period of time. A person can get high returns by investing his/her money in the CDs account for a specified period of time. The investment period can vary from a few months to several years. A CD term that spans for a long period earns a higher interest rate. It is important to avoid withdrawing money from your CD account before it matures. You can be slapped with stiff penalties if you withdraw money before maturity. A jumbo CD involves investing larger amount of money as compared to the conventional CD. A minimum of $100,000 is required to open a Jumbo CD. The interest rates of Jumbo CDs are higher than the traditional CDs since they ties up large amount of money for a fixed period of time. Jumbo CD is a highly safe investment since the principal amount is insured. There is a guarantee for minimum rate of interest. There are several advantages of Jumbo CD. They include: · It is safe · It brings higher returns · It is a source of quick earnings · It can act as collateral It is also important to consider the following drawbacks before investing in Jumbo CD. · The interest earned is taxable. · It requires large amount of money. · It involves heavy commitment. Jumbo CDs is ideal for investors with a low risk-tolerance and have large amount of ready cash. Jumbo CDs are low-risk investment that offers the best current return. The increasing interest rates are likely to make Jumbo CDs more attractive prospective investment strategy in the coming years. It is advisable to start with the shorter-term certificate when purchasing Jumbo CDs for the first time then focus on better deals that may come with the increasing interest rates. The current uncertain economy requires an investment option that brings high returns. Jumbo CDs is definitely a low-risk investment that gives high returns. [Photo: flickr]