Jumbo CD

Jumbo Certificate of Deposit

A certificate of deposit of large value, usually more than $1 million, that can be bought and sold, but not redeemed before maturity. See also: Negotiable CD.

Jumbo CD.

Jumbo CDs are large-denomination certificates of deposit with balances of at least $100,000, and sometimes $1 million or more.

They tend to pay higher rates than smaller CDs and are purchased primarily by institutional investors. However, they're increasingly marketed to individual investors as low-risk, fixed-income assets.

Jumbo CDs may be negotiable or non-negotiable. Negotiable CDs may be traded in the secondary market and are often issued in bearer form, which means that physical possession of the paper document is the sole proof of ownership. The banks that sell bearer CDs keep no records of ownership.

Non-negotiable Jumbo CDs, like conventional CDs, remain on deposit in the bank that issued them and are held in the name of the purchaser.

These Jumbo CDs, like other bank deposits, are FDIC insured, up to $100,000 per depositor in different categories of taxable accounts in each bank and up to $250,000 if they are held in self-directed retirement accounts, such as an individual retirement account (IRA).

References in periodicals archive ?
Only the first $100,000 of deposits is eligible for insurance, so the entire retail CD (which is less than $100,000) is insured while only the first $100,000 of a jumbo CD is covered.
In general, banks aren't likely to shuck a jumbo CD sale for the sake of a quarter-point.
It will continue to come down because basically what we do is turn around and buy jumbo CDs with the money we don't have out in loans.
These index annuities are designed to compete with savings products, jumbo CDs, high-yield CDs, and give a little bit better return.
Other liquidity options include money market deposit accounts, jumbo CDs, money market mutual funds and fixed-income securities.
metropolitan and rural markets with information on retail deposits, mortgages, auto loans, home equity loans, credit cards, and jumbo CDs.
Business money market accounts, jumbo CDs, investment, insurance and brokerage services also are available.
It was not possible, using the data reported in this study, to separate jumbo CDs from brokered deposits.
A same-day funds settlement (SDFS) service introduced by DTC in July of 1987 will extend the depository's book-entry services to include medium-term notes, jumbo CDs, commercial paper, and mortgage-backed securities.