Jumbo Money Market Account Rates
by Ellen Cannon | Money Rates Columnist
Jumbo money market accounts, like jumbo savings accounts and certificates of deposit (CDs), require a high minimum to earn a higher rate of interest, usually $100,000 to open.
While you need a higher opening deposit for a jumbo money market account, you'll likely be rewarded with higher bank rates to grow your money. Another added benefit is deposits are insured by the Federal Deposit Insurance Corporation. Money market accounts are have FDIC insurance coverage up to $250,000 per depositor, per institution.
The national rate for jumbo money market accounts is 0.11%, according to the FDIC in the latest weekly rate update Jan. 3, 2017. This is higher than the national rate for jumbo savings accounts.
Jumbo money market accounts vs. Jumbo CDs
One advantage a jumbo money market account has over a jumbo CD is liquidity – your money is available at any time whereas money invested in a jumbo CD has to remain there for the term of the CD (6 months, 1 year, 5 years or longer) in order to avoid early withdrawal penalties. If you do withdraw money from a jumbo account, though, you may be subject to fees if the balance goes below $100,000.
Accessibility to your funds is another reason to choose a jumbo money market account for your deposits. A jumbo account may come with the ability to write checks – although not all banks offer this. As with any financial vehicle, be sure to look at all of the terms and conditions of an account before you deposit your money.
Check the table below to research the best jumbo money market rates for your deposits.