A certificate of deposit, or CD, is a popular savings option that offers a fixed interest rate in exchange for depositing your money for a specific period of time known as the term length. ⁴ If funds are withdrawn prior to the maturity date, a penalty is typically incurred (a penalty can be a percentage of the original principal or amount withdrawn, or a specific dollar amount). CD accounts may allow you to earn a higher interest rate compared to regular savings accounts, providing a safe and predictable way to grow your money over time.

CD rates can vary based on the term length and amount deposited. CD rates determine the return on your investment. The Annual Percentage Yield (APY) reflects the total amount of interest you ll earn in a year, including compounding. In contrast, the interest rate is the nominal rate without compounding.

U.S. Bank's CD rates vary based on terms and types. The interest rate and APY are subject to change at the bank's discretion and may vary daily. Once your CD reaches the end of its term, you may withdraw your funds without penalty during the grace period. Otherwise, it will automatically renew for the same duration. The rate is determined based on the published rate for the CD, excluding CD Specials, that is closest to but not exceeding the term of the CD. ⁴

Yes. Funds held in a U.S. Bank certificate of deposit are protected by FDIC insurance, which covers up to $250,000 per depositor for each ownership category. ¹ This insurance provides added security, knowing that your money is safeguarded with us even in unlikely adverse scenarios. While CDs at U.S. Bank are FDIC-insured, not all CDs at every institution are. It's always important to review the terms and conditions of a CD to determine whether or not it is FDIC-insured.

There are several different types of CDs:

• Traditional CDs offer a fixed interest rate for a set term with a minimum deposit requirement.
• Jumbo CDs require a larger minimum opening deposit but may offer higher interest rates than standard CDs.
• Bump-up CDs allow for an increase in the interest rate during the term.
• Liquid/no-penalty and add-on CDs provide additional flexibility regarding withdrawal and deposit options throughout the term.
• Brokered CDs are purchased through a brokerage firm and can involve more complex terms and conditions.

A bank CD is a reliable and secure way to grow your savings. It offers a fixed interest rate and is FDIC-insured, ¹ meaning your money is protected up to applicable limits. It’s a great option if you have a specific goal and don’t need immediate access to your funds. Compared to other savings options, CDs typically offer higher interest rates, allowing you to earn more on your money over time.

Consider your financial goals and how long you can comfortably lock in your funds. Shorter terms offer quicker access to your money, while CD rates are typically higher for longer terms. For short-term goals, a 6-month to 1-year CD might work best. For longer-term savings, a 3-year or longer CD could help you maximize interest.

When your CD reaches its maturity date, you have several options to consider. We will notify you in advance, offering you time to decide your next course of action. Upon maturity, you can withdraw your funds, including the earned interest, without penalty, or you can choose to reinvest in a new CD. Many CDs have an automatic renewal feature, where the funds are reinvested into a new CD of the same term. You can also withdraw some or all of the funds or adjust the terms of renewal. Any changes to CDs can be made at maturity until the grace period ends (the grace period can be found in your maturity notification or on the Overview tab of your CD). This ensures you retain control over your funds based on your evolving financial needs.

The minimum deposit requirement for opening a CD may vary depending on the bank and type of account. At U.S. Bank, our Standard CD requires a minimum opening deposit of just $500 up to a maximum of $249,999.99 with terms ranging from one month to 60 months. Our CD Special requires a minimum opening deposit of $1000.

You can open a certificate of deposit account online with U.S. Bank or visit a local branch. You'll choose your preferred term and deposit amount, and provide any information, such as identification and a funding source. You can also schedule an appointment online. Be sure to check out our latest CD rates ahead of time by entering your zip code.