Business Insider's personal finance team compared Discover CD rates to the best CD rates and found it to be a standard offering.
Discover® Bank (Member FDIC) has CD rates that are higher than the ones at many brick-and-mortar banks, but you can find higher rates at other online banks. It offers IRA CDs and standard CDs with term lengths of up to 10 years; most banks and credit unions don't offer CDs with term lengths that long. It also has a $0 minimum opening deposit for its CDs, which is rare.
Current Discover CD Rates
Discover offers two types of CDs: standard CDs and IRA CDs. The two types of CD pay similar interest rates and have the same minimum deposit requirements. Here are current Discover CD APYs (Annual Percentage Yield):
| Term | APY |
| Discover® 3 Month CD | 2.00% |
| Discover® 6 Month CD | 3.70% |
| Discover® 9 Month CD | 3.80% |
| Discover® 1 Year CD | 4.00% |
| Discover® 18 Month CD | 3.80% |
| Discover® 2 Year CD | 3.80% |
| Discover® 30 Month CD | 3.50% |
| Discover® 3 Year CD | 3.50% |
| Discover® 4 Year CD | 3.50% |
| Discover® 5 Year CD | 3.50% |
| Discover® 7 Year CD | 3.50% |
| Discover® 10 Year CD | 3.50% |
Overview of Discover CDs
Discover might be a solid choice if you're looking for a bank that offers a variety of CD terms or if you're interested in a CD that doesn't require a minimum opening deposit. Usually, banks offer CDs ranging from six months to five years. At Discover, you also have 3-month, 7-year, and 10-year terms. In addition, Discover IRA CDs have some of the best IRA CD rates. If you're interested in opening an IRA account, you might be interested in Discover.
Discover is an online bank, which means it doesn't have any physical branches. If you want to bank in-person, you'll likely want to go with another financial institution.
Discover CD Pros and Cons
Discover CD Pros
- Higher interest rates than the average CD
- Low minimum opening deposit
- Variety of CD terms
- Interest compounded daily
Discover CD Cons
- High early withdrawal penalties
- Online-only bank with no physical branches
Discover CD Alternatives
Discover CD Rates vs. American Express CD Rates
American Express® CD rates are lower than most Discover CD rates, with rates ranging from 3.00% to 3.75% APY. Like Discover,American Express National Bank doesn't require a minimum opening deposit.
American Express National Bank (Member FDIC) doesn't offer a 7-year or 10-year term. If you're interested in these specific terms, Discover will be your default option out of the two banks.
American Express National Bank Review
Discover CD Rates vs. Barclays CD Rates
Barclays Online CDs have similar rates to Discover CDs, with Barclays CDs ranging from 3.00% to 4.00%.
If you would like an online bank that offers long-term CDs, you might favor Discover. Barclays CDs can have term lengths as long as five years, while Discover has CDs as long as 10 years.
Discover CDs: What You Need to Know
Online Banking Experience
You'll have to manage Discover bank accounts using online and mobile banking. To speak with a banker, you'll have to call or use live chat. Customer support is available 24/7, though.
If you prefer banking with an institution with physical branches, brick-and-mortar banks will likely be a better fit.
Early Withdrawal Penalties
Discover CDs have the following early withdrawal penalties:
- 3 months of simple interest for a term of less than 1 year
- 6 months of simple interest for terms between 1 year and less than 4 years
- 9 months of simple interest for terms between 4 years and less than 5 years
- 18 months of simple interest for terms between 5 years and less than 7 years
- 24 months of simple interest for terms between 7 years and 10 years
These penalties are higher than competitor's CDs. Other online banks may also have CDs that do not charge any penalties. The best no-penalty CDs also pay well above average CD rates, so you can find good offerings to fit your preferences.
How Discover CD Earnings are Determined
The interest you'll make on a Discover CD can vary depending on the term chosen and the money deposited. External factors can also determine whether a CD is the best place to keep your money. Economic conditions can determine bank account interest rates, so there are times when CD rates are more competitive savings options or less competitive.
Market Fluctuations
Discover can choose to change bank account interest rates at any time. That said, Discover savings, money market, and CD rates are often impacted by the Federal Reserve's decisions. Rates on these accounts typically go up when the Fed raises rates and drop when the Fed cuts rates. Staying up to date with the next Fed meetings can you help keep track of potential rate fluctuations.
As a reminder, Discover CD rates will stay the same while an account is open. If the bank decides to change rates during the year, you won't be impacted until your CD matures. At CD maturity, experts recommend comparing rates from other banks and terms instead of automatically renewing your CD. That way, you can see if there are more competitive offerings available.
CD Term
Each Discover CD term has a different interest rate. Discover's most competitive CDs are its 6-month, 9-month, 1-year, and 18-month terms. The bank's short-term CDs are paying higher rates than long-term CDs because of the current economic environment.
When you're opening a CD, you want to pay attention to more than which one has the highest interest rate. Experts recommend assigning a specific purpose to your goals and matching your need with a certain term. For example, if you plan to save money to buy a car in three years, it's worthwhile to open a 3-year CD. There might be shorter terms with higher rates, but the 3-year CD will allow you to earn interest for a longer period of time without worrying about rate fluctuations.
CD Opening Deposit
CDs earn interest because you're keeping money in an account for a specified time. Hence, the bigger your opening deposit, the more interest you'll earn. You want to avoid paying early withdrawal penalties, though, because that can eat away at your earnings. Only deposit what you can keep in your CD for the full term.
Opening a Discover CD
Funding a Discover CD
Opening a Discover CD is similar to the process of how to open a CD account in general; you'll fill out an online application with what CD you want, as well as personal information such as your name, your Social Security number, and your physical address. You'll also need to fund your account, which you can either do immediately or wait until later.
You can fund your account by transferring money from an existing Discover account. You can also make an ACH transfer or a wire transfer from an external bank account. You can also mail a check to Discover if other options don't work for you. Since this is an online-only account, you can't fund the CD with cash.
Discover CD Laddering Strategies
If you're worried about the lack of liquidity that comes with CDs, opening a CD ladder might be a good choice for you. You can open a CD ladder by opening multiple CDs with different term lengths using the money you were originally planning on investing in just one.
For example, if you want to open a 1-year CD with $30,000 for a short-term goal, you could instead open a 6-month, 1-year, and 18-month CD with $10,000 apiece. This way, you'll have access to some of your money earlier than you would otherwise in case of an emergency. You'll also lock in a good rate for longer, which could make a difference if CD rates drop.
CD ladders don't need to be made up of CDs that are all from the same bank, but if you prefer the simplicity of only using one bank to make your CD ladder, Discover is a good option. Discover has CDs with a larger range of term lengths than many banks, which makes it easier to make a CD ladder for longer-term goals using 5-year CDs, 7-year CDs, or 10-year CDs.
Discover CD Maturity and Automatic Renewal
When a CD reaches the end of its term length, it matures. At this point, you can withdraw money from the CD without paying early withdrawal penalties. But Discover CDs, like many CDs, automatically renew into a CD with the same term length (but not the same interest rate) after a short grace period. For Discover, that grace period is 9 days long. So if you had a 2-year CD, you would have 9 days after the CD matures before the CD would automatically renew into another 2-year CD at whatever Discover's current interest rate is.
If you don't tell Discover that you don't want the CD to renew either before or during the grace period, you won't be able to withdraw your money without penalty after that grace period is up. Make sure you know when your CD matures so you don't miss the grace period and end up locked into a CD for longer than you were planning.
Why You Should Trust Us: How We Reviewed Discover CDs
We used Business Insider's certificate of deposit methodology to review Discover CDs. We rate bank accounts on a scale of one to five stars. We look at interest rates, minimum opening deposits, early withdrawal penalties, CD term variety, ethics, security, miscellaneous features, customer support, and the mobile app.
We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
Discover CD FAQs
Are Discover CD rates competitive?
Discover CD rates are more competitive than average CD rates. The bank's CD rates are similar to other popular online banks.
Does Discover offer promotional CD rates?
Discover sometimes offers promotional CDs. The bank doesn't currently have any CD specials for new customers, though.
Do Discover CD rates change often?
Discover CD rates are impacted indirectly by changes in the federal funds rate. Rate changes can occur at any time. Once you've opened a CD, though, the interest rate will stay the same throughout its term, and you won't be affected by rate fluctuations until you have to renew a CD.
What is the current 10-year CD rate at Discover Bank?
The 10-year CD rate at Discover Bank (FDIC Insured) is 3.50% APY.
What is the current 1-year Discover CD rate?
The 1-year Discover CD rate is 4.00% APY.
Can I open a Discover CD even if I don't have a Discover credit card?
You don't need to have a Discover credit card to open a Discover CD. You can apply for a Discover CD as a new customer.
Does Discover offer IRA CDs?
Discover has IRA CDs ranging from 3 months to 10 years.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
**Enrollment required.
*Axos ONE Savings and Checking Bundle: The Annual Percentage Yield (APY) is accurate as of 04/01/2025. The base and promotional interest rate and corresponding APY for Axos ONE Checking is variable and is set at our discretion. The base and promotional interest rate and corresponding APY for Axos ONE Savings is variable and is set at our discretion. Axos ONE Savings is a tiered variable rate account. Axos ONE Checking is a non-tiered variable rate account. Interest rates may change as often as daily without prior notice. Fees may reduce earnings. Promotional terms and conditions are subject to change or removal without notice. Incentive may be taxable and reported on IRS Form 1099-MISC. Consult your tax advisor. After the accounts are opened, the amount of incentive earned will depend on meeting the additional requirements outlined below. The Axos ONE Checking account will earn a base rate of 0.00% APY. The Axos ONE Savings account will earn a base rate of 1.00% APY. Axos ONE accounts are eligible to receive a promotional APY for each statement cycle where the promotional criteria are met during the Qualification Period. To receive the promotional APY on both Axos ONE Checking and Axos ONE Savings, the Axos ONE Checking account must meet both of the requirements in either Option 1 or Option 2 below during the Qualification Period: Option 1 1. Your Axos ONE Checking account has received qualifying direct deposits of at least $1,500 in total. 2. The average daily balance of your Axos ONE Checking account is at least $1,500. Option 2 1. Your Axos ONE Checking account has received qualifying deposits of at least $5,000 in total. 2. The average daily balance of your Axos ONE Checking account is at least $5,000. If both of the requirements in either Option 1 or Option 2 above are met during the Qualification Period: The Axos ONE Checking account will earn a promotional rate of 0.51% APY for the statement cycle in which the requirements are met. The Axos ONE Savings account will earn a promotional rate of up to 4.66% APY for the statement cycle in which the requirements are met. The Qualification Period is from the 1st of the month through the 25th of the month. The Qualification Period for new accounts will begin on the day the account is approved. Any qualifying direct deposits received after the 25th of the month will count toward the next Qualification Period. A direct deposit is an electronic deposit of your paycheck or government benefits, such as Social Security, Disability, etc. Other deposits (i.e., online banking transfers, ATM and mobile check deposits, etc.) or person-to-person payments are not considered a direct deposit. Qualifying deposits only include deposits from the following eligible sources: (i) ACH transfers from external accounts, (ii) inbound wire transfers from external accounts, (iii) check deposits. Qualifying deposits do not include: (i) transfers internal to the bank (i.e., transfers between an account holder's Checking and/or Savings account), (ii) interest payments, (iii) promotional bonuses, (iv) credits, reversals, and refunds. Both accounts must be in an open and active status on the date the interest is paid to receive the promotional APY for that statement cycle. Account transactions may take one or more business days from the transaction date to post to the account.
**LendingClub LevelUp Savings Account: Earn 4.40% APY when you deposit at least $250 per month, earn 3.40% standard APY if minimum isn't met.
***CIT Bank Platinum Savings: Transfer a one-time deposit of $50,000+ for a Bonus of $300 or a one-time deposit of $25,000 -$49,999.99 for a Bonus of $225
****SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
*****Public High-Yield Bonds: All investing involves the risk of loss, including loss of principal. Past performance does not guarantee future results. This is not a recommendation or offer to buy/sell securities or engage in any investment strategy. Brokerage services for treasuries in a Treasury Account and US-listed securities, options, and bonds in a self-directed brokerage account are offered by Open to the Public Investing, member FINRA & SIPC. Public Advisors and Public Investing are affiliates. Self-directed Individual Retirement Accounts and Bond Accounts are offered by Public Investing. A Bond Account is a self-directed brokerage account with Public Investing, member FINRA/SIPC. Deposits into this account are used to purchase 10 investment-grade and high-yield bonds. The 6.9% yield is the average, annualized yield to worst (YTW) across all ten bonds in the Bond Account, before fees, as of 3/13/2025. A bond's yield is a function of its market price, which can fluctuate; therefore, a bond's YTW is not "locked in" until the bond is purchased, and your yield at time of purchase may be different from the yield shown here. The "locked in" YTW is not guaranteed; you may receive less than the YTW of the bonds in the Bond Account if you sell any of the bonds before maturity or if the issuer defaults on the bond. Public Investing charges a markup on each bond trade. See Public's fee schedule for more information. https://public.com/disclosures/fee-schedule. Bond Accounts are not recommendations of individual bonds or default allocations. The bonds in the Bond Account have not been selected based on your needs or risk profile. See Bond Account Disclosures to learn more. https://public.com/disclosures.
