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Discover CDs rates review
Reach your savings goals or prepare for retirement with competitive APYs on a range of terms.
finder.com’s rating: 3.8 / 5.0
★★★★★
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.
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0.5%
1-year APY
0.55%
3-year APY
0.6%
5-year APY
Details
| Minimum deposit to open | $2,500 |
|---|---|
| Interest compounding | Daily |
| 3-month APY | 0.2% |
| 6-month APY | 0.25% |
| 9-month APY | 0.3% |
| 1-year APY | 0.5% |
| 18-month APY | 0.5% |
| 2-year APY | 0.5% |
| 30-month APY | 0.55% |
| 3-year APY | 0.55% |
| 4-year APY | 0.55% |
| 5-year APY | 0.6% |
| 7-year APY | 0.6% |
| 10-year APY | 0.6% |
| Early withdrawal penalty | 90 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 |
Review by
Peter Carleton
peter.carleton@findercrew.comPeter 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:
- Click Apply now.
- From the Discover website, hover over the Banking tab and click CDs.
- Click Open an Account.
- Continue as a new customer or Log in if you already have a Discover account.
- Enter your personal and contact information along with your citizenship and employment details, then click Continue after each step.
- Choose your CD term and deposit amount, then click Continue.
- Decide whether or not you’d like to add another CD, beneficiary or joint owner, then choose how to fund your account.
- 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
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:
- Let it automatically renew at the same rate and term.
- Make an additional deposit.
- 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
- Discover Bank
Frequently asked questions
CDs ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
We rate CDs and share certificates on a scale ranging from one to five stars based on what matters most to you. We consider two factors equally when rating CDs: minimum deposits and annual percentage yields (APYs) relative to term length. If a bank requires a different minimum opening deposit depending on the chosen term, we rate the CD based on the average minimum deposit across all terms. And although some institutions offer CDs with terms ranging from one week to 20 years, we only consider term lengths the FDIC uses in its monthly updates on national rates.
Read the full methodology of how we rate CDs.
