UPDATE 1-Charles Schwab expects 28 pct jump in fee waivers

* Expects $100 mln in money market fund fee waivers in Q4

* 100 basis-point rate rise could eliminate fee waivers

* Will move up to $10 bln from money funds to bank in 2010

NEW YORK, Nov 5 (Reuters) - Charles Schwab Corp (SCHW.O) expects to waive about $100 million in money market fees in the current quarter, up 28 percent from the previous quarter, the largest U.S. discount brokerage said on Thursday.

Management, speaking at a quarterly update for investors, added that the first 100 basis-point rise in interest rates could eliminate fee waivers altogether.

With near-zero interest rates continuing to hamper the online brokerage, it said Thursday it would incrementally move billions of dollars -- but no more than $10 billion -- from clients' money market funds into its bank unit in 2010.

Schwab had $178.7 billion in client money market funds at the end of September.

Low interest rates, brought on by the recession, have forced the company to waive the fees it charges clients in managed funds. Schwab, by far the biggest online broker, also runs a fast-growing bank and offers investment advice.

The $100 million in fourth quarter waivers would be up from $78 million in the third quarter, and $36 million in the first half of the year. It is also higher than the company's previous forecast, which suggested $86 million in waivers remained this year.