US Bank, N.A. is offering two competitive long-term CD specials. The most competitive one is the 59-month CD which has a 2.50% APY. The other one is a 1.70% APY 37-month CD. There's also a 19-month CD special, but the rate is only 1.15% APY. Minimum deposit is $1,000. These rates are listed at the bank's CD specials page as of 12/28/2010.
You can get CD rates a little higher at some internet banks, but for a large brick-and-mortar bank, these US Bank rates are pretty good. As a comparison to internet banks on 12/28/2010, the best 5-year CD rate is 2.75% APY at Salem Five and the best 3-year CD is 1.91% APY at Bank of Internet USA.
There's an online application link on the bank's CD specials page. When I spoke with a US Bank rep earlier this year, I was told that people in any state can apply. If you're wanting to open these CDs at a US Bank branch, you should call to verify they offer these special rates. Rates may vary at branches.
After you submit the application, the CSR said that they'll send you a signature card that must be mailed back with a check for the deposit. You have 30 days to fund the CD. However, according to the CSR, the CD rate won't lock until they receive the funds. I was told you can also fund the CD with a free wire transfer. After you submit the application, you should have the account number which can be used for the wire transfer. You can also fund the CD at a branch, but you'll still need the account number and signature card.
One downside with US Bank CDs is a harsh early withdrawal penalty. Here's what is listed in the US Bank's CD Agreement:
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A. One-half of the interest that would have been earned on the funds withdrawn if held for the entire term.
B. 3% of the amount withdrawn.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.
US Bank START Savings Program
US Bank also a pretty good deal on a savings account program called S.T.A.R.T. Like the savings programs at Bank of America (Keep the Change), it's not going to make you a lot of money, but you can easily earn $100 in one year without much work or money (my US Bank START review).
US Bank Overview
US Bank has branches in many states. It has most of its branches in the states of Arizona, California, Colorado, Illinois, Iowa, Kentucky, Minnesota, Missouri, Nevada, Ohio, Washington and Wisconsin.
US Bank is one of the nation's largest regional banks with $286 billion in assets. The bank has an overall health score at DepositAccounts.com of 4 out of 5 with a Texas Ratio of 16.83% (excellent) based on September 2010 data. Please refer to our financial overview of US Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 6548).
Searching for the Best CD Rates
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.