Looking for a smarter way to grow your savings? Understanding your options is the first step. While both savings accounts and money market accounts offer secure places to keep your money and earn interest, they aren’t identical. Money market accounts often provide a competitive edge with potentially higher interest rates, especially for larger balances.
This article breaks down a special rate offer for a money market account, highlighting how you can maximize your savings.
How to Secure This Exclusive Rate
This promotional Annual Percentage Yield (APY) is designed for new clients or those relatively new to money market accounts with us. Specifically, it’s available if:
- You are opening a new consumer money market account.
- You have an existing consumer money market account that has been open for less than 30 days.
This special rate does not apply if you’ve closed a consumer money market account with us within the last 30 days.
To take full advantage of the advertised APY, ensure you deposit at least $50,000 into your new account within 30 days of opening it. A minimum opening deposit of just $100 is required to get started. If the $50,000 deposit isn’t made within the initial 30 days, the standard interest rate for a money market account will apply.
Maintaining Your Premium Rate
Keeping the higher APY is straightforward. After making the initial qualifying deposit of $50,000 within the first 30 days, simply maintain a minimum daily balance of $50,000 or more.
Should your account balance dip below $50,000, the standard interest rate will be applied. However, you’ll automatically revert back to the promotional rate as soon as your balance is back at or above $50,000.
It’s important to remember that all interest rates and APYs are set at the bank’s discretion and can change over time. This includes after your account is opened, regardless of your balance. Keep in mind that any account fees can reduce your balance, so factor those in to ensure you maintain the minimum daily balance to qualify for this rate.
Understanding Standard Interest Rates
Even without the promotional rate, our money market accounts offer tiered interest based on your balance. As of today, the standard APYs 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
These tiers ensure that even balances below the promotional threshold still earn interest, with potential for higher returns as your savings grow.
Interest Accrual and Important Details
To earn the stated APY for each tier, you must maintain the minimum daily balance required for that tier. Interest is compounded daily, meaning it’s calculated each day based on your balance and added to your principal, allowing you to earn interest on interest. Interest is credited to your account monthly.
We use the daily balance method to calculate interest. This means we apply a daily interest rate to the principal balance in your account each day. For check deposits, interest begins accruing on the business day we receive credit for the deposit. If you decide to close your account before interest is credited for a given month, you will not receive the accrued interest. Remember that account fees can reduce your overall earnings. Additional terms and restrictions may apply.
Consider a money market account to potentially enhance your savings with competitive interest rates.
