Discover Cd Rates

Online bank accounts from Discover include no hidden fees, 24/7 U.S.- Based customer service and 60,000 no-fee ATMs in the U.S. Open an online bank account today. Feb 26, 2021 Find the latest Discover Bank CD Rates below. You’ll find the best Discover Bank CD rates below from 3-month to 120-month term. Keep in mind that you’d need at least $2,500 to open your account and lock in your rate.You can open a CD for a variety of ownership types such as Individual, Trust, Custodial, Guardian and Estates. Discover Bank CD, IRA and Money Market Account and rates consistently exceed the national average. Enjoy free Online Banking. Accounts are FDIC-insured up to applicable limits.

Millennial Money has partnered with CardRatings and creditcards.com for our coverage of credit card products. Millennial Money, CardRatings and creditcards.com may receive a commission from card issuers. This site does not include all financial companies or financial offers.

With the turmoil in the financial markets from the coronavirus pandemic, plenty of investors are looking for a safe haven for at least part of their portfolios. It’s an excellent idea too.

CDs are the perfect way to add stability to your overall financial plan and protect cash for future stock purchases.

Discover Bank – so well-known for its credit cards – also offers some of the most aggressively priced CD rates in the industry. Once you check out Discover Bank CD rates, you’ll see that it’s one of very the best investments to park your cash for safekeeping.

And if you are already a Discover credit cardholder, you’ll find the arrangement even more convenient.

Discover Bank CD Rates (Updated Daily)

Discover cd rates 2019

Discover CD rates and IRA CD rates are as follows:

Today’s Rates:
Discover Bank CDs

ProductTermAPYMin Deposit
{{ product }}{{ term }}{{ apy }}{{ min }}

Discover Bank CDs

Discover Bank offers certificates of deposit with terms ranging from three months to as long as 10 years. That’s important because many banks don’t exceed five years on their CDs. As you’ll see below, the interest rate return becomes progressively higher the longer the CD term runs. The initial minimum required investment for each certificate is $2,500.

There are no fees involved with Discover Bank CDs. That means you’ll retain every dollar of interest you earn on your certificate.

CDs are an excellent way to earmark funds for specific spending purposes. For example, if you plan to buy a house in five years, you can save money in CDs.

Your initial deposits can be set up in a five-year CD. In the second year, you can fund a four-year CD, and so on. It’s a way to keep your money completely safe – for the intended purpose only – and earning money along the way. Few other investments are so effective at saving for medium-term goals.

Discover Bank IRA CDs

Discover Cd Rates 2019

Discover Bank gives you the option to choose CDs for either a traditional or Roth IRA account. If you choose a traditional IRA, your contributions to the plan and the CDs will generally be tax-deductible. The interest you’ll earn on your CDs within the traditional IRA will accumulate on a tax-deferred basis.

If you choose to set up a Roth IRA CD account, your contributions will not be tax-deductible. However, the interest on the CD will accumulate on a tax-deferred basis. But if you retain the account until you’re at least 59 ½ years old and have participated in the Roth IRA for a minimum of five years, you could make withdrawals from the account that will be completely tax-free.

Whichever type of Discover Bank IRA CD you choose, Roth or traditional, you will be able to contribute up to $6,000 per year, or $7,000 if you are 50 or older.

Discover Bank CD Features

Minimum Initial Investment$2,500
Interest Compounding FrequencyDaily
Fees$0; $30 outgoing wire fee for funds transferred out of the certificate.
Discover Mobile AppMonitor and manage your Discover Bank CDs (and other Discover products) from the Discover mobile app; available for both iOS and Android devices.
CD Maturity Procedures30 day notice prior to CD maturing. After the maturity date, you’ll have a 9-day grace period to make a change to your CD without incurring a penalty. CD will automatically renew if you do not liquidate within the grace period.
Early Withdrawal PenaltiesYes, see below.

Early Withdrawal Penalties

CD TermPrepayment Penalty
Less than one year3 months simple interest
One year to less than four years6 months simple interest
Four years to less than five years9 months simple interest
Five years to less than seven years18 months simple interest
Seven years to 10 years24 months simple interest

How to Open a Discover Bank CD

You can open a Discover Bank CD directly from the Discover Bank website or mobile app. If you’re already a Discover customer, you can simply log into your existing account. But if you’re new to Discover and simply want to open a CD, you’ll need to open an account.

Start by entering personal information, including your full name, Social Security number, date of birth, and your mother’s maiden name. You’ll also need to provide information to verify your identity, as requested in the application, and sign any required disclosures.

Once you enter the basic information, you’ll then choose the account type you want to open. As a CD, you’ll choose the CD term as well as the amount of your initial investment.

Funding your Discover CD

You can fund your Discover Bank CD by transferring funds from another bank, either by phone or by online transfer. But you can also write a check to yourself, and send it to Discover Bank.

Future funding of your Discover Bank CDs can use any of the above methods, but can also be accomplished by a mobile check deposited into your account.

As is the case with nearly all CDs, once you fund a certificate, you will not be able to add additional funds to that CD. Any new funds invested in Discover Bank CDs will need to be moved into a new certificate.

About Discover Bank

Based in Southfield, Michigan, Discover Bank got its start back in 1985, where it was originally launched as part of the Sears organization. The bank operates as an all-online financial services provider, so if you’re looking for local branches you won’t find any. That shouldn’t be a cause for concern, since virtually all banks today are online, and most new banks are similarly operating entirely online.

Best known for its credit cards, Discover offers some of the best rewards credit cards in the industry, under the “Discover it” name.

But Discover has expanded well beyond its award-winning credit card products, and now offers full-service banking. In fact, it’s grown to providing $403 billion in financial services of all kinds to its customer base.

That includes a comprehensive lineup of Discover Bank CDs. Discover CD rates are among the highest in the industry, and well worth investigating if you want to add high interest, completely safe savings instruments to your portfolio.

Other Discover Bank Products

Earlier I mentioned that Discover offers some of the very best cashback credit cards in the industry. That may be what they’re best known for, but in addition to CDs, they also provide the following banking products:

  • Discover Money Market Account
  • Discover Personal Loans

As you can see, even though Discover Bank is an online bank, they provide full-service banking to go along with your Discover Bank CD.

Final Thoughts on Discover Bank CD Rates

Rates

CDs serve several critical purposes in every person’s financial situation. Most important, they can provide a corner of your investment portfolio that’s completely safe. But on a more practical level, they’re also the perfect savings vehicles to accumulate funds for an upcoming spending plan.

You may already have CDs at your local bank or credit union. But if you do, it’s unlikely they’re paying rates remotely close to what Discover Bank is paying on their CDs. You can open a CD (or several CDs) with Discover Bank with as little as $2,500.

And since it’s an online bank operating nationally, geography is not a limitation. You can invest in a Discover Bank CD no matter where you live.

Additional Disclosures: Millennial Money has partnered with CardRatings and creditcards.com for our coverage of credit card products. Millennial Money, CardRatings and creditcards.com may receive a commission from card issuers. This site does not include all financial companies or financial offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.

YOU'RE IN

THE CLUB

Preferred rates on 12, 24, and 60 month terms.

  • Two Trusted Partners

  • A Better Way to Save

  • FDIC Insurance

Grow your money

  • Earn CD APYs that outperform the National Averages2
  • Preferred member interest rates and APYs on 12, 24, and 60 month CDs and IRA CD terms.

Enjoy financial control

  • Choose terms ranging from 3 months to 10 years
  • Option to automatically withdraw interest
  • Use electronic deposit to add funds to a maturing CD or fund a new one
  • Easy online account management

Bank with confidence

  • 100% U.S.-based customer service representatives available 24/7
  • FDIC-insured up to the maximum allowed by law.
  • Discover is one of the most recognized financial service providers in the U.S.

Interest rates/APYs are applied based on the date the account is funded.

Compare CDs

Earn CD APYs that outperform the National Averages2.

TermInterest RateAPY1APY2APY3APY3

For information regarding fees and service charges, see Section 36 in the Deposit Account Agreement.

CD Accounts FAQ

About Your Account

What is the minimum deposit amount to open my Certificate of Deposit (CD)?

As a benefit of your AAA membership, there is no minimum opening deposit amount.

How can I fund 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)
  • Mail a check that includes your CD Account number, made payable to you to:
    Discover Bank
    PO Box 30417
    Salt Lake City, UT 84130

*Please note that Travelers Checks will not be accepted for deposit.

What is the Discover Bank routing number?

The Discover Bank routing number is 031100649. It is used for electronic transfers made by ACH (including Direct Deposit) and for domestic wire transfers (from another financial institution within the U.S.).

How do I send a wire transfer?

Follow the steps below to send an outgoing wire transfer. Please make sure your request is submitted at least 2-3 days in advance of when you would like us to process your wire to ensure pre-processing can be completed; allow additional time if mailing your request.

International and Domestic Wire Transfer requests received and verified before 3:00 PM ET on a business day will be processed the same day. Requests received and verified after 3:00 PM ET on a business day or any time on a weekend or holiday will be processed by the next business day.

As a reminder, all wire transfer requests require verbal authorization before they can be processed. Once you submit your request, you must call us to authorize it. Failure to do so will result in longer processing times and a possible cancelled request.

You can submit a wire transfer request through the Account Center, or by downloading, completing, and submitting the paper form.

Submit Online

  • International Wire Transfer Request may only be submitted using the paper form

Download Form

  • Domestic Wire Transfer Request Form (wire transfers within the United States)
  • International Wire Transfer Request Form (wire transfers outside the United States)

Once you have completed your Wire Transfer Request Form, you can submit it through any of the following methods:

  • Upload the form through Secure Document Upload
  • Fax the form to 1-224-813-5213, Attention 'Wire Transfer Request'
  • Mail the form to Discover Bank, PO Box 30417, Salt Lake City, UT 84130
How do I receive a wire transfer?

For domestic wire transfers (from another bank in U.S.), please wire funds to:

  • Beneficiary Bank: Discover Bank
  • ABA/Routing Number: 031100649
  • Beneficiary Bank Address (if required): 502 Market Street, Greenwood DE 19950
  • Beneficiary Name: Your name (as it appears on your Discover Bank account)
  • Beneficiary Account Number: Your Discover Bank account number

For international wire transfers (from another bank outside the U.S.), please wire funds to:

  • Beneficiary Bank: Bank of New York Mellon
  • ABA/Routing Number: 043000261
  • SWIFT Code: IRVTUS3N
  • Beneficiary Bank Address (if required): #3 Mellon Bank Center, Pittsburgh, PA 15258
  • Beneficiary Name: Discover Bank
  • Beneficiary Account Number: 9914394
  • For Further Credit to: Your name (as it appears on your Discover Bank account) and your Discover Bank account number

Wire transfers received before 4:00 PM ET will be posted to your account on the business day we receive them.

Wire transfers received after 4:00 PM ET will post to your account the following business day, with an effective date of the business day the funds were received.

Some wire transfers may require additional processing time. In those cases, your wire transfer will post to your account upon completion of processing, with an effective date of the business day the funds were received. If it has been more than 2 business days since your inbound wire was sent and it has not yet posted, feel free to call us at 1-800-347-2683.

What fees and service charges are associated with my CD Account?

We do not charge any account-related fees, however, there is a $30 Wire Transfer Service Charge for outgoing wires as well as early withdrawal penalties, which are outlined below.

For CDs opened or renewed through 3/14/13

  • <1 year: 3 months simple interest on principal amount withdrawn
  • 1 year-5 years: 6 months simple interest on principal amount withdrawn
  • 6+ years: 9 months simple interest on principal amount withdrawn

For CDs opened or renewed from 3/15/13 through 2/16/14:

  • <1 year: 3 months simple interest on principal amount withdrawn
  • 1 year-3 years: 6 months simple interest on principal amount withdrawn
  • 4 years-6 years: 9 months simple interest on principal amount withdrawn
  • 7+ years: 15 months simple interest on principal amount withdrawn

For CDs opened or renewed on or after 2/17/14:

  • <1 year: 3 months simple interest on principal amount withdrawn
  • 1 year-3 years: 6 months simple interest on principal amount withdrawn
  • 4 years: 9 months simple interest on principal amount withdrawn
  • 5 years-6 years: 18 months simple interest on principal amount withdrawn
  • 7+ years: 24 months simple interest on principal amount withdrawn

*Please note that in some cases, the Early Withdrawal Penalty may reduce the principal in the CD.

Is the CD Account FDIC-insured?

Yes, funds on deposit at Discover Bank are FDIC-insured up to the maximum allowed by law. For more information, visit the FDIC website.

Can I find my CD maturity date online?

Yes. Click here to log into your account. Once logged in, select your CD Account on the 'Account Summary' page. Your maturity date will be displayed in the CD account details.

Not registered for the Account Center? Register Now

What happens when my CD matures?

We will send you a notification 30 days before your CD matures. When your CD matures, you may make a deposit or withdrawal and change the term of your CD during the grace period. The grace period lasts for 9 days immediately following the maturity date. Your CD will automatically renew if you don't take any action during the grace period and interest withdrawn on the account will not affect the grace period. Any term change, deposit, or withdrawal of principal during the grace period will end the grace period.

In some cases, the Early Withdrawal Fee may reduce the principal in the CD.

Will I receive a certificate for my CD?

No. You will not receive a certificate for your CD, however, you will receive a welcome kit when you open your account, and you can access your account information anytime via the Account Center. Click here to log in.

Not registered for the Account Center? Register Now

What should I do if I forget my User ID or Password?

Click here to reset your User ID and Password. If you are still unable to log in, call us at 1-888-204-8990 and a Banking Specialist will help you reset your User ID and Password.

Opening an Account

What is the minimum deposit amount to open a CD Account?

As a benefit of your AAA membership, there is no minimum opening deposit amount.

Can I open a CD as a Trust or Custodial account?

Yes. We allow a range of account ownership types including Trust, Custodial, Guardian, and Estate. To open one of these account types, please call us at 1-888-204-8990 and a Banking Specialist will assist you.

How can I fund 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)
  • Mail a check that includes your CD Account number, made payable to you to:
    Discover Bank
    PO Box 30417
    Salt Lake City, UT 84130

*Please note that Travelers Checks will not be accepted for deposit.

Rates
How do I send a wire transfer?

Follow the steps below to send an outgoing wire transfer. Please make sure your request is submitted at least 2-3 days in advance of when you would like us to process your wire to ensure pre-processing can be completed; allow additional time if mailing your request.

International and Domestic Wire Transfer requests received and verified before 3:00 PM ET on a business day will be processed the same day. Requests received and verified after 3:00 PM ET on a business day or any time on a weekend or holiday will be processed by the next business day.

As a reminder, all wire transfer requests require verbal authorization before they can be processed. Once you submit your request, you must call us to authorize it. Failure to do so will result in longer processing times and a possible cancelled request.

You can submit a wire transfer request through the Account Center, or by downloading, completing, and submitting the paper form.

Submit Online

  • International Wire Transfer Request may only be submitted using the paper form

Download Form

  • Domestic Wire Transfer Request Form (wire transfers within the United States)
  • International Wire Transfer Request Form (wire transfers outside the United States)

Once you have completed your Wire Transfer Request Form, you can submit it through any of the following methods:

  • Upload the form through Secure Document Upload
  • Fax the form to 1-224-813-5213, Attention 'Wire Transfer Request'
  • Mail the form to Discover Bank, PO Box 30417, Salt Lake City, UT 84130
How do I receive a wire transfer?

For domestic wire transfers (from another bank in U.S.), please wire funds to:

  • Beneficiary Bank: Discover Bank
  • ABA/Routing Number: 031100649
  • Beneficiary Bank Address (if required): 502 Market Street, Greenwood DE 19950
  • Beneficiary Name: Your name (as it appears on your Discover Bank account)
  • Beneficiary Account Number: Your Discover Bank account number

For international wire transfers (from another bank outside the U.S.), please wire funds to:

  • Beneficiary Bank: Bank of New York Mellon
  • ABA/Routing Number: 043000261
  • SWIFT Code: IRVTUS3N
  • Beneficiary Bank Address (if required): #3 Mellon Bank Center, Pittsburgh, PA 15258
  • Beneficiary Name: Discover Bank
  • Beneficiary Account Number: 9914394
  • For Further Credit to: Your name (as it appears on your Discover Bank account) and your Discover Bank account number

Wire transfers received before 4:00 PM ET will be posted to your account on the business day we receive them.

Wire transfers received after 4:00 PM ET will post to your account the following business day, with an effective date of the business day the funds were received.

Some wire transfers may require additional processing time. In those cases, your wire transfer will post to your account upon completion of processing, with an effective date of the business day the funds were received. If it has been more than 2 business days since your inbound wire was sent and it has not yet posted, feel free to call us at 1-800-347-2683.

Deposits and Withdrawals

How can I fund 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)
  • Mail a check that includes your CD Account number, made payable to you to:
    Discover Bank
    PO Box 30417
    Salt Lake City, UT 84130

*Please note that Travelers Checks will not be accepted for deposit.

How do I send a wire transfer?

Follow the steps below to send an outgoing wire transfer. Please make sure your request is submitted at least 2-3 days in advance of when you would like us to process your wire to ensure pre-processing can be completed; allow additional time if mailing your request.

International and Domestic Wire Transfer requests received and verified before 3:00 PM ET on a business day will be processed the same day. Requests received and verified after 3:00 PM ET on a business day or any time on a weekend or holiday will be processed by the next business day.

As a reminder, all wire transfer requests require verbal authorization before they can be processed. Once you submit your request, you must call us to authorize it. Failure to do so will result in longer processing times and a possible cancelled request.

You can submit a wire transfer request through the Account Center, or by downloading, completing, and submitting the paper form.

Submit Online

  • International Wire Transfer Request may only be submitted using the paper form

Download Form

  • Domestic Wire Transfer Request Form (wire transfers within the United States)
  • International Wire Transfer Request Form (wire transfers outside the United States)

Once you have completed your Wire Transfer Request Form, you can submit it through any of the following methods:

  • Upload the form through Secure Document Upload
  • Fax the form to 1-224-813-5213, Attention 'Wire Transfer Request'
  • Mail the form to Discover Bank, PO Box 30417, Salt Lake City, UT 84130
How do I receive a wire transfer?

For domestic wire transfers (from another bank in U.S.), please wire funds to:

  • Beneficiary Bank: Discover Bank
  • ABA/Routing Number: 031100649
  • Beneficiary Bank Address (if required): 502 Market Street, Greenwood DE 19950
  • Beneficiary Name: Your name (as it appears on your Discover Bank account)
  • Beneficiary Account Number: Your Discover Bank account number

For international wire transfers (from another bank outside the U.S.), please wire funds to:

  • Beneficiary Bank: Bank of New York Mellon
  • ABA/Routing Number: 043000261
  • SWIFT Code: IRVTUS3N
  • Beneficiary Bank Address (if required): #3 Mellon Bank Center, Pittsburgh, PA 15258
  • Beneficiary Name: Discover Bank
  • Beneficiary Account Number: 9914394
  • For Further Credit to: Your name (as it appears on your Discover Bank account) and your Discover Bank account number

Wire transfers received before 4:00 PM ET will be posted to your account on the business day we receive them.

Wire transfers received after 4:00 PM ET will post to your account the following business day, with an effective date of the business day the funds were received.

Some wire transfers may require additional processing time. In those cases, your wire transfer will post to your account upon completion of processing, with an effective date of the business day the funds were received. If it has been more than 2 business days since your inbound wire was sent and it has not yet posted, feel free to call us at 1-800-347-2683.

Can I make additional deposits to my CD?

Additional deposits cannot be made during the term of any CD. However, once your CD matures, you can deposit additional funds once during the grace period.

How can I withdraw money from my CD Account?

Discover Cd Rates September 2020

You can withdraw money from your CD Account in the following ways:

  • After your CD maturity date, there is a grace period of 9 days when you can make changes to your CD, including a withdrawal without an Early Withdrawal Fee. Please note that any term change, deposit, or withdrawal of principal during the grace period will end the grace period.
  • Interest can be withdrawn from your CD at any time without a penalty.
  • Principal withdrawals can be made outside of the grace period, however, an Early Withdrawal Fee will apply
Is there an Early Withdrawal Penalty for removing funds from my Discover Bank CD?

The Early Withdrawal Penalties are as follows:

For CDs opened or renewed through 3/14/13

  • <1 year: 3 months simple interest on principal amount withdrawn
  • 1 year-5 years: 6 months simple interest on principal amount withdrawn
  • 6+ years: 9 months simple interest on principal amount withdrawn

For CDs opened or renewed from 3/15/13 through 2/16/14:

  • <1 year: 3 months simple interest on principal amount withdrawn.
  • 1 year-3 years: 6 months simple interest on principal amount withdrawn
  • 4 years-6 years: 9 months simple interest on principal amount withdrawn
  • 7+ years: 15 months simple interest on principal amount withdrawn

For CDs opened or renewed on or after 2/17/14:

Discover Cd Rates
  • <1 year: 3 months simple interest on principal amount withdrawn
  • 1 year-3 years: 6 months simple interest on principal amount withdrawn
  • 4 years: 9 months simple interest on principal amount withdrawn
  • 5 years-6 years: 18 months simple interest on principal amount withdrawn
  • 7+ years: 24 months simple interest on principal amount withdrawn

*Please note that in some cases, the Early Withdrawal Penalty may reduce the principal in the CD

Interest

How do I receive interest from my CD?

Discover Cds

You can allow the interest earned to remain in your account and take advantage of compounding or have the interest transferred to an eligible Discover Bank Account.

When will I start earning interest on new deposits?

If we receive your deposit before your Account is opened, interest will begin to accrue on the deposit on the Business Day your Account is opened. Once an Account is opened, interest begins to accrue on a deposit on the Business Day we receive your deposit.

How can I lock in a non-IRA CD interest rate for new CDs?

If we receive your funding deposit within 10 days of submitting your application(including your application date), you will receive the highest interest rate offered on one of these dates: the date you submit your application, the date your account is opened or the date we receive your funding deposit.

If we receive your funding deposit after 10 days, you will receive the current interest rate on the date we receive the funding. Please note that if we don't receive funding within 45 days, your CD Account will be closed.

Discover Cd Rates History

How is interest on my CD calculated?

Discover Cd Rates As Of Today

Interest is compounded daily and credited to your account monthly.

Comments are closed.