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.
In this roundup, we’ll explore the top rates.
CIT Bank, 1.85% APY, $100 Minimum Deposit
With a low minimum deposit of $100, CIT Bank’s money market account still earns a respectable 1.85% APY. You can withdraw your money through People Pay — a free service which allows you to direct the money toward a specific email address or phone number. But remember, you can only make six withdrawals per month. If you go over this amount, you will be charged $10 for each additional withdrawal in a statement cycle, up to $50.
There are no monthly maintenance fees with this account.
VirtualBank, 2.01% APY, $100 Minimum Deposit to Open
VirtualBank is based in Louisiana but mainly offers access to its deposit products online nationwide.
To open a high-yielding money market account at VirtualBank, you must have a minimum opening deposit of at least $100. From there, your account will earn 2.01% APY for the first year. Then, the APY will drop to 0.80%. If your daily balance drops below $100, you will be charged a $5 fee per month.
To take money out of your account, you can conduct an online transfer. As with all of the accounts on our list, you will only be able to make six withdrawals/transfers per month. If you make more than six withdrawals in a monthly statement cycle, VirtualBank will charge you a $15 fee each time you take out more money.
BankPurely, 2.00% APY, $25,000 Minimum Deposit
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 2.00% 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.
Sallie Mae, 1.90% APY, No Minimum Deposit
For example, their high-yield money market account pulls in 1.90% APY with no monthly maintenance fees and no minimum upfront deposit. You can write checks from this account, but keep in mind that you’ll have to stay below six withdrawals per month. If you don’t you’ll be charged a $10 excessive transaction fee. This fee will be applied for each withdrawal after six in a statement period, up to $70 per period. If you make more than seven excessive transactions, the additional $10 fees will be applied to the following month’s statement.
ableBanking, 1.85% APY, $250 Minimum Deposit
With no monthly maintenance fees, any amount saved in one of ableBanking’s high-yield money market accounts will earn 1.85% APY. To open one of these accounts, you only need a minimum initial deposit of $250.
If you take money out of your account more than six times in a statement cycle, you will be billed a $10 excess fee for each additional withdrawal. If you do this more than twice within a 12-month period, ableBanking may close your account. You can make these withdrawals online, or pay a $20 fee for a wire transfer.
When you join ableBanking as a new customer, the institution will make a $25 donation out of their own pocket to a charity of your choice. To claim this perk, fill out this form, designating which 501(c)(3) you would like to receive the donation.
State Bank of Texas, 1.85% APY, $100,000 Minimum Deposit
State Bank of Texas is a family owned and operated bank with a rich history. This bank was built by a man who immigrated to America from India in the hopes of attaining the American Dream. Once he overcame the challenge of acquiring enough capital to open the bank, he opened the bank’s doors on October 19, 1987 – a day known as Black Monday due to the crash of the stock market. With only one employee on the payroll, and a lot of help from his family, the bank successfully made it through one of the worst economic times in history. Today, the bank has thrived with its lending solutions and is quickly becoming a competitor in the deposits space.
To open a jumbo money market account with State Bank of Texas, you must have an initial deposit of $100,000. You will be required to keep your account balance at or above $100,000 to earn the account’s 1.85% APY. You will be able to withdraw money using online services, but remember to keep it below the six withdrawal per month limit.
EBSB Direct, 1.80% APY, $10,000 Minimum Deposit
Technically, to open a money market account with EBSB Direct, you only need $2,500. However, to earn the high interest rate of 1.80% APY, you will need a balance between $10,000-$2,000,000.
If your account has $10-$9,999, you’ll only earn 0.50% APY, and accounts with more than $2 million earn 0.80% APY. To take money out of your account, EBSB will issue you a debit card.
North American Savings Bank, 1.77% APY, $50,000 Minimum Deposit
North American Savings Bank is headquartered in Missouri, but offers products online nationwide. The minimum deposit on North American Savings Bank’s money market account is only $1,000, but if you want to earn the 1.77% APY on your balance, you must keep it at or above that $50,000 threshold. If you do deposit the minimum amount, you can still earn a decent APY of 1.56%. If you balance grows anywhere between $25,000 and $49,999, the APY will increase to 1.66%. You will have online banking capabilities for withdrawals — up to six per month. This account comes with no monthly maintenance fees as long as you maintain a minimum balance of $1,000.
It is important to note that this account is an online only special and is subject to change without any notice.
Capital One 360, 1.75% APY, $10,000 Minimum Deposit
If you open a 360 Money Market Account and deposit at least $10,000, your money will earn 1.75% APY. While there is technically no minimum amount required to open one of these accounts, if you have less than $10,000, you will only earn 0.85% APY. You can find higher paying basic savings accounts elsewhere, so it’s better to save that money in a higher-yielding account until you hit the $10,000 threshold.
While this account comes with no fees, it also comes with no checks or debit card. In order to withdraw money — which you can do up to six times per month — you will have to use Capital One 360’s online portal or call in to speak to one of their representatives.
on Capital One’s secure website
My Banking Direct, 1.75% APY, $25,000 Minimum Deposit
My Banking Direct is an extension of New York Community Bank, which was established in 1859. My Banking Direct’s banking services are provided completely online — there is no brick-and-mortar location.
My Banking Direct offers a 1.75% APY on their money market account as long as you have a minimum balance of $25,000. If your balance falls below $25,000, the APY will drop to 1.50%. The APY will drop further to 0.25% if your balance falls below $5,000. You’ll also need a $2,500 minimum deposit to open the account in the first place. There are no monthly maintenance fees associated with this account.
You can make withdrawals from this account using checks, ACH transfers, wire transfers or telephone payments. Keep in mind that you can only make six of these withdrawals per monthly statement cycle. If you make more than six over the course of a month, you may be assessed an excess fee at the bank’s discretion.
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.
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