Quick Definition

A Jumbo CD (Certificate of Deposit) is a type of savings account that holds a larger-than-standard amount of money and typically offers higher interest rates in return for a fixed term of deposit.

Examples

• 1A bank offers a Jumbo CD with a minimum deposit of $100,000 and an interest rate of 2.5% for a 5-year term.
• 2An investor chooses a Jumbo CD over a regular CD to take advantage of the higher interest rates for a substantial sum of money.
• 3A retiree invests in a Jumbo CD to secure a stable, higher yield on their savings as part of a conservative investment strategy.

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