Discover Bank CD Rates: How They Compare

The credit card issuer Discover has high-yield CDs with a somewhat hefty opening minimum.
Feb 25, 2022
Discover Bank CD Rates: How They Compare

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+ See a summary of Discover Bank CD rates

Discover Bank CD rates

  • 1-year: 1.20% APY

  • 3-year: 1.70% APY

  • 5-year: 2.15% APY

  • 10-year: 2.15% APY

Discover Bank CD
NerdWallet rating 

at Discover Bank, Member FDIC

Discover Bank’s CD rates are competitive with other online banks and have consistently been some of the highest you can find. The range of terms is extensive, from three months to 10 years. The bank also has strong checking and savings options, which give it an edge over other banks. But the minimum CD deposit of $2,500 may be hefty for some.

Discover Bank CD rates

3-month CD

0.20% APY

6-month CD

0.25% APY

9-month CD

0.30% APY

1-year CD

1.20% APY

18-month CD

1.50% APY

2-year CD

1.60% APY

30-month CD

1.60% APY

3-year CD

1.70% APY

4-year CD

1.80% APY

5-year CD

2.15% APY

7-year CD

2.15% APY

10-year CD

2.15% APY

CD details from Discover: "Annual Percentage Yield (APY) is accurate as of 05/06/2022, is subject to change without notice, and will be determined and fixed for the term at funding. Applies to personal accounts only. A penalty may be charged for early withdrawal. Minimum deposit to open is $2,500."

» Want more options? See the best CD rates

More details about Discover Bank CDs

Minimum deposit

$2,500.

Monthly fee

None, which is common for CDs.

Range of CD terms

3 months to 10 years.

Compounding period

Daily. (This detail helps you estimate what you can earn using a CD calculator.)

Early withdrawal penalty

  • 3 months' worth of interest* for CDs of terms less than 1 year

  • 6 months' worth of interest* for CDs of terms 1 year to less than 4 years

  • 9 months' worth of interest* for CDs of terms 4 years to less than 5 years

  • 18 months' worth of interest* for CDs of terms 5 years to less than 7 years

  • 2 years' worth of interest* for CDs of terms 7 years or longer

  • *The penalty can include more than actual interest earned if the withdrawal occurs early enough.

    Grace period

    9 days after the CD's maturity date. Discover CDs automatically renew, so this 9-day window is the only time to withdraw without paying a penalty.

    No-penalty CDs available?

    Discover IRA CD available?

    Yes; compare the best IRA CD rates.

    » Learn more about accounts on our Discover Bank review

    What to consider when opening CDs

    • Interest rates are fixed. If you open a Discover Bank CD today, its annual percentage yield will remain the same until the CD term ends. This benefits you if you lock in a CD if rates are dropping, but on the flip side, you’ll earn less on a CD if rates rise. It’s hard to know when CD rates will go up or down. See our article on historical CD rates.

    • You lose interest if you withdraw early. CDs are built to keep your money out of sight, out of mind. If you dip into a Discover CD before it expires, there’s an early withdrawal penalty, which means losing some or all the interest you earned.

    » On the fence about a CD? If you might need access to your money, look into the best high-yield savings accounts instead.

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    Marcus by Goldman Sachs High-Yield CD

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    APY

    1.30%

    Term

    1 year

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    Capital One 360 CD

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    Term

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    Marcus by Goldman Sachs High-Yield CD

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    APY

    2.00%

    Term

    2 years

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    Capital One 360 CD

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    APY

    1.70%

    Term

    2 years

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    Synchrony Bank 16-Month CD

    Synchrony Bank logo
    APY

    1.85%

    Term

    16 months

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    Capital One 360 CD

    Capital One logo
    APY

    2.25%

    Term

    5 years

    About Discover Bank

    Discover Bank is an online-only bank with a solid lineup: cashback checking, high-yield savings and high-yield CDs. Fees are few and perks are high, and Discover’s online banking experience is top-notch. Although Discover is more well-known for its credit cards, its bank accounts are also worth considering.

    Solid range and rates

    Discover Bank CD
    NerdWallet rating 

    at Discover Bank, Member FDIC

    Discover Bank CD rates are solid as far as current rates go, but there are other banks that have lower minimum deposit requirements. To learn about additional options, check out our list of best CD rates this month.

    See CD rates by bank

    If you want to see CD rates at specific banks, here’s a quick list of both traditional and online banks’ CDs (and one brokerage’s offering):

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