U.S. Bank 2024 Review
Published January 29, 2024 at 3:16 pm
U.S. Bank has been around for more than 150 years and pays solid rates on CDs ranging from seven to 15 months.
Our Methodology Newsweek Vault’s banking experts have done hundreds of hours of research to present you with all the latest information about your banking options. Whether you’re interested in opening a new checking account or savings account, our research spans all the top online banks, credit unions and brick-and-mortar branches.
We assessed the following five key factors to help you choose the best account for your personal finance needs.
•Associated fees
•ATM access
•Balance requirements
•Customer service
•Interest-earning potential
U.S. Bank
Vault Verified
Expert Take
U.S. Bank is a brick-and-mortar bank with branches in 26 states. The bank’s CDs have strong rates, while rates on U.S. Bank savings accounts are low. Consumers must contact the bank for information on rates for its interest-bearing checking account.
Pros
- High APYs on CDs
- Some accounts can be opened online if you don’t live in a U.S. Bank service area
- Offers a rewards checking account with access to perks and discounts
Cons
- Very low rates on checking and savings accounts
- Fees charged on checking and savings accounts, although there are ways to get them waived
- Smart Rewards program details can be confusing
Vault’s Viewpoint on U.S. Bank
U.S. Bancorp, the parent of U.S. Bank, is the fifth-largest bank in the United States and its roots stretch back more than 150 years.
U.S. Bank gets high marks for its rates on certificates of deposit (CDs), which currently top out at 5% APY but can vary from place to place.
It’s not the best choice if you’re looking to earn fee-free, high interest rates on checking and savings accounts.
U.S. Bank Certificates of Deposit
U.S. Bank CDs Overview
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Expert Take
If you’re looking for a place to earn healthy returns on CDs, U.S. Bank is a good choice, with some of the highest rates in the country.
Pros
- High rates of return
- Best rate paid on nine-month CDs, so you don’t have to keep your money tied up for an extended period
- Deposit amounts can range from $1,000 to $250,000
Cons
- Rate is only good for the initial term; low rates after that time
- CD will automatically renew for the same term unless you close it
- A penalty will be imposed for closing the account early
U.S. Bank CDs are a good choice if you want to earn a competitive rate of return. The CD Special offers terms of between 7 months and 15 months. Rates vary by length and your location, but the bank currently advertises a 4.40% APY for seven-month CDs, a 5.05% APY for nine-month CDs, a 4.30% APY for 11-month CDs and a 4.20% APY for 15-month CDs.
U.S. Bank Savings Accounts
U.S. Bank Savings Overview
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Expert Take
The Standard Savings account pays an extremely low rate and charges a $4 monthly maintenance fee, although if you meet certain requirements, the fee will be waived.
Pros
- Good option if you live near a branch and want your CD, checking and savings accounts all in one place
- Branches in 26 states if you want to bank in person
- Offers a money market account paying high rates, with a minimum $25,000 deposit
Cons
- Extremely low rate of return
- $4 monthly maintenance fee
- High-paying money market requires $25,000 minimum deposit
U.S Bank’s Standard Savings account offers a poor rate of return, especially when compared to the best online banks. While rates may vary by location, it’s generally just 0.01% APY. Plus, the account carries a $4 monthly fee, though there are ways to get it waived.
U.S. Bank Checking Accounts
U.S. Bank Checking Overview
Vault Verified
Expert Take
U.S. Bank offers an interest-bearing checking account that is eligible for U.S. Bank’s Smart Rewards program, but it carries a $6.95 monthly fee. There are various ways to get the fee waived, though.
Pros
- Ability to keep your checking, savings and CDs all in one bank
- No overdraft fees for a balance overdrawn of less than $50, plus an Overdraft Fee Forgiven program for higher overdrafts
- Smart Rewards program can provide various benefits based on your program tier, such as loan discounts
Cons
- Low interest rate
- Detailed information on rates is not easily accessible
- $6.95 monthly fee (waivable)
U.S. Bank offers a Bank Smartly Checking account that pays interest and can be connected to the bank’s Smart Rewards program, but you have to contact the bank to find out the current interest rate. Further, the account carries a $6.95 monthly maintenance fee, though this fee can be waived by having a minimum of $1,000 in direct deposits each month, having an average account balance of $1,500 or more or having an open, qualifying U.S. Bank consumer credit card.
About U.S. Bank
U.S. Bank’s predecessor, the First National Bank of Cincinnati, received approval for its national banking charter under the Lincoln administration in 1863. The bank is now based in Minneapolis, Minnesota.
As of December 2022, it had $587 billion in assets. It has operations in 26 states, primarily in the West and Midwest, with more than 2,000 branches.
U.S. Bank Fees
Fees can quickly add up at U.S. Bank. Its Bank Smartly Checking account carries a $6.95 monthly maintenance fee, but there are several ways to get it waived, such as having an average daily checking account balance of at least $1,500 or holding a U.S. Bank credit card.
A Standard Savings account has a $4 fee each month. However, you can get it waived by doing such things as keeping a $300 daily savings account balance or opening a Bank Smartly Checking account and enrolling in the Smart Rewards Primary tier.
Who Is U.S. Bank Best For?
U.S. Bank is the best choice for someone looking for a competitive return on a short-term CD. You don’t necessarily have to live near one of its many branches to open a CD. Just be prepared to move your money elsewhere once the introductory period ends, or you’ll receive a much lower rate on your money.
Who Should Consider an Alternative to U.S. Bank?
If you want a bank that pays high rates on checking and savings accounts and no fees, U.S. Bank is not the right choice. Its checking and savings accounts also are not available in certain parts of the country.
How Does U.S. Bank Stack Up to Its Competitors?
U.S. Bank, as well as its main competitors, all have thousands of branches around the country if you’re looking for in-person service. Plus, all offer similar rates on checking, savings and short-term CDs.
U.S. Bank vs. Bank of America
Bank of America is the second-largest bank in the United States and has about 3,900 retail financial centers.
Its short-term CD rates are highly competitive, including a 7-month CD paying a 4.90% APY with a minimum deposit of $10,000 or less. `
Bank of America offers a savings account and has three checking account options. The current special offer earns consumers $200 if they open a new checking account and make at least $2,000 in direct deposits in 90 days.
U.S. Bank vs. Chase
Chase Bank is the largest U.S. bank with the largest branch network of 4,700 branches and access to more than 15,000 ATMs.
Like Bank of America, it currently offers Chase bonuses for opening a new checking account and meeting the qualifications. With Chase Total Checking®, for example, you can earn a $300 bonus for opening a new account with qualifying activities (expires 1/22/2025).
If you’re interested in a CD, it’s all about relationships. Chase offers strong rates on CDs—as long as you have a checking account as well. Otherwise, expect to earn just pennies.
U.S. Bank vs. Wells Fargo
As the country’s third-largest bank, Wells Fargo operates in 5,600 locations. It offers four different checking accounts and two savings accounts.
Like the other big banks, it offers several CDs, including a couple that are paying above 4% APY.
Frequently Asked Questions
Are U.S. Bank and U.S. Bancorp the Same Thing?
U.S. Bancorp is publicly traded and is the parent company of U.S. Bank. The company calls itself U.S. Bancorp in corporate filings and formal documents but uses U.S. Bank on its branches, apps and commercials.
How Do I Open a CD Special?
Opening the special-rate CD only requires a $1,000 minimum deposit, but you can deposit up to $250,000. High rates are available for seven, nine, 11 or 15 months. You’ll need to provide personal, employment and income information when applying online.
Are There Downsides to Using U.S. Bank?
Unlike an online bank, U.S. Bank’s savings and checking accounts may not be available if you live outside its geographic region. For those consumers, you won’t be able to have your CD, checking and savings accounts all in one place.
Editorial Disclosure: We may receive a commission from affiliate partner links included on our site. However, this does not impact our staffs’ opinions or assessments.
