Advanced English Dialogue for Business – Jumbo certificate of deposit

Listen to a Business English Dialogue about Jumbo certificate of deposit

Ronald: Peyton, have you ever considered investing in jumbo certificates of deposit (CDs)?

Peyton: No, Ronald, I haven’t. What are they exactly?

Ronald: Jumbo CDs are large-denomination CDs typically offered by banks and financial institutions with higher interest rates than regular CDs.

Peyton: Interesting. What qualifies a CD as “jumbo”?

Ronald: Generally, CDs with a minimum deposit requirement of $100,000 or more are considered jumbo CDs.

Peyton: Ah, I see. Are there any advantages to investing in jumbo CDs compared to regular CDs?

Ronald: Well, jumbo CDs often offer higher interest rates, making them a potentially attractive option for investors looking to earn more on their savings.

Peyton: That makes sense. Are jumbo CDs typically offered for longer or shorter terms?

Ronald: They can vary, but jumbo CDs often have longer terms ranging from one to five years, although some may offer shorter terms as well.

Peyton: Got it. And are jumbo CDs FDIC-insured like regular CDs?

Ronald: Yes, jumbo CDs offered by FDIC-insured banks are typically protected up to the maximum insurance limit per depositor, per institution.

Peyton: Thanks for clarifying, Ronald. I’ll definitely look into jumbo CDs as a potential investment option.

Ronald: You’re welcome, Peyton. If you have any more questions about CDs or other investment opportunities, feel free to ask.