Discover Bank CD Rates: How They Compare

Spencer TierneyJune 22, 2020
Discover Bank CD Rates: How They Compare

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Discover Bank CD rates

  • 1-year: 0.90% APY

  • 3-year: 1.05% APY

  • 5-year: 1.15% APY

  • 10-year: 1.15% APY

Discover Bank’s CD rates are competitive with other online banks and have historically 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

0.25% APY

6-month CD

0.45% APY

9-month CD

0.55% APY

1-year CD

0.90% APY

18-month CD

0.90% APY

2-year CD

1.01% APY

30-month CD

1.05% APY

3-year CD

1.05% APY

4-year CD

1.10% APY

5-year CD

1.15% APY

7-year CD

1.15% APY

10-year CD

1.15% APY

» Want more options? See the best CD rates

How Discover Bank rates compare

Discover’s CDs have competitive rates. Let’s compare one-year CD rates with some online banks:

Barclays CD

Barclays CD

Discover Bank CD

Discover Bank CD

Read reviewRead review
APY

1.10%

With $500 minimum balance

APY

0.85%

With $0 minimum balance

APY

0.90%

With $2500 minimum balance

Minimum Balance

$500

Member FDIC

Minimum Balance

$0

Member FDIC

Minimum Balance

$2,500

Member FDIC

» Learn more about accounts on our Discover Bank review

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 getting hit by a penalty.

    No-penalty CDs available?

    Discover IRA CD available?

    Yes; compare the best IRA CD rates.

    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.

    Solid range and rates

    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.

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