Dedicated to Deposits: Deals, Data, and Discussion

4.25% 59-Month CD at US Bank Continues in CA - Benefit of Opening CD at Downey Savings Branches


US Bank (OH)
Update 3/13/09: The 4.25% 59-month CD has ended.

US Bank continues to offer its special 4.25% APY 59-month CD and 2.50% APY 10-month CD. I first posted about this on Monday, February 23rd. As I mentioned in that post, it's not listed at US Bank's website. It had been advertised in California newspapers. A 3/01/09 ad is available online here.

These specials are also available at banks that US Bank has recently acquired. They include PFF Bank & Trust and Downey Savings. PFF Bank & Trust is listing these specials at its website as of 3/06/09. In addition to the 4.25% APY 59-month CD, there's also a 3.00% APY 37-month CD, a 2.50% APY 10-month CD and a 2.00% APY 240-day CD. Minimum deposit is $500. These are available on personal, business and retirement plan accounts. Downey Savings is also listing these specials as of 3/06/09. These specials are only available in the California branches.

A reader just emailed me an important note regarding this 59-month CD that makes it advantageous to open this special at a Downey Savings branch. This may substantially reduce the early withdrawal penalty. Downey Savings' early withdrawal penalty for a 59 month CD is 6 months simple interest, whether earned or not. This is much better than US Bank's penalty which would be 29.5 months of interest (see post). The reader was told that Downey Savings policies would still be in effect until the system merger date scheduled for May. CDs opened with Downey prior to that will keep the current Downey Savings policies for the duration of the CD. I'm not sure what the early withdrawal penalty is for PFF Bank & Trust, but I would guess it's probably less than US Bank's penalty.

Downey Savings branches and PFF Bank & Trust branches are located throughout Southern California.

US Bank continues to offer competitive CD specials available in other states. As of 3/06/09, these include a 4% APY 59-month CD, a 3.00% APY 37-month CD and a 2.15% APY 13-month CD (13-month CD isn't really that competitive). Refer to my previous post for more details on these CDs and details about US Bank's financial health. It's in better shape than many of its peers.

US Bank has been FDIC insured since 1934 (FDIC Certificate # 6548).

Thanks to the reader who emailed me news of this CD and early withdrawal penalty.

  Tags: California, US Bank (OH), CD rates, IRA rates

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Comment #1 by Anonymous posted on
Is this FDIC insured?

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
See bottom of post. Link to FDIC provided.

Comment #3 by emdtech (anonymous) posted on
Since banks, in general are like used car salesmen (i.e. you cannot trust them), why don't you adapt your site to include some high quality insurance annuities from AA+ or AA rated insurance companies?

I have been moving most maturing CD's to 5 yr. to 10 yr. fixed annuities ranging from 4.9% to 5.2%
I know most of your readers will have a "cow" on this suggestion as insurance companies are NOT FDIC insured and are only backed by the insurance company itself. However, I have only invested in the TOP 5% of insurance companies and have extensively research each company prior to investing. Therefore, I have a degree of confidence that my holding will be "sound" at maturity.

Just a thought to share with your banking community since we are in changing times and we all must think out of the box once in a while.

Comment #4 by Anonymous posted on
No, EMDTech. I am now going to have a cow, as you said.

The readers of this site want government insured only. If we wanted risk investments, we'd seek information elsewhere.

You claim AA Insurance funds are safe. Maybe. But have you considered that if the insurance company itself goes under (AIG anyone?), your funds will be lost.

I applaud that you can sleep at night with that risk. But others cannot. I sleep just fine at night because I know my money is safe. Yes, I am not making 5% like you are, but I'd rather make less and not have to worry.

Comment #5 by Make Extra Money by Guest Blogging (anonymous) posted on
Make Extra Money by Guest Blogging
Wow... this is a pretty good rate of interest in these tight times. This is one of the best CD rates around.

Make Extra Money by Guest Blogging

Comment #6 by Anonymous posted on
The Downey early withdrawal penalties will revert to US Bank's terms upon the takeover on May 15.

This is what a SoCal Downey representative told me when I was inquiring about this CD.


Comment #7 by Anonymous posted on
I called my local Downey Savings branch and they said that the deal ended yesterday. However, they are still offering the 59 month CD with 3% interest.