Jumbo CD Rates Remain Up at 1.26%

Because of the way the economy has been going, we can’t expect CD rates to be performing well. Despite the dips and lows that fixed rate certificate of deposits have been facing, it comes as a surprise that their comrade, the jumbo CD, seems to be going up instead.

Jumbo CD rates may not be at their best performance, but they sure are holding up to the rates of the past. The highest CD rate for a 1 year jumbo CD is from E-Loan, with a 1.26% APY and 1.25% rate compounded daily. Coming closely at second is Aurora Bank with 1.23% APY and 1.22% also compounded daily. After Aurora Bank’s rate is a tie between Ally Bank and Discover Bank, both at a 1.20% APY and 1.19% compounded daily.

For those who choose to keep their money in jumbo CD’s for longer though, you can rejoice at a rate as high as 2.40% from First Internet Bank of Indiana. Again, Aurora Bank comes at a close second with a 2.39% APY. Ever Bank then comes at third with a 2.36% APY. These rates apply for jumbo CD rates at the longest term of 5 years.

Past 1 year jumbo CD rates have gone up to 1.45%, but the rates today aren’t too far off despite the economic instability. This allows individuals, small businesses and company owners to breathe a sigh of relief knowing that they can still see some growth with their money. All of these banks have a $100,000 minimum deposit policy.

Jumbo certificates of deposit essentially have the same perks as other fixed rate CD’s, and at this time of unpredictability, it’s good to know that the jumbos are still prevailing.


Jumbo CD’s with Jumbo Rates

Jumbo CD rates aren’t called jumbo for nothing. The minimum investment amount for this type of certificate of deposit is usually around $100,000.00. If you’re an individual who prefers to invest large sums of money in certificates of deposit, jumbo CD rates would be a good choice. This is also the type of CD companies invest in due to the large amount it can accommodate.

Rates can vary among different banks and the length of time you intend to keep the money in the CD. Aside from checking the interest rate, taking note of the APY or annual percentage yield is also a good indicator of how much you will really be getting at the specified time. Here is a list of the best jumbo CD rates from different institutions, including the best rate for varied time frames.

1. 1 month jumbo CD
USAA
APY: 0.50%
Rate: 0.50%
Compounded monthly

2. 3 month jumbo CD
Nexity Bank
APY: 0.75%
Rate: 0.75%
Compounded Daily

3. 6 month jumbo CD
Metropolitan National Bank
APY: 1.15%
Rate: 1.15%
Simple interest

4. 1 year jumbo CD
Metropolitan National Bank
APY: 1.35%
Rate: 1.35%
Simple Interest

5. 3 year jumbo CD
Transportation Alliance Bank
APY: 1.92%
Rate: 1.90%
Compounded Daily

6. 5 year jumbo CD
Nationwide Bank
APY: 2.50%
Rate: 2.37%
Compounded Daily

These rates in each time category are by far the best in jumbo CD rates as of the month of March. One thing to note with any type of interest earning vehicle is to check the number of times the interest is compounded. The more often it’s compounded, the more money you can earn. The best deals are from Nexity Bank, Transportation Alliance Bank and Nationwide bank for giving out daily compounded interest at such high rates.


What Is The Minimum You Can Invest In A CD?

Certificates of deposit are a safe option for investing your money. A certificate of deposit or CD can range from $100 to $250,000 or more depending on the issuing banking institution. Most banks require a minimum of $1,000 but can go as low as $100. It is not recommended that you invest over the $250,000 limit because that is also the FDIC’s insurance limit. When you find a CD to invest in, it is always important to make sure the financial institution is FDIC or NCUA insured. This will make sure your principle and interest earned is safe and protected from a failed institution. Usually the longer you invest in any certificate of deposit the higher the rate you will earn. Some banks even offer Jumbo CDs for those who have large amounts of money to invest. These Jumbo CDs also tend to earn a higher rate. The more you deposit the higher the interest rate you will earn.

Other Certificate of Deposit Considerations

  • Early Withdrawal Penalties. It’s important to know the policy of an Early Withdrawal Penalty before depositing your money. Some banks have strict penalties for withdrawing your money early, ranging from just a few months interest earned up to the full amount of interest earned. There are some banks that have specific CDs with no Early Withdrawal Penalties. Ally Bank has offered no early withdrawal penalty CDs, but these usually come with a much lower interest rate.
  • Interest Rate Bumps. Some financial institutions offer the ability to increase your interest rate once during the term, allowing you the flexibility of earning the highest rates being offered. Ally Bank has offered the ability to increase your interest rate just once during the term if rates increase.
  • Term & Conditions. It’s important to read the terms and conditions of your account as some certificate of deposits require you to add additional deposits via direct deposit. Many CDs are set to automatically renew at the end of their term, so if you do not catch the end of your CD, you might lose access to that money again for another term. Worse off, you would have to forfeit interest earned to get the money out.

No matter how much money you have, you can always find a CD that will fit your needs. By investing into a CD you will begin your way to a more stable financial future.


Redstone Federal Credit Union Jumbo CD Rate Offer

Redstone Federal Credit Union out of Huntsville, AL has some competitive Jumbo CDs that are worth mentioning. Although they have regular certificate of deposits they also have Jumbo CDs with slightly higher interest rates. For those who have at least $100,000 to lock down on a certificate of deposit, then a Jumbo CD at Redstone FCU might be the place.

Most credit unions have strict membership requirements but if you live in the Huntsville, AL area, you might already qualify. They extend their services to hundreds of small and local businesses and their employees. To see if you qualify for their not-for-profit credit union, you will want to contact them.

Redstone FCU has been in business since 1951 and has assets valued over $2.6 billion. They are also insured by the NCUA.

Redstone Federal Credit Union Jumbo CD Rates:

Be sure to check out the Redstone Federal CU’s website for the most up to date CD rates. They also carry an A+ grade with the BBB, check it out here.