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Discover CDs rates review

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Reach your savings goals or prepare for retirement with competitive APYs on a range of terms.

Discover offers competitive rates and a selection of standard and IRA CD terms that range from three months to 10 years. These CDs offer higher interest rates than a typical savings account, and if you have a tendency to make multiple withdrawals, they can encourage you to lock your funds away for long-term growth.

0.5%

1-year APY

0.55%

3-year APY

0.6%

5-year APY

Details

Minimum deposit to open$2,500
Interest compoundingDaily
3-month APY0.2%
6-month APY0.25%
9-month APY0.3%
1-year APY0.5%
18-month APY0.5%
2-year APY0.5%
3-year APY0.55%
30-month APY0.55%
4-year APY0.55%
5-year APY0.6%
7-year APY0.6%
10-year APY0.6%
Early withdrawal penalty90 days interest for terms of 1 to 11 months
180 days interest for terms of 12 to 47 months
270 days interest for terms of 48 to 59 months
540 days interest for terms of 60 to 83 months

Expert review

Peter Carleton

Review by


Peter Carleton is a writer that covers banking and investing, breaking down what you need to know about where you put your money. When Peter's not thinking about cutting-edge banking apps and robo-advisors, he runs a creative agency and spends his spare time cooking or reading.

Expert review

Discover’s CDs are best for those looking for a long-term CD. Discover offers a wide selection of term lengths and you’ll earn up to 0.6% depending on the term.

There are no fees to open or maintain the account, but you’ll need to deposit at least $2,500 to open one, and you won’t be able to visit a branch.

How do I open a Discover CDs account?

It’s easy to open Discover CDs online or by phone:

Online:

  1. Click Apply now.
  2. From the Discover website, hover over the Banking tab and click CDs.
  3. Click Open an Account.
  4. Continue as a new customer or Log in if you already have a Discover account.
  5. Enter your personal and contact information along with your citizenship and employment details, then click Continue after each step.
  6. Choose your CD term and deposit amount, then click Continue.
  7. Decide whether or not you’d like to add another CD, beneficiary or joint owner, then choose how to fund your account.
  8. Once you fund your account and accept the terms, your CD is set up.

By phone:

You can also call 800-347-7000 any time to speak with a US-based representative and open an account.

Eligibility

To open a Discover Bank CD, you’ll need to meet these eligibility requirements:

  • Be a US citizen.
  • Be at least 18 years old.
  • Have a valid Social Security number or taxpayer ID.
  • Have a physical US address.

Required information

Regardless of how you choose to open your Discover CDs, you’ll be asked for the following information:

  • Name, date of birth and address.
  • Social Security number or Tax Identification Number (TIN).
  • Employment information.

Funding options

When you open this account, choose whether you want to fund it during the application or within 10 days using the following options:

  • Online transfer from another bank account.
  • Bank transfer by phone.
  • Mail a check.

What are my options for Discover CDs?

You’ll have two main products to choose from:

  • Standard CD. A regular CD account with multiple term options and interest tiers to help your money grow.
  • IRA CD. Get peace of mind as you save for retirement with an IRA CD that offers guaranteed returns.

What are the benefits of Discover CDs?

Regardless of which option you prefer, Discover CDs offer many benefits:

  • No fees. You won’t pay to open or maintain Discover CDs. The only fee you’ll pay is for outgoing wire transfers.
  • Numerous terms. Choose from terms between three months and 10 years.
  • Daily interest calculation. Interest is calculated and compounded daily and credited to your account monthly or have it transferred to an eligible Discover bank account.
  • Competitive rates. Discover pays between 0.2% and 0.6% APY on its CDs — higher than most of its competition.
  • Multiple funding options. When you open the account, fund the initial deposit from another bank account, by phone or mail.
  • Low withdrawal fees. Compared to some of its competitors, Discover has relatively low early withdrawal fees.

What should I look out for?

While Discover CDs offer many benefits to help you save, there are a few potential drawbacks to look out for:

  • No branches. Discover operates entirely online, so you can’t visit a branch for questions or assistance.
  • No partial withdrawals. You won’t be able to make any partial withdrawals from a CD before maturity. If you want to make a withdrawal, you’ll need to take out the full amount and your CD will be closed.
  • High minimum deposit. Unlike some other CDs, you’ll need a deposit of at least $2,500 to open a Discover Bank CD.

If you prefer a CD with the option of in-person banking, you’ll want to keep looking. As always, compare your options when choosing a CD.

Compare with other CDs

Name Product 1-year APY 18-month APY 2-year APY 3-year APY 5-year APY
CIT Bank Term CDs
0.3%
0.3%
0.4%
0.4%
0.5%
Radius Bank CDs
0.5%
0.5%
0.5%
0.5%
0.5%
BBVA CD
0.1%
0.1%
0.1%
Discover CDs
0.5%
0.5%
0.5%
0.55%
0.6%
Discover IRA CDs
0.5%
0.5%
0.5%
0.55%
0.6%
Barclays Online CDs
0.3%
0.3%
0.3%
0.3%
0.3%
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Compare up to 4 providers

How do I cash in a CD?

You’ll be notified 30 days before your CD reaches its maturity date and you’ll have a nine-day grace period to choose between the following options:

  1. Let it automatically renew at the same rate and term.
  2. Make an additional deposit.
  3. Withdraw the principal or interest

Your CD will automatically renew at the end of the grace period if you don’t take any action. In this case, you’ll be locked into the CD term and will be charged an early withdrawal penalty if you want to access your money.

Early withdrawal penalties on Discover CDs

If you withdraw your money before your CD reaches its maturity date, you’ll be charged an early withdrawal penalty, which varies depending on the term:

  • 1 to 11 months: 90 days of interest
  • 12 to 47 months: 180 days of interest
  • 48 to 59 months: 270 days of interest
  • 60 to 83 months: 540 days of interest
  • 84 to 120 months: 720 days of interest

How can I get in touch with customer service?

  • By phone: Discover’s 24/7, US-based customer service can be reached at 800-347-7000
  • Mail: Send your questions to:
    • Discover Bank
      PO Box 30416
      Salt Lake City, UT 84130

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    2 Comments

    1. Default Gravatar
      shirley
      March 11, 2020

      are your cd’s goverment insured

      • Avatarfinder Customer Care
        nikkiangco
        March 12, 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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