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Discover bank cd promotion

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Newest Discover Bank Promotions, Bonuses, Offers and Coupons: September 2021

Banking / Banks

Discover bank promotions

Discover Bank is an online-only bank offering a range of accounts and services. It is backed by the financial might of its parent company, Discover Financial Services, which is best known for its credit cards. Discover Bank expanded its offerings in 2013 to include checking and savings accounts.

Like most banks, Discover runs regular promotions to attract new customers. They want your business and are willing to pay for it. You can earn hundreds — sometimes just for opening an account. Use this bonus money to boost your savings or emergency fund — a smart move in the current economic downturn.

No Discover Bank promotions are available right now, but the bank offers other ways to save. Over time, these savings can add up and may give you more money than you’d earn in a promotional bonus. Read on to learn about the benefits of banking with Discover Bank and how it can boost your bottom line.

Cashback Debit Card

Discover Bank offers only one checking account, the Cashback Debit account. Earn 1% cash back on all debit card purchases each month, up to $3,000. Here’s how it works:

If you spend $1,250 each month using the debit card, for example, you’ll get $12.50 cash back per month, which adds up to $150 over the course of a year. If you spend $3,000 each month, it would be like getting a $30 Discover Bank checking account bonus each month or $360 per year.

Continue using your Discover Cashback Debit account at the maximum spend of $3,000 each month and your cash-back total will rise to $1,800 over five years. This is more money than you’ll get from many of the top bank bonuses available. Best of all, you don’t need to use Discover Bank coupons or maintain a minimum balance to qualify.

Fee-Free Checking and Savings

The Cashback Debit account also comes with fee-free checking. There are no monthly maintenance fees or charges for checks, insufficient funds, stop payment orders or expedited delivery of check and debit card replacements. You also have access to more than 60,000 ATMs across the nation.

Compare this to banks that charge monthly maintenance fees for checking and savings accounts. At Bank of America, you pay as much as $25 per month if you don’t maintain a minimum balance or meet other criteria. That’s $300 a year you could potentially save with Discover Bank.

Competitive Rates

Discover Bank’s online savings account earns 0.40% APY, considerably higher than the national average of 0.06% APY. A money market account with a balance under $100,000 earns 0.30% APY — compared to the national average of 0.06%. Discover Bank’s 12-month certificate of deposit comes with an APY of 0.55%, a rate higher than the 0.14% national average.

How To Open a Discover Bank Account

Because Discover is an online bank, you can’t visit a physical branch to open an account. Instead, you have to open an account online. Here’s how:

Step-By-Step Guide

  1. Navigate to the bank’s website, choose the type of Discover account you want to open and click “Open an Account.”
  2. Provide your contact information and details like your Social Security number.
  3. Fund the account. You can do this now or later.
  4. Check your email for confirmation and additional steps.

Customer service is available at 800-347-7000, 24/7, to assist you if you need help completing the online application.

Is It Time To Switch To Discover Bank?

If online banking appeals to you, Discover offers a full suite of bank accounts as well as rewards credit cards, personal loans, student loans and home equity loans. Additional perks like no-fee accounts, no-annual-fee credit cards and competitive interest rates make Discover a bank worth considering in today’s financial landscape.

You probably should skip Discover Bank if you prefer doing business with a brick-and-mortar bank, however. If you need different products or services, consider other banks that are offering promotions this month.

Information on promotions is accurate as of Aug. 27, 2021. Additional requirements may apply. Offers and terms are subject to change.

This content is not provided by Discover Bank. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Discover Bank.

This article has been updated with additional reporting since its original publication. Julia Gordon also contributed to the reporting for this article.

About the Author

Cynthia Measom is a personal finance writer and editor with over 12 years of collective experience. Her articles have been featured in MSN, Aol, Yahoo Finance, INSIDER, Houston Chronicle, The Seattle Times and The Network Journal. She attended the University of Texas at Austin and earned a Bachelor of Arts degree in English.


Discover Bank Review – Online Banking for Savings, Money Markets & CDs

You’ve probably heard of Discover Financial Services, a publicly traded company (NYSE: DFS) that offers consumer-friendly credit cards like the Discover it Card. According to the Nilson Report, it’s among the United States’ 10 biggest credit card issuers.

What you may not know as much about is Discover’s online-only bank: the appropriately named Discover Bank. It offers a checking account, savings accounts, money market accounts, CDs, and retirement products, all of which are FDIC insured and charges no fees on deposit products – meaning no monthly maintenance fees, excess withdrawal fees, or insufficient funds fees, to name a few. That’s a major, and welcome, point of distinction with competitors such as Ally Bank and TIAA Bank.

Key Features

Cashback Debit

Discover Bank’s Cashback debit account is available to anyone with a Discover-branded credit card or existing Discover Bank account, such as a savings or money market account. It requires a minimum opening deposit of $25, but no minimum daily balance or monthly fee. It also comes with 50 free checks and offers fee-free ATM transactions at more than 60,000 ATMs in Discover’s U.S. network.

The real benefit of Cashback Debit is its rewards program. Every qualifying debit card purchase earns 1% cash back, up to $3,000 in purchases ($30 in rewards) each month.

You can redeem your reward balance at any time and in any amount as a cash deposit into your Cashback Debit account or as a statement credit on your Discover credit card, if you have one. Rewards never expire.

Savings Accounts

Discover Bank offers a savings account with a very attractive yield. There’s no minimum deposit amount and no need to maintain a minimum balance after your initial deposit.

Outbound transfers are capped at 6 per month, with Discover assessing a fee of $15 for each additional one. There’s no limit on inbound transfers. If you attempt an outbound transfer but don’t have enough money in your account, you’re charged $30 per attempt.

Money Market Accounts

Discover Bank’s money market account have competitive yields as well, subject to change at the bank’s discretion.

The minimum opening deposit and minimum daily balance requirement are both $2,500. However, there’s no penalty for dropping below the minimum balance threshold.

Money market accounts come with free checks and a free debit card, but are subject to the same 6-withdrawal-per-period limit as savings accounts.


Discover Bank offers more than a dozen CDs, with terms ranging from 3 months to 10 years. All require a minimum deposit amount of $2,500.

With 30 days to go before your CD expires, you’re asked to redeem it or renew at the same rate and term. You have until 9 days after its expiration to redeem, after which the CD is automatically renewed. Yields range from 0.20% APY on the 3-month vehicle to 1.00% APY on the 5-year, 7-year, and 10-year products. These yields are subject to change with prevailing interest rates.

Early withdrawal penalties are as follows:

  • 3 months’ interest for terms less than 12 months
  • 6 months’ interest between 1 and 3 years
  • 9 months’ interest for 4 years
  • 18 months’ interest for 5 years
  • 24 months’ interest for 7 years and up


Discover Bank lets you open an IRA account (Roth or traditional) with any of its CD products. There are no monthly maintenance fees. While these accounts are advertised as tax-free, you may have to pay tax and penalties on withdrawals made before age 59 1/2. You can roll over several types of retirement accounts, including 401ks, 457 deferred compensation plans, annuities, and other traditional or Roth IRAs.

Mortgage and Home Equity Loans

Through Discover Financial Services, Discover Bank offers a wide range of purchase, refinancing, and home equity loans. Its mortgage options include, but aren’t limited to:

  • 30-year fixed rate purchase and refinance loans
  • 15-year fixed rate purchase and refinance loans
  • 15-year fixed rate FHA loans
  • 5/1 adjustable rate purchase and refinance loans

Other Loans

Discover Bank also offers student loans for undergraduates, graduates, and post-graduates (such as medical residents and law school grads studying for the bar).

Discover doesn’t charge origination or maintenance fees on these loan products, which come with rewards (a one-time cash rebate equal to 1% of the value of a newly issued student loan) for maintaining a GPA above 3.0 or its equivalent.

To redeem this reward, you need to submit your transcript for the academic term covered by the loan within six months of its end date. Discover then reduces your loan’s principal by 1%. An interest rate credit of 0.25% also applies to accounts with auto-debit. Additionally, Discover Bank issues personal loans for non-students, including debt consolidation loans and loans for big-ticket purchases. Discover Bank doesn’t disclose interest rates for these loans on its website – you need to call for a personalized rate quote.

Other Features

Discover Bank has some additional features worth noting:

  • No-Fee ATM Network. Discover works with the MoneyPass and Allpoint networks to provide fee-free ATM access at about 60,000 ATMs in the U.S. The bank’s online, mobile-friendly ATM locator marks these fee-free ATMs with orange pins.
  • Google Wallet. Discover’s partnership with Google Wallet lets you store your Discover credit or debit card on your phone and pay for purchases without taking the card out of your wallet. Participating retailers include McDonald’s, Macy’s, CVS, Walgreens, Home Depot, Subway, and Petco.
  • Mobile Check Deposit. Discover Bank has a pretty extensive mobile banking app that lets you deposit physical checks without visiting a branch or using the postal mail. Just enter the amount of your check, take photos of the front and back, and confirm your deposit.
  • Gift Cards. Using the funds from your Discover savings or money market accounts (or any third-party bank account), you can purchase personalized, Discover-branded gift cards. Denominations range from $20 to $500.

Customer Support

Discover Bank has a 24/7 customer support hotline and a slew of specific departments open during regular or extended business hours. Wait times longer than 10 minutes are rare, even during busy periods.

You might not even have to talk to a human: Discover Bank has a pretty sophisticated help center with a detailed knowledge base and FAQ section.


Discover Bank has some noteworthy advantages to consider before doing business with any competitors.

1. Direct Access to Consumer and Business Credit Cards

Discover Bank offers direct access to four credit cards for individuals and businesses. All come with useful perks.

  • Discover it Card. Like the Chase Freedom card, Discover it offers 5% cash back on your first $1,500 spent in purchase categories, such as home improvement stores and movie theaters, which rotate quarterly. You get 1% cash back on all other purchases, without limit. These rewards can be redeemed for cash in the form of a check or bank account deposit, or for a gift card purchase.
  • Discover it Card for Students. This one pays 2% cash back on up to $1,000 per quarter in purchases from gas stations and restaurants, and an unlimited 1% cash back on all other purchases.
  • Discover it Miles. This card earns unlimited 1.5 miles per $1 spent on qualifying purchases, with no caps or restrictions. Your mile earnings are doubled during the first year, again with no caps or restrictions. Miles are worth $0.01 apiece at redemption against travel purchases and other items.

As a Discover credit card holder, you can also use the Discover Deals feature to earn between 5% and 20% cash back on purchases made through its online portal. This functions like theChase Ultimate Rewards and Upromise shopping portals: You choose from a list of about 200 online retailers on Discover’s website, click through to their respective sites, and make purchases with your Discover credit card. Cash back rewards then accrue to your account.

If you’re not sure these Discover credit cards are right for you, check out our roundup of the best cash back credit cards. Or, scroll through our entire credit card review library for more ideas.

2. No Fees on Deposit Products

Discover Bank waives deposit account fees commonly charged by competitors, such as excessive withdrawal fees for savings and money market accounts, fees for dropping below minimum balance thresholds, and insufficient funds fees. This is clearly a major selling point, particularly for accountholders who struggle to meet minimum balance requirements.

3. Full Line of Loan Products

Although many national brick-and-mortar banks offer lending services for homebuyers, refinancing homeowners, and folks who just need some extra cash, online banks often have limited or nonexistent lending services. For instance, Ally Bank only makes auto loans to its clients, and TIAA Bank only deals with folks who want to buy or refinance their homes.

By contrast, Discover Bank makes mortgage loans, refinancing loans, home equity loans, a full lineup of student loans, and personal loans for debt consolidation and big-ticket purchases.

4. 24-Hour Customer Service

Discover Bank features an online secure message feature and a traditional phone center. The former is open at all times except midnight to 7am eastern time on Sundays, but the customer service center is always open to take phone calls. While some online banks (such as Ally Bank) also offer 24-hour phone support, many – including TIAA Bank – do not.

5. No Fees for Checks

Even if they offer to cover the cost of your first book of personal checks, many online banks charge for the privilege of cutting a cashiers’ check or sending additional books of personal checks. For instance, TIAA Bank charges $10 per bank check and Capital One 360 charges $5 for every additional book of 50 checks that you order. Many brick-and-mortar banks charge similar fees: Bank checks cost $10 a piece at Wells Fargo, and Flagstar Bank charges $20 plus tax for 100 new checks.

By contrast, bank checks cut from Discover Bank’s money market accounts, savings accounts, and even CDs never cost anything. Discover also never charges for issuing checks to your account.


Consider these drawbacks before opening an account with Discover Bank.

1. High Minimum Deposits for Money Market and CD Accounts

Discover Bank imposes minimum deposit requirements for its money market accounts ($2,500) and CDs ($2,500). Ally Bank and Capital One Bank both lack minimums on their money market accounts. TIAA Bank requires lower deposits – $1,500 for its money market and savings accounts. For traditional banks, opening deposit requirements are usually minimal – for instance, Wells Fargo’s money market account asks just $50 to open.

2. No Penalty-Free Early Withdrawals for CDs

In addition to the high minimum opening deposit, Discover Bank’s CDs have another big limitation: You can’t cash them out early without incurring a penalty. This isn’t unusual, but no-penalty CDs have become more common in recent years. For instance, Ally Bank’s No Penalty CD offers an 11-month term with yields well north of 1% APY. Discover Bank’s closest analogue, the 12-month CD, comes with an early withdrawal penalty of 3 months’ interest.

3. No Brokerage

Discover Bank might offer more loans than many of its online bank competitors, but it’s not attached to a brokerage that could provide additional investment options for account holders.

Other online banks are much better in this department. For instance, Capital One 360 lets you link a checking, savings, or money market account to its Capital One Investing platform and trade stocks, mutual funds, ETFs, and options with your deposited funds. While Discover Bank does offer retirement accounts, they’re limited to CDs.

4. Past Legal Issues

Though Discover Bank generally enjoys high customer satisfaction ratings, it has seen its share of controversy in the past. In 2005, the Supreme Court of California issued a ruling against the bank which invalidated a class action waiver contained within its arbitration clause. Basically, the waiver prevented regular customers with relatively small monetary claims from joining class action suits against the bank. As a result of the verdict, Discover was forced to remove the class action waiver from its customer contract. If you’re looking for a bank with an unblemished record of customer service, look elsewhere.

5. No Business Accounts or Loans

Although Discover Bank does offer credit cards for small business owners, it doesn’t have any business banking accounts. Contrast this with TIAA Bank, which has separate checking options for small businesses, large businesses, and nonprofit organizations, as well as money market accounts and CDs for businesses of all types. Discover Bank can’t get you a business loan, either. While some other online banks focus solely on consumers, many traditional banks offer commercial loans as well.

Final Word

Discover Bank offers an almost-full suite of online banking services, including checking accounts, savings accounts, money market accounts, retirement options, and CDs. It also connects its customers with several popular credit cards, which offer perks like cash-back rewards and online shopping discounts. Discover Bank issues several types of loans for students, home buyers, existing homeowners, and regular consumers who need extra cash. That said, better options for business customers would help attract even more users into the fold.

Have you had any experience with Discover Bank? Would you recommend it to others?

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Discover Bank CD Account Rates Review

Discover Bank App

Though known mostly for its credit cards, Discover Bank also runs an online bank that offers a full suite of banking services.

One of the services that Discover offers is Certificates of Deposit (CDs).

In this review, find out if a Discover Bank CD can help you reach your saving goals.

About the Rates

A Certificate of Deposit is like a savings account in that you put your money in a CD hoping to earn interest. Unlike a savings account withdrawals from a CD are restricted.

You cannot make a withdrawal from a CD without paying a penalty until the term of the deposit ends.

When the term of the CD ends, the CD is said to have matured.

Typically, if you need to withdraw from the CD and pay the penalty, you must withdraw the total balance.

Because of these restrictions, the interest rate on CDs tends to be higher than savings accounts. The longer the term of the CD, the higher the interest rate goes.

The longer term CDs are a big draw for Discover, because most banks don’t offer CDs with terms longer than 5 years.

Discover’s CD rates are significantly higher than most brick and mortar bank’s and are in line with other online banks’ offerings. For some of the terms, Discover’s rates are more than triple the best national bank’s.

Another major benefit of CDs is that they are insured by the Federal Deposit Insurance Corporation (FDIC).

The FDIC protects the balance of bank accounts up to $250,000 per account.

So even if the bank that your CD is at closes, you’ll still get your money back.

That means that there’s no way for you to lose any of the money you put into a CD, so they’re a great choice for risk-averse savers.

Early Withdrawal Penalties

As mentioned previously, you’ll have to pay a penalty if you want to withdraw your money from a CD before it matures.

Banks charge this penalty because they are offering you extra interest for promising to leave your money in the CD for a specific length of time.

If you break that promise, it affects the bank’s ability to make loans to other customers, so the bank will penalize you for it.

Discover Bank CD Early Withdrawal Penalties

CD TermEarly Withdrawal Penalty
Less than 1 year3 months of interest
1 year to 4 years6 months of interest
4 years to less than 5 years9 months of interest
5 years to less than 7 years18 months of interest
7 years or more24 months of interest

You can withdraw money from your CD for the first seven days after you open.

This grace period gives you the chance to get out without a penalty. Starting with the eighth day and continuing for the next twenty-two days, the penalty is equal to the interest you would have earned.

So, if you deposited $100 and would have earned $1 in interest, you would get $99 if you withdraw your balance.

It is possible for your early withdrawal penalty to cause the amount you withdraw to be less than the amount you deposited.

For example, If you have a CD with a 1-year term and withdraw the money after 3 months, you’ll lose the three months of interest you earned, then be charged the same amount against your principal.

Always make sure you can afford to leave the money deposited for the full term if you want to avoid fees.

Minimum Deposit and Other Requirements

Discover requires a $2,500 minimum deposit to open a CD. There are no other requirements for opening a CD, and no interest rate tiers based on balance.

You can fund your CD with an online transfer from a Discover Bank or external account, a phone transfer, or a check through the mail.


Discover Bank does offer IRA CD accounts. These CDs offer all of the benefits of a standard CD, with the added tax advantages brought by the IRA.

The minimum deposit requirements and other terms and fees are the same as with Discover’s normal CDs.

What Happens When the CD Matures?

When your CD’s term ends, it is said to have matured.

When your CD reached maturity, you can withdraw your money without paying a penalty.

Most banks automatically reinvest your CD’s balance into a new CD when it reaches maturity.

That means it will keep earning interest even if you forget about it, but it also means it locks your money into a new CD and you’ll have to pay a fee to withdraw it.

At Discover, you have a nine-day grace period after your CD matures to withdraw your money or make an additional deposit.

If you don’t take any action during the grace period, your CD will automatically renew for the same term. So, if you had a 5-year CD, you’ll automatically be renewed with a new 5-year CD.

If interest rates have changed since your first opened the CD, your new CD will have the new rate, whether it is higher or lower.

If you want to get your money out of the CD account, make sure you take action during the 9-day grace period. If you don’t, you’ll have to pay an early withdrawal penalty.

How Does It Compare?

Discover isn’t the only online bank that offers CDs.

If you want to open a CD but Discover’s offerings don’t meet your needs, consider a CD from one of these competitors.

Goldman Sachs Bank USA CDs

Goldman Sachs is a multinational finance company that specializes in investment banking. They also own Goldman Sachs USA Bank USA, which runs their consumer banking arm.

Marcus by Goldman Sachs Bank offers CDs with terms ranging from six months to six years. As with Discover Bank’s CDs, the longer the term, the higher the interest rate.

One benefit that Goldman Sachs has over Discover is the lower minimum deposit required to open a CD.

You can fund your account with a deposit of just $500. You also get a ten-day CD rate guarantee when you open a CD.

If the interest rate on CDs of the same term increases within the first ten days you open the account, your interest rate will automatically be increased to match it.

Another benefit is that you can have your CD automatically deposit the interest in your Goldman Sachs Savings account or an external bank account.

That means you can spend your earnings while leaving your principal to continue earning.

That makes them ideal for people who are looking for a no-risk income stream.

Ally Bank CDs

Ally Bank is a popular online bank that offers a full range of banking services.

One of the services that Ally offers is Certificates of Deposit.

There are three types of CD available from Ally: the High Yield CD, the Raise Your Rate CD, and the No Penalty CD.

The Ally High Yield CD is Ally’s no-frills CD offering. Terms range from three months to five years.

The Raise Your Rate CD can have a term of two years or four years.

If your CD has a term of two years, you may elect once during the life of your CD to increase your interest rate to the current market rate.

If your CD’s term is four years, you can increase it twice. That means you won’t be locked into a low rate for the life of the CD.

The No Penalty CD does not charge a penalty for early withdrawal. It has a term of eleven months and three interest rate tiers that vary based on the balance.

All of Ally’s CDs have no minimum deposit requirement.

Synchrony Bank CDs

Synchrony Bank’s CDs are very similar to Discover Bank’s.

The CD term can range from three to sixty months, allowing you to customize your CD to your savings plan.

The minimum deposit to open a CD at Synchrony Bank is $2,000, a bit less than Discover’s requirement.

What sets Synchrony Bank’s CDs apart from CDs from other banks is that the interest rate earn varies both on the term and the balance of the CD.

Long terms and higher balances earn better interest rates. The three balance tiers that affect your interest rates.

If you have a large amount of money you want to put into a CD, Synchrony Bank might be able to offer better rates than its competitors.


CDs are a great, no-risk way to earn some extra interest from your savings, so long as you are willing to lock your savings in for the term of the CD.

Discover’s early withdrawal restrictions and high minimum are roadblocks to getting the most out of your CD, but the great interest rates can make that trouble worth it.

More:Best CD Accounts of the Year

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    What are the Discover Bank CD rates?

    Many people don’t want to hold on to cash but don’t necessarily want to put their cash in a place like the stock market where they have to be subject to certain risks. For these people, CDs (certificate of deposits) can be great options. In this article, I’ll tell you everything you need to know about Discover Bank CDs, including the rates, fees, and IRA/Roth, AAA rates. 

    The Discover CD rates will vary and can change every day. You can check the current rates here. 

    As of April 27, 2019, the APY rates were the following: 

    • .35% for 3 months
    • .65 for 6 months
    • .70 for 9 months
    • 2.65% for 12 months
    • 2.65% for 18 months
    • 2.7% for 24 months
    • 3% for 5 years

    You can use a slider calculator to choose your desired timeframe here. I personally would avoid anything less than a 12 month CD since the rates are much lower than you can find with a savings account. 

    The Discover CD rates are better than some of their competitors like Bank of America and US Bank. However, you can find some CDs with better rates with certain FDIC insured banks like Capital One or Marcus by Goldman Sachs. Some of them even have lower minimum deposits. 

    Overall, I think the CD rates by Discover are okay but if you suspect you might need your funds during the CD period, you might want to stick with a money market account with an APY that might be a tad lower but with the freedom to do as you want with your cash without a penalty. 

    Are the Discover interest rates locked?

    According to Discover, these interest rates are locked in. This is great because you know what you’re getting at the end of the CD period but if interest rates were to go up you might be missing out. 

    Discover Bank CD IRAs and Roth

    Discover also offers CDs for retirement with Traditional IRA and Roth IRA accounts. Which account will be best for you will depend on a few factors like your income, age, and future tax bracket. If you want your CD to be funded with after-tax dollar then you’d go with a Roth IRA CD, which is better if you’re future income bracket is going to be higher.

    You could also open up a Traditional IRA CD where your earnings are tax-deferred (better if your future income bracket will be lower). The contribution limit (which changes and can depend on filing status) is $6,000 in 2019 for tax-deductible contributions. 

    I don’t know if the Discover IRA CD rates are always the same as the standard CD rates but when I checked them they were the same. 

    Discover Bank CD rates for AAA members

    Discover is known for offering better rates for AAA members. You can check on those rates here. However, depending on the state that you live in you might not be able to proceed. It is reported that you should still be eligible for the special AAA rates even if you get the following message:

    We are unable to process your request at this time. You may have reached this page through a previously established bookmark or old web link or your AAA Club may no longer participate in the AAA/Discover Deposit Program

    Therefore, I would probably call in to Discover and inquire about any potential special CD rates if you are a AAA member.

    Funding and withdrawal 

    There are no fees to wire in your funds from an external bank. However, if you are sending an outgoing wire there will be a $30 fee. 

    Early withdrawal penalty

    If you need your money before the end of the CD period you can retrieve it subject to an early withdrawal penalty. The early withdrawal penalty depends on the length of the CD.

    • Less than 1 year: 3 months simple interest
    • 1 year to < 4 years: 6 months simple interest
    • 4 years to < 5 years: 9 months simple interest
    • 5 years to < 7 years: 18 months simple interest
    • 7 years to 10 years: 24 months simple interest

    You can withdrawal your funds beginning on the 8th day after your CD is opened and funded and for the next 22 calendar days, Discover will deduct each day’s simple interest on the issue amount withdrawn from the funding date to the date of withdrawal.

    Note: In some cases, the Early Withdrawal Penalty may reduce the principal in the CD. For example, if you had a two year CD, and you decided to pull money out of it three months in, you would be hit with six months of simple interest and could reduce the value of your principal. 

    The Discover Bank CD minimum deposit is $2,500. Not every bank requires you to make a minimum deposit for a CD account. For example, Capital One may not require you to put down anything. Others may have even higher deposits like $5,000 dollars or $10,000.

    Sometimes when you are dealing with higher deposit minimums you might expect to get higher APYs but also check for penalty fees and other fees. 

    Discover should notify you 30 days before your CD matures. Once your CD time period is up, you’ll have a nine day grace period to make a change to your CD without penalty and your CD will automatically renew for the same term at the current rate at the time of renewal if no action is taken during the grace period.  

    Keeping cash around has it benefits. When the unexpected happens, you can easily retrieve your funds and use them instantly. But the biggest drawback is that you’re constantly losing purchase power as times goes by due to inflation. Inflation rates vary each year but generally you can expect them to be around 2% per year.

    This means that if you leave $1,000 in a checking account for one year, when you come back to those funds that $1,000 might only have $980 worth of purchase power. And even if you go with some savings accounts like those from Chase, you’re still not getting a good return with interest.  

    With CDs you can beat inflation rates and allow your funds to grow while not assuming a level of risk associated with stocks.  

    With a 12 month APY rate of 2.65%, your purchase power will be stronger (on average) after one year. While the returns won’t be on the same level of as investing in the stock market or other securities, the assurance of your funds growing in an insured account is worth it for many people, especially those looking to diversify their portfolio with something secure.  

    Another good thing about CDs is they allow you line up your savings with your future plans. For example, if you had a big trip coming up in about 13 months then you could put your cash in a CD and allow those funds to grow. 

    Let’s say you put $12,000 in a CD for 12  months at 2.65% APY, that’s a increase in $480. You could then use that to cover a night at a great luxury hotel. Of course, I always recommend to travel with miles and points for free (or virtually for free). 

    Getting a Discover CD can be a decent option if you’re looking for a secure way to store your cash with potential to beat inflation and make some earnings in the process. Some other banks may have higher rates though so you’ll want to consider your alternatives if you’re thinking about going with Discover. 

    UponArriving has partnered with CardRatings for our coverage of credit card products. UponArriving and CardRatings may receive a commission from card issuers. Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

    Daniel Gillaspia

    Daniel Gillaspia is the Founder of and creator of the credit card app, WalletFlo. He is a former attorney turned full-time credit card rewards/travel expert and has earned and redeemed millions of miles to travel the globe. Since 2014, his content has been featured in major publications such as National Geographic, Smithsonian Magazine, Forbes, CNBC, US News, and Business Insider. Find his full bio here.



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    1. @MisatoIto they passed on a dozen daycare options to place their kids in the Manhattan Kids Club for far more money, I can guarantee that.

    2. Absolutely realistic questions & brilliant answers.... Thank you very much Mr. Richard....

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