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The largest risk to a jumbo CD is should you put a big amount of money into it – for a long period of time – and that money isn’t keeping up with inflation. The threat isn’t that you will lose principal, but that you’ll lose buying power if inflation is ahead of the APY you’re incomes on the jumbo CD. Jumbo CDs often require a deposit of a minimum of $100,000, although some banks may require less. A financial institution might give you the next rate for depositing more cash with it, however savvy buyers can go searching for one of the best rate, whether or not it’s on a jumbo CD or on a regular CD.
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