Having to compare CD rates is much of a good idea. You should know that certificates of deposit (CDs) may help you grow your money with a healthy annual percentage yield (APY) that you can count on. So in this article, I will be helping you compare Discover Bank CD rates with others. And helping you make the right choice this 2021.
in this article, I carefully highlighted the following points;
- Discover Bank Review
- Discover Bank Fees
- Benefits of Discover Bank
- Discover Bank CD Rates
- How Discover Bank CD Rates Compares to Others
- How to Open Discover Bank CD
- What to Consider When Opening CDs
A CD is a type of savings account with a fixed interest rate and term. But CD features differ from bank to bank. It makes sense to shop for CDs that meet your needs, such as; those with the highest rates, flexible withdrawal options, or low minimum deposit requirements.
By starting with the right bank or credit union, it may be easy to find the best CD rates that align with your priorities.
Discover Bank Review
Discover Bank is an FDIC-insured online bank with numerous options, including a debit card that offers cashback rewards.
There is one branch located in Greenwood, Delaware, but most customers manage their accounts online or with Discover’s mobile app.
It checking lets you earn cash back on qualifying debit card purchases each month and offers free access to a broad ATM network.
The online bank also has a high-yield savings account that offers a $150 and $200 bonus for folks who meet certain requirements. But customers who prefer to bank in person won’t like that Discover® has only one physical branch.
- No fees.
- $150 and $200 bonus for savings.
- 1% cash-back rewards checking account.
- Competitive savings rates.
- Large ATM network.
- Only one physical branch location.
Discover Bank Fees
|Bank rate||National Average|
|Non-Sufficient Fund (Overdraft)||$30||$30|
|Stop Payment item||$15||$27|
|Domestic Wire Transfer (Outbound)||$30||$22|
|Domestic Wire Transfer (Inbound)||$0||$10|
Benefits of Discover Bank
With a robust lineup of products and services, Discover Bank can handle most of your financial needs. Below are some of their benefits;
- Free checking accounts with online bill payment and check writing.
- Competitive interest rates on savings accounts.
- No minimum balances or monthly fees on checking or savings.
- Cashback rewards on debit card purchases.
- CDs, savings, and money market account under one login.
- 24/7 customer service (including chat support for enrolled customers).
- Account opening bonuses for new customers.
Discover Bank CD Rates
Discover offers competitive rates and a selection of standard and IRA CD terms ranging 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.
|3-month CD||0.35% APY|
|6-month CD||0.65% APY|
|9-month CD||0.70% APY|
|1-year CD||2.00% APY|
|18-month CD||2.00% APY|
|2-year CD||2.05% APY|
|30-month CD||2.05% APY|
|3-year CD||2.05% APY|
|4-year CD||2.05% APY|
|5-year CD||2.10% APY|
|7-year CD||2.15% APY|
|10-year CD||2.20% APY|
How Discover Bank CD Rates Compares to Others
Discover’s CDs have strong rates. Let’s compare with two other online banks:
3-year APY: 2.05%
5-year APY: 2.10%
Minimum deposit: $2,500
3-year APY: 2.10%
5-year APY: 2.25%
Minimum deposit: $500
3-year APY: 2.00%
5-year APY: 2.10%
Minimum deposit: No minimum
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How to Open Discover Bank CD
Opening a CD is simple. You can do it online, step by step, or on the phone.
- Visit DiscoverBank.com.
- Enter your info: They need your address, phone, email, and social security number.
- Fund your account: Open with as little as $2,500. You can send them a check or transfer funds from an existing bank account.
- Verify your information: Verify information and electronically sign your application.
- Confirmation email: They’ll send a confirmation email, then watch the mail for your Welcome Kit.
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.
1. Does the discover bank account have good customer reviews?
Many online sources praise this account for its selection of term lengths and competitive rates.
2. Can I add funds to my CD before maturity?
No. You’ll only be able to add funds when you open a CD. However, once it matures, you’ll have a nine-day grace period to add more funds if you desire.
3. How long do I have to fund my account?
You’ll have 10 days to fund your account from the date Discover receives your application.
4. Can I withdraw my money before maturity?
Yes, but you’ll be charged an early withdrawal penalty.
5. What’s the difference between a standard CD and IRA CD?
Standard CDs are subject to normal tax rules on the interest earned and can be used for any purpose after they’ve matured. While IRA CDs are designed to help you save for retirement and are set up within special retirement accounts that have different tax implications and withdrawal rules depending on which account you choose.
6. What are the ways in funding my CD account?
You can fund your CD Account in the following ways:
Online transfer from an eligible Discover Bank Account or an external bank account
Phone Transfers (available for initial funding only)
In conclusion, I recommend opening Discover Bank CDs with the term of 10 years for the maximum bonus. Put money you don’t want to touch for a while, like your child’s college tuition or your retirement fund.
This is great for people with higher networth or low income in retirement.
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