U.S. Bank does not offer competitive CD rates. While it might occasionally have a special CD with a decent rate, most of its CD terms rank low on the list of best CDs, even among brick-and-mortar competitors. If you're considering a U.S. Bank CD, here's what you should know.
U.S. Bank CD rates for 2024
Rates as of July 25, 2024
APY = Annual Percentage Yield
U.S. Bank Standard CD
MINIMUM DEPOSIT $500
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| 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|---|
| 0.05% | 0.05% | 0.05% | 0.05% | 0.05% | 0.10% | 0.15% | 0.25% |
Compare U.S. Bank CD rates
U.S. Bank CD interest rates can't compete with the best CDs available from popular online banks. Compare CD rates below if you're seeking the highest rates offered with online-only banks.
Rates as of July 25, 2024
| Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
|---|---|---|---|---|
Discover® Bank CD Member FDIC. | APY:4.70% | Term:1 Year | Min. Deposit:$2,500 | Open Account for Discover® Bank CD OnDiscover Bank'sSecure Website. |
LendingClub CD Member FDIC. | APY:5.20% | Term:10 Months | Min. Deposit:$2,500 | Open Account for OnSecure Website. |
Barclays Online CD Member FDIC. | APY:4.85% | Term:1 Year | Min. Deposit:$0 | Open Account for Barclays Online CD OnBarclays'Secure Website. |
Overview of U.S. Bank CDs
U.S. Bank Standard CD rates are below average on many fronts. While the minimum deposit requirement is lower than competitors, you can find better rates at other banks.
| Minimum Deposit | $500 |
|---|---|
| Range of Term Lengths | 1 to 60 months |
| Compounding Schedule | Daily |
| Early Withdrawal Penalty | Not disclosed |
| Grace Period | 10Ten days |
Data source: [cd slug=us-bank-standard-cd-60-months field=issuer]
U.S. Bank CDs Pros and Cons
The U.S. Bank Standard CDs are above average on many fronts. While the minimum deposit requirement is lower than that of its competitors, you can find better rates at other banks.. These CDs are a good fit for customers looking for a no-frills, but useful, CD to expand their banking relationship with U.S. Bank.
Pros
- Low minimum deposit requirement
- High APY for a big bank
Cons
- Other CD products require a larger deposit
U.S. Bank Standard CD comes with terms ranging from one month to five years. Taking advantage of these CD interest rates only requires a $500 deposit. All U.S. Bank CDs are FDIC-insured and offer guaranteed savings. U.S. Bank CD interest rates may be higher for other CD products, depending on where you live. However, these often require a larger deposit as well.
RELATED: Need a savings account? Check out The Ascent's guide to the best high-yield savings accounts.
How much can you earn with a U.S. Bank CD?
While U.S. Bank can adjust its market CD rates at any time, once you lock into one, the rate is yours until your CD matures. This gives you guaranteed earnings on your CD, but it could also mean missing out on potentially more lucrative returns elsewhere. If you're curious how much you could earn in a U.S. Bank CD, here's a snapshot if you deposited $1,000 in different terms.
The numbers in the table below may not be accurate to current APYs and are for example purposes only.
| Term | APY | Earnings |
|---|---|---|
| 1 month | 0.05% | $0.04 |
| 2 months | 0.05% | $0.08 |
| 3 months | 0.05% | $0.13 |
| 6 months | 0.05% | $0.25 |
| 9 months | 0.05% | $0.38 |
| 12 months | 0.05% | $0.50 |
| 18 months | 0.05% | $0.75 |
| 24 months | 0.05% | $1.00 |
| 36 months | 0.10% | $3.00 |
| 48 months | 0.15% | $6.02 |
| 60 months | 0.25% | $12.58 |
Data source: Author's calculations
Is a U.S. Bank CD safe?
Yes, U.S. CDs are safe. They're backed by FDIC insurance, which protects up to $250,000 per account in the event of a bank failure.
How to open a U.S. Bank CD
Opening a U.S. Bank CD is very simple. Here's what you can expect.
1. Verify your location
U.S. Bank doesn't serve every state, so you'll need to input your ZIP code first. Doing so will also give you the most accurate CD rates and terms for your area.
2. Select a CD term length
Once you select one of its 11 terms, you can open your account.
3. Create an account
If you're already a U.S. Bank client, just sign in. If you have to create an account, you'll provide your name, address, Social Security number, employment, and income. After you sign some legal documents, your account will be open.
4. Fund your CD
You can deposit any amount over $500 into your CD. You can do this easily by transferring money from an external account or another U.S. Bank account.
Who is a U.S. Bank CD right for?
A U.S. Bank CD is good for current U.S. Bank customers who prefer keeping all of their bank accounts in one spot, rather than chasing higher CD rates. It's not ideal if you're looking for high yield CDs, as its rates are shockingly low.
Other U.S. Bank CD accounts
If you’re interested in investigating U.S. Bank CD interest rates further, look at their other CD accounts:
- Step Up CDs
- Trade Up CDs
Bottom Line: U.S. Bank CD Rates
U.S. Bank Standard CD
- 6 APY: 0.05%
- 9 APY: 0.05%
- 12 APY: 0.05%
- 18 APY: 0.05%
- 24 APY: 0.05%
- 36 APY: 0.10%
- 48 APY: 0.15%
- 60 APY: 0.25%
Show All Rates [+]Hide All Rates [-]
Rates as of July 25, 2024
APY = Annual Percentage Yield
Term
U.S. Bank Standard CD
6 Mo.
9 Mo.
1 Yr.
1.5 Yr.
2 Yr.
3 Yr.
4 Yr.
5 Yr.
0.05%
0.05%
0.05%
0.05%
0.05%
0.10%
0.15%
0.25%
As they currently stand, U.S. Bank CD rates are not good and could prevent you from earning higher interest at an institution with more favorable rates. While it may have some decent CD rates on special terms, be sure to compare them with other banks first, as it's likely you can get a higher APY elsewhere.
Keep reading about U.S. Bank
- U.S. Bank Review
- U.S. Bank Safe Debit Account
- U.S. Bank Standard Savings Account Review
- U.S. Bank Silver Business Checking
- U.S. Bank Smartly® Checking
- U.S. Bank Promotions
Our CDs methodology
At The Motley Fool Ascent, certificates of deposit (CDs) are rated on a scale of one to five stars, primarily focusing on annual percentage yield (APY) and early withdrawal penalty fees. Our highest-rated CDs generally include competitive APYs without complex qualification tiers, low withdrawal fees, reliable brand trust and reputation, and ease of use.
Learn more about how The Motley Fool Ascent rates bank accounts.
FAQs
A U.S. Bank CD provides guaranteed returns, although lower than you may find at an online bank. If you already have accounts at U.S. Bank, though, opening a CD gives you another savings option at the same bank.
U.S. Bank CDs are useful for current U.S. Bank customers who want to keep all of their accounts in one spot. Higher rates are available at some other online banks with CDs.
The minimum deposit for U.S. Bank CDs is $500. Some special CDs, however, may require a higher deposit.
U.S. Bank CDs have no monthly service fees. You would only encounter a fee if you tried to withdraw from your CD earlier than its maturity date.
Yes, but U.S. Bank will impose an early withdrawal penalty for doing so. While U.S. Bank doesn't disclose its early withdrawal penalties online, the amount of the penalty will likely increase with the length of the CD term.
