For savvy investors, competitive jumbo money market rates can help supersize returns on more liquid savings options while providing easier access to cash than traditional savings accounts or comparable investments. The best jumbo money market rates often appear in true “jumbo” accounts that still require minimum investments of at least $100,000. In the current financial market, many money market accounts are billed as jumbo by banks but feature reduced minimum balance requirements. Despite the deviation, several of these options can also provide a competitive annual percentage yield on your funds, even when your balance dips below $100,000.
The 4 Best Jumbo Money Market Accounts of 2020
- Presidential Bank: Best jumbo money market plus checking
- Quontic Bank: Best money market account for jumbo aspirations
- Northpointe Bank: Best return on high balances
- State Bank of Texas: Best mix of commercial and personal jumbo money markets
| Bank | Max. APY | Min. Deposit | Daily Balance Requirement |
| Presidential Bank | 2.25% | $100,000 | $25,000 |
| Quontic Bank | 2.20% | $500 | $0 |
| Northpointe Bank | 1.95% | $1,000 | $0 |
| State Bank of Texas | 1.85% | $100,000 | $100,000 |
What is a Jumbo Money Market Account?
A traditional money market account provides many of the features of a checking account while providing access to interest rates that exceed traditional savings accounts. Money market holders typically hold a debit card for the account and can even write checks that tap into the balance. Withdrawals are limited to six transactions per month by federal banking regulations. With a money market account, fees can add up and many of the highest-return options, such as jumbo money market accounts, require substantial minimum investments. Even contemporary jumbo market accounts without a $100,000 balance requirement set a smaller bar before you can invest or earn interest, such as a $50,000, $25,000 or $10,000 minimum. Some jumbo options also feature tiers of different APYs based on your average daily balance, making mega-investments the best way to maximize returns.
Jumbo MMA vs Regular MMA
As the name suggests, a jumbo money market account is a larger, higher-cost version of a regular money market account. Initial deposit amounts can be in excess of $100,000 on a jumbo money market account, while regular MMAs could require as little as $250 for the initial deposit. But, with the higher deposit threshold also comes slightly higher interest rates. While regular money market accounts hover around 1.8%, a jumbo money market account can garner 2% or higher in interest. Other than that, both of these products behave similarly.
Jumbo MMA vs High-yield Savings Account
A jumbo money market account is very similar to a high-yield savings account in that both have similar interest rates and have withdrawal limitations. However, a jumbo money market account usually comes with check-writing privileges or a ATM/debit card to make transactions while high-yield savings don’t normally offer this kind of flexibility. On the other hand, high-yield savings accounts don’t require initial deposits as high as jumbo money market accounts do. Sometimes, a deposit of $100,000 or more is required for a jumbo MMA while a high-yield savings account could require at most $500 and as little as $0.
Jumbo MMA vs CDs
Certificates of deposit are similar to jumbo money market accounts in that both products garner similar interest rates. However, CDs are product that locks up your money for an agreed-upon time and can’t be touched until maturity or else penalties will apply. Money market accounts don’t have that sort of rigidity; just a federally-issued regulation of six withdrawals or less per billing cycle. The terms for CDs vary wildly, there are some that are only seven days long, while other can take up to five years to mature. With money market accounts, your funds are available to you at all times.
The 4 Best Jumbo MMAs of 2020
Presidential Bank: Best jumbo money market plus checking
The Presidential Bank money market plus checking account requires the traditional $100,000 jumbo investment to open and also requires a minimum balance of $25,000 in the account. Holders of the money market plus checking account are credited interest at the end of the month and can receive a Visa debit card as well as check-writing privileges. Free bill pay and checks are provided as well as a free personal banking account. While your account balance can dip below $100,000 after opening, keeping a high balance provides access to the best APY at 2.25%. When the balance dips below this level, the APY drops to 0.25% as of November 2019. When the daily balance exceeds $250,000, the APY drops to 1.25%. If you have a business with excess funds, Presidential Bank also offers the same services as Commercial Money Market Plus Checking.
Quontic Bank: Best money market account for jumbo aspirations
Quontic Bank of Astoria, New York provides a solid jumbo money market account option for major savers, but it also features a competitive annual percentage yield on lesser balances for those striving for jumbo status. The bank’s traditional money market accounts start with a 1.85% annual percentage yield for account balances of $0 to $4,999. For customers with $5,000 to $99,999.99 in the account, the APY jumps to 2.10 percent. True jumbo balances of $100,000 or above earn a 2.20% APY. There are no monthly fees, and the money market account includes a debit MasterCard, online banking and mobile check deposit for convenience.
Northpointe Bank: Best return on high balances
With many jumbo money market accounts, returns plummet after a certain level of funds are deposited in the account. At Northpointe Bank, the drop-off is less drastic for investors with balances exceeding $1 million. An APY of 0.50% is offered for savings over $1 million as of November 2019. A $1,000 minimum is required to start an account, and Northpointe does offer occasional promotions with an increased APY for balances of $25,000 to $1 million on new accounts. In November 2019, the increase was 0.05%.
State Bank of Texas: Best mix of commercial and personal jumbo money markets
The State Bank of Texas provides a mix of savings vehicles, including the jumbo money market, a traditional money market and savings accounts. Its jumbo is a classic with a $100,000 minimum deposit to open and a $100,000 balance requirement to earn interest. An average daily balance of $25,000 or above is required to avoid a $20 monthly fee and debits exceeding 6 per month rack up $25 fees. On the APY front, the bank offers 1.85%. Stats for the business option are exactly the same, making it easy for small business owners to diversify savings.
The Final Word
Jumbo money market accounts are an excellent way to invest cash you need to keep handy but still want to work for you by earning interest. This savings option is best for those who plan on letting the money sit as much as possible and earn interest. If you opt for a jumbo account, pay attention to the saving ceilings that start to limit your interest earnings and redirect additional investments to alternate accounts. Jumbo money markets are also a great way for small businesses to earn a return on cash balances without limiting access to capital.