What is a certificate of deposit?

A certificate of deposit (CD) is an account that offers you a higher interest rate than a traditional savings account in exchange for leaving your money untouched for an agreed upon time. That time period is known as the term length.1 You’ll incur a penalty if you withdraw your funds before the term is done.

How do CDs work?

The total amount of interest you earn on a CD is determined by the term length1 and your initial deposit. Typically, the longer your term length and the greater your deposit, the higher the interest you’ll earn. Different CD products offer you different term length options and require different initial deposits. CD accounts are FDIC insured.2

What is APY?

Annual Percentage Yield3, or APY, is the total interest earned over the course of the year. This is different from the interest rate as it includes compounding interest.

As you accumulate interest on your initial deposit, your account balance grows. APY includes not only the interest on your initial deposit but also the interest on the growth in your balance, i.e. the interest on the interest you’ve accumulated.

Compare CD account options.

We offer you a choice of four CD accounts:

  • CD Special
  • Standard CD
  • Step Up CD
  • Trade Up CD

Each of these accounts offers different CD rates, APYs3, term options and deposit requirements. Choose the one that best fits your needs. The APYs listed below are effective currentdate for ZIP code currentZipCode. (Edit ZIP code)

How much can you earn?

Choose a CD, opening deposit and term length.1 2 5 We’ll calculate your CD earnings. The Annual Percentage Yield3 (APY) is effective currentdate for ZIP code currentZipCode. (Edit ZIP code)

Learn more about personal finance.

Whether you need answers to common questions about CDs or want to brush up on your financial knowledge as a whole, our Financial IQ provides an abundance of information, including the following three articles.

CDs: How they work to grow your money

Learn how this savings tool works and when it could work well for you.

Read the article

Three tips for saving money easily

Make building wealth a part of your regular routine. Check out these three tips.

Watch the video

Saving vs. investing: What’s the difference?

You know that putting money aside for the future is important. But do you know the best strategies to tackle both saving and investing in the years ahead?

Read the article

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Start of disclosure content

  1. Offer good for the initial term only. CD is automatically renewed for the same term. 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. Advertised rate and APY are offered at the bank's discretion and may change daily.

  2. FDIC insured to the maximum allowed by law.

  3. Annual Percentage Yield (APY) assumes principal and interest remain on deposit for the term of the certificate. All interest payments for the APY will be made at the end of the term or annually, whichever occurs first. Penalty will be imposed for early withdrawal. Fees could reduce earning on the account.

  4. $1,000 minimum opening deposit up to a maximum of $250,000. 

  5. Online application is not valid for single maturity CDs, business or retirement CDs, brokerage deposits, institutional investors, public funds or in conjunction with other promotional offers.

  6. $500 minimum opening deposit up to a maximum of $250,000.

Start of disclosure content

Deposit products are offered by U.S. Bank National Association. Member FDIC.