Jumbo Money Market Accounts
By Ellen Cannon
Like jumbo savings accounts and certificates of deposit, jumbo money market accounts (MMA) require a high minimum to earn a higher rate of interest, usually $100,000 to open. Money market accounts are FDIC-insured up to $250,000 per account.
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.
Another feature of a jumbo MMA can be 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.
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.