The higher your balance, the more savings choices that you have.
There are many money market accounts available for those with balances well under six figures. However, jumbo money market accounts are worth considering if you have a large amount of cash that needs to be liquid in the bank and want it to earn a competitive rate.
What is a jumbo money market account?
Like a jumbo CD, a jumbo money market account usually requires a minimum of $100,000. It’s a money market account that may offer a higher annual percentage yield (APY) than accounts with lower balance requirements. But this isn’t always the case. Compare rates on Bankrate to find the right account for your money.
A jumbo money market account may also reward you with a higher rate if your balance exceeds a certain tier.
Best jumbo money market accounts in January 2021
|Bank||Top-tier yield||Minimum deposit for APY|
|Navy Federal Credit Union||0.60% APY||$250,000|
|Delta Community Credit Union||0.43% APY||$100,000|
|Discover Bank||0.40% APY||$100,000|
|VyStar Credit Union||0.40% APY||$100,000|
|Suncoast Credit Union||0.40% APY||$250,000|
|SchoolsFirst Federal Credit Union||0.35% APY||$100,000|
Note: The APYs (Annual Percentage Yields) shown are as of Jan. 5, 2021. The APYs for some products may vary by region.
Compare: Jumbo money market account bank overview
Navy Federal Credit Union – 0.60% APY, $250,000 minimum balance for APY
Navy Federal Credit Union has more than 9 million members and is the world’s largest credit union. It has a global network of 340 branches. Navy Federal Credit Union has its headquarters in Vienna, Virginia.
Membership at Navy Federal Credit Union is open to all Department of Defense and Coast Guard Active Duty, civilian, contract personnel, veterans and their families.
In addition to CDs, Navy Federal Credit Union also offers checking and savings accounts, loans and credit cards.
Delta Community Credit Union – 0.43% APY, $100,000 minimum balance for APY
Delta Community Credit Union began as the Delta Employees Credit Union in 1940. It was started by eight Delta Air Lines employees. Delta Community Credit Union has more than 400,000 members and has 26 branches in metro Atlanta and three branches outside of Georgia.
Anyone living or working in metro Atlanta and employees of more than 150 businesses are welcome at Delta Community Credit Union. Delta Air Lines, Chick-fil-A and UPS are some of the eligible businesses.
Discover Bank – 0.40% APY, $100,000 minimum balance for APY
Discover Bank may be known for its credit cards. But it also offers a wide selection of banking products. It has been offering deposit products online since 2007.
Discover Bank offers CDs ranging in terms as short as three months to 10 years.
It also offers a checking account, money market account and a savings account.
VyStar Credit Union – 0.40% APY, $100,000 minimum balance for APY
VyStar Credit Union was founded in 1952. It was originally called Jax Navy Federal Credit Union and it was chartered at Naval Air Station in Jacksonville, Florida.
Membership at VyStar Credit Union is open to anyone who works or lives in the 49 Florida counties or the four Georgia counties listed on its website.
VyStar Credit Union offers 10 CDs terms ranging from three months to five years. It also offers a one-year CD for Kid’s, VyTeen, Bravo and Achieve members only.
Suncoast Credit Union – 0.40% APY, $250,000 minimum balance for APY
Suncoast Credit Union was started in 1934 as Hillsborough County Teachers Credit Union. Suncoast Credit Union now has 69 branches and has around 918,000 members.
Suncoast Credit Union is the eighth largest credit union in the U.S. based on membership. It is also the 10th largest based on assets. People who attend school, live, work or worship in a county in Florida that Suncoast Credit Union serves are welcome to join.
SchoolsFirst Federal Credit Union – 0.35% APY, $100,000 minimum balance for APY
SchoolsFirst Federal Credit Union was formed during the Great Depression in 1934. The credit union, created by school employees, has 50 branches.
SchoolsFirst serves the education community in California. Certain school employees, certain retired school employees and immediate family members of existing SchoolsFirst Federal Credit Union are eligible to join.
Jumbo vs. traditional money market account
Jumbo money market accounts may have a higher minimum balance requirement, or they may reward savers with high-tier yields when savers maintain a certain balance. The opportunity to be rewarded with a higher rate when your balance surpasses a certain point may appeal to some savers.
So savers are rewarded for putting more money in their jumbo money market savings account. But you need to compare rates because there are banks that have much lower balance requirements and higher rates on money market accounts.
Pros and cons of a jumbo money market account
Pros of a jumbo money market account
- Some reward you with higher yields for higher balances, if it’s a tiered account.
- The opportunity to potentially earn a higher APY than a regular money market account.
- Being in an account meant for larger balances.
Cons of a jumbo money market account
- Regular money market accounts may earn a higher APY.
- You might want to spread your money between different bank accounts.
- Jumbo money market accounts might not have a higher yield than other savings accounts, regular money market accounts and CDs.
- Longer-term money might earn a higher yield in a CD.
- People who have a jumbo money market account need to be aware of FDIC limits and guidelines. The FDIC standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.