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Discover Certificates of Deposit Accounts (CDs)

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Put Your Cash to Work

Lock in a risk-free, guaranteed return at competitive interest rates.

12-Month Term

4.75% APY

18-Month Term

5.00% APY

24-Month Term

4.30% APY

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Type of Investment

Mid-term or long-term

Minimum CD Length

3 months

Maximum CD Length

10 years

Minimum Opening Deposit


Amount of Fees




People want to earn a return on their money. The stock market and real estate can both build your wealth, but these assets have risks. Something can go wrong and slow down your path to retirement. Higher interest rates have made a risk-free investment suddenly look viable. Certificates of deposit can offer surprising returns while having you incur zero risks. Discover® Bank has some of the best CD rates and can put your extra cash to work.

About Discover Bank

Discover Bank is an online bank that does not have any physical branches. The lack of physical branches reduces the Bank’s overhead and helps the financial institution set higher interest rates on CDs. If you need to take out cash, you can withdraw money from an ATM. Discover Bank has a network of over 60,000 fee-free ATMs and a locator that helps you find nearby machines.

The Bank offers all types of financial products. You can create checking and savings accounts, retirement plans, and money market accounts. The Bank also offers several loans, such as personal loans, student loans, and home loans.

Discover Bank can check off many people’s boxes and give them the financial products and services they expect from a full banking experience. If you have any questions, you can contact Discover Bank’s 24/7 customer support team. You can send an email or give them a call at 1-800-347-7000.

What is a Discover Bank CD?

A Discover Bank CD is a financial product that offers a risk-free return. These accounts reward people who stash their money and can serve as an excellent complement to emergency funds. Discover Bank CDs have some of the highest rates in the industry. You can get a 5.00% APY if you get an 18-month CD, and you can still get a 4.00% APY on a 5-year CD. Some banks only give you 4.00% APY on a 1-year certificate of deposit.

Investors put their money into CDs because they do not want to risk losing these funds in unprofitable assets like stocks and real estate. Individuals who open CDs do not have to worry about volatility or how the economy will change. As long as they keep their funds in their certificates of deposit, the investors will continue to receive interest payments for the entire term.

How Discover Bank CD Works

Discover Bank CDs have term lengths varying from three months to 10 years. You must make a $2,500 minimum deposit to open a certificate of deposit, but you can put more money into the account to increase your interest payments. Discover Bank has a useful calculator on its CD page that lets you calculate how much interest you will earn based on the interest rate, CD’s term, and your initial deposit.

Discover Bank does not charge any fees if you open a certificate of deposit and keep your money in the account. However, if you want to withdraw cash early, you will incur a penalty fee. The penalty fee depends on the length of the CD term. Discover Bank lists the following penalty fees based on the CD term:

  • Less than 1 year: Penalty equal to three months of simple interest
  • 1-4 year term: Penalty equal to six months of simple interest
  • 4-5 year term: Penalty equal to nine months of simple interest
  • 5-7 year term: Penalty equal to 18 months of simple interest
  • 7 years to 10 years: Penalty equal to 24 months of simple interest

Penalty fees are common among certificates of deposit. Having to withdraw funds early can erode your profits from the account. It’s best to only put money into a CD that you will not need for a while. Using short-term CDs, such as 12 or 18-month CDs, can give you quicker access to your cash while securing respectable returns.

What are the Key Features of a Discover Bank CD?

Discover Bank CDs can be your starting point to Discover Bank’s wide range of financial products and services. Those products can help you borrow money at competitive interest rates, increase your savings, and build up your retirement funds.

Discover Bank CDs also provide some of the top interest rates around. As long as you don’t withdraw funds early, you won’t have to worry about incurring penalty fees. All Discover Bank CDs are insured by the FDIC, meaning you can put up to $250,000 into a CD without worrying about FDIC insurance. The FDIC only swoops in if a bank is about to default, an event that is rare.

CD accounts accrue interest the moment you make your initial deposit and get started with your account. You do not have to wait until the end of the month to start building interest in your account. Discover Bank combines guaranteed returns, flexibility, and an easy process to provide competitive CDs for its customers.

The Pros and Cons of a Discover Bank CD


  • Get a guaranteed return on your cash: You can earn steady interest payments by putting your money into a certificate of deposit.
  • Competitive interest rates: Discover Bank has some of the highest interest rates available on its certificates of deposit. That puts more money into your pocket.
  • All-in-one online banking experience: Discover Bank has the financial products you need to build your way to a smooth retirement. You won’t have to create an online banking account on one platform for the CD rates and then create another account to take out loans.


  • $2,500 minimum initial deposit: It’s a steep minimum, and many financial institutions only have $500 – $1,000 minimum initial deposit requirements. Some banks let you create CDs even if you only invest a few dollars.
  • The penalty fee: You will incur a penalty fee if you take money out of your CD early. Some banks have penalty-free CDs that let you withdraw funds whenever you want without any repercussions (other than missed interest earnings). You can use a CD ladder strategy to minimize the risk of incurring a penalty fee.

How Much Can You Earn with a Discover Bank CD?

The earning potential of a Discover Bank CD depends on the term length, interest rate, and amount deposited. The more money you can deposit into a Discover Bank CD, the more you will earn. The highest interest rate available is 5.00% APY and is currently reserved for people who open CDs with 18-month terms. Putting $25,000 into a CD with 5.00% APY will earn you $1,898 in interest. If you put $100,000 into a Discover Bank CD with an 18-month term, you will earn $7,594 in interest. You can use Discover Bank’s calculator to see how much you can earn.

How Does a Discover Bank CD Compare?

Discover Bank CDs have really good rates compared to the competition. It’s hard to find a CD that has a 5.00% APY over 18 months. You can even get a 3.80% APY over 10 years if you opt for the 10-year CD. Some banks barely exceed that level for their 1-year CDs.

While Discover Bank offers a high rate, the minimum initial deposit and potential penalties aren’t favorable. You need at least $2,500 to open a CD, and not everyone wants to lock away that money for a few years. Furthermore, you will incur penalties if you withdraw money early. While it’s common among banks to charge penalty fees for early withdrawals, some financial institutions offer penalty-free CDs. These penalty-free CDs let you withdraw money without incurring fees.

Is a Discover Bank CD Right for You?

A Discover Bank CD can help you earn the highest risk-free return on your money. However, you will need at least $2,500 to get started, and you should only deposit money that you will not need for a while. You can’t tap into these funds for an emergency expense and avoid the penalty fee at the same time. However, the high-interest payments can supplement your checking account and present a less risky path to returns than stocks and real estate.

How to Get Started with a Discover Bank CD

A Discover Bank CD can provide effortless returns as long as you don’t make an early withdrawal. The online Bank has several features, and a CD can be a great starting point for using Discover Bank.

The financial institution offers a straightforward application process to open a certificate of deposit. You can start the process and create a Discover Bank CD on the bank’s website, regardless of whether you are a customer or not. Existing customers can log into their Discover Bank accounts and begin the process. People who do not use Discover Bank yet will be directed to create an account during the CD account opening process. You will have to provide basic details about yourself and link a bank account that can support the $2,500 minimum deposit requirement.

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