What are Certificates of Deposit?
Is Jumbo CD Investments a bank?
Why use Jumbo CD Investments?
How do I open a CD?
How much money do I need to invest?
Is my money insured?
Are Certificates of Deposit a safe investment?
Why are there fees to open a CD?
What is the difference between an APR and APY?
What is a laddered CD Portfolio?
Where are the highest CD rates?
How do I send the funds?
A Certificate of Deposit (CD) is known as a time deposit. You are promising the bank that you
will leave your funds on deposit with them for a certain period of time. In the olden days, the bank would actually issue you
an original certificate that you would present to redeem the CD and receive your funds back. Now most banks give you a safekeeping receipt
(the bank is keeping your CD safe in its vault)
that shows you the details of your deposit such as the term, rate, etc. Because you are promising to leave your funds on deposit and the bank
can count on those funds, they pay a higher rate than they would for a savings account or money-market. Generally, the highest CD rates are offered on
the longer term CDs. A Certificate of Deposit can be redeemed early, but the penalty may be substantial. We only work with FDIC or NCUA insured institutions.
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No we are not a bank. We are CD (Certificate of Deposit) brokers. We call banks and credit unions across the country
looking for the best and highest CD rates. We only work with federally insured banks (FDIC) and credit unions (NCUA). We provide you the information you need to open the CD at those institutions. You
send them the funds and they send you a confirmation and the interest payments.
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First, compared to local CD rates, our CD rates are usually higher.
Second, is the cost saving feature of your time. You can spend time searching for rates, calling to see if they are still good, acquiring wire instructions, sending applications, etc. -- instead call us for the best CD rates and service.
We have already made the calls. We know what each bank needs to open a CD and in most cases can open the CD for you or provide the letter you need. We then
track your CD to maturity. If any problems occur during the term such as missing interest payments, we will do our best to correct the problem or
put you in contact with someone at the bank who can. We will provide you a maturity reminder and help you receive your funds back, roll the CD, or move the funds
to an institution paying a higher rate.
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With us it is as easy as 1-2-3.
We specialize in jumbo certificate of deposits (CDs). These CDs are usually opened in
amounts of $90,000 to $100,000. Some banks offer a premium for opening a CD at $100,000 and
our highest rates may require that. Some banks have lower minimums and the lowest amount we work with is $50,000.00. Let us know how much
you want to invest and we'll let you know the highest rate we have.
Email Us Or Call 1-800-234-4605
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Certificate of Deposit Rates Page
Companies and organizations can have up to $100,000.00 of insurance per institution. Personal funds can have up to $400,000.00 if they open two single tenant CDs for $100,000.00 and a joint tenant CD for $200,000.00. There are additional account types that can receive additional insurance. Ask us and we can come up with a plan and give you the ins and outs. As of 4/1/2006, IRAs will be insured up to $250,000.00. The FDIC (Federal Deposit Insurance Corporation) insures your money in the case of a bank failure. Banks that have FDIC insurance are assigned a unique number. You can verify that a bank is insured by going to the FDIC's web page or calling 877-ASKFDIC (877-275-3342). Be aware that some banks have opened up an Internet bank under a different name, but the insurance is still through the parent bank. Always verify the FDIC# and bank that the insurance is through.
If your funds are with a credit union, the NCUA (National Credit Union Administration) insures them incase of a credit union failure.
You can verify that your credit union is insured by going to CU Finder.
The NCUA follows the same insurance guidelines as the FDIC. Many people don't have funds with credit unions because you usually
have to be in their vicinity to qualify for membership. However, a few have nationwide membership. This is usually accomplished by a small donation
to a group that is in their field of membership.
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CDs that are federally insured by the FDIC or NCUA are safe investments. In addition, for the level of
safety, they offer a high return (currently as high as 6%). CDs offered by offshore or non-insured banks may not be safe. They usually tempt you with rates ranging
from 7% - 9%. But, you need to view an investment in an offshore or non-insured bank like an investment in the stock market. Ask yourself, is the return
worth the risk?
Principal can be lost. However, with federally insured CDs, as long as the combination of your principal and
interest remain below the insurance limits, there is no risk of losing your investment. Federally insured CDs are probably the safest investment
with the highest return.
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Jumbo CD Investments provides more than just a rate. We are a CD management service.
We call banks and credit unions all over the United States looking for the best CD rates.
In addition, we help the investor with the placement instructions. We also help with maturity reminders
and negotiating roll rates so you don't accidentally auto-roll at a low rate.
Finally, we help you during the term of your CD. We help solve any problems that may occur such
as missing interest checks or statements. We are working to help you earn the most interest and to
enjoy it. Many other sites choose to work for their advertisers instead. Our fee is a one-time 0.10% charge
based on the amount and term. For example, $100,000 invested for 1-Year would be $100; for 2-Year it would be $200, etc.
Please call or email for specifics.
Email Us for current CD Rates Or Call 1-800-234-4605
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Certificate of Deposit Rates Page
The APR is the Annual Percentage Rate or simple interest rate. It assumes
the interest will be paid out on a monthly basis. The APY is the Annual Percentage Yield or compounded
yield. It assumes the interest is invested back into the CD and then also earns interest. Not all banks will allow
the interest to compound. Banks that do, will either compound daily, monthly, quarterly, or semi-annually.
There is some risk if you open a $99,000.00 or greater CD and allow the interest to be compounded.
If for some reason the bank does close, then any amount over $100,000.00 would be uninsured, thus causing some or all of the interest to be lost.
For more detailed information please see our article, What Is the Correct CD Interest Rate
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A laddered CD portfolio is an investment strategy that allows you to keep
your funds in the safety of FDIC insured CDs, yet, weather some of the ups and downs of
the fixed income investment market. Let's say you have $500,000.00. If you put all of the money
into 6 month returns you will earn about 5.40% APR. However, if you invest into a 6-month, a 1-year, a 2-year, a 3-year, and a 5-year, your
rate of return will be about 5.51% APR and will increase as rates increase.
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We don't limit our rate searches to any certain area. The highest rates may be in
Georgia one week and in Tennessee the next. Matter of fact, your bank next door may
have the highest national CD rate, but they may not offer it to their local customers.
A bank may have a short-term need and they don't want to have the rates on their core
deposits go up or give the expectation that they should be higher. Banks use deposit brokers
to fill those needs without unnecessarily increasing their rate expenses. Because our CD rates
are with FDIC and NCUA insured institutions, your funds are safe. If you wire the funds through the Fed wire
system they are secure. Finally, we are just a call away, giving you peace of mind.
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The best way to send your funds is by secure Fed wire. The funds will be credited to your account the same day
you wire and you will begin to earn interest. Some banks will accept checks if you prefer, but you will lose a day of interest for every day the
check is in the mail. Furthermore, unless the rate is guaranteed until receipt, the interest rate could decrease.
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Please note: We do not control the ads that are displayed. Our company only offers FDIC or NCUA insured CD investments from banks and credit unions. There may be ads for company's offering non-insured products. Please read all information carefully before making an investment. If you only want federally insured products, you can verify whether or not an institution is insured by visiting the FDIC or NCUA