Dedicated to Deposits: Deals, Data, and Discussion

5.22% Money Market Account at Tennesse Commerce Bank ($10K min)


Tennessee Commerce Bank (TCB) has a money market account that it calls the Market Watch Money Fund. The rate is based on the 6 month Treasury Bill and is updated weekly. Currently the APY is 5.22%. The minimum deposit to open is $10K. The maximum is $1M. It's a little less liquid than your typical money market account. It only allows one free withdrawal per month ($25 for each additional withdrawal). Withdrawals can be done by check, ACH or Wire Transfer. There are no monthly service charges.

TCB also offers another money market account for very large deposits called the Investor's Money Fund which has a rate based on the 6-month Treasury Bill plus 50 basis points and is updated weekly. Currently, the APY is 5.75%. It has the same features as the Market Watch Money Fund. The minimum to open is $250K.

TCB's checking account also looks like a good deal. TCB Checking is free to customers with a minimum $10K relationship. Rates are indexed to the 90 day T-Bil rate. It offers free TCB checks and $5 monthly refund of ATM fees.

In addition to high yield money market accounts, the bank has some decent rates on CDs. The current yields range from 5.10% APY for a 3-month CD to 5.60% APY for a 12-month APY. All have a minimum $5K deposit requirement.

Account applications can be done online. The bank requires you to mail them two forms of identification along with the initial deposit. To ACH or wire the deposit, you must call for instructions.

In addition to personal accounts, TCB has many accounts designed for businesses.

TCB is FDIC insured. It's a small bank with only one branch and 50 employees. Total assets is $438 million.'s safe and sound rating is 3 out of 5 stars (performing).

Comment #1 by Anonymous posted on
The Market Watch Money Fund is 10K to open, but doesn't have a monthly service charge. What happens when the balance falls below 10K?

Comment #2 by Mario (anonymous) posted on
I'm guessing this account will be subject to state income taxes, but note that if T-bills are purchased directly from the government, they are state tax free.

Also, the listed rate is actually somewhat below the current yields on T-bills.

Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
I was told by the customer service rep that the interest would not change if you fall below the minimums of either account. Also, there's no service fee. So one possible strategy is to make one big deposit of $250K into the Investors Money Fund (if possible) then transfer this out as needed. What remains will earn a very nice rate.

Yes, for those who have state taxes, T-bills may be a better choice. And I did notice that they don't seem to be exactly linked to the current T-bill yields. I'll have to send off another email about this.

Below is the email I received from the CSR:

Our accounts are available to out-of-town individuals as well as businesses. On ACH withdrawls you would need to contact the bank in order to have those completed. We would fax you a request form. We also have bill pay through our internet site. On the Market Watch, and Investors Money Fund your interest rate would not change if you fall below the minimums, plus no service fee. On the Money Fund the interest rate is tiered according to balances with no service fee. The Investors Money Fund is similar the rate is based on the T-bill plus .50 bases points.