With interest rates finally beginning to drop, many banking customers are doing anything they can to continue earning high returns on their deposits.

One potential option is a jumbo money market account (MMA). These accounts require a higher minimum deposit (usually $100,000 and up) and, in return, often pay higher interest rates than traditional money market accounts.

Because of the high deposit requirements, jumbo MMAs won’t be the best option for everyone. However, it’s one way to maximize your interest earnings if you have a large amount of cash.

What is a jumbo money market account, and how does it work?

A money market account is a deposit account typically offered by banks, credit unions, online brokerages, and other financial institutions. These accounts tend to pay higher interest rates than traditional checking and savings accounts and come with checks and/or a debit card. However, they often have higher minimum deposit requirements in order to earn the highest rate and avoid monthly fees. These accounts also typically limit the number of withdrawals you can make in a month.

Jumbo money market accounts, which are somewhat rare, typically offer even higher rates in exchange for keeping a larger amount of money on deposit. For instance, First Internet Bank’s Money Market Savings account has a minimum balance of $1 million to earn the highest interest rate. You can still earn a decent rate with lower balances, but it won’t be as high.

There is no universal amount you’re expected to keep in a jumbo money market account — it depends on the specific account. A typical threshold can be anywhere from $100,000 to $1 million. In some cases, traditional money market accounts pay tiered rates, where you can earn a higher interest rate by keeping a larger balance on deposit as well.

Read more: How much is a money market account minimum balance?

Where to find the best jumbo money market rates

Money market account rates constantly change, and jumbo MMA rates are no exception. However, we’ve highlighted a few of the best jumbo MMA rates currently available:

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Pros and cons of jumbo money market accounts

Like all banking products, jumbo MMAs have pros and cons. Carefully consider these before opening an account.

Pros

Cons

Read more: How to insure deposits over $250,000

Are jumbo money market accounts worth it?

If you have a substantial amount of cash savings that you want to keep safe while earning some interest, a jumbo MMA can be a good option. They typically offer higher interest rates compared to standard savings accounts, while allowing you to access your money as needed.

That said, jumbo money market accounts are hard to find. Plus, their rates may not be so competitive when compared to some standard high-yield money market accounts. For example, among the best MMA rates available today, you could earn as much as 5% APY with no minimum balance required.

See our picks for the 10 best high-yield money market accounts available today>>

Also, considering that a portion of your balance could be uninsured if you deposit more than $250,000 into a jumbo MMA, you may want to consider spreading your money across multiple high-yield accounts, including savings accounts, CDs, and even some investments.

For example, a CD allows you to lock in your interest rate for several months or years. This can be particularly beneficial when interest rates are falling. However, you usually can’t make additional deposits or withdraw money from a CD until it reaches the maturity date.

Stocks, bonds, and exchange-traded funds (ETFs) are more liquid options that can offer high returns. You can freely deposit and withdraw from accounts holding these investments, and their long-term returns can be higher than jumbo MMAs. However, they are often volatile, meaning your investment can go through periods of declining value. Sometimes, those periods can last months or even years.

While alternatives to jumbo MMAs exist, none are without drawbacks. As always, you must carefully weigh the pros and cons and how they fit into your larger financial strategy and goals.

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