U.S. Bank offers four kinds of certificates of deposit, or CDs. Having a number of options allows you to find the right kind of CD for you and your financial situation. For example, the multiple term lengths available as a regular U.S. Bank CD make it easy to create a CD ladder. That way, you can have a stream of somewhat regular income as each CD matures every few months or so. You could also choose to open a Trade Up CD or a Step Up CD. Both account types allow you to benefit from higher rates during the term.
Like many big banks, U.S. Bank’s CD rates are on the low side. Even the Special CDs below offer rates that fall below many other banks’ CD rates. This is largely due to the maintenance costs big banks face; U.S. Bank has branches throughout 26 states.
U.S. Bank CD Special
The U.S. Bank CD Specials offer rates a cut above the bank’s regular CDs. You will need a higher minimum deposit to open a CD Special account, compared to the regular CDs. There are only three terms available, however. Plus, only the 58-month account offers a rate over 1%.
|U.S. Bank CD Special||Minimum Deposit||APY|
|11 Month||$1,000||1.50%||Compare CD Rates|
|37 Month||$1,000||2.00%||Compare CD Rates|
|59 Month||$1,000||2.50%||Compare CD Rates|
U.S. Bank Certificate of Deposit
These are the bank’s standard certificate of deposit offerings. The rates start off incredibly low for CD accounts, and still don’t reach that much higher by the 60-month term. You can benefit from the lower minimum deposit requirement, though.
Again, the variety of term lengths here does provide for an easily created CD ladder. This involves opening multiple CDs, each with a different maturity date, all at the same time. That way, you can receive a payout every few months or so, depending on how you create the ladder.
|U.S. Bank Certificate of Deposit||Minimum Deposit||APY|
|1 Month||$500||0.05%||Compare CD Rates|
|2 Month||$500||0.05%||Compare CD Rates|
|3 Month||$500||0.05%||Compare CD Rates|
|6 Month||$500||0.05%||Compare CD Rates|
|9 Month||$500||0.05%||Compare CD Rates|
|12 Month||$500||0.10%||Compare CD Rates|
|18 Month||$500||0.15%||Compare CD Rates|
|24 Month||$500||0.20%||Compare CD Rates|
|36 Month||$500||0.35%||Compare CD Rates|
|48 Month||$500||0.50%||Compare CD Rates|
|60 Month||$500||0.75%||Compare CD Rates|
U.S. Bank Step Up CD
The U.S. Bank Step Up CD allows your rate to increase every seven months. So during the 28-month term, you’ll see a rate increase after seven, 14 and 21 months. This differs from basic CDs which earn at the same rate throughout the whole term. This way, you can see potentially higher returns at maturity.
|Step Up CD||Minimum Deposit||APY|
|First 7 Months||$1,000||0.10%||Compare CD Rates|
|Next 7 Months||$1,000||0.30%||Compare CD Rates|
|Next 7 Months||$1,000||0.50%||Compare CD Rates|
|Next 7 Months||$1,000||0.70%||Compare CD Rates|
|Total APY||$1,000||0.40%||Compare CD Rates|
U.S. Bank Trade Up CD
A downside of CDs is that you usually can’t make any changes to the account once it’s opened and funded. This means your rate is locked in for the duration of the term. This isn’t the case with the U.S. Bank Trade Up CD, however. If you notice that interest rates are increasing at some point during this account’s term, you have the option to boost your rate.
To trade your rate for a better one, you’ll have to visit a U.S. Bank branch. You can only do this once and you have to do so before the CD matures. The new rate your account will earn at depends on the published rate for the closest standard term that is equal to or less than the remaining term of the original Trade Up CD.
For example, if you choose to trade your rate with 12 months left in your 30-month Trade Up CD, your new rate will correspond to the standard CD rate for a 12-month account. Keep in mind that it may take up to 10 days for the new rate to come into effect. So it may not make much sense to save your rate trade until the last month or so.
|Trade Up CD||Minimum Deposit||APY|
|30 Month||$1,000||0.40%||Compare CD Rates|
|60 Month||$1,000||0.80%||Compare CD Rates|
Overview of U.S. Bank CDs
U.S. Bank CDs don’t come with many bells and whistles, with no special benefits or bonus rates to be earned. No accounts earn higher rates for higher balances either. Certainly, a benefit of U.S. Bank CDs is that they are free to open and own. Each U.S. Bank CD requires a $1,000 minimum deposit, except for the standard U.S. Bank Certificates of Deposit which require $500. These amounts may be too high for some who just want to deposit and grow a smaller amount over time. Depositing larger amounts does help your account earn more interest, though. U.S. Bank limits your CD deposit to a maximum of $249,999.
Once your CD reaches maturity, you have the option of withdrawing or transferring your earnings out of the account. You can also simply leave the account alone where it will automatically renew for the same term. The new interest rate it earns will be the published rate at the time of renewal.
Don’t forget that with CDs, you cannot withdraw or deposit funds during the term. These transactions can only be made at opening or when it reaches maturity. If you make an early withdrawal from a U.S. Bank CD of six months or less, you’ll be charged all the interest that would have been earned on the amount withdrawn from the date of withdrawal to maturity or 1% of the amount withdrawn, whichever is greater. For accounts of six months to a year, the fee is either half of the interest you would have earned on the amount withdrawn from the date of withdrawal to maturity or 1% of the amount withdrawn. Again, the fee will be the greater amount of the two. Finally, for terms longer than one year, you’ll be charged either half of the interest the amount withdrawn would have earned from the date of withdrawal to maturity or 3% of the amount withdrawn, whichever is greater.
How Much You Earn With U.S. Bank Certificate of Deposits Over Time
With unremarkable rates, you won’t see much growth with U.S. Bank CDs. This is especially true if you open a short-term account with a lower deposit. That will earn you only a few cents over the entire term.
U.S. Bank compounds interest daily. This means that your balance will earn interest and grow each day. So the amount you deposit today will earn interest tomorrow. That new amount will earn interest the next day and so on until your CD matures. This method of compounding allows for maximum growth, unlike compounding monthly, for example.
You should earn more than the given amounts below for the 30-month Trade Up CD. If you play it right, you’ll be able to secure a much better interest rate during that term. That better rate means you’ll be able to earn more than might be shown here.
|Initial Deposit||6-Month CD||12-Month CD||60-Month CD||11-Month CD Special||30-Month Trade Up CD|
How U.S. Bank CDs Rates Compare to Other Banks
As we mentioned previously, it’s possible to find higher interest rates at other banks, however when you compare U.S. Bank exclusively to other big banks, it’s CD rates look more competitive. For example, U.S. Bank’s CD rates perform much better than other big banks like Chase and Bank of America. Here, you can see that Chase’s rates fall far below U.S. Bank’s, even when it comes to the 5-year account. The rates given for both banks are the standard, non-bonus rates.
To find even better rates, which makes sense in order to really boost your savings, you’ll want to look at online banks instead. Online banks don’t have the financial burden of maintaining thousands of physical branches. For starters, Ally Bank and Marcus by Goldman Sachs offer some of the highest rates. Ally already blows U.S. Bank’s rates out of the water with its 1.50% APY on a 6-month CD. The same goes for Marcus’ 5-year APY which almost reaches the 3% mark.
|CD Account||U.S. Bank||Chase||Ally Bank||Marcus by Goldman Sachs|
Should You Get a U.S. Bank CD Account?
Due to its less than ideal interest rates, U.S. Bank CD accounts make most sense for existing U.S. Bank customers to open. These CDs provide a nice addition to checking or savings accounts since they don’t earn quite enough on their own. If you’re looking for some real cash growth, you may want to turn to an online bank instead. However if you prefer banking in person, U.S. Bank and its thousands of branches across 28 states may be a good fit for you.