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A jumbo money market account, like a , requires a higher minimum deposit — generally $100,000 or more — to access a higher annual percentage yield, or APY, offered at the bank or credit union. A money market account combines the features and benefits of savings and checking accounts while providing convenient access to your deposits and earning more interest than a traditional checking account. The average interest rate, according to CNET’s sister site , is 0.13% for an MMA. It’s possible to find rates at some banks or credit unions.
A recent trend with banks, such as Ally, and credit unions is to apply the highest yield to all money market accounts regardless of account balance. Often, you can locate competitive yields by comparing online checking or free checking accounts that avoid limitations such as maximum monthly withdrawals or fees imposed by money market accounts.
The following list of jumbo money market accounts highlights the top yielding accounts that require a large minimum balance to earn the best APY. Every bank or credit union on our list is insured against loss of up to $250,000 by the Federal Deposit Insurance Corporation or National Credit Union Administration.
CNET’s picks for the top jumbo money market accounts
Top jumbo money market accounts
|
Bank |
APY |
Minimum deposit for APY |
Monthly fee |
|---|---|---|---|
|
Landmark Credit Union |
2.20% |
$100,000 |
$10 for balances below $2,500 |
|
Luana Savings Bank |
2.17% |
$100,000 |
$10 for balances below $2,500 |
|
Discover Bank |
2.10% |
$100,000 |
$0 |
|
TIAA Bank |
2.10% |
$100,000 |
$0 |
|
Conexus Credit Union |
2.01% |
$100,000 |
$0 |
The following money market accounts are not classified as jumbo because they don’t reserve the highest APY for larger balances. They do, however, offer a tiered APY payment structure with competitive rates. The rates are available to balances below $100,000 for comparison.
Alternatives to jumbo money market accounts
|
Bank |
APY |
Minimum deposit for APY |
Monthly fee |
|---|---|---|---|
|
First Internet Bank |
3.09% |
$1,000,000 |
$5 for balances under $4,000 |
|
UFB Direct |
3.01% |
$100,000 |
$10 for balances under $5,000 |
|
First Internet Bank |
2.12% |
$100,000 |
$5 for balances under $4,000 |
The top jumbo money market accounts explained
- APY: 2.20%
- Minimum deposit for APY: $100,000
- ATM fees: 34,000 fee-free ATMs through the Alliance One network
- Monthly fee: $10 for balances below $2,500
- Foreign transaction fee: 1%
- Overdraft fee: $30
Landmark Credit Union has 35 branches located across Wisconsin and Northern Illinois. Membership is open to all residents or people who work in in those two states. The Signature Money Market Account has a tiered APY payment structure, paying the best rate for accounts with balances containing $100,000 or more. There is a $10 a month fee and the APY drops to 0% if the account balance falls below $2,500.
- APY: 2.17%
- Minimum deposit for APY: $100,000
- ATM fees: counties N/A
- Monthly fee: $10 for balances below $2,500
- Foreign transaction fee: N/A
- Overdraft fee: $14
Luana Savings Bank’s money market account offers five tiers paying better APYs for accounts with the highest balance. To receive an APY of 2.17%, an account must maintain a balance of at least $100,000. The highest APY that Luana pays for its money market accounts is 2.38% for balances of $750,000 and higher. Launa doesn’t provide debit card access for money market accounts and withdrawals are limited to six transactions per month.
Discover
- APY: 2.10%
- Minimum deposit for APY: $100,000
- ATM fees: 60,000 fee-free ATMs
- Monthly fee: $0
- Foreign transaction fee: $0
- Overdraft fee: $0
Discover Bank is an online financial services company that offers products such as deposit accounts, credit cards, personal loans and student loans. It eliminated fees on deposit accounts in June 2019. The jumbo money market account has two tiers and pays the highest interest on balances over $100,000. Discover customers aren’t charged fees for anything other than outgoing wire transfers and ATM fees charged by out-of-network providers. The minimum balance to open a money market account is $2,500 and is limited to six withdrawals per calendar month.
- APY: 2.10%
- Minimum deposit for APY: $100,000
- ATM fees: Unlimited ATM reimbursements with balances of more than $5,000, otherwise up to $15 per month.
- Monthly fee: $0
- Foreign transaction fee: 2%
- Overdraft fee: $0
TIAA Bank offers the Yield Pledge Money Market Account — a tiered, variable interest rate account with a Yield Pledge promise. If the yield is below the top 5% of competitive accounts, TIAA will adjust the APY. A money market account can be opened with $500. A $10 monthly fee is applied to the account when you make more than six withdrawals in a month.
Connexus Credit Union
- APY: 2.01%
- Minimum deposit for APY: $100,000
- ATM fees: 67,000 surcharge-free ATMs in the Co-op and MoneyPass ATM networks
- Monthly fee: $0
- Foreign transaction fee: 1.5%
- Overdraft fee: $4
Connexus is part of the Co-op Shared Branch network, which offers members 5,600 shared branch networks. Membership is open to anyone based on criteria listed on . You can open money market accounts with a $1,000 initial deposit and there is no fee incurred after opening if the balance falls below the initial minimum. You’ll be charged a monthly fee of $6 if you make more than four withdrawals in a calendar month.
How to choose the right jumbo money market account
When comparing accounts, pay attention to fees required for various services and the number of monthly withdrawals allowed before incurring additional charges. Make note of the current interest a bank or credit union pays. Money market accounts often pay variable interest rates. The Yield Pledge offered by TIAA Bank, for example, is an attractive feature that ensures the APY remains competitive.
A checklist of features to consider includes:
- APY, the annual percentage yield, is the rate you can earn over a year which includes compound interest.
- Minimum balance is the minimum amount you’re required to deposit when opening the account as well as the minimum amount required to avoid monthly service fees.
- ATM fees are charges you’ll incur if you withdraw money through an ATM. Some banks participate in a network of surcharge-free ATMs and provide locators to find the nearest free ATM.
- Monthly fees are regular charges applied to an account. Sometimes the fees are imposed if balances fall below a certain threshold. Many free checking accounts don’t charge any fees.
- Foreign transaction fees are generally a percentage of the transaction when purchases are initiated in physical locations outside of the United States. For those who travel internationally, accounts with foreign transaction fees can add up quickly.
- Overdraft fees are fees charged if a purchase exceeds the available balance in the account.
- Excess savings withdrawals are monthly charges incurred if the number of withdrawals exceeds the limit set by the bank or credit union. This number varies per institution.
Top features of jumbo money market accounts
Pros
- Jumbo money market accounts pay the highest APY available at a bank or credit union in their product class.
- The accounts insured up to federal limits for banks and credit unions against loss or bank failures making them a relatively safe place to store money while earning interest.
- Money market accounts provide convenient access to saved funds through check-writing privileges and debit card access.
- Jumbo money market accounts avoid monthly service charges at the higher end of a deposit balance.
Cons
- The APY paid for such large account balances isn’t as competitive with other account types. High yield checking accounts are offering similar or higher interest rates and don’t have the limitations on access imposed by money market accounts.
- You’ll need to make a large deposit to access the highest rates available in this product class. There are several deposit accounts with lower minimum deposit requirements that offer competitive rates.
What we like
Money market accounts are a safe and convenient savings account for people who don’t need frequent access to liquid assets. Jumbo money market accounts can earn the highest APYs available for this type of account. Services, such as the one provided by TIAA Bank, that adjust the variable APY to remain competitive are a bonus feature.
What we don’t like
Comparing the current rates on jumbo money market accounts to other high-yield savings or checking accounts reveals that alternatives often outperform. Additionally, the trend with certain banks is moving to pay the highest APY available on all accounts without regard to balance levels. Searching specifically for jumbo money market accounts will eliminate highly competitive alternatives. It’s important to research a variety of account types before settling on a savings option.
FAQs
What do you need to open a jumbo money market account?
Opening a jumbo money market account is a straightforward process. A financial institution will provide an online application process and require identity verification with a government-issued form of ID. You’ll also need to provide a valid Social Security number. Once the account is open, you will need to deposit the minimum amount required to qualify for the APY applied to jumbo money market accounts.
How safe are money market accounts?
Jumbo money market accounts are considered a safe, low-risk investment because they’re issued by banks and credit unions that are insured by the FDIC and NCUA, respectively, for up to $250,000.
What is the difference between a savings account and a jumbo money market account?
A jumbo money market account is a savings account that provides check-writing privileges and debit card access to deposited funds. However, most money market accounts limit the number of monthly withdrawals allowed before imposing a monthly fee. Historically, the number of withdrawals has been limited to six. Jumbo money market accounts also require a larger balance to earn the higher APYs offered by the bank or credit union.
How do I deposit and withdraw funds from a jumbo money market account?
You can access funds in a jumbo money market account can occur in one of the following ways:
- In-person for banks and credit unions with physical branches
- Online transfers or mobile check deposits through bank and credit union websites or mobile apps
- Debit card access at ATMs for banks or credit unions that support those services
Methodology
CNET reviewed jumbo money market accounts based on the latest APY information, fees charged and services offered from issuer websites. We evaluated accounts from among more than 50 banks, credit unions and financial companies. We selected the accounts with the highest APY and were insured up to $250,000 from among the organizations we surveyed.
Banks surveyed include: Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Barclays, BMO Harris, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Citizens Access, Colorado Federal Savings Bank, Connexus Credit Union, Consumers Credit Union, Credit One Bank, Discover Bank, First Internet Bank of Indiana, First Tech Federal Credit Union, FNBO Direct, GO2bank, Golden 1 Credit Union, HSBC Bank, Huntington Bank, Lake Michigan Credit Union, LendingClub Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Nationwide (by Axos), Navy Federal Credit Union, NBKC, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Synchrony Bank, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, USAA Bank, Vio Bank, and Wells Fargo.
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