Jumbo CD
Categories: Bonds
This term doesn't represent a throwback to the early 1990s, when you'd get really big CDs so you could play both volumes of Use Your Illusion without having to change discs.
Instead, we're talking about certificates of deposit (very safe government-backed bonds). These CDs represent safe, low-return investments.
Basically, they exist a level above bank accounts on the investment scale. You get little more than nominal interest, but you know your money is safe. The only downside is that you have to tie up the funds for a period of time.
The "jumbo" part comes in because you have to put in a relatively high minimum amount, compared to other CDs; they require you to invest $100,000 or more. You get something for your money though. Jumbo CDs offer a higher rate of return.