Jumbo CD

A Jumbo CD is a certificate of deposit (CD) with a high minimum deposit amount. They typically have higher interest rates than regular CDs and can range in amounts up to $100,000 or more.

For example, a bank may have a minimum deposit amount of $25,000 for a Jumbo CD, with a two-year maturity date and a fixed interest rate of 3%.

Interest can be calculated by multiplying the amount of the CD by the interest rate, and then multiplying this number by the number of years the CD is held. In this example, the calculation would be: $25,000 x 3% x 2 = $1,500.