Discover Bank CD Rates for October 2024
Written by
Sean Dennison
Edited by
Elizabeth Constantineau
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Certificates of deposit are some of the easiest investment instruments to use. You simply deposit a certain amount of money with your bank and let it earn interest for months or years until the CD matures.
Online banks such as Discover® Bank, Member FDIC, can offer higher, more competitive CD rates than big banks such as Wells Fargo because they don’t have the overhead costs that come with managing brick-and-mortar branches. Keep reading to learn more about Discover Bank CD rates.
What Are Discover Bank’s CD Rates?
Discover Bank® CD terms last as short as three months and go as long as 10 years. Annual percentage yields vary depending on the CD term. Here’s a look at Discover Bank CD rates for October 2024.
| Term | APY |
|---|---|
| 3 months | |
| 6 months | |
| 9 months | |
| 1 year | |
| 18 months | |
| 2 years | |
| 30 months | |
| 3 years | |
| 4 years | |
| 5 years | |
| 7 years | |
| 10 years |
How Discover Bank CD Rates Compare
As an online bank, Discover boasts CD rates well above the national averages for CDs, according to the Federal Deposit Insurance Corp. Here’s a look at how the rates for its six-month and one-year CDs stack up to other CD accounts.
| Bank | 6-Month CD | 1-Year CD |
|---|---|---|
| Discover Bank | ||
| Bask Bank | ||
| CIT Bank | ||
| Synchrony Bank |
Discover Bank CD Overview
Each bank handles its CDs differently, but most of them share common elements, such as early withdrawal penalties. Here is what you can expect with a Discover Bank CD.
| Feature | Key Details |
|---|---|
| Term Lengths | 3 months to 10 years |
| APYs | to |
| Minimum Deposit | $2,500 |
| Early Withdrawal Penalties | Vary depending on CD term |
| Grace Period | 9-day period after the maturity date to adjust CD without incurring a penalty |
Are Discover Bank CDs FDIC Insured?
Discover Bank is indeed a member of the Federal Deposit Insurance Corp., which insures deposits in the event that the bank holding them fails. There is a limit to coverage: $250,000 per depositor, per account ownership category.
How To Open a Discover Bank CD
To open a CD account at Discover Bank, you’ll enter basic information on its website, including your name, Social Security number or taxpayer ID and date of birth. Then, you’ll enter your contact information. Most importantly, you’ll also select your CD’s term and enter the amount you wish to deposit.
Discover Bank’s minimum deposit to open a CD is $2,500. You can fund the account via online transfer from an eligible Discover Bank account, an external bank account like a checking or savings account or by a telephone transfer. Have the routing and account numbers from the funding source handy before you start.
Thanks!
What Happens When Your Discover Bank CD Matures?
Once your Discover Bank CD matures, you will have the option of either withdrawing the balance or letting it roll over into another term, thereby accumulating more interest but, once again, making the funds unavailable for withdrawal without penalty.
Discover Bank’s policy is to inform you 30 days in advance that your CD is set to mature. If you want to make any changes to your CD, you will have a nine-day grace period to do so from the maturity date.
Discover Bank automatically renews the CD at the same term if you choose not to adjust anything.
What Happens If You Withdraw From Your CD Early?
You will incur a penalty should you withdraw money from your CD before the term ends. Here are the penalty amounts.
| CD Term | Early Withdrawal Penalty |
|---|---|
| Less than 1 year | 3 months simple interest |
| 1-3 years | 6 months simple interest |
| 4 years | 9 months simple interest |
| 5 years | 18 months simple interest |
| 7-10 years | 24 months simple interest |
Early withdrawal penalties can reduce your principal balance, which can really affect your return if the CD has a short maturation period.
Is a Discover Bank CD Worth It?
Determining if a Discover Bank CD is worth it will depend on your personal financial goals and funds. The biggest drawback to any CD is your inability to withdraw from it without penalty until it matures. However, Discover Bank CD rates are on the higher side and are available in terms as short as three months — and as long as 10 years. That versatility coupled with relatively high APYs make Discover® CDs worth considering if you’re looking for a risk-free way to earn a guaranteed return on your investment.
Alternative Savings Options at Discover Bank
Discover Bank has more to offer savers beyond CDs. Below is a look at some of the other savings products you can tap into with Discover Bank:
- Online Savings Account. Discover Bank’s Online Savings account currently offers a APY. You won’t need to make a minimum deposit or face any monthly service fees. With a savings account, you can tap into the funds anytime, which makes it a great place to stash an emergency fund.
- Money Market Account. Discover Bank offers a Money Market Account. Savers can tap into a APY on balances under $100,000 and a APY for balances over $100,000. With this money market account, you can use a debit card or physical checks to easily spend the funds directly from the account.
Final Take To GO
Discover Bank offers competitive rates across its savings products, including its CDs. As a saver, you’ll have to decide which savings products best align with your goals. For example, if you want a place to stash an emergency fund, then a high-yield savings account might work. But if you are saving for a down payment down the road, then locking up your funds in a CD might suit your needs. As you explore your options, shop around to find the best rates available for the products you need.
FAQ
Here are the answers to some of the most frequently asked questions regarding CD rates.- Who has the highest-paying CD right now?
- CD rates will vary by term, but some of the highest-paying one-year CDs can be found at Bread Savings and Bask Bank.
- Can you get 7% on a CD?
- Banks in the U.S. currently do not offer CDs with APYs of 7.00% or higher.
More on Discover Bank
- Discover Bank Review
- Discover Bank’s Newest Promotions
- Discover Bank Routing Number
- How To Avoid Discover Monthly Maintenance Fees
- How To Do a Balance Transfer With Discover
Sarah Sharkey and Daria Uhlig contributed to the reporting for this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Sept. 25, 2024.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
