Dedicated to Deposits: Deals, Data, and Discussion

4.50% 59-Month CD at US Bank


US Bank (OH)
US Bank has a special 59-month CD with a yield of 4.50% APY and a minimum deposit of $1,000. Interest is paid annually and at maturity.

One important detail regarding this CD is a severe early withdrawal penalty. According to the CD disclosure, the penalty for the 59 month CD would be over 29.5 months of interest on the amount withdrawn. Here's how it's described in the disclosure:
If your account has an original maturity greater than one year, the penalty will be the greater of either A or B, plus a $25 early withdrawal fee.

A. One-half of the interest that would have been earned on the funds withdrawn if held for the entire term.

B. 3% of the amount withdrawn.

Early withdrawal penalties for long term CDs are typically only 6 months of interest, so this is much worse. If inflation forces interest rates to shoot up, a small early withdrawal penalty can save you a lot of money, when you want to close the CD and move the money into an account with a higher rate.

US Bank does have an online application, and it looks to be available to people in any state. US Bank has branches in 26 states including Ohio, Illinois, Colorado, Arizona and California. It's a large bank with $232.8 billion in assets. It has been FDIC insured since 1934 (FDIC Certificate # 6548).

Thanks to the reader who emailed me this info.

  Tags: US Bank (OH), CD rates

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Comment #1 by Anonymous posted on
APY is now 5.25% - but I won't touch this one because of the outrageous early withdrawal penalty.