[📍 Update October 2022 – U.S. Bank has finally added some CD (certificate of deposit) Specials to their deposit account line-up with decent APYs (annual percentage yields). This comes after major reluctance by U.S. Bank to increase CD rates in 2022 despite historic prime rate hikes by the FED throughout the summer.]
U.S. Bank has four types of CDs available to consumers. These are:
- Standard certificates of deposit
- U.S. Bank CD Specials
- U.S. Bank “Step Up” CDs
- U.S. Bank “Trade Up” CDs
Their standard CDs come with yields more akin to the other large national banks, while their CD specials offer slightly more competitive yields.
Their Step Up CD comes with a 28 month term and a rate that increases every 7 months and their Trade UP CD allows you to swap your deposit for one with a higher rate if interest rates increase while your deposit is active.
To get the full rundown of U.S. Bank’s CD rates and to see if these products are right for you continue reading our comprehensive review below.
In this post you'll learn:
U.S. Bank Certificate of Deposit Rates + Details
All of U.S. Bank’s CDs are federally insured by the FDIC up to their applicable limits.
U.S. Bank offers eleven standard-term certificates of deposit. These come with a minimum deposit requirement of $500 and a maximum deposit amount of $250,000. They can be opened online, over the phone or in a local branch.
|CD Term||Deposit Range||APY|
|1 month||$500 – $250k||0.05%|
|2 months||$500 – $250k||0.05%|
|3 months||$500 – $250k||0.05%|
|6 months||$500 – $250k||0.05%|
|9 months||$500 – $250k||0.05%|
|12 months||$500 – $250k||0.05%|
|18 months||$500 – $250k||0.05%|
|24 months||$500 – $250k||0.05%|
|36 months||$500 – $250k||0.10%|
|48 months||$500 – $250k||0.15%|
|60 months||$500 – $250k||0.25%|
To put these annual percentage yields in perspective, the current national average on a 12 month CD and a 60 month CD sit at 0.60% APY and 0.74% APY, respectively, according to FDIC data.
Interest is compounded daily on all terms.
Early Withdrawal Penalties
If you need to withdraw funds from your U.S. Bank CD prior to its maturity date, you will be charged with an early withdrawal fee. Their current early withdrawal fee schedule is outlined below.
Early Withdrawal Fees
|CD Term: 6 months or less|
|Fee: All of the interest that would have been earned on the funds if held to maturity – OR – 1% of the amount withdrawn, whichever is greater – PLUS – a $25 dollar flat fee.|
|CD Term: 6 months to 12 months|
|Fee: Half of the interest that would have been earned on the funds withdrawn if held for the entire term – OR – 1% of the amount withdrawn, whichever is greater – PLUS – a $25 dollar flat fee.|
|CD Term: Greater than 12 months|
|Half of the interest that would have been earned on the funds withdrawn if held for the entire term – OR – 3% of the amount withdrawn, whichever is greater – PLUS – a $25 dollar flat fee.|
U.S. Bank CDs come with a standard grace period of 10 days in which you may add or withdraw funds from your deposit penalty free. If nothing is done during this period, the CD will renew for the same terms at the going APY.
U.S.Bank will send you a reminder when your CD is about to mature, but be sure to set up your own notifications if you do not wish to have your funds locked into the same deposit terms.
U.S. Bank CD Specials
U.S. Bank has three CD specials.
The minimum deposit required to open one of U.S. Bank’s Special CDs is $1,000 – twice the amount of their standard CDs.
U.S. Bank Special CD Rates
|CD Term||Deposit Range||APY|
|11 months||$1,000 – $250k||2.00%|
|17 months||$1,000 – $250k||2.25%|
|25 months||$1,000 – $250k||2.30%|
We should note that the offer listed above only applies for the initial term.
If you allow for your Special CD to renew after the term is up, U.S. Bank will roll this into another CD with the same duration, but the APY will be determined based on the published rate for the CD, excluding CD Specials, that is closest to but not exceeding the term of the CD.
In other words, U.S. Bank will apply the APY of the nearest standard term CD but will keep the oddball duration you had with your initial CD special.
The same early withdrawal penalties apply with U.S. Bank’s CD Specials as they do with their standard CDs.
On Special CDs, all interest payments will be made at the end of the term or annually, whichever occurs first based on the term you select.
U.S. Bank Step Up CD
U.S. Bank’s Step Up CD is a 28 month term deposit with four incremental rate increases (one every 7 months) throughout its duration.
The product starts with an APY of 0.05% and ends with an APY of 0.65% to give you a blended APY of 0.35% for its duration.
Breakdown of APY
|Term||Interest Rate||Blended APY|
|28 months||0.05% for first 7 months||0.35%|
|0.25% for next 7 months|
|0.45% for next 7 months|
|0.65% for last 7 months|
To put this offer in perspective, the average yield on a 2 year CD (24 months) sits at just 0.23% APY according to the FDIC as of November 2020.
The minimum deposit requirement for the U.S. Bank Step Up CD is $1,000.
U.S. Bank Trade Up CD
The U.S. Bank Trade Up CD currently comes with two terms to choose from. A 30 month term or a 60 month term.
As the name implies, this product allows one to ‘trade up’ for a higher rate if one happens to come along while your CD is active. This is an ideal product during an ascending interest rate environment.
Terms and APY
|CD Term||Deposit Range||APY|
|30 months||$1,000 – $250k||0.10%|
|60 months||$1,000 – $250k||0.40%|
The 60 month Trade Up CD by U.S. Bank is currently more attractive than the 30 month CD when pitted against the current national average(s) for the nearest terms. As mentioned, 24 month CDs are averaging 0.23% APY nationally according to the FDIC, while 60 month CDs are hovering around 0.47% APY according to Bankrate.
If you go with a Trade Up CD by U.S. bank you will need to visit an actual branch location to initiate your one time interest rate trade up. Once initiated, U.S. Bank will calculate the remaining time on your CD and find a standard term CD that is closest to it, then apply that rate. Please allow up to 10 days for this rate change to take effect.