What is a jumbo money market account?
When you’re saving money, you want to make sure you’re stashing it in the right place. Ideally, that will be in an account with a high rate of return. While savings accounts tend to offer a higher return than checking accounts, money market accounts — which are FDIC-insured up to $250,000, unlike money market funds — may yield an even higher rate of return.
That’s if you know where to find the best rates.
The money market accounts that offer the highest returns are known as jumbo money market accounts. In the past, these high-yielding accounts could have minimum initial deposits as much as $100,000, but today, you can get these higher rates with a much lower initial investment and sometimes there’s no minimum at all. For this round-up, we included accounts that required a minimum deposit of $25,000 and up.
In this roundup, we’ll explore the top rates.
UFB Direct, 0.40% APY, $25,000 Minimum Deposit to earn APY
While you only need a minimum deposit of $5,000 to open an account with UFB Direct, you’ll need to have a minimum balance of $25,000 to earn the 0.40% APY. If you balance is less than $25,000, you’ll end up earning an APY of 0.10%.
This account does come with a $10 monthly fee, but if you have an average daily balance of $5,000 or more in the account, UFB Direct will waive the fee. Checks and a Visa® Debit Card are available upon request. There is also a mobile banking app that will allow you to conveniently manage your account on-the-go. All deposits held with UFB Direct are FDIC-insured.
UFB Direct is an online bank and a division of Axos Bank The overall company has acquired over $9 billion in assets.
CFG Bank 0.80% APY, $25,000 minimum to earn APY
Maryland-based bank CFG Bank is currently offering the highest APY on a jumbo money market account. The Online CFG High Yield Money Market account comes with a 0.80% APY.
This account requires a $1,000 minimum deposit to open. However, you’ll need a minimum daily balance of at least $25,000 to earn the 0.80% APY, and only new funds are eligible
First Central Savings Bank, 0.90% APY, $50,000 minimum to earn APY
First Central Savings Bank’s E-Premier Money Market is a tiered-rate account, touting generous APYs for big depositors. For balances over $50,000, you’ll earn an APY of 0.90%. However, balances between $10,000 and $24,999 earn a dismal APY of 0.35%, while balances between $25,000 and $49,999 earn an APY of 0.55%. With this account, you will face a monthly fee of $10 if your balance falls below $10,000.
While First Central Savings Bank only has physical branches located throughout the state of New York, its products are available to consumers nationwide, online.
Service Credit Union, 0.75% APY, $100,000 minimum to earn APY
Currently, Service Credit Union offers a tiered-rate money market account, with the sweet spot being balances for those with at least $100,000, which earn an APY of 0.75%. Meanwhile, balances of at least $25,000 earn 0.60% APY while balances of at least $2,500 earn an APY of 0.50%.
Membership to Service Credit Union is open to anyone who also joins the American Consumer Council.
Premier America Credit Union, 0.70% APY, $100,000 minimum to earn APY
Premier America Credit Union boasts a competitive, tiered-rate money market account, rewarding depositors with big balances. Its sweet spot is for balances between $100,000 and $249,999, which doles out an APY of 0.70%. All of the rates for its tiered money market are as follows:
- $2,500-$24,999: 0.45%
- $25,000-$49,999: 0.55%
- $50,000-$99,999: 0.60%
- $100,000-$249,999: 0.70%
- $250,000-$499,999: 0.80%
- $500,000+: 0.90%
Membership to Premier America Credit Union is open to anyone who also joins the Thousand Oaks Alliance for the Arts.
Bellco Credit Union, 0.75% APY, $50,000 minimum deposit to earn APY
Bellco Credit Union is based out of Colorado, but it offers its services nationwide. Currently, one of its standout products is the Premier Money Market account, which earns an APY of 0.75% on balances of $50,000 or more and a lower APY of 0.35% on deposits between $10,000 and $50,000.
Veridian Credit Union, 0.70% APY, $100,000 minimum to earn APY
Veridian Credit Union’s tiered money market account is currently featuring a robust rate of 0.70% on funds between $100,000 and $249,999. If you have at least $250,000 to deposit, you could score an even higher rate of 0.85% APY.
Membership to Veridian Credit Union is open to anyone who opens a Member Equity Savings Account for $5.
State Department FCU, 0.70% APY, $100,000 minimum to earn APY
State Department FCU is currently offering a generous APY of 0.70% on its Premier Money Market account for balances of at least $100,000. A balance of $25,000 is required to earn any dividends for this account.
Membership to State Department FCU is open to anyone who also joins the American Consumer Council.
iGObanking, 0.60%, $25,000 minimum to earn APY
Online bank iGObanking is currently offering a competitive rate of 0.60% on funds of at least $25,000 in its iGOmoneymarket account. This account allows you to make up to six transfers per month, and allows you to set up automatic monthly transfers from your checking account. There are no monthly maintenance fees associated with this account.
BankPurely, 0.60% APY, $25,000 minimum deposit
BankPurely is a division of Flushing Bank. Built to attract conscious consumers focused on an ethical lifestyle, this division attempts to build the “community” aspect of a community bank online rather than in person. One of their social initiatives is planting one tree for every new account opened.
To open a PurelyMoneyMarket account with BankPurely, you must have an initial deposit of $25,000. You will be required to keep your account balance at or above $25,000 to earn the account’s 0.60% APY. You will be able to withdraw money using online services and a debit card, but remember to keep it below the six withdrawal per month limit.
How these jumbo money market accounts’ rates compare with regular money market rates
Jumbo money market accounts are typically called jumbo because they require a significant deposit to earn the top rate. You may have noticed that many of these accounts do not necessarily have the label “jumbo” attached to them. This is because with the advent of online banking, more and more financial institutions are passing along the savings they incur from not having to maintain brick-and-mortar locations on to their customers via higher returns on products like money market accounts.
For that reason, you’ll notice that many of the highest-yielding accounts on this list can also be found on our Best Money Market Rates & Accounts lineup.