Discover Bank CD

Discover Bank CD Review

Discover Bank CD are offered by Discover Bank, a bank founded in 1985 and based in Riverwoods, IL. Discover Bank are available in 50 states (and Washington, DC).

Key Takeaways

• Guaranteed returns. No account fees. Lock in your rates with terms from 3 months to 10 years.
• Small selection of CD account types. Discover Bank only offers IRA and traditional CDs.
• Very high annual percentage yield (APY). This account offers an annual percentage yield of up to 5.30%, which is much higher than the national average for a CD account.
• High minimum deposit. You must deposit a minimum of $2,500, which is high compared to most CD accounts.
• Wide selection of CD terms. Discover Bank allows you to create a CD ladder by spreading your cash across certificates with different terms. This combines the benefits of frequent access to funds and higher rates of return on your savings.

Pros & Cons of Discover Bank CD

Discover Bank CD FAQ

Are CD from Discover Bank federally insured?

Yes, your Discover Bank CDs are insured up to $250,000 per person by the Federal Deposit Insurance Corporation (FDIC). The FDIC is an independent agency of the United States government that protects you against the loss of your insured deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.

What types of CDs does Discover Bank offer?

• Traditional CDs. These CDs pay a fixed interest rate if you deposit a fixed amount of money for a specific term. Once the maturity date arrives, you have the option of cashing out or automatically renewing the CDs for another term.
• IRA CDs. An IRA CD is a type of IRA that consists entirely of CDs. In general, you can invest in CDs in any IRA, but Discover Bank offers a CD that is specifically for retirement.

What rates does Discover Bank offer on its CDs?

Discover Bank offers an APY starting at 2.00% and ranging up to 5.30%. APY stands for annual percentage yield and shows the interest rate paid by the CD after taking into account compounding. This is higher than the typical interest rate for online-only checking accounts, which is around 1% APY.

What is the minimum deposit to open a CD account with Discover Bank?

Discover Bank require a minimum deposit of $2,500 to open an account.

What is the grace period for Discover Bank?

There is a 9-day grace period for Discover Bank. A grace period is a period of time during which you can withdraw the money in your CD without paying an early withdrawal penalty. A grace period starts the day after a CD’s maturity date, or the final day a CD is opened. Standard CDs renew automatically at the same term if you don't withdraw your money after the 9-day grace period. Note that the new CD rates probably won’t be the same as the original.

What types of fees, such as early withdrawal penalties, does Discover Bank charge?

Financial institutions don't typically charge many fees on CDs. However, most charge a fee if you choose to withdraw your money before the term ends.

Discover Bank charges an early withdrawal fee.