Discover Bank CD Rates Review
Discover® CDs isn't available on Finder right now.
- 1-year APY
- 4.05%
- 36-month APY
- 3.50%
- 5-year APY
- 3.50%
Our verdict
Get competitive interest on most terms without meeting minimum deposit requirements.
Discover Bank offers online-only products, including certificates of deposit (CDs) with terms that range from three months to 10 years. What makes Discover Bank’s CD account stand out the most from competitors is the fact that it doesn’t have any minimum deposit requirements. Compared to other banks that often require you to deposit $1,000+ to earn interest, Discover’s CDs are a more accessible option for those who are starting with a smaller amount. That said, the best rates are typically for terms above one year, so Discover's CDs are best if you’re looking to maximize interest earnings on larger balances.
Best for: Savers who want guaranteed returns, no minimum deposit and flexible term options.
Pros
-
No fees or minimum opening deposit
-
Several term options
-
Solid APYs for most CDs
Cons
-
Expensive early withdrawal penalties
-
No physical branches
Capital One and Discover merge
Discover has been acquired by Capital One. The acquisition was completed on May 18, 2025. The two banks are now under the same company, Capital One, N.A.
Not much has changed yet, and if there are any changes to your existing Cap One or Discover accounts the bank will contact you. While Cap One sorts things out, here’s what we know:
- If you have both Discover and Capital One deposit accounts, they are now jointly insured. CDs with either banks will remain separately insured until their maturity date after November 18, 2025.
- You can no longer do credit card balance transfers between Discover and Capital One.
- Capital One is switching its debit card network over to the Discover card network. When you request a new card as a Cap One customer, you’ll get new card details.
Overview of Discover Bank CD rates
Discover Bank offers some of the most competitive CD rates we’ve seen on the market.
For comparison, the average rate on a 12-month CD is 1.70%, according to the FDIC.(1) Discover also offers a wider range of terms than most banks, going up to 10 years for maximum flexibility. We also appreciate that you can withdraw interest at any time without incurring penalties, a plus if you need emergency cash.
Discover Bank’s CDs compound on a daily basis.
| CD term | APY | Minimum deposit |
|---|---|---|
| 3 months | 2.00% | $0 |
| 6 months | 3.50% | $0 |
| 9 months | 3.50% | $0 |
| 12 months | 4.05% | $0 |
| 18 months | 3.70% | $0 |
| 24 months | 3.50% | $0 |
| 30 months | 3.50% | $0 |
| 3 years | 3.50% | $0 |
| 4 years | 3.50% | $0 |
| 5 years | 3.50% | $0 |
| 7 years | 3.50% | $0 |
| 10 years | 3.50% | $0 |
More about Discover’s CDs: Deposits, fees and details
| Type of detail | Details | Does it matter? |
|---|---|---|
| Minimum deposit | $0 | Much lower than average, as most banks require at least $1,000 to open a CD.. |
| Term range | 3 months to 10 years | Most banks offer terms that range from 3 months to 5 years, so Discover provides more options. |
| Early withdrawal penalties |
| This is similar to competitors, like Capital One, which charge 6 months’ interest on terms of 12+ months. |
| Grace period | 9 days | This is slightly lower than the typical 10-day grace period most banks have. |
Cashout and rollover details
When your Discover CD matures, you can choose to close it and withdraw all of the funds. To request a withdrawal, call customer service at 1-800-347-7000. You can also withdraw interest from your account at any time, though doing so will affect your APY.
If you don’t take action when your CD matures, Discover will automatically renew it for you after the nine-day grace period ends. Your new CD will have the same term as the old one.
If you want to update your CD terms, you can provide Discover with instructions starting 30 days before the CD’s maturity date. You can also make changes during the nine-day grace period.
Compare Discover Bank to competitors’ interest rates
Select Compare to see up to four competitors side by side, comparing the term length and minimum deposit that suits you.
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How we picked theseWhat is the Finder Score?
The Finder Score analyzes hundreds of CDs from more than 100 institutions. It takes into account the product's interest rate for available terms and opening deposit requirements - this gives you a simple score out of 10.
Different banks and credit unions offer CDs for various lengths of time, ranging from as short as seven days to as long as 20 years. For our ratings, we consider the term lengths that the FDIC uses in its monthly updates on national rates.
If a bank or credit union doesn’t offer a CD for a specific term used by the FDIC, we don’t penalize it: Instead, we simply don’t rate it. Each of the standard term lengths has its own APY rating based on the FDIC’s average rates.
Customer reviews
Even though Discover is accredited by the Better Business Bureau (BBB) and has an A+ rating, its customer reviews aren’t so great. Customers complained about unhelpful customer service and how inconvenient it is to get their money after closing an account or trying to cash out a CD. One customer shared, “You have to call them on the phone, talk to a robot, be connected to a person, go over everything again, give them permission to text you and receive a text confirmation, just to get the money that already belongs to you.”
What do people on Reddit say?
Overall, Discover’s CD rates are competitive, but the customer service experience seems to be hit or miss.
How Discover Bank’s CDs and rates compare
Discover Bank’s CDs are a solid option if you want to earn returns without locking in a large amount up front. Since you don’t need to meet minimum deposit requirements and can choose from terms up to 10 years, this account is a lot more accessible than many competitors (especially if you have a smaller balance). That said, even though Discover Bank’s APYs are higher than what many competitors offer, the early withdrawal penalties can be steep.
If you’re not sure about committing to a CD, Discover’s high-yield savings account may be a better fit since it offers more liquidity and still lets you earn decent interest.
Your reviews
Jamela Finder
Contributor
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nikkiangco
March 11, 2020
Hi Shirley,
Thanks for your comment and I hope you are well.
Discover CDs are insured by the FDIC up to the $250,000 legal limit. Established by the Banking Act of 1933, the FDIC protects your money in the event of bank failure.
I hope this helps and feel free to reach out to us again for further assistance.
Best,
Nikki
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shirley
March 11, 2020
are your cd’s goverment insured