JUMBO CDS
Large denomination certificates of deposit* are issued in minimum amounts of $100,000. Total deposit balances are insured to the maximum allowed by the FDIC, currently $100,000.
Terms and Structures
- Maturity
From seven days to five years, with longer maturities available upon request - Issued
As dictated by market conditions and funding needs of issuing bank - Form
Issued in book entry form - Quoted
On an annualized yield basis - Rate Structure
Yields are determined by current interest rates, and may vary with market conditions, maturities, and transaction size - Interest
Paid at maturity - Denominations
Typically issued in $1 million increments - Marketability
Not marketable because they must be held to maturity - Security
Insured by the FDIC for amounts up to $100,000; collateral may be available for amounts of $100,000 as legally permitted by national banking laws (this does not apply to large denomination CDs purchased by individuals or corporations) - Tax Status
Interest is taxable for federal and state purposes
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