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Updated September 5, 2023

Discover CD Rates Review

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Editorial Note: This content is not provided by the card issuer. Opinions expressed here are author's alone, not those of the issuer, and have not been reviewed, approved or otherwise endorsed by the issuer.
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Maximize returns with Discover Bank's lucrative CD rates - no hidden fees. Read this detailed review.

While most known for their credit cards, Discover also has great banking products.

Their CD rates are far higher than what you'd get at most brick-and-mortar banks.

Take a look at Discover Bank's CD rates, account features, and fees.

Is Discover CD Safe?
Discover is FDIC insured (FDIC #5649), just like a traditional bank. In the unlikely event that the bank closes, your account is insured up to $250,000. Discover is owned by Discover Financial, the issuer of the popular Discover It credit card.

What CDs are Available at Discover?

Discover offers fixed-rate CDs from 3 months to 10 years. There are twelve different terms to choose from, so you can pick the one that best matches your goals.

Your rate is locked in for the entire term to earn guaranteed returns. The minimum deposit to open is $2,500.


  • Many term options
  • Longer terms earn higher APYs
  • No monthly fee
  • Daily compounding interest
  • 24/7 customer service


  • $2,500 minimum deposit
  • Automatic renewal upon maturity (more below)


Discover offers higher interest rates with longer CD terms.

If you can commit your money for at least 1 year, you'd earn more with a CD than you would with a regular Discover savings account (which offers 4.30% APY).

What is APY?
APY, or Annual Percentage Yield, is the amount of money your deposit accounts will earn in interest in one year. Unlike interest rate, APY takes in account how interest compounds over time.

How Discover CD Rates Compare

Discover's CD rates are competitive with other online banks. Some, such as CIT Bank and Quontic Bank, may offer higher APY rates for different terms. Compare different banks for the term you want.

When compared to other banks with brick-and-mortar locations, Discover's CD rates are generally superior.

Fees and Penalties

Discover CDs have no account opening fee, monthly maintenance fees, or money transfer fee. There is only a $30 fee for outgoing wire transfers to an external bank account.

Besides that, Discover charges a fee if you withdraw early. The longer the CD term, the higher the early withdrawal fee.

Discover's early withdrawal penalties are as follows:

Less than 1 Year3 months simple interest
1 - 3 Years6 months simple interest
4 Year9 months simple interest
5 Year18 months simple interest
7 - 10 Years24 months simple interest

The penalty is automatically deducted from the amount you withdraw before the CD ends.

Banks with no minimum deposit CDs
Deposit requirements vary by bank. Discover Bank's required $2,500 miminum is on the higher side. Here's a list of banks that offer CD accounts with no minimum deposit:

  • Capital One
  • Ally
  • American Express


Before Maturity
Withdrawing any of the money you deposited before the term ends will result in a penalty. But you can withdraw interest accumulated during the CD's term.

However, that interest will no longer compound, which lowers the total value by the end of the CD.

At Maturity
Discover sends alerts to all CD owners 30 days before your CD matures. Once the CD matures, you can:

  • Withdraw all of the money from the account
  • Reinvest into another CD of the same or different term

Discover gives CD owners a 9-day grace period after maturity to decide among the options. If you don't act by the end of the grace period, the bank will automatically renew your funds into another CD of the same term.

How Do CD Accounts Work?

A Certificate of Deposit (CD) is a type of deposit account offered by most major banks. Unlike a traditional savings, CDs "lock up" your funds for a set period of time (typically ranging from 3 months all the way to 10 years).

Banks typically charge a penalty if you withdraw money early. You also can't add more to the account after your initial deposit.

You get a fixed interest rate for the entire term of your CD. Usually, the longer the duration, the higher the APY (though it depends on the bank). Once the CD reaches maturity, you can take out both the initial investment and all accumulated interest.


CDs are great for people who can afford to put aside money for a set amount of time. They're good for short-term goals. You can earn some guaranteed returns with no risk.

They're usually used for a specific goal like:

  • Major purchases (a car or engagement ring)
  • An upcoming vacation
  • Down payment on a home

You should never use a CD as your emergency fund or "rainy day fund," since you'll incur a penalty by withdrawing early.

Discover Bank Customer Service
Questions about opening a Discover CD or other online banking needs? You can speak with a customer service representative 24 hours a day, 7 days a week by calling: 1-800-347-7000.


To open a Discover CD account, follow these steps:

  1. Visit Discover.

  2. Choose the "New to Discover" option if you've never opened an account with the bank before. If you already have an account, log into it. To open an account, you'll need your personal contact information including:

  3. Choose the CD you want to open and enter your deposit amount.

  4. Once your application is approved, you have 45 days to fund the CD. Funding options include:

    • Wire transfer from another bank
    • Phone transfer (only for initially funding the account)
    • Mailing a check to Discover (payable to you with your CD account number on the memo line)

    Discover Bank Mailing Address
    Discover Bank
    PO Box 30417
    Salt Lake City, UT 84130

After that, your new CD is set up and can begin actively earning interest.

Other Discover Savings Accounts

Discover also offers a variety of other deposit accounts, including:

Online Savings
This account has no monthly maintenance fee or minimum deposit requirement. Here's what else it offers:

  • 4.30% APY
  • Daily compounding interest
  • Free online and mobile banking
  • FDIC insured

Federal law limits account holders to 6 withdrawals per month.

Money Market
This account lets you write checks, pay bills, and make debit card purchases. Other features include:

  • 4.20% for balances under $100,000; 4.25% for balances $100,000 and over
  • Mobile check deposit through the Discover app
  • Free debit card and checks
  • No fee ATM withdrawals at over 60,000 Allpoint® or MoneyPass® ATMs

In a J.D. Power banking study, it was found that customers were actually more satisfied with online banks than traditional physical banks. Online banks especially rated higher in areas of products & fees, communication, and problem resolution.

Discover Bank was one of the top three banks in terms of customer satisfaction, along with Charles Schwab and Ally Bank.

Bottom Line: Is Discover CD Rates Good?

Discover Bank's CDs offer competitive rates for those looking to boost medium to long-term savings. As always, you should shop around first to find the best product and rates for your financial goals.

Discover Bank
Member FDIC

Certificate of Deposit

  • 5.00% APY for 12-month term
  • 5.00% APY for 18-month term
  • 4.30% APY for 36-month term
  • 4.00% APY for 5-year term
Discover Bank
Member FDIC

Discover Online Savings - $200 Cash Bonus

Expires 12/14/2023

To get your $150 or $200 Bonus: What to do: Apply for your first Discover Online Savings Account, online, in the Discover App or by phone. Enter Offer Code CY923 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted to account within 30 days of account open date. Maximum bonus eligibility is $200.

What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded, or affinity accounts provided by Discover. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 12/14/2023, 11:59 PM ET. Offer may be modified or withdrawn without notice. See advertiser website for full details.

Member FDIC

Chase Total Checking® - $200 Bonus

Expires 10/18/2023
  • New Chase checking customers enjoy a $200 bonus when you open a Chase Total Checking® account and set up direct deposit
  • Access to more than 15,000 Chase ATMs and more than 4,700 branches
  • Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
  • JPMorgan Chase Bank, N.A. Member FDIC
  • Open your account online now
  • Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit
  • Chase Overdraft Assist℠ - no overdraft fees if you're overdrawn by $50 or less at the end of the business day or if you're overdrawn by more than $50 and bring your account balance to overdrawn by $50 or less at the end of the next business day*
Bank of America
Member FDIC

Bank of America Business Advantage Checking Account - $200 Bonus Offer

Expires 12/31/2023
Earn a cash bonus in three steps:
  1. Open a new eligible business checking account by December 31, 2023
  2. Make Qualifying Deposits* of $5,000 or more in new money within 30 days of opening the new eligible business checking account
  3. Maintain an average balance of $5,000 for the next 60 days (day 31-90) during the maintenance period**
*Qualifying Deposits are deposits of new money, which is money not currently or previously held in any account at Bank of America or Merrill
**The maintenance period begins thirty-one (31) days after account opening and ends ninety (90) calendar days after account opening.
Member FDIC

Citi Priority - Earn up to $2,000 Cash Bonus

Expires 1/9/2024
  • Earn up to $2,000 when you open a new eligible Citi checking account and enroll in the offer the same day
  • New to Relationship customers can choose their Relationship Tier.
  • Within 20 days of opening, deposit the minimum amount of new-to-Citibank funds.
  • Maintain a minimum balance for 60 consecutive calendar days from the 21st day.
  • If your balance falls to a lower Balance Level at any point during the maintenance period, the bonus changes.
  • Bonus will be paid within 30 days after you successfully complete all required activities.
  • Restrictions apply.

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Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. This site may be compensated through the Advertiser's affiliate programs.

Disclaimer: The information for the Discover it® Cash Back has been collected independently by CreditDonkey. The card details on this page have not been reviewed or provided by the card issuer.

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About Discover Bank

Discover Bank offers some of the highest interest rates for its savings account.

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Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

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