Looking to grow your savings with a competitive interest rate? US Bank offers a Money Market Account with attractive rates, especially for new customers and those looking to deposit larger balances. This guide breaks down how to obtain and maintain a potentially higher interest rate with a US Bank Money Market Account.
How to Unlock the Promotional Interest Rate
To take advantage of the special Annual Percentage Yield (APY), there are specific eligibility criteria you need to meet. This promotional rate is designed for:
- New Money Market Account Holders: Clients who are opening their first consumer money market account with US Bank.
- Recent Account Openers: Existing clients who have opened a consumer money market account within the last 30 days.
However, this special rate is not available if you’ve closed a consumer money market account with US Bank within the past 30 days.
To actually obtain this advantageous APY, you must deposit at least $50,000 into your new account within 30 days of opening it. While the minimum opening deposit to start an account is just $100, depositing the larger amount is key to securing the promotional rate. If you don’t reach the $50,000 deposit within the initial 30 days, the standard, lower interest rate will apply to your balance.
Maintaining the Enhanced Rate
Once you’ve secured the promotional rate by depositing $50,000, maintaining it is straightforward. You simply need to ensure your daily balance remains at or above $50,000 each day.
Should your account balance dip below $50,000 at any point, the standard interest rate for money market accounts will be applied. The promotional rate will be reinstated if and when your balance returns to $50,000 or higher.
It’s also important to be aware that US Bank has the discretion to change interest rates and APYs at any time. This means rates can fluctuate even after you open your account, regardless of your balance. Furthermore, any account fees will reduce your balance, so you’ll need to factor these in to ensure your balance remains above the $50,000 threshold to maintain the desired rate.
Understanding Standard Interest Rates
Even if you don’t qualify for or maintain the promotional rate, US Bank Money Market Accounts still accrue interest based on tiered balances. As of today’s date, the standard interest rates are structured as follows:
- Balances Under $10,000: 0.01% APY
- Balances from $10,000 to $24,999.99: 0.01% APY
- Balances from $25,000 to $49,999.99: 0.25% APY
- Balances from $50,000 to $99,999.99: 0.25% APY
- Balances from $100,000 to $499,999.99: 0.25% APY
- Balances of $500,000 and Above: 0.25% APY
Key Interest Information to Note
To maximize your earnings with a US Bank Money Market Account, keep these interest-related details in mind:
- Minimum Balance for APY: You must maintain the minimum daily balance for each tier to earn the disclosed APY.
- Interest Compounding: Interest is compounded daily, meaning it’s calculated on a daily basis and added to your principal.
- Interest Crediting: Accrued interest is credited to your account on a monthly basis.
- Daily Balance Method: US Bank uses the daily balance method to calculate interest. This means interest is calculated based on the principal balance in your account each day.
- Check Deposit Interest: Interest on check deposits begins to accrue on the business day US Bank receives credit for the deposit.
- Loss of Accrued Interest: If you close your account before interest is credited, you will not receive any accrued interest.
- Fees Impact Earnings: Be aware that account fees can reduce the overall earnings on your account.
- Further Restrictions: Other restrictions on the account may apply, so it’s always advisable to consult with US Bank directly for complete details.
In conclusion, US Bank Money Market Accounts can be a valuable tool for savings, especially when leveraging the promotional rates for larger balances. By understanding the requirements to obtain and maintain these rates, and being aware of the standard rate tiers and interest calculation methods, you can make informed decisions to help your money grow effectively.
