Benefits of Jumbo C D

1. BENEFITSOF JUMBOCD By: Spencersavings |www.spencersavings.com

2. INTRODUCTION CDs are an efficient and secure way to grow your money. With a fixed rate, the desired maturity date, and a low to no fee structure, CDs are a great way to invest your money. CDs generally come in two different types- Basic CD and Jumbo CD. When compared to basic CDs, Jumbo CDs require a higher deposit and carry more risk. But in return, they offer a higher interest rate. With Jumbo CDs, the risk is more but so is the profit. Before we move on to discuss more of its benefits, let’s discuss what Jumbo CDs exactlyare. WWW.SPENCERSAVINGS.COM

3. W H A T I S A JUMBOCD? A jumbo CD is a certificate of deposit that requires a minimum deposit of $100,000. Some credit unions and banks do offer them at a lower deposit amount but only for special cases. Basically, you deposit your money for a specific length of time. The bank or credit union uses your money to offer loans, mortgages, and such. In return, you get the interest on your investment. As jumbo CDs are not liquid assets, you cannot withdraw money before your investment has reached its maturity. If you do, you will have to deal with incurring fees andpenalties. Typically, it is only sold by large institutional investors like pension’s funds, banks, and more. Its high- minimum denomination makes it impossible for small institutions to offer their services. These temporary investment vehicles offer flexible maturity period with tenors as little as seven days. So, you can choose your own time period and invest the amount for the said time. So, now that you know what Jumbo CDs exactly are, let’s discuss theiradvantages. WWW.SPENCERSAVINGS.COM

4. HEREARESOMEBENEFITS OFINVESTING INJUMBO CDs WWW.SPENCERSAVINGS.COM

5. FIXEDRATEOF INTEREST The financial market has its own ups and downs. It can be quite unpredictable and volatile, which makes losing your money a possibility. A Jumbo CD offer security and predictability that other investments do not offer. Unlike stocks and real estate, Jumbo CDs offer a fixed rate of interest for a fixed term for attaining maturity. You do not have to worry about the changing interest rate or decline in the financial market. You will get the amount that you are promised at the very start. As these CDs and their offered interest grow slowly and steadily, you are saved from the volatile and ever- changing financial marketsituation. WWW.SPENCERSAVINGS.COM

6. INSUREDBY THEFDIC Jumbo CDs are one of the safest choices for investment. Unlike the unpredictable stock market and the volatile bonds, CDs offer guaranteed insurance of profit. One of the benefits of investing in a certificate of deposit is that it is insured by the FDIC. The Federal Deposit Insurance Corporation insures your money. So, even if the bank or the credit union closes, you get your money, along with the interest. Some Jumbo CDs even enjoy insurance from the National Credit Union Administration (NCUA). Though, it is noteworthy that both FDIC and NCUA limit offering insurance on any amount more than $250,000. If you have invested more than$250,000,youwillnotbeabletoavailaninsuredinvestment. WWW.SPENCERSAVINGS.COM

7. ANEFFECTIVE SAVINGTOOL Jumbo CDs might not make you rich, but they are a great way to save for your future. If you are looking for an overall investment and savings plan, Jumbo CDs are safe, predictable and profitable choice. As they offer a high-interest rate compared to the basic CDs, they are a little riskier. But the risk is minimal and easily negated. WWW.SPENCERSAVINGS.COM

8. CANBEUSED AS Are you looking for a personal loan with a bank? Or want to secure another type of financing? Jumbo CDs are effective collateral for your loan application. You can use your Jumbo CD as collateral and secure your financing requirements. Although, if you do use it as a collateral, it cannot be a part of your retirementaccount. COLLATERAL WWW.SPENCERSAVINGS.COM

9. FLEXIBLE MATURITY PERIOD Unlike many investment opportunities that only offer a fixed term for maturity, Jumbo CDs are flexible and adjustable. You can set your own term and invest your funds for a set period that aligns with your financial goals. Let’s say, you want money for your children’s higher education in ten years. Or maybe want to save for a foreign trip with your family. So, you can set the maturity period in accordance to the time when you need the money. Retirement experts suggest that Jumbo CDs are a great way to save for large, one-time expenses. You can simply time the CD according to your life events and avail the moneywhen you want to. WWW.SPENCERSAVINGS.COM

10. LOWTO NOFEE STRUCTURE Another noteworthy benefit of dealing with the certificate of deposit is that it has low to no fee structure. Some banks and financial institutions offer no charge for holding your money in a CD. Some do charge, but the amount is minimal and nothing striking. So, you are saved from paying any extracharges. Although, it is essential to note that there are some fees and charges that do exist. For example, if you want to take your money out before it reaches its maturity, you will have to pay a fine or deal with a penalty. Most such fees and penalties depend on the agreement that you sign at the time of opening your account. So, make sure you pay attention and know clearly about the fees and penalties. There are numerous banks that also offer no-penalty CDs if you want to look intoit. WWW.SPENCERSAVINGS.COM

11. INFLATION- THEULTIMATE JUMBOKILLER While Jumbo CDs have numerous benefits, there are some disadvantages that one might have to deal with too. Jumbo CDs do not keep up with the inflation rate. So, if the inflation rate is high (even if the interest rate remains unchanged), your profit will decline. It is crucial that you pay attention to the inflation rate and make your decision accordingly. Experts suggest going with jumbo CDs even if the profit is low. Mainly because it is better to invest than letting it sit under your mattress, gatheringdust. Want to learn more about Jumbo CDs? Contact us today or visit one of ourbranches. WWW.SPENCERSAVINGS.COM

12. About Spencer SavingBank Spencer Savings Bank is a full service, mutually owned and operated, community bank operating 21 branches across New Jersey. We’ve been in business for over 100 years, have more than $2.7 billion in assets and a team of nearly 300 dedicatedemployeeswhospecializeindeliveringpremierbankingproductsandservices. Spencer prides itself on being one of New Jersey’s strongest community banks – maintaining its distinct image of trust, security and commitment to its customers throughout all these years. We meet the full range of individual, business, commercial, and municipal banking needs through our broad menu of banking products and services. From basic personal checking services and small business products to financing expertise on multi-million dollar properties and commercial enterprises, Spencer’s banking capabilities are on par with those of the larger regional and national banks. Our highly experienced management team provides a unique and personal approach to banking locally, servicing its customerswithanexceptionallevelofcarethatcanrarelybefoundatlargerbanks. At Spencer, we understand the importance of getting to know you as a customer. Not only will you have access to our broad menu of banking capabilities, you’ll also receive the personal attention you deserve as a valued customer. By taking the time to understand your needs, we become partners in the success of your business and personal financial goals. We’re also proud to partner with our neighbors to improve the quality of life for our community. With our roots as a community bank, we proudly support local business and workforce initiatives in the areas we serve, in addition to numerous civic groups, charitable organizations and youth educationalprograms. WWW.SPENCERSAVINGS.COM

13. CONTACTUS MailingAddress 611 River Drive Elmwood Park, NJ07407 EmailAddress personalaccounts@spencersavings.com Phonenumber 1-800-363-8115