What are the average rates for a jumbo CD?


Quick Answer

Bankrate.com reports that for a standard size $100,000 jumbo CD, the one-year yield is 0.31% while the five-year yield is 0.90%. These rates are 0.05% higher than standard CD rates for the same time periods, reflecting the fact that CD investment returns are at historic lows.

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Full Answer

Fool.com acknowledges that jumbo CD rates currently offer almost no significant increase of return over traditional CD rates. In 2000, five-year CDs offered a 5.97% return, and in 1990 this rate was 8.06%. Jumbo CD rates were even higher for both periods. The current inflation rate in the United States is 0.2%. As a result, a one-year jumbo CD currently yields 0.11% real return over inflation, while a five-year CD earns 0.69% real return over inflation.

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