2.50% 5-Year CD At US Bank

US Bank is offering a 2.50% APY on its special 59-month CD (one month less than 5 years). Minimum deposit is $1,000.

That's probably the highest CD rate you can get from a megabank (those with over $100 billion in assets).

However, there is one big downside with US Bank's long-term certificates of deposit. It has a severe early withdrawal penalty.

According to US Bank's 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    A. One-half of the interest that would have been earned on the funds withdrawn if held for the entire term.

    B. 3% of the amount withdrawn.

I have more details about US Bank and its CDs in this post