You Can Get Better Yield with a Jumbo CD or Money Market Account
Since the Federal Reserve started cutting short-term interest rates last September, yields on bank accounts have been falling.
Savers who have significant sums to stash away may be able to earn a little extra interest by putting their money in “jumbo” certificates of deposit or money market deposit accounts, which have larger minimum balance requirements than standard accounts but offer higher yields.
The minimum amount required to open a jumbo account varies, but usually, you’ll need to deposit at least $25,000.
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My eBanc, for example, offers an online six-month jumbo CD that recently yielded 4.5% if you have a balance of at least $50,000; otherwise, the bank’s six-month CD yields 4.35%, with a $5,000 minimum deposit.
And if you deposit at least $100,000 in My eBanc’s money market account, you get a 3.9% yield. Balances of less than $100,000 earn 3.4% (if your balance falls below $5,000, you’ll be charged a $15 monthly fee).
Justice Federal Credit Union offers a 4.21% yield on a 12-month CD if you deposit at least $100,000. (This jumbo CD is not in the table below because we assume a smaller deposit when listing those accounts.)
Otherwise, its 12-month CD yields 4.10%. Anyone can become a member of Justice FCU by joining a qualifying association.
The Federal Deposit Insurance Corporation and the National Credit Union Share Insurance Fund provide up to $250,000 in insurance per depositor against the failure of a bank or credit union.
If your combined balances in deposit accounts would exceed the limit at a single institution, you may want to spread your funds among multiple banks or credit unions.
To help make the most of your savings, we’ve compiled a list of top-yielding accounts that offer competitive interest rates.
Whether you’re considering a high-yield savings account, a money market account or a jumbo CD, this table provides key details, including minimum deposit requirements, current interest rates and any notable terms or conditions.
Taxable Money Market Mutual Funds | 7-day yield as of April 30 | Minimum investment | Website |
|---|---|---|---|
Gabelli U.S. Treasury MMF (GABXX) | 4.22% | $10,000 | gabelli.com |
AB Govt MMP (AEYXX)* | 4.14% | $2,500 | alliancebernstein.com |
DWS Govt & Agency MF (DTGXX)* | 4.23% | $1,000 | fundsus.dws.com |
T Rowe Price Cash Res (TSCXX)* | 4.20% | $2,500 | troweprice.com |
Tax-Free Money Market Mutual Funds | 7-day yield as of April 30 | Tax eq. yield 24%/35% bracket | Minimum investment | Website |
|---|---|---|---|---|
Fidelity Municipal MMF (FTEXX)* | 3.56% | 4.68% / 5.48% | $1 | fidelity.com |
T Rowe Price Tax-Exempt MF (PTEXX)* | 3.31% | 4.36% / 5.09% | 2,500 | troweprice.com |
Amer Cent T-F MMF (BNTXX) | 3.29% | 4.33% / 5.06% | 2,500 | americancentury.com |
Fidelity Tax-Exempt MMF (FMOXX)* | 3.71% | 4.88% / 5.71% | 1 | fidelity.com |
Certificates of Deposit 5-Year | Annual yield as of Jan. 31 | Minimum amount | Website |
|---|---|---|---|
KS StateBank (Kan.) | 4.30% | $500 | ksstate.bank |
Lafayette FCU (Md.)& | 4.28% | $500 | lfcu.org |
Credit Human (Texas)&‡ | 4.11% | $500 | credithuman.com |
Synchrony Bank (Utah)? | 4.15% | 0 | synchrony.com |
- * Fund is waiving all or a portion of its expenses
- ? Internet only
- # Money market deposit account
- & Must be a member; to become a member, see website or call
- ‡ CD term is 36-59 months
Sources: Bankrate, DepositAccounts, Money Fund Report (iMoneyNet).
Account Issuer | Annual yield as of Jan. 31 * | Balance range^ | Website |
|---|---|---|---|
Genisys CU (Mich.)& | 6.75% | $0–7,500 | genisyscu.org |
Andrews FCU (Md.)& | 5.50% | $0–$25,000 | andrewsfcu.org |
Affinity FCU (N.J.)& | 5.50% | $0–$15,000 | affinityfcu.com |
Ideal CU (Minn.)& | 5.00% | $0–$20,000 | idealcu.com |
- * To earn the maximum rate, you must meet requirements such as using your debit card several times monthly and receiving electronic statements
- ^ Portion of the balance higher than the listed range earns a lower rate or no interest
- & Must be a member; to become a member, see website.
Source: DepositAccounts.
Benchmark | Yield as of April 30 | Month ago | Year ago |
|---|---|---|---|
U.S. Series EE savings bonds | 2.70% | 2.60% | 2.70% |
U.S. Series I savings bonds | 3.98% | 3.11% | 5.27% |
Six-month Treasury bills | 4.04% | 4.28% | 5.18% |
Five-year Treasury notes | 3.77% | 4.36% | 3.91% |
Ten-year Treasury notes | 4.19% | 4.58% | 3.99% |
As of April 30, 2025. EE savings bonds purchased after May 1, 2005, have a fixed rate of interest. Bonds purchased before May 1, 1995, earn a minimum of 4% or a market- based rate from date of purchase. Bonds bought between May 1, 1995, and May 1, 2005, earn a market-based rate from date of purchase.
Source for Treasuries: U.S. Treasury
What if a jumbo account isn’t the right fit?
If a jumbo account doesn’t align with your financial needs, there are still plenty of ways to earn competitive interest on your savings.
High-yield savings accounts, standard certificates of deposit and money market accounts offer great alternatives with lower minimum deposit requirements.
Explore some of today’s best savings accounts with the tool below, in partnership with Bankrate, to compare current interest rates:
Are jumbo accounts the right choice for your savings?
Jumbo accounts can be a smart option for big savers who want to earn higher interest rates. Whether you choose a jumbo CD or a money market account, these accounts typically offer better yields than standard savings options.
However, they also come with higher minimum deposit requirements and, in some cases, fees if your balance drops below a certain threshold.
Before committing, compare rates, terms and insurance protections to ensure a jumbo account aligns with your financial goals and provides the best return on your savings.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
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