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Discover Bank CD Rates: Earn Up to 4.25% APY

With competitive rates and plenty of terms lengths, Discover Bank may be a contender for your next certificate of deposit.

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Those who are chasing higher interest rates for their savings may find what they’re looking for with Discover Bank. 

Discover offers mostly competitive rates with its certificates of deposit (CDs). While the rates for some of its short-term CDs are middle of the road, the interest earnings for Discover’s longer terms could be appealing to those who want to put their money to work. 

Discover Bank CD Rates

3-month term1.50%
6-month term2.75%
9-month term2.85%
1-year term4.00%
18-month term4.05%
2-year term4.10%
30-month term4.10%
3-year term4.15%
4-year term4.20%
5-year term4.25%
7-year term4.25%
10-year term4.25%

Annual percentage yields (APY) are accurate at the time of writing, are subject to change without notice, and will be determined and fixed for the term at funding. Applies to personal accounts only.


  • Minimum deposit: $2,500
  • Interest: Compounded daily and credited monthly
  • CD terms: 12 options that range between 3 months to 10 years
  • Monthly fees: None

Discover Bank offers a selection of CD terms from 3 months to 10 years, and the APYs vary between a modest 1.50% to a generous 4.25%. Although, the bank’s high-yield CDs require that you commit your savings for periods of 1-5 years. 

Even though Discover does have 7- and 10-year options, these longer terms earn the same rate as its 5-year CD. So there isn’t much incentive to invest your money for an extended period.

The minimum opening deposit is $2,500, which is a higher threshold to buy-in than other banks. Still, Discover’s CD rates are competitive with online-only banks, and, in most instances, more than you’ll earn with Main Street banks.

Your interest is compounded daily, and it’s credited to your account each month. Moreover, Discover’s mobile app makes checking your CD account balances quick and easy.

What Happens if I Withdraw Early?

CDs are designed to keep your money tucked away and out of reach. If you withdraw funds before the CD term concludes, then you are subject to an early withdrawal penalty that is a percentage of the interest that you’ve earned. These percentages will vary depending on your CD’s term.

Early Withdrawal Penalties

  • Terms less than 1 year: 3 months’ worth of simple interest
  • 1 year to less than 4 years: 6 months’ worth of simple interest
  • 4 years to less than 5 years: 9 months’ worth of simple interest
  • 5 years to less than 7 years: 18 months’ worth of simple interest
  • Terms of 7 to 10 years: 24 months’ worth of simple interest

Early withdrawal penalties can take a considerable bite out of your potential earnings. So it’s obviously best to avoid them.

If you’re concerned that you’ll need cash before your investment matures, then consider opening a no-penalty CD. Their interest rates are typically less than you’d earn with a traditional CD, but they do provide flexibility in an emergency.

Alternatively, you can also consider a CD ladder, which is a strategy that involves spreading your investment across multiple CD terms. By opening a mix of long-term and short-term CDs, you’ll be able to take advantage of the higher rates offered by longer 2- to 5-year terms, but also free up cash when the shorter 6- and 12-month CDs mature. 

How Do Discover’s CD Rates Compare?

Discover’s CD rates are generally higher than most Main Street banks and even some online competitors, including Briodirect and Ponce. Discover’s rates are roughly inline with the offerings from Capital One and Marcus, but fall behind leaders like Synchrony and Bread Financial (formerly Comenity).

If you’re interested in even higher yields, Gainbridge offers deferred fixed annuities starting at 5.25% APY. Keep in mind that while annuities and CDs share some similarities, they are distinct financial products. 

Still, Discover CD rates are competitive. While its short-term lengths feature APYs that are smaller than the national averages, the bank’s long-term options are more than you may find elsewhere.

Furthermore, most of Discover’s CD rates beat the interest earnings offered by both its online savings account and money market account. In fact, Discover’s CD rates also outpace those of the best high-yield savings accounts

So for those who don’t require regular access to their cash reserves, a Discover CD could be a beneficial place to park a portion of your savings.

Frequently Asked Questions

What is the CD rate at Discover Bank?

Discover CD rates vary between 1.50% and 4.25%, depending on the term length. The 1-year CD is currently 4.00% APY, and the 5-,7-, and 10-year CDs all offer 4.25% APY. Discover’s rates are generally competitive with online-only banks, and they’re higher than most national averages, according to the latest data from the FDIC.

Are Discover Bank CDs FDIC insured?

Yes, Discover Bank CDs are insured by the FDIC up to $250,000 per depositor, per ownership category. This is standard insurance for all financial institutions that are Member FDIC.

How do you open a Discover CD?

You can open a CD with Discover Bank through its website. You’ll need to provide the bank with some basic personal information, including your mailing address, Social Security number, and email address. Once Discover has sent you an email confirmation, you can fund your new CD with $2,500 or more. If you have any questions, customer support is available by phone at 1-800-347-7000.

While we work hard on our research, we do not always provide a complete listing of all available offers from credit-card companies and banks. And because offers can change, we cannot guarantee that our information will always be up to date, so we encourage you to verify all the terms and conditions of any financial product before you apply.

Ryan M Tronier
Ryan M Tronier
Ryan Tronier is a personal finance expert and writer. His work has been published on NBC, ABC, USATODAY, The Mortgage Reports, Yahoo Finance, MSN, and more. Ryan is the former managing editor of the finance website Sapling, as well as the former personal finance editor at Slickdeals. Find him online at

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