Discover® CDs rates review
- 1-year APY
- 4.00%
- 36-month APY
- 3.40%
- 5-year APY
- 3.40%
Summary
Get competitive interest on most terms, but you’ll need a high deposit.
Discover CD terms range from three months to 10 years. The best rates are for terms above one year, and Discover doesn't require a minimum opening deposit. Like other CDs, Discover's CDs are best if you’re looking to maximize interest earnings on a high dollar amount.
Overview of Discover® Bank certificate rates
Discover offers competitive rates on all of its CDs, but you’ll earn the most if you go for a term of one year or longer.
| CD term | APY | Minimum deposit |
|---|---|---|
| 3 months | 2.00% | $0 |
| 6 months | 3.70% | $0 |
| 9 months | 3.80% | $0 |
| 1 year | 4.00% | $0 |
| 18 months | 3.80% | $0 |
| 2 years | 3.50% | $0 |
| 30 months | 3.40% | $0 |
| 3 years | 3.40% | $0 |
| 4 years | 3.40% | $0 |
| 5 years | 3.40% | $0 |
| 7 years | 3.40% | $0 |
| 10 years | 3.40% | $0 |
More about Discover Bank CDs
Scan the key details about a Discover CD’s opening deposit, early withdrawal penalties and more before opening up an account.
| Type of detail | Details | Does it matter? |
|---|---|---|
| Minimum opening deposit | $0 | Much lower than average, as most banks require at least $1,000 to open a CD. |
| Term range | 3 months to 10 years | Yes, Discover offers wide-ranging terms, while most banks only offer terms up to five years. |
| Compounding | Daily | No, most CDs compound on a daily basis. |
| Early withdrawal penalties |
| No, this is similar to competitors, like Capital One, which charge 6 months’ interest on terms of 12+ months. |
| Grace period | 9 days | Yes, this is slightly lower than the typical 10 days grace period most banks have. |
| Cashout details | Call customer service at 1-800-347-7000 24/7 to request a withdrawal before your CD matures. You can withdraw interest from your account at any time, though doing so will affect your APY. | No, you have to contact most banks to withdraw from your CD. |
| Rollover details | Your CD will renew automatically if you don’t make any actions. | No, most CDs roll over into another CD automatically. |
How Discover Bank’s interest rates compare
Discover Bank consistently offers some of the most competitive CD rates that we’ve seen on the market. For comparison, the average rate on a 12-month CD is 1.84%, according to the FDIC.
See how compound interest works in your favor when you choose a long-term Discover CD with a high APY.
| Term | Opening deposit | APY | Earnings after one year | Total interest earned |
|---|---|---|---|---|
| 1 year | $1,000 | 4.00% | $40.74 | $40.74 |
| 3 years | $1,000 | 3.40% | $34.53 | $107.22 |
| 5 years | $1,000 | 3.40% | $34.53 | $185.02 |
Discover also offers a wider range of terms than most banks, going up to 10 years for maximum flexibility. We also like that you can withdraw interest at any time without getting penalized, a plus if you need emergency cash.
If you’re convinced Discover CDs are for you, apply today.
Compare Discover Bank to competitors’ interest rates
Select Compare to see up to four competitors side by side, comparing the term length and minimum deposit that suits you.
What is the Finder Score?
The Finder Score analyzes hundreds of CDs from more than 100 institutions. It takes into account the product's interest rate for available terms and opening deposit requirements - this gives you a simple score out of 10.
Different banks and credit unions offer CDs for various lengths of time, ranging from as short as seven days to as long as 20 years. For our ratings, we consider the term lengths that the FDIC uses in its monthly updates on national rates.
If a bank or credit union doesn’t offer a CD for a specific term used by the FDIC, we don’t penalize it: Instead, we simply don’t rate it. Each of the standard term lengths has its own APY rating based on the FDIC’s average rates.
Your reviews
Sarah Finder
Writer
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nikkiangco
March 11, 2020
Hi Shirley,
Thanks for your comment and I hope you are well.
Discover CDs are insured by the FDIC up to the $250,000 legal limit. Established by the Banking Act of 1933, the FDIC protects your money in the event of bank failure.
I hope this helps and feel free to reach out to us again for further assistance.
Best,
Nikki
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shirley
March 11, 2020
are your cd’s goverment insured