US Bank currently has two CD specials available in California. These two CDs are a 2.50% APY 10 month CD, and a 4.25% APY 59 month CD.

Minimum deposit for this CD is $500, with funds new to US bank. This rate is also available for business certificates and IRA CDs. An important detail regarding this CD is a steep early withdrawal penalty.According to the disclosure agreement, the penalty for the 59 month CD would be over 29.5 months of interest on the amount withdrawn.

Early withdrawal penalties are typically only 6 months of interest, so this penalty is a lot higher than normal. If inflation forces interest rates to increase quickly, you don’t want to be stuck with a long term CD at a lower rate, so a small withdrawal penalty can be beneficial when you want to close the CD and move into an account with a higher rate.

This offer is only available at US Bank branches, which includes Downey Savings and PFF Bank & Trust branches.

Its ratings for safety and soundness are good: 3.5 stars (good) at BauerFinancial and 4 stars (sound) at Bankrate.com.