U.S. Bank: CD rates with a twist

Hi, everybody! My quest for decent CD rates continues with a visit to U.S. Bank (parent company U.S. Bancorp), the fifth-largest commercial bank in the United States. With 3,082 banking offices and 5,238 ATMs in 25 states, U.S. Bank provides a myriad of financial products and services to its customers.

So how do their CDs rate?

U.S. Bank offers some competitive rates with their longer-term CDs. With a minimum deposit of $1,000 you can start off earning 1.15 percent APY on a 19-month CD. I know, I know . . . not all that impressive, but it gets better.

The same amount for 37 months will earn you 1.75 percent APY. Better, but better still is their 59-month rate, which will earn you 2.50 percent APY! That kind of rate isn’t always easy to find these days.

In addition to competitive interest rates, U.S. Bank offers a few interesting twists on traditional CDs.

Alternative CD rates

First, the Step Up CD has an increasing interest rate that goes up over time. Step Up CDs are available for a term of 28 months and go up 0.20 percent every six months. In other words, you might start off with an interest rate of 0.90 percent and, after six months, the rate would increase to 1.10 percent, then 1.30 percent after the next six months, and so on. Pretty sweet deal.

There’s also the Trade Up CD, which allows you to earn a higher interest rate should rates increase over the term of your CD. You can start off earning 1 percent on a 30-month CD or 1.73 percent on a 60-month CD. If CD rates increase during those 30 or 60 months, the rate you earn on your CD will go up as well.

The fine print

Both the Step Up and Trade Up CDs require a minimum $1,000 and maximum $249,999 deposit. And one other caveat is that these two types of CDs must be opened in person at a U.S. Bank branch.

For more information, to apply for a traditional CD online or to find a branch close to you, see U.S. Bank’s web site.