12 month Jumbo CD Rates

A 12 month Jumbo CD (certificate of deposit) is a time deposit, FDIC-insured up to $250,000, with a fixed maturity date of twelve months. It usually pays higher interest than a savings account and a penalty is typically charged for withdraws before maturity.

Jumbo CD’s rates, in general, yield higher rates than normal CD rates because of the deposit amount required to open one. $100,000 is the average minimum deposit for most banks nationwide, however, some banks may require more.

The yield on a 12 month (1 Year) Jumbo CD is higher than the rate because the yield factors in compounding. Banks offer daily, monthly and quarterly compounding rates. Banks compete for your business by offering different rates with different compounding frequencies.