Personal Finance News

Credit One Introduces Jumbo High-Yield Savings Accounts

by Kyle BurbankDec 13, 2023

Credit One has announced an expansion of its digital banking products, introducing its Jumbo High-Yield Savings Account.

About the account:

At launch, the Credit One Jumbo High-Yield Savings Account offers customers 5.05% APY — which is nearly 10 times the national average. Additionally, that can be increased with the bank’s Loyalty Rate, which applies to customers with a Jumbo High-Yield Savings account and at least one active CD account. According to the site, the Loyalty Rate increase is 0.05%. Credit One’s JHYSA also doesn’t charge any maintenance fees.

Being a jumbo account, a minimum deposit of $100,000 is required to open an account. Funds are FDIC insured up to $250,000 per depositor.

The new Jumbo High-Yield Savings Account joins Credit One’s growing list of jumbo banking products, including their Jumbo Certificate of Deposit and Jumbo Bump-Up Certificate of Deposit. With the former, customers can currently earn 5.45% APY with a 12-month CD. Meanwhile, the Bump-Up CD currently offers 4.5% APY for a 24-month term, but allows accountholders to increase their rate to the current rate once during their term. Each of these options also requires a minimum deposit of $100,000.

What they’re saying:

Announcing the new account option, Credit One’s SVP of Jumbo Bump-Up Certificate of Deposit David Herpers stated, “At Credit One Bank, we understand consumers’ desire for convenience. By providing digital financial services, we’re able to help customers meet and exceed their financial goals with ease. The new Jumbo High-Yield Savings Account expands Credit One Banks’s digital offerings, giving customers more power than ever to grow their money.”

My thoughts:

To me, Credit One (not to be confused with Capital One) is a company known for its largely subpar rewards credit card products. Thus, I was surprised to learn that they offer jumbo accounts that have minimum balance requirements of $100,000. Admittedly, I was also shocked to learn that “jumbo” isn’t just their verbiage but a widely used banking term overall.

While it’s true that 5.05% APY is higher than most high-yield savings rates at the moment, it’s not a dramatic enough difference that I think this account would be worth it. Personally, even if I did have the cash required, I’d likely look to other institutions and products (including CDs) to get a similar interest rate.

Author

Kyle Burbank

Head Writer ~ Fioney

Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Fioney's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

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