5 BEST JUMBO MONEY MARKET RATES FOR JULY 2024
Best Jumbo Money Market Rates of 2024
Best Rate
First Internet Bank Money Market Savings Account
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Why We Chose It
This First Internet Bank account pays a high interest rate as long as you maintain a balance of at least $1 million.
Pros
- Highest APY available on this list
- Low monthly fee
- Up to $10 per month in ATM fee refunds
Cons
- Exceptionally high minimum daily balance to earn highest APY
- Less impressive APY for daily balance of $1,000,000 or less
- No branches
Best Rate at Big-Name Bank
Discover Bank Money Market Account
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Why We Chose It
Discover’s account offers a decent interest rate with no monthly fee.
Pros
- High APYs for both balance options
- No monthly maintenance fee
- No ATM withdrawal fees at over 60,000 nationwide ATMs
Cons
- Only a .05% difference between highest APY tier
- $2,500 minimum deposit
- Only one branch
Best Rate at Credit Union
America First Credit Union Money Market Savings Account
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Why We Chose It
Among credit unions, America First Credit Union offers a good interest rate for money marketing savings accounts while charging no monthly maintenance fee.
Pros
- APY starts at 3.45% for $100,000 balance and above
- No opening deposit
- 124 branches
Cons
- Membership required
- $1.50-per-transaction fee for out-of-network ATMs
- Branches in only five states—Arizona, Idaho, Nevada, New Mexico and Utah
Best for Rate Guarantee
EverBank Yield Pledge Money Market Account
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Why We Chose It
EverBank’s rate guarantee makes its money market account an attractive option.
Pros
- Rate guarantee
- No opening deposit
- No monthly fee
Cons
- Only 13 branches
- Poor reviews on Better Business Bureau (BBB) site
- Limited product offerings
Best for Military
Navy Federal Credit Union Money Market Account
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Why We Chose It
Navy Federal Credit Union provides an above-average interest rate for customers with military ties.
Pros
- No in-network ATM fees
- Highly-rated credit union
- Commitment to military members and families
Cons
- Lower APY compared to competitors with similar deposit requirements
- Membership limited to customers with military affiliation
- Fee schedule not easily accessible online
Jumbo Money Market Account Overview
Generally, a jumbo money market account requires either a big deposit to open it or a large daily balance to earn the highest APY—or both. In many cases, the minimum deposit or balance is $100,000, with the highest rates for balances of $1,000,000 or more.
What Is a Jumbo Money Market Account?
A jumbo money market account is a supersized money market account.
Money market accounts combine the interest paid by a savings account with the accessibility of a checking account. Further, money market accounts usually pay higher interest rates than savings accounts.
With a jumbo money market account, a customer deposits a large sum of money or maintains a large balance (often $100,000 or more) to gain the highest APY. While a jumbo money market account might appeal to someone with loads of money to stash, it may be out of reach for folks who aren’t flush with cash.
How Do Jumbo Money Market Accounts Work?
Just as with a traditional money market account, you can open a jumbo money market account at a bank or credit union.
Normally, these accounts are insured by the Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA) for up to $250,000 per account. In other words, if you’re holding $1 million in a single jumbo money market account, only a portion of your funds will be insured.
Who Should Get a Jumbo Money Market Account?
A jumbo money market account is best suited for someone with at least $100,000 in cash available to deposit. This kind of account may be ideal for storing emergency funds or working toward either short-term or long-term financial goals.
Jumbo money market accounts may be especially appealing to those who want quick access to cash (with accounts typically offering checks and debit cards) and don’t want to lock up money in a certificate of deposit (CD).
Are There Penalties for Withdrawing Early?
Unlike many CDs, money market accounts typically don’t impose early withdrawal penalties.
Pros and Cons of Jumbo Money Market Accounts
Just like any type of bank account, jumbo money market accounts come with pros (such as attractive interest rates) and cons (such as deposit or balance requirements).
Pros
- Typically offer exceptionally high APYs
- Checks and debit cards may be available
- Best accounts are federally insured
Cons
- Best rates typically require balance of $1,000,000 or more
- Potential for hefty opening deposit
- Possible limits on monthly withdrawals
How To Choose the Best Jumbo Money Market Account for You
When you’re choosing where to open a jumbo money market, keep in mind several factors, such as deposit requirements, balance requirements and fees.
APY
Perhaps the most important factor of a jumbo money market account is the APY you’ll earn. Will you collect a high enough return to justify making a large opening deposit or maintaining a large daily balance?
Deposit Requirements
Be sure to investigate deposit requirements when shopping for a jumbo money market account. Many accounts require an opening deposit of at least $100,000 or up to $1,000,000 or more for the highest rates. Carefully consider whether you want to sink that much money into a single money market account or park the money elsewhere.
Minimum Balance Requirements
When comparing jumbo money market accounts, don’t forget to look into minimum balance requirements. You may be required to maintain a certain balance, such as $100,000, to qualify for the highest APY.
Bank Access
Do you want to do business with a financial institution that operates branches? Or are you fine with handling all of your business online? Before you set up a jumbo money market account, consider whether you’d prefer to save with an online bank or one of the best national banks with branches.
ATM Access
If you need to deposit or withdraw money, will you be able to find an ATM nearby, particularly one that charges low or no fees? Your answer to this question may tip the balance toward one financial institution and away from another.
Fees
Be mindful of any fees a bank or credit union charges for jumbo money market accounts. You don’t want a bunch of fees chipping away at the interest you’re earning.
Frequently Asked Questions
Who Has the Highest Money Market Rate Right Now?
For a jumbo money market account, First Internet Bank is paying one of the highest rates right now: 5.48% APY on balances above $1,000,000.
What Is the Downside of a Money Market Account?
One of the downsides of a money market account is the potential lowering of returns if interest rates go down. Furthermore, you might lose money if you rack up too many fees.
How Much Will $100,000 Make in a Money Market Account
With a consistent balance of $100,000, you’d earn $5,126.75 in interest at the end of one year with a money market account paying a 5.00% APY, compounding interest daily.
The post 5 Best Jumbo Money Market Rates for July 2024 first appeared on Newsweek Vault.
2024-07-03T19:18:02Z dg43tfdfdgfd
