What Is a Jumbo Money Market Account?

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A jumbo money market account is an account that is in excess of $100,000. These accounts typically yield higher interest rates from banks. Earn about 3.5 percent interest on a jumbo money market account with advice from a financial consultant in this free video on money management and personal finance.

Part of the Video Series: Money Management & Personal Finance
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Video Transcript

Do you have more than 100,000 dollars in cash sitting at your account in your local bank? Hi, this is Roger Groh at Groh Asset Management. Today, we're here to talk about jumbo money markets. What are they? Well, these are traditional money market funds, but if you have an excess of, typically, 100,000 dollars, the bank views you as being their best customer. As a result, to retain your money, they're willing to pay you more interest than you would get in a traditional money market fund. Hence, jumbo CDs. Today, those rates average about three-and-a-half percent nationally, at...as compared to 2.2 percent rate in a traditional money market fund at your local bank. Other differences? Well, the minimums can actually change per state because each state has a minimum in terms of what qualifies for jumbo money market. Remember to shop your rates. Hi... Remember to shop your rates. This is Roger Groh at Groh Asset, and thank you very much for spending a few minutes with me.


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