Best jumbo money market rates for May 2020

3 min read
1

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 May 2020

 

Bank Top-tier yield Minimum deposit for APY
Quontic Bank 1.60% APY $150,000
Navy Federal Credit Union 1.10% APY $250,000
VyStar Credit Union 0.70% APY $100,000
Golden 1 Credit Union 0.70% APY $250,000
America First Credit Union 0.65% APY $250,000

Note: The APYs (Annual Percentage Yield) shown are as of May 7, 2020. The APYs for some products may vary by region.

Compare: Jumbo money market account bank overview

Quontic Bank, 1.60% APY, $150,000 minimum deposit for APY

Quontic Bank was established in 2005 and is headquartered in New York. Quontic Bank calls itself the Adaptive Digital Bank.

Quontic Bank has a Money Market Account that rewards top-tier balances of $150,000 or more with a little more interest than its other two tiers. The other two tiers are $5,000 to $149,999.99 and $0-$4,999.99.

In addition to its money market account, Quontic Bank also has a High Yield Savings account, CDs and two checking accounts.

Navy Federal Credit Union, 1.10% APY, $250,000 minimum deposit for APY

Navy Federal Credit Union has more than 8.8 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.

VyStar Credit Union, 0.70% APY, $100,000 minimum deposit 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.

Golden 1 Credit Union, 0.70% APY, $250,000 minimum deposit for APY

Golden 1 Credit Union has one million members with its main office being located in Sacramento, Calif. Golden 1 Credit Union has 72 branches in California, and has been around since 1933. Membership to Golden 1 Credit Union is open to all Californians.

Non-Californians can join Golden 1 Credit Union if they are a registered domestic partner or family member of a member. They can also join if they’re a member of one of the select employee groups.

In addition to CDs, Golden 1 Credit Union also offers a money market account, checking and savings accounts. The credit union also has credit cards and loans.

America First Credit Union, 0.65% APY, $250,000 minimum deposit for APY

America First Credit Union was founded in 1939. It has 131 full-service branches and is the ninth largest credit union, based on assets, in the U.S. Its main office is in Riverdale, Utah.

It also is the sixth largest based on membership. America First Credit Union has 1,071,000 members.

You can join America First Credit Union if you work, regularly conduct business in, live, volunteer, worship or go to school in certain areas of Utah, Nevada, Arizona, Idaho or New Mexico. See the America First Credit Union website for full details on who can become a member.

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.

 Learn more: