CFBank Money Market: 3.75% APY, But the $25,000 Entry Ticket Is the Real Story

A 3.75% APY on a money market account is a solid number these days, and CFBank is offering it to anyone in the country who can open an account online. But before you get too excited, there's a catch — actually, a few of them. The rate only kicks in once you hit a $25,000 balance, and the tiers below that are pretty bleak. Let's walk through what this account actually looks like in practice.

The rate tiers are where this account lives or dies

Here's the thing about CFBank's money market: the headline 3.75% APY is real, but it's not the rate everyone gets. It only applies once your balance reaches $25,000. Below that, you're looking at 0.20% for balances between $5,000 and just under $25,000, and a truly dismal 0.05% for anything under $5,000.

That structure means this account is really built for people who can park a meaningful chunk of cash in it. If you're thinking about moving $3,000 or $10,000 over, you'd be much better off with a high-yield savings account elsewhere. The math just doesn't work in your favor at those levels.

• 3.75% APY only on balances of $25,000 or more
• 0.20% APY on $5,000 to $24,999.99
• 0.05% APY on anything below $5,000

Fees and fine print worth knowing

There's a $5 monthly fee, but it's waived as long as your balance stays above $500. That's a low bar, so most people who qualify for the top rate won't ever pay it. Still, it's worth noting in case your balance dips.

The bigger gotcha is the early termination penalty. If you close the account within 90 days, you'll be subject to a penalty. That's not unusual for money market accounts, but it does mean you shouldn't treat this as a place to park cash for a month or two while you shop around. Commit for at least a quarter, or look elsewhere.

• $5 monthly fee waived with balance over $500
• Penalty if account closed within 90 days
• Opening deposit is $50, but you need $25,000 to earn the advertised APY

What you get beyond the rate

The account comes with the standard set of features you'd expect from an online-capable bank: a chip debit card, online banking with bill pay, mobile banking with mobile deposit, eStatements, and fraud monitoring. Nothing flashy, but everything you need to manage the account day to day.

One quirk: ACH transfers need to be initiated from an external bank account, both inbound and outbound. That's not a dealbreaker, but it's a slightly different workflow than some people are used to. If you like pushing and pulling money from your main bank's interface, this fits fine. If you prefer initiating transfers from within the account itself, you'll need to adjust.

• Chip debit card included
• Online and mobile banking with bill pay and mobile deposit
• ACH transfers must be initiated from an external bank

Who this account actually makes sense for

If you've got $25,000 or more sitting in a savings account earning next to nothing, CFBank's money market is a reasonable upgrade. The rate is competitive, the bank is FDIC insured, and you can open it online from anywhere in the country.

But if you're working with less than that, or if you might need to close the account within three months, the math gets ugly fast. The sub-$25,000 tiers are well below what you can find at plenty of other banks, and the early closure penalty adds insult to injury. This isn't a starter account — it's for people who already have a decent cash cushion and want a better return on it.

• Good fit for balances of $25,000+
• Poor fit for smaller balances or short-term parking
• Nationwide availability with online opening

Bottom Line

• The 3.75% APY only applies to balances of $25,000 or more.
• Balances under $25,000 earn 0.20% or less, which is well below average.
• A $5 monthly fee applies but is waived if you keep more than $500 in the account.
• Closing the account within 90 days triggers a penalty.
• ACH transfers must be initiated from an external bank account.

Common Questions