Jumbo CD Investment

As the faint green shoots of recovery from the recession are beginning to appear, banks are beginning to ease their restrictions on lending and the number of mortgages being acquired is growing, albeit slowly. There is still nervousness and uncertainty regarding the sustainability of recovery and growth but many economists and financial experts agree that we ought to be more audacious and aid recovery by spending and borrowing. This will help to stimulate the economy and kick-start growth.

In view of this you may want to consider investing in Jumbo CDs. which are generally recognised to be relatively cautious, risk free and return high yields on your investment. They are short term investments and therefore your money is not locked up for a lengthy period. The term “Jumbo” indicates amounts that are in excess of $100,000 and although they do not have the same insurance protection as standard CDs, there are advantages and many reasons why you should consider such an investment. Because of the higher Jumbo CD rates of interest it takes less time to accumulate an acceptable return on your investment and the rates are noticeably higher than a standard CD or any regular bank or savings account. They are considerably more secure than other high yield investments where there is high risk and it is likely you will enjoy greater bargaining power with the bank, able in a measure to negotiate the terms, as you are helping them and will be considered an asset.

When I say that they are short term investments, I mean that they are substantially shorter than the 5 – 10 years associated with most high yield investments, with the maturity date arriving anything from 3 months to 6 years after negotiating the contract. The rates payable presently are amongst the very best available and there is a growing number of people who are showing serious interest in this form of investment. They are not so dependant on high risk stocks and shares or investments in ventures or companies affected adversely by the recession.

It is increasingly evident that because of low rates of interest on most secure investments and savings accounts, where interest is minimal, you need your money to be earning well in excess of the rate of inflation otherwise you are losing money in real terms. If you have capital that is not immediately required for any project in the foreseeable future, then I urge you to seriously consider Jumbo CDs as an attractive investment, with a reasonable degree of security and rewards that are difficult to match elsewhere. Talk to your bank manager or financial adviser and seriously consider a Jumbo CD as your next major investment. I wish you every success.