Jumbo Money Market Accounts
by Ellen Cannon | Money Rates Columnist
Jumbo money market accounts (MMA), like jumbo savings accounts and certificates of deposit, 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 MMA, you'll likely be rewarded with a higher interest rate to grow your money. Another added benefit is deposits are insured by the Federal Deposit Insurance Corporation. MMAs are FDIC-insured up to $250,000 per depositor, per institution.
The national rate for jumbo MMAs is 0.12%, according to the FDIC in the latest weekly rate update Feb. 1, 2016. This is higher than the national rate for jumbo savings accounts.
Jumbo MMA vs. Jumbo CDs
One advantage a jumbo MMA 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 MMA, 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 MMA for your deposits. A jumbo MMA 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 MMA rates for your deposits.
Minimum to earn APY $0
Rates as of 2/10/2016
Rates / APY terms above are current as of the date indicated. These quotes are from banks, credit unions and thrifts, some of which have paid for a link to their website. Bank, thrift and credit union deposits are insured by the FDIC or NCUA. Contact the bank for the terms and conditions that may apply to you. Rates are subject to change without notice and may not be the same at all branches.