The U.S. bank CD rates have been on a steady climb since the start of the year, with average APYs now up to 0.75%.
usbank.com is the source of this picture.
[Update September 2021: US Bank now offers four CD specials (see rates below), up from one in May. The prices for standard CDs, step up CDs, and trade ups CDs have not changed.]
Even if several of their APYs (annual percentage yields) fall short of the national average for their individual periods, U.S. Bank now offers the most competitive certificate of deposit rates of all the major banks.
Consumers may choose from four different CDs offered by US Bank. These are the following:
- Deposit certificates that are standard
- CD Specials from U.S. Bank
- “Step Up” CDs from US Bank
- CDs from U.S. banks that may be “traded up”
Their regular CDs have rates that are comparable to those of other major national banks, while their CD specials have somewhat higher yields.
Their Step Up CD has a 28-month term with a rate that rises every seven months, while their Trade UP CD enables you to exchange your deposit for one with a higher rate if interest rates rise while your deposit is open.
Continue reading our thorough analysis below to receive the entire overview of U.S. Bank’s CD rates and to discover whether these products are suitable for you.
This article will teach you how to:
The FDIC insures all CDs issued by U.S. Bank up to their relevant limitations.
There are eleven standard-term certificates of deposit available from US Bank. These have a $500 minimum deposit requirement and a maximum deposit limit of $250,000. They may be opened in a local branch, over the phone, or online.
CD Rates in the United States
|CD Term||Range of Deposits||APY|
|1 month||$500 – $250 thousand dollars||0.05%|
|2 months||$500 – $250 thousand dollars||0.05%|
|3 months||$500 – $250 thousand dollars||0.05%|
|6 months||$500 – $250 thousand dollars||0.05%|
|9 months||$500 – $250 thousand dollars||0.05%|
|12 months||$500 – $250 thousand dollars||0.05%|
|18 months||$500 – $250 thousand dollars||0.05%|
|24 months||$500 – $250 thousand dollars||0.05%|
|36 months||$500 – $250 thousand dollars||0.10%|
|48 months||$500 – $250 thousand dollars||0.15%|
|60 months||$500 – $250 thousand dollars||0.25%|
To put these yearly percentage returns in context, the current national average for a 12-month CD is 0.15 percent APY and 0.24 percent APY, respectively.
On all terms, interest is compounded daily.
Penalties for Early Withdrawal
You will be charged an early withdrawal fee if you need to take money from your US Bank CD before the maturity date. The current charge structure for early withdrawals is shown below.
Fees for Early Withdrawal
|Term of CD: 6 months or less|
|Charge: All of the interest that would have accrued on the funds had they been kept to maturity – OR 1% of the amount withdrawn, whichever is higher – PLUS a $25 flat fee.|
|Term of CD: 6 to 12 months|
|Charge: Half of the interest that would have been received on the funds removed if they had been kept for the full period – OR 1% of the amount withdrawn, whichever is higher – PLUS a $25 flat fee.|
|Term of CD: More than 12 months|
|Half of the interest that would have been received on the funds removed if they had been kept for the full period – OR 3% of the amount withdrawn, whichever is higher – PLUS a $25 flat charge|
There is a grace period.
U.S. Bank CDs provide a 10-day grace period during which you may add or remove money from your account without penalty. If nothing is done during this time, the CD will automatically renew for the same conditions and APY.
When your CD is due to mature, U.S.Bank will email you a reminder, but if you don’t want your money tied under the same deposit conditions, be sure to set up your own alerts.
U.S. Bank currently offers four CD discounts, compared to only one in May 2021. They usually have three to four, all of which have unusual terms and higher returns than their regular CDs.
The minimum deposit for one of U.S. Bank’s special CDs is $1,000, which is double the amount needed for their regular CDs.
Special CD Rates from U.S. Banks
|CD Term||Range of Deposits||APY|
|17 months||$1,000 to $250,000.||0.15%|
|37 months||$1,000 to $250,000.||0.35%|
|47 months||$1,000 to $250,000.||0.50%|
|59 months||$1,000 to $250,000.||0.75%|
It’s important to remember that the aforementioned deal is only valid for the first term.
If you let your Special CD renew after the term ends, U.S. Bank will convert it to a new CD with the same period, but the APY will be based on the advertised rate for the CD, excluding CD Specials, that is closest to but not surpassing the length of the CD.
In other words, U.S. Bank will apply the APY of the closest regular term CD while keeping the unusual length of your original CD unique.
With U.S. Bank’s CD Specials, the same early withdrawal penalties apply as with their regular CDs.
All interest payments on Special CDs will be paid at the end of the term or yearly, whichever comes first, depending on the term you choose.
The Step Up CD from US Bank is a 28-month term deposit with four rate hikes (one every seven months) throughout the course of the term.
The product begins with an APY of 0.05 percent and finishes with an APY of 0.65 percent, for a total APY of 0.35 percent throughout the life of the product.
APY (Annual Percentage Yield)
|Term||Rates of Interest||APY (Annual Percentage Yield)|
|28 months||For the first seven months, 0.05 percent||0.35%|
|For the next seven months, 0.25 percent|
|0.45% over the next seven months|
|For the last seven months, 0.65%|
To put this offer in context, according to the FDIC, the average return on a two-year (24-month) CD is only 0.23 percent APY as of November 2020.
The U.S. Bank Step Up CD has a $1,000 minimum deposit requirement.
There are currently two terms available for the US Bank Trade Up CD. A 30-month or a 60-month contract is available.
This product, as the name suggests, enables you to ‘trade up’ for a better rate if one becomes available while your CD is active. This is a great product to have while interest rates are rising.
APY and terms
|CD Term||Range of Deposits||APY|
|30 months||$1,000 to $250,000.||0.10%|
|60 months||$1,000 to $250,000.||0.40%|
When compared to the current national average(s) for the closest terms, the 60 month Trade Up CD from U.S. Bank is presently more appealing than the 30 month CD. According to the FDIC, 24 month CDs have an average annual percentage yield of 0.23 percent, while 60 month CDs have an average annual percentage yield of 0.47 percent, according to Bankrate.
If you choose a Trade Up CD from US Bank, you will need to visit a physical branch to begin your one-time interest rate increase. Once your CD is started, U.S. Bank will compute the remaining time on it and compare it against a normal term CD to get the best rate. This rate adjustment may take up to 10 days to take effect.
If you’re looking for a fixed-rate certificate of deposit and want to establish one with a big bank with a large branch network, U.S. Bank may be a suitable match.
They provide the best CD returns of any major national bank, as well as promotional deposit options that may boost your profits – particularly in times when savings rates are low.
The minimum deposit requirements are likewise reasonable, and U.S. Bank offers a variety of account opening options, including online, over the phone, and in branch.
Frequently Asked Questions
What are current CD rates at US Bank?
The current CD rates at US Bank are as follows:
Will CD interest rates go up in 2021?
I dont know.
Why are CD rates so low right now?
CD rates are low because the economy is still recovering from the 2008 recession.