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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 with rates offered by online banks. There’s a $500 minimum deposit requirement (and a $250,000 maximum) to open a CD.
Here’s an overview of the U.S. Bank Certificates of Deposit 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 March 1, 2024.
Overview of U.S. Bank CDs
U.S. Bank’s 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.
U.S. Bank Certificate Of Deposit (Special) comes in terms of seven months, 11 months, 13 months and 19 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 CDs and CD Specials, the bank offers a 28-month U.S. Bank Step Up CD that pays a blended 0.35% APY. You can deposit $1,000 (maximum of $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 U.S. Bank Trade Up CD, which comes in terms of 30 months (at 0.10% APY) and 60 months (at 0.40% APY). You can deposit $1,000 (maximum of $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. The bank’s website indicates there are early withdrawal penalties that vary and will potentially cost investors interest.
Overview of U.S. Bank CDs
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, which range from 0.23% for a one-month CD to 1.40% for a five-year CD as of February 20, 2024.
U.S. Bank’s CD rates are comparable to what other large national brick-and-mortar banks offer but 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.
Pro Tip
Before opening a U.S. Bank CD account, sign up for a U.S. Bank checking account to establish a relationship. This may open up even better CD rate offers that are not available to the general public.
What Do I Need To Open a U.S. Bank CD Account?
To open a U.S. Bank CD account, you first need to input your ZIP code to see the CD rates and terms offered in your area. Then you can select a CD term and rate offering and open a U.S. Bank account online.
You’ll need to provide personal and financial information, including:
- Legal name
- Address
- Email address
- Phone number
- Social Security number
- Valid government ID
You may also need to provide some basic employment and financial information.
Once you’ve opened the CD account, you’ll need to transfer into the account at least $500 for a standard CD or $1,000 (maximum of $250,000) for a Step-Up or Trade-Up CD as a minimum opening deposit. Once the funds are deposited into your CD account, they will be bound to the terms and conditions of your CD.
About U.S. Bank
U.S. Bank is the fifth-largest commercial bank by assets in the United States. Its parent company is U.S. Bancorp. With branches in 26 states and headquartered 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)
Is U.S. Bank FDIC insured?
Yes. U.S. Bank is FDIC insured for all deposit accounts. This provides up to $250,000 in deposit insurance per account, per depositor. This means that joint account holders have $500,000 in combined deposit insurance. FDIC insurance covers losses resulting from bank closures and will reimburse depositors up to the full insured amount.
Is U.S. Bank a safe bank?
Yes. U.S. Bank employs various security measures to ensure your funds and personal information stay safe. U.S. Bank offers zero fraud liability protection, meaning you are not liable for unauthorized transactions. And all U.S. Bank deposit accounts are FDIC insured up to $250,000, protecting your deposits in the case of bank failure.
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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