4.00% 59-Month CD at US Bank Branches in California
Jul 20, 2009 - 9:26 AM by Ken Tumin
US Bank has again come out with a special 59-month CD with a competitive rate of 4.00% APY. What they list on their website is only 3.75% APY. However, I noticed this 4.00% APY being advertised in this 7/19/09 SoCal ad. The CD is also available in an IRA. The small print of the ad states that the offer is valid in California branches only.
As I mentioned in this February post on US Bank CDs, US Bank has a harsh early withdrawal penalty which can be 29½ months of interest for this 59-month CD. The average long-term CD penalty is only around 6 months of interest.
US Bank has branches in several states including California, Arizona, Washington, Colorado, Illinois, Missouri and Ohio.
US Bank's ratings for safety and soundness are fair to good: 3½ stars (good) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 3/31/09 financial data.
US Bancorp is the holding company for US Bank N.A. and US Bank N.A North Dakota. Both banks have separate FDIC charters, but US Bank N.A is the main one for deposits with $175 billion in deposits. US Bank has been a FDIC member since 1934 (FDIC Certificate # 6548).
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Peidong (anonymous) - #1, Monday, July 20, 2009 - 1:52 PM
Yes, I opened one 4%-59m CD today in CA 95014. It is good.
Thanks.
Anonymous - #2, Monday, July 20, 2009 - 2:38 PM
So far as I know US Banks needs depositors to physically come into the branch within grace period when it is time to withdraw.
I am not willing to make a commitment to appear in the branch just for closing the CD, therefore I'll pass this offer.
larkin (anonymous) - #3, Monday, July 20, 2009 - 3:00 PM
Not convenient, for sure, but I'll worry about it in 2014 :-)
Anonymous - #4, Monday, July 20, 2009 - 3:11 PM
.
Larkin,
That is your prerogative of course.
And worry you must if you end-up where your find that you are unable to transport yourself to the branch in 2014, because then they will roll it over for you with a potentially unfavorable rate and hefty early withdrawal penalty of 29½ months of interest, that goes with it! :-)
As for me, I like to know the exact procedure of withdrawal, and make a determination as to how convenient it might be nearly 5 years into the future.
USPS Mail, Fax, Phone, Secure-emails are what I'm willing to commit to, not physically going to the branch during the grace period.
:-)
Peidong (anonymous) - #5, Monday, July 20, 2009 - 4:43 PM
There are several branches near my house. There should no problem I can reach them in 5 years.
And there is no 29-1/2 penalty in my document. In short, it will be 1%(<1yr) or 3%(>1yr).
Thanks.
Anonymous - #6, Monday, July 20, 2009 - 7:09 PM
Make sure to plan your summer 2014 vacation around grace period.
Anonymous - #7, Friday, July 24, 2009 - 1:49 PM
4% rate no longer available per in branch CSR on 7/24/09
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