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Discover Bank CD Rates: How They Compare

Sept. 16, 2019
Banking, CDs
Discover Bank CD Rates: How They Compare
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4.5 NerdWallet rating

Discover Bank’s CD rates are competitive with other online banks and are 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 CD0.35% APY
6-month CD0.65% APY
9-month CD0.70% APY
1-year CD1.25% APY
18-month CD1.30% APY
2-year CD1.30% APY
30-month CD1.30% APY
3-year CD1.30% APY
4-year CD1.30% APY
5-year CD1.40% APY
7-year CD1.40% APY
10-year CD1.40% APY

» Want more options? See the best CD rates

How Discover Bank rates compare

Discover’s CDs have strong rates. Let’s compare with two other online banks:

4.5 NerdWallet rating


4.0 NerdWallet rating


4.0 NerdWallet rating



1-year APY


1.25%



3-year APY


1.30%


5-year APY



1.40%



Minimum deposit



$2,500






1-year APY


1.35%



3-year APY


1.35%


5-year APY



1.40%



Minimum deposit



$500






1-year APY


1.20%



3-year APY


1.20%


5-year APY



1.20%



Minimum deposit



No minimum




Compare more banks and CD rates here

» Learn more about accounts on our Discover Bank review

More details about Discover Bank CDs

Minimum deposit$2,500
Monthly feeNone, which is common for CDs.
Range of CD terms3 months to 10 years.
Compounding periodDaily. (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 period9 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?No; see best no-penalty CD options.
    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, since it depends on Fed rate hikes and other factors.
    • 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 top of the line, 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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