U.S. Bank Interest Rates in 2024 – Is Low Interest Worth the Convenience?

Expert tip from Thomas

When comparing the interest rates offered by different banking institutions or savings vehicles, be sure to focus on the annual percentage yield (APY). This metric expresses the annualized rate of interest offered, inclusive of the effect of compound interest, which is interest earned on previously earned interest as well as your initial deposit.

U.S. Bank Savings Account interest rates

1. Standard Savings Account

The U.S. Bank Standard Savings Account is best for first-time savers, those carrying a lower balance, and customers who want instant access to their money. This account comes with a variety of benefits like $0 ATM fees at U.S. Bank ATMs, $0 overdraft protection transfer fees, account alerts, automated savings options, and free e-statements. While the accounts do have a $4 monthly maintenance fee, you can get it waived by meeting one of the following criteria:

• Maintain a $300 minimum daily balance
• Have a $1,000 average monthly balance
• Hold the account with an individual age 12 and under
• Open a U.S. Bank Smartly Checking account and enroll in the Smart Rewards Primary tier (or above)

Additionally, customers can use the U.S. Bank Mobile App to deposit checks, check balances, set up transfers, and more.

Note that savings account interest rates can vary by zip code, so check online on the U.S. Bank Savings Account product page to find rates in your area.

2. Elite Money Market Savings Account

The Elite Money Market Savings Account is best for greater interest-earning power, benefits similar to a checking account, and easy access to funds when you need them. You’ll enjoy all the benefits of a traditional savings account but with tiered interest rates that pay more for higher balances.

Again, rates vary depending on where you live, so check the money market product page to find rates in your area. That said, you can earn up to 4.50% as a new client who opens an account with a balance of at least $25,000.

That said, it’s important to shop around when opening up a new savings account as many online banks may offer more interest and have smaller deposit requirements or none at all.

3. Business Savings Accounts

When it comes to business savings accounts with U.S. Bank, you have a few options depending on your goals:

• Business Savings Accounts allow you to keep your business savings separate and have lower balance requirements. You can earn up to 0.05% interest.
  

• Business Money Market Accounts allow you to earn more with tiered interest rates, earning up to 4.60% interest. Higher balances let you earn more, and you’ll accrue interest daily. Interest rates are continuously changing, so it’s critical to compare these rates with what other banks are offering.

There are three types of U.S. Bank business money market accounts which vary in maintenance fees, deposit fees, and interest rates.

Platinum Business Money Market

Set aside excess cash from a checking account while getting paid the highest interest rate and linking your savings to your checking. Until March 6, 2024, you can receive a bonus interest rate if you open a new account and maintain the minimum balance ($25,000):

Preferred Business Money Market

Premium Business Money Market

How U.S. Bank Savings rates compare with other banks

When evaluating the U.S. Bank’s savings rates against those of other banks, it’s essential to consider several factors. Interest rates on savings accounts can vary based on the type of account, the amount deposited, and the bank’s overall financial policies. Here’s a comprehensive comparison to help you make an informed decision:

1. Standard Savings Account rates: U.S. Bank’s Standard Savings Account rates are comparatively low, offering well below the national average rates.

Online banks offer the highest interest rates, given their lower operating costs. However, local credit unions also offer some of the highest interest rates, so if in-person banking is important to you, this is something to consider.

2. Elite Money Market Savings Account rates: The Elite Money Market Savings Account at U.S. Bank may provide competitive rates for customers looking to earn more on their savings from an in-person bank only if they plan to maintain a balance of at least $25,000. That said, many online banks are offering above 5.00% interest on savings accounts with much lower deposit requirements.

3. Business Savings Account rates: U.S. Bank’s Business Savings Accounts cater to businesses’ unique needs. If you can take advantage of the bonus APY of 4.5%, the rate is currently one of the highest offered on business savings accounts amongst banks.

Be sure to consider the overall market landscape when it comes to savings account interest rates. Online banks and credit unions, with lower overhead costs, often offer higher rates compared to traditional brick-and-mortar banks like U.S. Bank. Also, check if U.S. Bank or other banks are offering promotional rates for new customers or specific account types. Promotions can provide a short-term boost to your savings.

Expert Verdict

U.S. Bank offers a wide array of banking solutions, including checking accounts, traditional savings accounts, certificates of deposit and money market accounts – for individuals and businesses. The special features and options associated with these accounts are highly beneficial, but when it comes to interest rates, U.S. Bank does not differentiate itself from the competition. If you want to earn best-in-class interest rates, you should go with a reputable online bank.

Thomas J. Brock

About the expert

CFA, CPA, Financial Advisor

How often is interest compounded on U.S. Bank savings accounts?

Interest is compounded daily and credited to your account monthly for all savings accounts except Standard Savings, which is paid quarterly. (Note that if you close your account before interest is credited, you won’t receive the accrued interest.)

How to open a U.S. Bank Savings Account

Opening a U.S. Bank Savings account is a straightforward process. Follow these steps to successfully open a savings account with U.S. Bank:

1. Gather required information: Before you start the application process, gather the necessary information. This typically includes your Social Security number, a valid government-issued ID (driver’s license, passport), and information about your employment and financial status.
2. Visit the U.S. Bank website: Go to the official U.S. Bank website. Navigate to the “Savings” section to explore the different types of savings accounts offered.
3. Choose the desired savings account: Select the type of savings account that best fits your financial goals. Thoroughly review the terms and conditions of the selected savings account. Take note of any fees, minimum balance requirements, and interest rates associated with the account.
4. Click “Apply now” or “Open an account”: Once you’ve chosen the account type, look for an “Apply Now” or “Open an Account” button. Click on it to initiate the application process.
5. Complete the online application: Fill out the online application form with accurate and up-to-date information. You’ll be asked to provide personal details, contact information, and financial information. U.S. Bank may also need to verify your identity. This can be done through the information you provide in the application and, in some cases, by uploading a copy of your ID.
6. Fund your account: After your application is approved, you’ll need to fund your new savings account. U.S. Bank typically allows you to transfer funds from an existing U.S. Bank account, initiate an external transfer, or mail a check.
7. Receive confirmation: Once your account is funded, you’ll receive confirmation from U.S. Bank. This may include details about your account, account number, and other relevant information.

Apply now: U.S. Bank Savings Accounts

U.S. Bank CD rates

A CD or certificate of deposit is another savings vehicle wherein you can earn a fixed interest rate for a set term, throughout which you can’t withdraw your funds. Terms vary but typically range from three months to five years. You can often grow your cash faster with a CD than with traditional savings accounts, earning guaranteed returns with higher APYs. The CD rates are guaranteed for the full length of the term you choose, and all CDs are FDIC-insured. But remember, unlike a savings account, you won’t be able to access your funds until the CD term is up.

You can view rates for your area on the U.S. Bank CD product page.

U.S. Bank has multiple types of CDs:

1. Standard CD

You can enjoy flexible terms and a lower minimum deposit of only $500 with a Standard CD:

2. Step Up CD

Get locked-in rate increases every seven months throughout the 28-month term with a $1,000 minimum deposit (up to $250,000):

3. Trade Up CD

Take advantage of increasing rates once per term. If a higher rate comes along during the term of your CD, you can trade up for it:

4. CD Special

You can earn even faster with a CD Special, locking in the best rates offered to the general public. Plus, if you already bank with U.S. Bank, you may qualify for a bonus rate. With a $1,000 minimum deposit, you can guarantee between 4.20% and 5.05% for a length of term between 7 and 15 months.

How U.S. Bank CD rates compare with other banks

As with savings accounts, U.S. Bank CD rates are relatively low compared to many other banks, especially online banks that may pay more than 5% APY on one-year CDs. However, keep in mind that minimum deposit requirements and term options may vary. Also, be sure to take advantage of any promotional campaigns with higher rates or rate bump features to increase your earnings.

How to apply for a U.S. Bank CD

Applying for a U.S. Bank CD (Certificate of Deposit) is a relatively easy process. Follow these steps to successfully apply for a U.S. Bank CD:

1. Visit the U.S. Bank website: Start by visiting the official U.S. Bank website. Navigate to the section that provides information about their CDs. This is where you’ll find details about the available CD terms and rates.
2. Explore CD options: Review the different CD options offered by U.S. Bank. Take note of the available terms (e.g., 6 months, 1 year, 3 years) and associated interest rates for each.
3. Choose the desired CD term: Select the CD term that aligns with your financial goals and investment horizon. Consider factors such as your risk tolerance and the length of time you can commit to keeping your funds in the CD.
4. Click “Apply now” or “Open an account”: Look for an “Apply Now” or “Open an Account” button associated with the specific CD term you’ve chosen. Click on it to initiate the application process.
5. Complete the online application: Fill out the online application form with accurate and up-to-date information. You’ll likely be required to provide personal details, including your name, address, Social Security number, and employment information.
   U.S. Bank may require identity verification. This can usually be done through the information you provide in the application, but additional verification steps may be necessary.
   During the application process, you’ll also need to specify the source of funds for your CD. U.S. Bank typically allows you to fund your CD from an existing U.S. Bank account, initiate an external transfer, or mail a check.
6. Review terms and conditions: Thoroughly review the terms and conditions associated with the CD. Pay attention to the interest rate, maturity date, any early withdrawal penalties, and other relevant details.
7. Verify your identity and fund your CD: Once your application is approved, you’ll need to fund your CD. Follow the instructions provided by U.S. Bank to transfer the necessary funds into the CD account.
8. Receive confirmation: After successfully funding your CD, you’ll receive confirmation from U.S. Bank. This may include details about your CD, the maturity date, and any other relevant information.

Apply now: U.S. Bank CDs

U.S. Bank Checking Account interest rates

U.S. Bank offers two consumer checking accounts: the Smartly Checking and Safe Debit account. However, only the Smartly Checking account pays interest. Benefits of this account include mobile check deposits, overdraft fee forgiveness and overdraft protection, automated bill pay, Zelle instant transfers, and more.

While this account does have a $6.95 monthly maintenance fee, you can get the fee waived if you meet any of these requirements:

• Average account balance of $1,500 or greater
• Have an open qualifying U.S. Bank consumer credit card
• Have combined monthly direct deposits totaling $1,000 or more
• You’re a member of the military or part of a select age group

You can also sign up for Smart Rewards, offering exclusive benefits and pricing discounts. You automatically move through the four-tiered program by combining balances from eligible accounts or with an open and eligible loan.

Learn more about the Smartly Checking account and rates in your region by visiting the U.S. Bank Smartly Checking product page.

U.S. Bank Business Checking Account Interest Rates

U.S. Bank has three business bank accounts and two specialty accounts, though only some earn interest:

• Premium Business Checking: Ideal for larger businesses with more complex banking needs, this account offers earnings on qualifying balances, gives access to more than 13,000 ATMS nationwide, and allows you to link to money market accounts to maximize balances. Maintenance and transaction fees vary but can be offset by an earnings credit based on your account balance.
  

• Gold Business Checking: Best for businesses with more banking activity, this account has a waivable $20 monthly maintenance fee and offers 300 free transactions per month ($0.45 fee for each additional transaction). This account offers more flexibility and more ways to save, helping you better manage cash flow.

• Nonprofit Checking: Ideal for nonprofit businesses, this account has a $0 monthly maintenance fee, 1,800 free transactions annually ($0.50 for each additional transaction), and provides easy access to funds with a U.S. Bank Business Debit Card.

How U.S. Bank Checking Account rates compare with other banks

Across most banks, the amount of interest earned on checking accounts is negligible. For this reason, it’s best to open a checking account with a bank that offers services and features that are valuable to you. However, compared to other banks that do offer interest on checking accounts, these rates are very low, especially compared to online banks. Some online banks allow you to earn up to 2.02% depending on your balance and other requirements.

How to open a U.S. Bank Checking Account

To open a U.S. Bank checking account, you can follow these general steps:

• Gather required documents: Ensure you have the necessary documents, including a government-issued ID (driver’s license, passport), Social Security number (SSN), and proof of address (utility bill, lease agreement).
  

• Choose the type of checking account: U.S. Bank offers various checking account options. Choose the one that best fits your needs, whether it’s a basic checking account, student account, or another type.

• Visit a branch or apply online: You can either visit a U.S. Bank branch in person or apply online through their official website. If applying in person, check the bank’s website for the nearest branch.

• Complete the application: Fill out the required application form. This may include personal information, employment details, and financial information. If applying in person, present your government-issued ID and any other required documents. If applying online, you may need to submit scanned copies of your documents.

• Review and agree to terms: Carefully review the terms and conditions of the checking account. Make sure you understand fees, minimum balance requirements, and any other relevant details.

• Deposit initial funds: Some checking accounts require an initial deposit. Be prepared to make this deposit, and check the specific requirements for the account you choose.

• Receive account information: Once your application is approved, you’ll receive your account details, including your account number and routing number. You may also receive a debit card.

Apply now: U.S. Bank Smartly Checking Account

Bottom line

After a comprehensive assessment, U.S. Bank’s interest rates are fairly uncompetitive compared to other banks. However, an account with U.S. Bank may be appealing to people who value the convenience of a traditional bank with a well-established reputation, strong customer service, and a variety of special features and options.

That said, if capturing the highest possible interest rates is your objective, online banks provide much greater earning potential.

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