Updated
Fact Checked
Ashley Maready
Discover® doesn't offer the highest CD rates on the market, but for some terms it comes pretty close. Its breadth of CD terms is wide, ranging from three to 120 months, but a high minimum deposit of $2,500 may be steep for some savers. Here's a close look at Discover® Bank CD rates, how they compare to other top online banks, and whether they are right for you.
Discover® Bank CD rates for 2024
Rates as of May 14, 2024
APY = Annual Percentage Yield
Discover® Bank CD
Bottom Line
Discover has a higher minimum balance requirement than some of its competitors, but its rates are competitive and you don't have to worry about getting hit with any fees unless you withdraw funds via wire transfer or choose to withdraw from your CD before it reaches its maturity date. It also offers some unique term lengths, including CDs as short as three months and as long as 10 years.
MINIMUM DEPOSIT $2,500
| 3 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 30 Mo. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY | 7 Yr. APY | 10 Yr. APY |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2.00% | 4.25% | 4.25% | 4.70% | 4.40% | 4.00% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% |
Compare Discover® Bank CD rates
Discover offers some of the best CD rates among online banks. These high-yield CDs are a great option for both short and long-term savings goals.
Rates as of May 14, 2024
| Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
|---|---|---|---|---|
|
Member FDIC.
| APY: 4.70% | Term: 1 Year | Min. Deposit: $2,500 | |
| APY: 5.05% | Term: 1 Year | Min. Deposit: $1 | |
|
| APY: 5.15% | Term: 9 Months | Min. Deposit: $1 | |
Member FDIC.
| APY: 4.75% | Term: 1 Year | Min. Deposit: $500 |
Overview of Discover® Bank CDs
Discover® Bank CDs are available in 12 different CD term lengths ranging from three months to 10 years. Opening a CD account through Discover requires a $2,500 minimum deposit. Like most CDs, Discover doesn't charge any monthly maintenance fees on its CD accounts.
The interest on Discover® Bank CDs is compounded daily and credited monthly. Discover® Bank CDs renew automatically after reaching maturity, and you have a nine-day grace period to withdraw your funds if you don't want to continue. You can also deposit more funds into your CD during this period.
| Minimum Deposit | $2,500 |
|---|---|
| Range of Term Lengths | 3 to 120 months |
| Compounding Schedule | Daily |
| Early Withdrawal Penalty | 3 months of simple interest (terms of 1 year or less); 6 months of simple interest (terms between 1- 4 years); 18 months of simple interest (terms between 5 - 7 years); 24 months of simple interest (terms of 7 years or greater). |
| Grace Period | 9 days |
Data source: Discover.
Discover® Bank CD pros and cons
While Discover® Bank CD rates aren't the most competitive you'll find, they do come in a large variety of terms, making them ideal for a CD ladder. However, as is the case with most CDs, if you need to withdraw your funds early for any reason, you'll end up paying a penalty which, depending on your CD's term, can be up to 24 months of simple interest. The threat of early withdrawal penalties and the high barrier to entry ($2,500) may make Discover® Bank CDs a poor choice for some.
Pros
- Competitive rates
- No fees
- Multiple term lengths up to 10 years
- Mobile account access
Cons
- High minimum balance requirement
How much can you earn with a Discover® Bank CD?
While Discover can modify its ongoing CD rates at any time, you can lock in today's highest rates by opening an account. For perspective, here's how much $2,500 could grow in each of the CD terms that Discover offers.
The numbers in the table below may not be accurate to current APYs and are for example purposes only.
| Term | APY | Earnings |
|---|---|---|
| 3 months | 2.00% | $12 |
| 6 months | 4.25% | $52 |
| 9 months | 4.25% | $79 |
| 12 months | 4.70% | $117 |
| 18 months | 4.40% | $166 |
| 24 months | 4.00% | $203 |
| 30 months | 3.75% | $240 |
| 3 years | 3.75% | $291 |
| 4 years | 3.75% | $396 |
| 5 years | 3.75% | $505 |
| 7 years | 3.75% | $734 |
| 10 years | 3.75% | $1,112 |
Data source: Author's calculations.
Is a Discover® Bank CD safe?
Yes, Discover® Bank CDs are safe. Discover® Bank CDs are backed by FDIC insurance, which protects up to $250,000 per account.
How to open a Discover CD
Discover makes it very easy to open CDs online. Here's what you can expect.
1. Create an account or sign in
If you don't already bank with Discover, you'll have to create an account. This involves giving personal information, like your name, address, and Social Security number.
2. Choose a CD term
Once you've created your account or logged in, you can select a CD term from the list. You'll also enter a deposit amount of $2,500 or higher. At this point, Discover asks if you want to opt in to transferring your monthly interest to another Discover account. While this option lets you take advantage of your CD interest as it's credited to your account, it may also slightly reduce your APY.
3. Sign disclosures and fund your CD
Discover will ask you to agree to three pages of disclosures. Once you click "agree," you can transfer money from another account (either with Discover or another bank) and open your CD.
Who is a Discover® Bank CD right for?
Discover® Bank CDs are perfect for individuals who have at least $2,500 to deposit in a CD and want to maximize their savings. It's rare to find CDs with 10-year terms, so Discover® Bank CDs are the perfect match for someone with long-term savings goals.
Other Discover® Bank CD accounts
Discover also offers the following CD account:
- IRA CDs
Bottom line: Discover® Bank CD rates
Discover® Bank CD
- 3 APY: 2.00%
- 6 APY: 4.25%
- 9 APY: 4.25%
- 12 APY: 4.70%
- 18 APY: 4.40%
- 24 APY: 4.00%
- 30 APY: 3.75%
- 36 APY: 3.75%
- 48 APY: 3.75%
- 60 APY: 3.75%
- 84 APY: 3.75%
- 120 APY: 3.75%
Rates as of May 14, 2024
APY = Annual Percentage Yield
Term
Discover® Bank CD
3 Mo.
6 Mo.
9 Mo.
1 Yr.
1.5 Yr.
2 Yr.
30 Mo.
3 Yr.
4 Yr.
5 Yr.
7 Yr.
10 Yr.
2.00%
4.25%
4.25%
4.70%
4.40%
4.00%
3.75%
3.75%
3.75%
3.75%
3.75%
3.75%
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Review sources
Our CDs methodology
At The Motley Fool Ascent, certificates of deposit (CDs) are rated on a scale of one to five stars, primarily focusing on annual percentage yield (APY) and early withdrawal penalty fees. Our highest-rated CDs generally include competitive APYs without complex qualification tiers, low withdrawal fees, reliable brand trust and reputation, and ease of use.
Learn more about how The Motley Fool Ascent rates bank accounts.
FAQs
-
The minimum deposit for a Discover® Bank CD is $2,500.
-
Discover® Bank CDs don't come with monthly maintenance fees, but you will pay an early withdrawal penalty if you cash out before your CD's maturity date. The fee is equal to a certain period of simple interest, ranging from three to 24 months.
-
No, you have to leave your money untouched for the duration of your term. Closing a Discover® Bank CD early will result in an early withdrawal penalty.
Our Banking Experts
Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.
Kevin Payne is a freelance writer and family travel and budget enthusiast behind FamilyMoneyAdventure.com. His work has been featured in Forbes Advisor, Credible, CreditCards.com, Bankrate, SlickDeals, Finance Buzz, Student Loan Planner, and more. Kevin lives in Cleveland, Ohio with his wife and four teenagers.
Fact Checked
Ashley Maready
Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
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