Interested in growing your savings with a competitive interest rate? US Bank offers a money market account with a special, higher-than-standard Annual Percentage Yield (APY) for eligible customers. This promotional rate is designed to help you earn more on your deposits, provided you meet certain criteria. Let’s break down how you can obtain and maintain this attractive rate, and what to expect with the standard rates.
How to Snag the Special Rate on Your US Bank Money Market Account
To take advantage of this special APY, there are a few key conditions to meet when opening a new Us Bank Money Market account. This offer is typically for new clients to US Bank money market accounts, or those who have had an account for less than 30 days. Specifically, if you already have an existing consumer money market account that’s older than 30 days, or if you’ve closed a money market account within the last 30 days, you might not be eligible for this introductory rate.
The most important step to unlock this rate is funding your new account adequately. You need to deposit at least $50,000 within the first 30 days of opening your account to qualify for the promotional APY. While the minimum opening deposit to simply start a money market account is $100, it’s the $50,000 deposit that activates the special rate. If you don’t reach the $50,000 deposit within the 30-day window, your account will default to the standard interest rates.
Keeping Your US Bank Money Market Account at the Special Rate
Once you’ve secured the promotional rate by depositing $50,000, maintaining it is straightforward but crucial. To continue earning the higher APY, you must maintain a minimum daily balance of $50,000 or more in your money market account every day. If your balance dips below this $50,000 threshold at any point, the standard interest rate for your balance tier will apply. However, you can regain the special rate as soon as your account balance is back to $50,000 or higher.
It’s also important to remember that US Bank, like all banks, has the discretion to change interest rates and APYs at any time. This means that even after you’ve opened your account and are earning the special rate, the rate could fluctuate based on market conditions, regardless of your account balance. Furthermore, any fees associated with your account will reduce your balance, so you’ll need to factor those in to ensure you maintain the required daily balance to keep the special rate.
Understanding US Bank’s Standard Money Market Account Rates
Even if you don’t meet the requirements for the special rate, or if those rates change, US Bank money market accounts still accrue interest based on standard balance tiers. As of the last update, the standard interest rates are tiered as follows:
- Balances under $10,000: 0.01% APY
- Balances between $10,000 and $24,999.99: 0.01% APY
- Balances between $25,000 and $49,999.99: 0.25% APY
- Balances between $50,000 and $99,999.99: 0.25% APY
- Balances between $100,000 and $499,999.99: 0.25% APY
- Balances of $500,000 and above: 0.25% APY
Key Interest Information for US Bank Money Market Accounts
To maximize your earnings, it’s helpful to understand how interest is calculated and credited. US Bank money market accounts compound interest daily, meaning that each day, you earn interest not only on your principal but also on the accumulated interest from previous days. This compounded interest is then credited to your account on a monthly basis.
US Bank uses the daily balance method to calculate interest. This method applies a daily periodic rate to the principal balance in your account each day. For deposits made by check, interest begins to accrue on the business day US Bank receives credit for the deposit. It’s also important to note that if you decide to close your account before interest is credited for a given period, you will not receive the accrued interest for that period. Lastly, always be mindful of any account fees, as these can reduce your overall earnings. Additional restrictions may apply to the money market account, so it’s always wise to review the full terms and conditions when opening your account.
