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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.
UFB Direct, 2.15% APY, $25,000 Minimum Deposit
UFB Direct is an online bank and a division of Axos Bank. While you may not readily recognize either of these brands, the overall company has acquired over $9 billion in assets. UFB Direct, specifically, has strived to offer its customers competitive rates and this is evident with its new Premium Money Market Account. While you only need a minimum deposit of $5,000 to open the account, you’ll need to have a minimum balance of $25,000 to earn the 2.15% APY. If your balance is less than $25,000, you’ll end up earning an APY of 0.50%. 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 Visa® Debit Card are available upon request. There is also a mobile banking app that will allow you to manage your account on-the-go conveniently. All deposits held with UFB Direct are FDIC-insured.
Capital One 360, 2.00% APY, $10,000 Minimum Deposit
If you open a 360 Money Market Account and deposit at least $10,000, your money will earn 2.00% 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 or another good option to consider would be their 360 Savings Account which earns 1.00% APY regardless of balance, until you are able to hit the $10,000 threshold.
While 360 Money Market Account does not come with any fees, it also does not come with any checks. It does come with a debit card, which you can get after the account has been opened. You may withdraw money through an ATM. Just keep in mind that you’ll be restricted to six certain transfers and withdrawals per month due to federal law. You can easily access your account through Capital One’s online portal, mobile app, or you can call to speak to one of their representatives.
Western State Bank, 2.25% APY, No Minimum Deposit
Western State Bank mainly services customers in North Dakota and Arizona, but has decided to offer a high-yield money market account on a nationwide basis. The bank doesn’t have a minimum requirement to open the account or earn the high APY. With as little as a penny, you can start earning 2.25% APY. The bank does cap the account’s balance at $3 million. If you exceed that amount, you won’t earn interest and the bank will contact you to lower the amount. There are also no monthly service fees. While this account sounds like a dream, it does come with its drawbacks. Western State Bank will not issue checks or debit cards with this account and there are ACH funding and transaction limitations. You’ll only be able to deposit up to $25,000 per ACH transfer and this cannot exceed $100,000 per month. You’ll also only be able to withdraw $25,000 from the account at a time. This also can’t exceed $100,000 and you cannot do this more than six times each month. If you’re looking for an account to grow your savings, this is a great option. If you’re expecting a true money market account, you may want to look elsewhere.
Investors eAccess, 2.10% APY, No Minimum Deposit
Investors eAccess is the online division of Investors Bank, a community bank in New Jersey and New York City. Investors eAccess was not shy about launching with a strong rate. This online bank launched in April 2019 with a 2.10% APY and has kept the rate the same ever since. There isn’t a minimum deposit to open the account or earn the APY and there isn’t a monthly service fee. The most you can deposit or hold in this account is $2 million. Unfortunately, this account doesn’t come with checks or debit cards. Investors eAccess does place a limitation on the amount of money you can withdraw via ACH. You cannot exceed $250,000 per monthly statement cycle. Similar to Western State Bank, this account is great if you just want to grow your savings.
earn.bank, 2.25% APY, $10,000 Minimum Deposit
earn.bank, a division of Silvergate Bank, was created around the idea of offering premium rates on bank accounts. Taking a look at the rate the bank is offering on its money market account makes it hard to argue with this idea. Once you open the account with at least $10,000, you can receive an APY of 2.25%. While the rate is outstanding and you don’t need a minimum balance to earn the APY, you may have to pay a $10 monthly maintenance fee if you have an average daily balance below $10,000. Another downside to this account is that it doesn’t come with check-writing capabilities or even a debit card to withdraw money. If you’re okay with having your money in a complete online bank account, then you may not mind the lack of these two features. You are able to transfer money via ACH online. earn.bank also has a mobile app that allows you to manage this account on the go.
MemoryBank, 2.25% APY, $50 Minimum Deposit
MemoryBank is the online division of Republic Bank. This online bank originally launched with an interest earning checking account that had a leading rate for many years. In the summer of 2018, MemoryBank launched this Online Money Market Account with a rate that was higher than the checking account, but not quite up there with some of the leading money market accounts. However, over the last year, MemoryBank has coming out ahead with its money market rate. Currently, the Online Money Market Account earns 2.25% APY. You’ll need to open the account with $50, but can earn the rate with a balance up to $1 million. There isn’t a monthly service fee, but there is a $3 monthly fee if you choose to receive paper statements. The account doesn’t come with check-writing capability, but if you have a Republic Bank branch in your area, you can make unlimited in-person withdrawals or transfers. Unless you have a Republic Bank branch in your area, this is just another account to grow your savings.
VirtualBank, 2.36% 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 2.36% 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.
Bay State Savings Bank, 2.10% APY, $5,000 Minimum Deposit to Open
Bay State Savings Bank is based in Massachusetts but it available to all U.S. citizens and residents via its online platform. This bank was funded by the community of Worcester in 1895 with a comittment to serve its local community. In 2003, the bank marked this comittment by establishing a foundation that is meant to support non-profit organizations and programs within the community. Since this organization is fully funded by the bank, it has creatively come up with ways to give back. One example is the creation of the Smile Worcester County Consumer Money Market account.
This account was created to support the economic growth of areas in Worcester County that are in need. If you open this account and deposit a minimum of $5,000, you will be helping this effort. In turn, you’ll receive an APY of 2.10%. While you don’t need to maintain a specific balance to continue earning the APY, you will want to maintain the $5,000 to avoid being charge the $7 monthly service fee.
A couple other items to take into consideration is that outgoing ACH transfers are limited to $10,000 per transaction and, as with all other savings accounts, you’re limited to making six certain transactions per statement cycle. This account does offer check writing and the bank has a mobile banking app.
Northpointe Bank, 2.30% APY, $25,000 Minimum Balance
Northpointe Bank is based out of Grand Rapids, MI, but services customers nationwide. The founder of the Northpointe Bank envisioned that the bank would focus on customer service first and foremost, and would offer real value to its customers. Running on these values, Northpointe Bank tries to offer competitive rates to new and existing customers. Currently, the bank is offering a 2.30% APY on its money market account with a minimum balance amount of $25,000. You only need $1,000 to open the account, but you won’t earn the high rate unless you meet the balance requirement. If you decide to work your way up to the balance requirement here’s what you’ll get with each tier:
- Up to $2,500: 0.20% APY
- $2,500 – $24,999.99: 0.25% APY
- $25,000 – $1m: 2.30% APY
- $1m+: 2.30% APY
If you’re able to earn the high rate, you’ll be guaranteed this rate for 24 months. This account comes with checks and a debit card upon request. Northpointe Bank supports online banking and has a mobile banking app.
BankPurely, 2.10% APY, $25,000 Minimum Deposi
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 2.10% 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.