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U.S. Bank offers 11 standard certificate of deposit (CD) terms, ranging from one month to 60 months. Despite the wide range of terms, the bank’s rates on its standard CDs tend not to be competitive to rates offered by online banks. Rates for its standard CDs range from 0.05% APY for a one-month CD to 0.25% APY for a 60-month CD. There’s a $500 (maximum of $250,000) minimum deposit to open a standard CD.
FEATURED PARTNER OFFER
U.S. Bank Certificate Of Deposit (Special)
Offer
Rates as of 1/04/2024
Get up to 5.05% APY*
Minimum Deposit Requirement
On U.S. Bank's Website
Member FDIC
Rates as of 1/04/2024
Get up to 5.05% APY*
$1,000
*Offer Details
Get special CD rates with U.S. Bank on balances up to $250,000:
• Up to 4.40% Annual Percentage Yield (APY) for 7 months
• Up to 5.05%% Annual Percentage Yield (APY) for 9 months
• Up to 4.20% Annual Percentage Yield (APY) for 15 months
Rates vary by state and zip code. Please click here to see your rate before applying.
Here’s an overview of U.S. Bank’s standard CD rates. Rates may vary by location. For the purposes of this article, we researched rates using the New York City ZIP Code of 10001. Rates are accurate as of January 16, 2024.
| CD Term | APY | Minimum Deposit |
|---|---|---|
| 1 Month | 0.05% | $500 |
| 2 Months | 0.05% | $500 |
| 3 Months | 0.05% | $500 |
| 6 Months | 0.05% | $500 |
| 9 Months | 0.05% | $500 |
| 12 Months | 0.05% | $500 |
| 18 Months | 0.05% | $500 |
| 24 Months | 0.05% | $500 |
| 36 Months | 0.10% | $500 |
| 48 Months | 0.15% | $500 |
| 60 Months | 0.25% | $500 |
Overview of U.S. Bank CDs
U.S. Bank standard CDs require a minimum opening balance of $500, with a maximum deposit of $250,000, putting these CDs within reach for many savers. However, their returns are low and investors would do better looking elsewhere to maximize their returns.
The bank pays somewhat better rates on what it calls its CD Specials, which require a higher $1,000 minimum deposit. The specials are subject to the same $250,000 maximum deposit.
CD Specials from U.S. Bank come in terms of 7 months, 9 months, 11 months and 15 months. The rates on these promotional CDs are far higher than what U.S. Bank pays on its standard CDs. This means if you’re interested in a CD from U.S. Bank, you’ll be better served by looking directly at the bank’s current CD Specials. Note that rates vary by state and ZIP Code so check the website before applying.
In addition to its standard CDs and CD Specials, U.S. Bank offers a 28-month Step Up CD that pays a blended 0.35% APY. You can deposit between $1,000 and $250,000. With this CD, the interest rate increases on a set schedule and by a set amount every seven months. Interest rates are set when the CD is opened and can’t be changed.
U.S. Bank has one more type of CD in its repertoire: the Trade Up CD, which comes in terms of 30 months (at 0.10% APY) and 60 months (at 0.40% APY). You can deposit between $1,000 and $250,000. If interest rates rise during the term, you have the option to trade up to the higher rate. You can only trade up once during the initial term and you must visit a U.S. Bank branch to redeem the offer.
In general, U.S. Bank offers little information online about fees and other important terms surrounding its CDs. It appears that the compounding of interest for its standard CDs is daily, and interest is likely credited to an investor’s account monthly, although this could not be confirmed.
For early withdrawal penalties, Forbes Advisor called U.S. Bank customer service and was advised that customers wanting information about fees and penalties should inquire at their local branch. Their website indicates there are early withdrawal penalties that vary and will potentially cost investors interest.
| Overview of U.S. Bank CDs | ||
|---|---|---|
| Minimum Deposit | $500 | |
| Term Lengths | 1, 2, 3, 6, 9, 12, 18, 24, 36, 48 and 60 months | |
| Compounding Schedule | Daily | |
| Early Withdrawal Penalty | Contact U.S. Bank customer service for more information | |
| Grace Period for Penalty-Free Withdrawals After Maturity | Unknown | |
How Much Can You Earn With U.S. Bank’s CD Rates?
Since U.S. Bank’s CD rates are quite low, the answer is not much. Find out what you can earn with a U.S. Bank CD using our CD calculator:
How U.S Bank’s CDs Compare
According to the FDIC, U.S. Bank’s standard CD rates hover on the low end compared to the national average CD rates, but they are comparable to what other large national brick-and-mortar banks offer. U.S. Bank’s CD rates don’t come close to the best CD rates on the market. There are far better rates available, generally at online banks.
As mentioned earlier, those interested in getting a CD from U.S. Bank may want to check out the bank’s CD Special promotions, since the bank tends to pay far higher rates on those CD types.
Investors would do well to compare rates from several different banks and credit unions before deciding to open a CD. By doing your homework, you can make sure you’re earning the most interest possible for your initial deposit and investment time horizon.
About U.S. Bank
U.S. Bank is the fifth-largest commercial bank by assets in the United States. With branches in 26 states and its headquarters in Minneapolis, U.S. Bank is a full-service bank offering a wide array of banking, loan, investment and other financial products to consumers, small businesses and corporate and institutional customers. It provides mobile banking and an extensive network of ATMs.
Frequently Asked Questions (FAQs)
What are the savings alternatives to CDs?
There are several alternatives to saving with CDs. Consider high-yield savings accounts and money market accounts as potential alternatives when shopping for a safe place to stash your money. These types of accounts come with more liquidity and may, in some cases, offer higher interest rates.
What should I keep in mind when comparing CDs?
When shopping around for CDs, compare different banks and credit unions for the best rate. You’ll also want to compare CD terms, minimum investment and penalties for early withdrawal.
Are CDs considered safe investments?
When you purchase a CD through a bank or credit union, your funds are insured by the FDIC against bank failure. You can ask your financial institution to explain the insurance limits to help protect your investment. U.S. Bank is FDIC insured (FDIC certificate No. 6548). All U.S. Bank accounts are protected up to the standard maximum of $250,000 per depositor, for each account ownership category, in the event of a bank failure.
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As a financial expert with a deep understanding of banking products and investment options, I can provide valuable insights into the concepts discussed in the article. My expertise is grounded in an extensive background in finance, keeping up with the latest industry trends, and a track record of guiding individuals towards informed financial decisions.
Now, let's delve into the key concepts presented in the article about U.S. Bank's Certificate of Deposit (CD) offerings:
-
CD Terms and APY Rates:
- U.S. Bank provides a range of standard CD terms, from one month to 60 months.
- The Annual Percentage Yield (APY) for these standard CDs varies from 0.05% for a one-month CD to 0.25% for a 60-month CD.
- There is a minimum deposit requirement of $500 for standard CDs, with a maximum deposit limit of $250,000.
-
Special CD Offers:
- U.S. Bank offers CD Specials with higher rates, requiring a minimum deposit of $1,000.
- The promotional CD terms include 7 months, 9 months, 11 months, and 15 months, with significantly better APY rates compared to standard CDs.
- Rates for CD Specials vary by state and ZIP code.
-
Step Up CD and Trade Up CD:
- U.S. Bank features a 28-month Step Up CD with a blended 0.35% APY, allowing for interest rate increases on a set schedule.
- The Trade Up CD, available in 30-month and 60-month terms, provides an option to switch to a higher rate if interest rates rise during the term. This option can only be exercised once, requiring a visit to a U.S. Bank branch.
-
Information on Fees and Terms:
- U.S. Bank's standard CDs have a minimum deposit of $500, daily compounding of interest, and monthly interest credits.
- Details about fees, penalties, and grace periods for penalty-free withdrawals after maturity are not prominently available online, and customers are advised to contact local branches for this information.
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Comparison with Other Banks:
- U.S. Bank's standard CD rates are described as being on the low end compared to national averages and are not as competitive as those offered by online banks.
- The article suggests that individuals interested in U.S. Bank CDs should explore the bank’s CD Special promotions for potentially higher rates.
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FDIC Insurance and Safety:
- U.S. Bank is highlighted as the fifth-largest commercial bank in the U.S., offering a range of financial products with branches in 26 states.
- The article emphasizes the safety of CDs, with FDIC insurance covering funds against bank failure, and it mentions that U.S. Bank is FDIC insured.
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Savings Alternatives and Considerations:
- The article briefly mentions alternatives to CDs, including high-yield savings accounts and money market accounts, with a focus on liquidity and potentially higher interest rates.
- When comparing CDs, individuals are advised to consider rates, terms, minimum investments, and penalties for early withdrawal.
In conclusion, U.S. Bank's CD offerings, while convenient for many savers, may not provide the most competitive rates, prompting potential investors to explore alternative options and conduct thorough comparisons before making investment decisions.
