A jumbo money market account brings together the best features of high-yield savings and traditional checking accounts. You’ll earn a higher-than-average APY in exchange for a higher minimum deposit. But you’ll also have the flexibility to access your money when you need it.
If you have at least $100,000 that you’re not ready to lock away in a certificate of deposit or invest in the stock market, a jumbo money market account can be a good place to park your extra funds. If your savings exceed $250,000, however, you’ll need to spread out your money across several banks and accounts to have FDIC insurance on all your funds.
Below is a list of the best jumbo money market accounts, their features, and pros and cons to keep in mind. We’ve also included a few alternatives worth considering.
What is a jumbo money market account?
The traditional money market account is designed to work as a cross between a checking and savings account, with most allowing you to write checks or use a debit card while your money earns interest at rate well above the national average for deposits. A jumbo money market account is similar, but it is designed to accommodate larger amounts of money, typically $100,000 or more, though some have lower minimum requirements.
“Jumbo MMAs typically offer higher interest rates compared to accounts with lower minimum balance requirements,” said Baruch Silvermann, CEO and founder of The Smart Investor. He created his free online financial academy to help consumers make better financial decisions. “There is generally a minimum deposit for jumbo MMAs of $25,000 to $100,000. The exact requirement varies between banks and financial institutions.”
CNET’s picks for the top jumbo money market accounts
Top jumbo money market accounts
| Bank | APY | Minimum deposit for APY | Monthly fee |
|---|---|---|---|
| Landmark Credit Union | 3.15% | $100,000 | $10 for balances below $2,500 |
| Luana Savings Bank | 2857% | $100,000 | $10 for balances below $2,500 |
| Discover Bank | 3.45% | $100,000 | $0 |
| TIAA Bank | 3.55% | $100,000 | $0 |
| Conexus Credit Union | 2.51% | $100,000 | $0 |
The following money market accounts are not classified as jumbo because they don’t reserve the highest APY for larger balances. They do, however, offer a tiered APY payment structure with competitive rates. The rates are available to balances below $100,000 for comparison.
Alternatives to jumbo money market accounts
| Bank | APY | Minimum deposit for APY | Monthly fee |
|---|---|---|---|
| UFB Direct | 5.02% | $100,000 | $10 for balances under $5,000 |
| First Internet Bank | 3.56% | $100,000 | $5 for balances under $4,000 |
Note: Annual percentage yields, or APYs, shown are as of Oct. 12, 2022. CNET’s editorial team updates this information regularly. APYs may have changed since they were last updated and may vary by region for some products.
The top jumbo money market accounts explained
Landmark Credit Union
- APY
- 3.15%
Landmark Credit Union has 35 branches located across Wisconsin and Northern Illinois. Membership is open to all residents or people who work in eligible counties in those two states. The Signature Money Market Account has a tiered APY payment structure, paying the best rate for accounts with balances containing $100,000 or more. There is a $10 a month fee and the APY drops to 0% if the account balance falls below $2,500.
Minimum deposit for APY: $100,000
- ATM fees: 34,000 fee-free ATMs through the Alliance One network
- Monthly fee: $10 for balances below $2,500
- Foreign transaction fee: 1%
- Overdraft fee: $30
Luana Savings Bank
- APY
- 2.85%
Luana Savings Bank’s money market account offers five tiers paying better APYs for accounts with the highest balance. To receive an APY of 2.17%, an account must maintain a balance of at least $100,000. The highest APY that Luana pays for its money market accounts is 2.38% for balances of $750,000 and higher. Launa doesn’t provide debit card access for money market accounts and withdrawals are limited to six transactions per month.
Minimum deposit for APY: $100,000
- ATM fees: N/A
- Monthly fee: $10 for balances below $2,500
- Foreign transaction fee: N/A
- Overdraft fee: $14
Discover
- APY
- 3.45%
Discover Bank is an online financial services company that offers products such as deposit accounts, credit cards, personal loans and student loans. It eliminated fees on deposit accounts in June 2019. The jumbo money market account has two tiers and pays the highest interest on balances over $100,000. Discover customers aren’t charged fees for anything other than outgoing wire transfers and ATM fees charged by out-of-network providers. The minimum balance to open a money market account is $2,500 and is limited to six withdrawals per calendar month.
Minimum deposit for APY: $100,000
- ATM fees: 60,000 fee-free ATMs
- Monthly fee: $0
- Foreign transaction fee: $0
- Overdraft fee: $0
TIAA Bank
Read TIAA Bank Review- APY
- 3.55%
TIAA Bank offers the Yield Pledge Money Market Account -- a tiered, variable interest rate account with a Yield Pledge promise. If the yield is below the top 5% of competitive accounts, TIAA will adjust the APY. A money market account can be opened with $500. A $10 monthly fee is applied to the account when you make more than six withdrawals in a month.
Minimum deposit for APY: $100,000
- ATM fees: Unlimited ATM reimbursements with balances of more than $5,000, otherwise up to $15 per month.
- Monthly fee: $0
- Foreign transaction fee: 2%
- Overdraft fee: $0
Connexus Credit Union
Read Connexus Credit Union Review- APY
- 2.51%
- Min. deposit to open
- $1
Connexus is part of the Co-op Shared Branch network, which offers members 5,600 shared branch networks. Membership is open to anyone based on criteria listed on Connexus. You can open money market accounts with a $1,000 initial deposit and there is no fee incurred after opening if the balance falls below the initial minimum. You’ll be charged a monthly fee of $6 if you make more than four withdrawals in a calendar month.
Minimum deposit for APY: $100,000
- ATM fees: 67,000 surcharge-free ATMs in the Co-op and MoneyPass ATM networks
- Monthly fee: $0
- Foreign transaction fee: 1.5%
- Overdraft fee: $4
How to choose the right jumbo money market account
When comparing accounts, make note of the current interest a bank or credit union pays. Money market accounts often pay variable interest rates. The Yield Pledge offered by TIAA Bank, for example, is an attractive feature that ensures the APY remains competitive.
Also pay attention to fees charged for various services and the number of monthly withdrawals allowed. Despite having checking account-like features, money market accounts often limit the number of withdrawals you can make each month before you incur an excessive withdrawal fee. Like savings accounts, money market accounts are meant for storing your money, not making everyday transactions. If you need an account for regular withdrawals or paying bills, consider a high-yield checking account.
A checklist of features to consider includes:
- APY, the annual percentage yield, is the rate you can earn over a year. It factors compound interest into the number, which is why it’s a more accurate measure of yield than the interest rate alone.
- Minimum balance is the least amount you’re required to deposit when opening the account as well as the amount of money you’re required to keep in the account to avoid monthly service fees or account closure.
- ATM fees are charges you’ll incur if you withdraw money through an ATM, and can vary depending on your bank and the ATM. Some banks participate in a network of surcharge-free ATMs and provide locators to find the nearest free ATM. Other banks may reimburse you for ATM fees you incur, up to a certain limit each month.
- Monthly fees or maintenance fees are regular charges applied to an account. Sometimes the fees are imposed if balances fall below a certain threshold. Many free money market accounts don’t charge any monthly fees.
- Foreign transaction fees are generally a percentage of the transaction when purchases are initiated outside of the United States or made in international currency. For those who travel internationally, accounts with foreign transaction fees can add up quickly.
- Overdraft fees are fees charged if a purchase or transaction exceeds the available balance in the account. Some banks may decline the transaction instead of charging an overdraft fee.
- Excess savings withdrawal fees are charges incurred if the number of withdrawals in a given month exceeds the limit set by the bank or credit union. This number varies per institution and is commonly found on savings and money market accounts, but not checking accounts.
Top features of jumbo money market accounts
Pros
Jumbo money market accounts pay the highest APY available at a bank or credit union in their product class.
The accounts insured up to federal limits for banks and credit unions against loss or bank failures making them a relatively safe place to store money while earning interest.
Money market accounts provide convenient access to saved funds through check-writing privileges and debit card access.
Jumbo money market accounts avoid monthly service charges at the higher end of a deposit balance
Cons
Rates may not be significantly higher than high-yield savings accounts or regular money market accounts, which have much lower minimum deposit requirements.
You’ll need to make a large deposit to access the highest rates available in this product class. There are several deposit accounts with lower minimum deposit requirements that offer competitive rates.
Monthly withdrawal limits mean you have less flexible access to your money compared to a checking account.
What we like
Money market accounts are safe and convenient savings accounts for people who don’t need frequent access to liquid assets. Jumbo money market accounts can earn the highest APYs available for this type of account. Services, such as the one provided by TIAA Bank, that adjust the variable APY to remain competitive are a bonus feature.
What we don’t like
Comparing the current rates on jumbo money market accounts to other high-yield savings or checking accounts reveals that alternatives often outperform. Additionally, the trend with certain banks is moving to pay the highest APY available on all accounts without regard to balance levels. Searching specifically for jumbo money market accounts will eliminate highly competitive alternatives. It’s important to research a variety of account types before settling on a savings option.
How much money should you keep in a jumbo money market account?
If you want to have easy access to your money while earning a competitive APY, a money market account can be a good place to store your cash. Most banks don’t have upper limits on how much money you can hold in your account, but you should keep your account balance under $250,000. That’s the limit that the Federal Deposit Insurance Corporation will insure funds in case of a bank failure. That means any amount over that won’t be insured by your bank and you may have to file a claim to attempt to get the funds back. You can get around this limit by opening accounts at multiple banks or opening a joint account with another person.
But that doesn’t mean you should put all your savings in a jumbo money account or another savings account. A jumbo money market account is a great place for an emergency fund set aside for unforeseen expenses -- such as medical expenses, a job loss or car repairs -- or a sinking fund to save for short and medium-term goals such as buying a house.
Once you set aside money for savings and other important goals, consider investing the rest. Investing should generate higher average returns over time than even the best money market account -- as long as you keep your money invested long enough to ride out any short-term volatility. Tax-advantaged retirement accounts, such as 401(k)s and IRAs, are good places to store and invest money you won’t need for a long time. Keep in mind that some of these options have tax implications and may come with rules about when you can withdraw your money.
Money market account vs. savings account
Money market accounts and high-yield savings accounts share several similar features and benefits. But how you access your money is slightly different.
Most money market accounts come with ATM access and a debit card to make transactions and transfers like checking accounts. Some may also come with check-writing privileges. Savings accounts usually require you to transfer funds between a linked bank account to spend the money, rather than making transactions directly with a merchant. Usually, you won’t have the same convenient access. Both money market and savings accounts tend to have monthly transaction limits, however, making them unsuited for everyday spending like a checking account.
But if you’re chasing yield, many money market account APYs are on par with high-yield savings accounts, though some are higher or lower depending on the bank. The best money market accounts we review are well over 3%, and the best high-yield savings APY is up to 5%. That said, APYs vary widely, so it’s better to look at the APYs offered by specific banks rather than focusing on general trends among different account types.
The choice between a savings account and money market account mostly boils down to how often you want to access your money. If you need to write checks, make purchases or withdraw cash, it’s best to choose a money market account with these features. On the other hand, if you’re storing your emergency savings or money you won’t need immediately, you may benefit from a high-yield savings account with a competitive APY.
FAQs
Opening a jumbo money market account is a straightforward process. A financial institution will provide an online application process and require identity verification with a government-issued form of ID. You’ll also need to provide a valid Social Security number. Once the account is open, you’ll need to deposit the minimum amount required to qualify for the APY applied to jumbo money market accounts.
Jumbo money market accounts are considered a safe, low-risk investment because they’re issued by banks and credit unions that are insured by the FDIC and NCUA, respectively, for up to $250,000. That means the government will guarantee your deposits in the event of a bank failure.
A jumbo money market account provides check-writing privileges and debit card access to deposited funds, which most savings accounts don’t offer. However, most money market accounts limit the number of monthly withdrawals allowed before imposing a monthly fee. Historically, the number of withdrawals has been limited to six. Jumbo money market accounts also require a larger balance to earn the higher APYs offered by the bank or credit union.
You can access funds in a jumbo money market account in one of the following ways:
- In-person for banks and credit unions with physical branches
- Online transfers or mobile check deposits through bank and credit union websites or mobile apps
- Debit card access at ATMs for banks or credit unions that support those services
More banking advice
Methodology
CNET reviewed jumbo money market accounts based on the latest APY information, fees charged and services offered from issuer websites. We evaluated accounts from among more than 50 banks, credit unions and financial companies. We selected the accounts with the highest APY and were insured up to $250,000 from among the organizations we surveyed.
Banks surveyed include: Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Barclays, BMO Harris, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Citizens Access, Colorado Federal Savings Bank, Connexus Credit Union, Consumers Credit Union, Credit One Bank, Discover Bank, First Internet Bank of Indiana, First Tech Federal Credit Union, FNBO Direct, GO2bank, Golden 1 Credit Union, HSBC Bank, Huntington Bank, Lake Michigan Credit Union, LendingClub Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Nationwide (by Axos), Navy Federal Credit Union, NBKC, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Synchrony Bank, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, USAA Bank, Vio Bank, and Wells Fargo.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
