How MagnifyMoney Gets Paid

Advertiser Disclosure

Earning Interest

Top 10 Jumbo Money Market Accounts

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

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 high 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.

Explore the top jumbo money market rates below.

1. CFG Bank – 0.62% APY, $25,000 minimum to earn APY

CFG High Yield Money Market - New Money from CFG BankMaryland-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 0.62% 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 0.62% APY, and only new funds are eligible

SEE DETAILS Secured

on CFG Bank’s secure website

FDIC Insured

2. Customers Bank – 0.60% APY, $25,000 minimum deposit

Ascent Money Market - Online Only from Customers Bank Customers Bank’s Ascent Money Market Savings Account is currently offering an impressive rate of 0.60% APY, launching it to the top of our list. In order to earn the high APY, though, there is a minimum deposit required of $25,000, and it’s worth noting that balances below $25,000 do not earn interest. This rate is only available for new money, and is only available for online accounts.

The Ascent Money Market account has no minimum balance fee, but withdrawals and transfers are limited to six per monthly statement cycle. Interest for this account is compounded and posted to your account monthly. Customers Bank is a Pennsylvania-based bank with locations also in New York and New Jersey.

SEE DETAILS Secured

on Customers Bank’s secure website

Member FDIC

3. Veridian Credit Union – 0.60% APY, $100,000 minimum to earn APY

Premier Money Market from Veridian Credit Union Veridian Credit Union’s tiered money market account is currently featuring a robust rate of 0.60% 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 0.75% APY.

Membership to Veridian Credit Union is open to anyone who opens a Member Equity Savings Account for $5.

SEE DETAILS Secured

on Veridian Credit Union’s secure website

NCUA Insured

4. Federal Savings Bank – 0.60%, $100,000 minimum to earn APY

Money Market from The Federal Savings Bank Federal Savings Bank boasts a noteworthy APY of 0.60% on balances of $100,000 or greater for its money market account. A minimum deposit of $1,000 is required to open this account, and balances below $100,000 will earn a lower APY. Interest for this account is compounded and credited on a monthly basis.

Headquartered in Chicago, Federal Savings Bank offers its products to consumers nationwide, online.

SEE DETAILS Secured

on The Federal Savings Bank’s secure website

Member FDIC

5. Service Credit Union – 0.55% APY, $25,000 minimum to earn APY

Money Market from Service Credit Union Currently, Service Credit Union offers a tiered-rate money market account, with the sweet spot being balances for those with at least $25,000, which earn an APY of 0.55%. Membership to Service Credit Union is open to anyone who also joins the American Consumer Council.

SEE DETAILS Secured

on Service Credit Union’s secure website

NCUA Insured

6. Premier America Credit Union – 0.55% APY, $100,000 minimum to earn APY

Money Market Savings from Premier America Credit UnionPremier America Credit Union boasts a competitive, tiered-rate money market account, rewarding depositors with big balances. All of the rates for its tiered money market are as follows:

  • $2,500-$24,999: 0.40%
  • $25,000-$99,999: 0.45%
  • $100,000+: 0.55%

Membership to Premier America Credit Union is open to anyone who also joins the Thousand Oaks Alliance for the Arts.

SEE DETAILS Secured

on Premier America Credit Union’s secure website

NCUA Insured

7. iGObanking – 0.50%, $25,000 minimum to earn APY

iGOmoneymarket - New Money Only from iGObanking Online bank iGObanking is currently offering a competitive rate of 0.50% 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.

SEE DETAILS Secured

on IGObanking’s secure website

Member FDIC

8. BankPurely – 0.50% APY, $25,000 minimum deposit

PurelyMoneyMarket - New Money from BankPurely 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 0.50% 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.

SEE DETAILS Secured

on BankPurely’s secure website

Member FDIC

9. CNB Bank Direct – 0.49% APY, $25,000 minimum deposit to earn APY

Premium Money Market from CNB Bank Direct CNB Bank Direct is currently featuring an impressive APY on its Premium Money Market account. With a minimum deposit of $25,000, you’ll unlock an APY of 0.49% on funds up to $2 million. The minimum deposit of $25,000 is also the amount required to earn interest, and there is a required $1 minimum balance required to keep the account open. For this account, CNB Bank Direct charges no monthly service fees.

Established in 2008, CNB Bank Direct operates as a division of Ohio-based Citizens National Bank. Citizens National Bank has roots dating back to 1920.

SEE DETAILS Secured

on CNB Bank Direct’s secure website

Member FDIC

10. State Department Federal Credit Union, 0.45% APY, $25,000 minimum deposit to earn APY

Premiere Money Management Shares from State Department Federal Credit Union State Department Federal Credit Union snags a spot on our list for its Premiere Money Market Account, which currently offers 0.45% APY. Like many CDs on this list, you will need to deposit a minimum of $25,000 to earn this APY. If you don’t have that much to stash in a CD, you can earn an only slightly lower rate of 0.40% by depositing at least $2,000. Balances above $50,000 and $100,000, respectively, earn slightly higher APYs.

Aside from being an employee of the Department of State, you can become a member of State Department FCU if you are a family or household member of an existing member, a member of one of the credit union’s associations, organizations or company partners or a member of American Consumer Council.

SEE DETAILS Secured

on State Department Federal Credit Union’s secure website

NCUA Insured

What is a jumbo money market account?

Jumbo money market accounts are typically called jumbo because they require a significant deposit to earn the top rate. Essentially, the bank or credit union rewards you with a higher rate for placing a hefty deposit at their institution. That makes jumbo money market account rates easily appealing. However, you often have to be able to meet the significant minimum to take advantage.

Jumbo money market accounts are still FDIC insured up to $250,000 for individuals, unlike money market funds.

How these jumbo money market accounts’ rates compare with regular money market rates

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.

How MagnifyMoney Gets Paid

Advertiser Disclosure

Earning Interest

Top Jumbo CD Rates for April 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

Reviewed By

Conservative savers generally consider certificates of deposits (CDs) as sanctuaries where their money is kept safe and they enjoy a decent yield without stomaching the risk of investing in the stock market.

With a CD, you agree to deposit your money in a bank or credit union for a fixed amount of time (which can be as short as a few months or as long as several years) and get the satisfaction of knowing your money is likely earning a higher annual percentage yield (APY) than it would in a checking or savings account.

Jumbo CDs, which in most cases require a minimum deposit of $100,000, have traditionally promised even higher APYs for customers than regular CDs. But a combination of unsettled interest rates and fierce competition among banks — both online and traditional — for the deposits of customers have given rise to many normal CDs that offer a better return than jumbo CDs.

It’s not entirely clear why banks haven’t been similarly aggressive in offering higher-yield jumbo CDs, but one possibility is that they are interested in attracting more customers rather than big money deposits. In other words, banks would rather have the business of 100 customers each depositing $5,000 CDs than 10 customers depositing $500,000 jumbo CDs.

That said, if you feel the need to go big when it comes to your CD, check out how our top picks for jumbo CDs compare to the national average.

Regular 1-Year CD vs 1-Year Jumbo CD

Institution

Ally

Advancial

CD term

1 year

1 year

APY

0.55%

0.85%

Minimum opening deposit

$0

$25,000

SEE DETAILS Secured

on Marcus By Goldman Sachs’s secure website

Member FDIC

SEE DETAILS Secured

on Advancial’s secure website

NCUA Insured

Regular 3-Year CD vs 3-Year Jumbo CD

Institution

Ally

Advancial

CD term

3 year

3 year

APY

0.55%

1.21%

Minimum opening deposit

$0

$25,000

SEE DETAILS Secured

on Advancial’s secure website

NCUA Insured

Regular 5-Year CD vs 5-Year Jumbo CD

Institution

Ally

Advancial

CD term

5 year

5 year

APY

0.60%

1.84%

Minimum opening deposit

$0

$25,000

SEE DETAILS Secured

on Marcus By Goldman Sachs’s secure website

Member FDIC

SEE DETAILS Secured

on Advancial’s secure website

NCUA Insured

As of April 2021
All rates expressed in annual percentage yield (APY) unless otherwise stated.

The top jumbo CD rates of April 2021

To determine the best CDs for your jumbo-sized deposit, we turned to the database found on DepositAccounts.com. For each common CD term, we assumed the customer was planning to deposit $100,000 in the account so as to include traditional jumbo CDs which typically have a higher minimum deposit needed to open. All the accounts included are also available nationwide.

You’ll notice as you read through the list of CDs we’ve selected, that some of them have minimum deposits of far less than $100,000. That’s because we’re focused on informing you of the best CD accounts for your money, and there are plenty of large minimum deposit CDs that still offer a great APY. You can rest assured we aren’t leaving out any good deals just because a financial institution’s marketing team decided not to call a CD “jumbo.”

Institution

CD term

APY

Minimum opening deposit

Advancial3 month0.71%$25,000
Advancial6 month0.80%$25,000
Advancial12 month0.85%$25,000
Advancial 18 months 0.92%$25,000
Advancial 2-year 1.00%$25,000
Advancial3-year1.21%$25,000
Advancial4-year1.50%$25,000
Advancial5-year1.84%$25,000

Banks that offer the best jumbo CD rates

Advancial – 3-month CD, 0.71% APY; 6-month CD, 0.80% APY; 12-month CD, 0.85% APY; 18-month CD, 0.92% APY; 2-year CD, 1.00% APY; 3-year CD, 1.21% APY; 4-year CD, 1.50% APY; 5-year CD, 1.84% APY

3 Month Junior Jumbo Certificate from Advancial

As you can see, Advancial clearly takes the cake when it comes to offering the highest jumbo CD rates. Across all term lengths, the credit union currently has the highest rates for its junior jumbo CDs, which boast the following APYs for minimum deposits of $25,000: a 3-month CD with a 0.71% APY, a 6-month CD with a 0.80% APY, a 12-month CD with a 0.85% APY, a 18-month CD with a 0.92% APY, a 2-year CD with a 1.00% APY, a 3-year CD with a 1.21% APY, a 4-year CD with a 1.50% APY and a 5-year CD with a 1.84% APY.

Headquartered in Dallas, Advancial is a credit union that has roots dating back to 1937. While this credit union only has a handful of locations in Alaska, Texas, Oklahoma and Louisiana, membership is still open to anyone who joins Connex and pays a $5 fee.

SEE DETAILS Secured

on Advancial’s secure website

NCUA Insured

Go jumbo or stick to regular CDs?

To be considered “jumbo,” a CD needs to require a large minimum deposit, usually $100,000, as opposed to a normal CD which may not even require a minimum deposit. The deal banks made with well-off depositors boiled down to ‘if you leave lots of your money with us in this jumbo CD, we’ll give you a higher yield than if you deposited it in a normal CD.’

It’s important to note the differences between a jumbo CD and regular CD aren’t set in stone and have more to do with how the bank or credit union markets their savings products than any hard and fast rule, says Ken Tumin, founder of DepositAccounts.com, another LendingTree-owned site.

“I’ve seen banks and credit unions with jumbo CD minimums as low as $10,000 and as high as $250,000,” Tumin told MagnifyMoney. “Even if a bank doesn’t offer jumbo CDs with high minimums, someone could still deposit a large balance into a regular CD. They just wouldn’t be earning any higher interest than someone depositing a small balance.”

As the difference in earnings from a jumbo CD and traditional CD has diminished (or disappeared completely), the drawbacks of parking so much money in a CD become more apparent. For example, the jumbo CDs with the highest APY usually require a longer period of time to mature, which means you have at least $100,000 exposed to inflation—which means you possibly end up earning less than you expected.

Withdrawal penalties on jumbo CDs

According to a recent survey, the penalties for withdrawing your money from your CD early could be serious. Some banks will even take part of your principal as a penalty.

Below are the most common penalties, according to the survey:

  • 3 month CD: Three months of interest
  • 6 month CD: Three months of interest
  • 1 year CD: Six months of interest
  • 2 year CD: Six months of interest
  • 5 year CD: A year’s worth of interest

So, it’s important to be confident that you want to put your money in a CD. When you do this, you’re making an agreement with the bank to leave it there for a set period of time. If you’re unsure if you want to tie up your money for a long period of time, consider a high-yield savings account instead.

How jumbo CDs are taxed

It’s important to know that the interest you earn on your jumbo CD will be taxed as interest income, not as capital gains income.

This means that your bank or credit union will send you a 1099-INT form at the end of the year to show how much interest you earned in your jumbo CD and you will be taxed on that.

Are jumbo CDs safe?

According to the U.S. Securities and Exchange Commission: “Certificates of deposit are considered to be one of the safest savings options. A CD bought through a federally insured bank is insured up to $250,000.”

Some people prefer investing in the stock market over CDs because you can often get higher rates of returns; however, the stock market is a riskier bet, and returns are not guaranteed like those associated with CDs.

CDs are not affected by the whims of the stock market. The interest rate you agree on with your bank is the rate you will get. That interest rate, however, may not outpace inflation, meaning you may not really earn much, if anything, over time.

Final thoughts

If you have over $100,000 and want to invest it in a jumbo CD, you have several options. Like the chart above shows, you can choose many different terms and durations for your jumbo CD. Just be sure to research the bank you invest with so you know you’re putting your money with a top-rated institution. Also, be sure that you’re comfortable with putting your money in a CD long-term because there are often penalties for withdrawing your money early.

How MagnifyMoney Gets Paid

Advertiser Disclosure

Earning Interest

Best Money Market Rates & Accounts — April 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

 

Reviewed By

If you’re looking to save more money beyond your regular savings account, consider adding a money market account (MMA) to the mix. A money market account can earn at a higher rate than a savings account, especially if you have a larger balance to deposit. Many MMAs tier their rates as well, rewarding higher balances with higher rates.

The current average money market rate is 0.10%, but you can do much better than that if you’re willing to break with traditional brick-and-mortar banks. With so many options out there, however, it may seem daunting to search for a new bank account. We’ve made it easier by rounding up the best money market accounts out there.

To identify the best options, we searched through over 12,000 banks and credit unions, looking for the highest interest rates, as well as considering an account’s minimum requirements and fund accessibility. Overall, we found that internet banks consistently beat the competition. You might not recognize all their names — new online banks continually crop up — but if it’s high interest rates you’re looking for, it might be worth branching out.

MagnifyMoney’s Best Money Market Accounts for April 2021

Here are our favorite accounts for April 2021:

Do you have a savings goal in mind? Tell us about it!

1. Axos Bank – 0.60% APY, $1,000 minimum balance to open

High Yield Money Market from Axos Bank Internet-only bank Axos Bank boasts a 0.60% APY on its High Yield Money Market Account, requiring a reasonable minimum deposit of $1,000 in order to open. However, there is no minimum required in order to earn the stated APY. Additionally, there is no monthly maintenance fee associated with this account.

SEE DETAILS Secured

on Axos Bank’s secure website

Member FDIC

2. National Cooperative Bank – 0.60%, $100 minimum deposit to open

Impact Money Market from National Cooperative Bank The National Cooperative Bank is currently offering a 0.60% APY on funds in its Impact Money Market account. While there is a $100 minimum deposit required to open this account, there is no required minimum balance in order to earn the APY. Interest is compounded daily and credited monthly. Note that this account charges a monthly maintenance fee of $25 if your average monthly balance dips below $5,000.

While the National Cooperative Bank has only one location in Ohio, its services are available to consumers nationwide, online.

SEE DETAILS Secured

on National Cooperative Bank’s secure website

Member FDIC

3. Prime Alliance Bank – 0.60% APY, no minimum balance to open

Personal Money Market from Prime Alliance Bank Established in 2004, Prime Alliance Bank is currently offering a Personal Money Market account with an APY of 0.60% on all balances. There aren’t any monthly fees with this account.

Prime Alliance Bank will provide an ATM card if you request one. This account can be managed online or via the bank’s mobile app.

SEE DETAILS Secured

on Prime Alliance Bank’s secure website

Member FDIC

4. All America Bank – 0.50% APY, $500 minimum balance to open

Mega Money Market Account - Online Only from All America Bank All America Bank is currently offering an APY of 0.50% on balances up to $50,000 on its Mega Money Market account. After $50,000, you’ll earn an APY of 0.25%. There aren’t any monthly fees with this account. All America Bank allows six free transactions per month, after which a $5 fee applies to each additional debit.
All America Bank was established in 1969 and is headquartered in Oklahoma City.

5. Northern Bank Direct — 0.50% APY, $5,000 minimum balance to open

Money Market from Northern Bank Direct Northern Bank Direct currently offers a 0.50% APY on its Money Market account with a minimum opening deposit of $5,000. The account has no monthly service charge. Customers can access their money market account funds through ATM, electronic transfer, wire and check writing.

Northern Bank Direct is an online division of Northern Bank, which was founded in 1960 and is headquartered in Woburn, Mass. This internet-only bank offers its products to its customers nationwide.

SEE DETAILS Secured

on Northern Bank Direct’s secure website

Member FDIC

6. Ally Bank – 0.50% APY, no minimum balance to open

Money Market Account from Ally Bank Ally Bank is a popular internet-only bank, offering a 0.50% APY on its Money Market Account. Although the interest rate on the money market account is not the highest, Ally does offer a very competitive overall package — particularly if you link the account to an Ally checking account.

By linking your money market account to your checking account, you provide overdraft protection there. The checking account has no minimum balance requirement and no monthly fee.

SEE DETAILS Secured

on Ally Bank’s secure website

Member FDIC

7. First Internet Bank – 0.50% APY, $100 minimum balance to open

Money Market Savings from First Internet Bank First Internet Bank boasts a robust rate of 0.50% APY on its Money Market Savings, earning more than seven times the national average. There is a minimum deposit of just $100 required for this account. It also has a $5 monthly service charge, which can be waived by maintaining an average daily balance of $4,000.

First Internet Bank has roots dating back to 1999, and it claims to be the first FDIC-insured institution to operate entirely online.

SEE DETAILS Secured

on First Internet Bank’s secure website

Member FDIC

8. Nationwide by Axos – 0.50%, $1,000 minimum balance to open

Money Market Plus from Nationwide by Axos Bank Nationwide by Axos is currently featuring an attractive rate of 0.50% on funds in its Money Market Plus account. You need $1,000 to open the account and to avoid the monthly maintenance fee of $8. The account includes mobile banking and mobile deposits.

Nationwide by Axos Bank was established in 2000. All banking products are provided through Axos Bank, which also provides the account’s FDIC insurance.

SEE DETAILS Secured

on Nationwide By Axos Bank’s secure website

FDIC Insured

9. Georgia Banking – 0.45% APY, $100 minimum balance to open

GBC Platinum Money Market Account from Georgia Banking Company Georgia Banking’s Platinum Money Market account features a 0.45% APY on all balances. You’ll need at least $100 to open an account. The bank charges no monthly maintenance fee and requires no minimum balance to earn interest.

Established in 2001, Georgia Banking Company has two branch locations in Georgia.

SEE DETAILS Secured

on Georgia Banking Company’s secure website

Member FDIC

10. Sallie Mae Bank – 0.40%, no minimum deposit to open

Money Market from Sallie Mae Bank Sallie Mae Bank’s Money Market account offers a competitive 0.40% APY, which is compounded daily and paid monthly. The bank charges no monthly service fee, nor is there a minimum balance required to earn the account’s APY.

Sallie Mae Bank is a financial institution affiliated with Sallie Mae, the company widely known for its student loan business. It is an internet-only bank offered nationwide. In addition to its money market account, the bank offers savings accounts and certificates of deposit (CDs).

Money market account FAQ

A money market account is a special type of savings account. Cash you put in the account remains deposited with the financial institution, where it earns a variable annual percentage yield (APY). Because the name of this deposit product has the word market in it, you may assume that a money market account is some kind of investment product, but it’s not.

Money market accounts are a good choice if you have a big deposit you’d like to keep safe and growing at a high interest rate. Then, when you need to access that money — perhaps for an upcoming purchase or in an emergency — you can often easily do so with an ATM or debit card or by writing a check.

Pros:Cons:
  • Typically carry higher interest rates than savings accounts
  • Convenient access to your funds with check-writing abilities and a debit/ATM card (though not offered on all accounts)

  • May carry monthly maintenance fees or a high balance to waive one
  • Still limited to six transfers and withdrawals per month like a savings account (or you’ll face a fee)
  • Not the highest yield product for money you won’t need in the immediate future

Money market accounts often earn a higher rate than standard savings accounts. The caveat is that MMAs often require higher opening deposits or higher balances than a standard savings account. Even so, you may also find that one bank’s top money market rate earns at the same rate (or lower) as a savings account at another bank.

Another feature that differentiates a money market account from a savings account is that institutions generally make it easier to access deposited funds in a money market account by offering checks and ATM cards.

Money market accounts, like deposit accounts, provide FDIC insurance on your deposits up to $250,000. Money market funds, on the other hand, are investment accounts, most likely sold by your broker, and are regulated by the Securities and Exchange Commission (SEC) instead. Money market funds invest in highly liquid cash and cash equivalent securities that typically mature within 13 months. Additionally, money market funds charge expense ratios, or management fees, that are charged as a percentage of your fund.

Money market accounts often pay much lower interest rates than CDs do. CDs allow you to protect your investments over the years by locking in today’s high rates in a long-term account, while also staying flexible for any potential rate increases with your shorter-term accounts. The interest rate on a money market account can change right away, at the bank’s discretion.

Another key difference between a money market account versus a CD is accessibility. While money market accounts allow your money to keep growing while still remaining accessible, you’ll likely face a pretty heavy penalty — typically three to six months of interest — if you need to access your CD funds before it matures.