A certificate of deposit (CD) account is a type of savings account offered by banks and credit unions. US Bank offers a variety of CD options for customers looking to save money and earn a guaranteed return on their investment. In this article, we will discuss the features of a US Bank CD account in a step-by-step format.
Open a CD account
Opening a CD account with US Bank is a simple process. Customers can visit a US Bank branch in person, or open an account online. To open an account, customers will need to provide their personal information, such as their name, address, and social security number. They will also need to make an initial deposit, which can be as low as $500.
Choose a Term
US Bank offers CD accounts with a variety of terms, ranging from 3 months to 5 years. The term of a CD account refers to the length of time that the deposit will be held in the account. Customers can choose a term that best suits their savings goals and timeline.
Earn Interest
When customers open a CD account with US Bank, they will earn interest on their deposit. Interest rates on CD accounts are typically higher than those offered on savings or checking accounts. The interest rate for US Bank CDs are fixed for the term of the CD. Interest is compounded daily and credited to the account monthly.
Automatic Renewal
US Bank CDs automatically renew at maturity, meaning the funds will roll over into a new CD at the same term and interest rate unless the customer chooses to withdraw the funds or roll them into a different term.
Penalty For Early Withdrawal
If customers need to withdraw funds from their CD account before the maturity date, they may be subject to an early withdrawal penalty. The penalty amount is determined by the term of the CD, and can vary depending on the bank. At US Bank, the early withdrawal penalty for CDs with a term of 12 months or less is 90 days of interest, for terms of greater than 12 months its 180 days of interest.
FDIC insurance
US Bank CD accounts are FDIC-insured, meaning that deposits are insured up to $250,000 per depositor, per institution. This provides customers with added peace of mind, knowing that their funds are protected in the event of a bank failure.
Summary
US Bank CD accounts are a great option for customers looking to save money and earn a guaranteed return on their investment. With a variety of terms to choose from, fixed interest rates, automatic renewal, and FDIC insurance, US Bank CD accounts offer a safe and secure way to save for the future.
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Updated January 30, 2023