Discover Bank CD Rates: May 2024

Ben GranBanking Reviewer and Writer

Ben Gran is a freelance contributor for Forbes Advisor on banking. He also writes for The Ascent (a Motley Fool service), where he covers insurance, credit cards, personal finance and investing. Ben has over 10 years of experience as a freelance content writer for regional banks, tech startups, and financial services companies like LendingTree and Prudential. He also works as a ghostwriter for business executives, with bylines in publications such as Fast Company, Entrepreneur and TechCrunch.

Ben Gran

Ben GranBanking Reviewer and Writer

Banking Reviewer and Writer

Elizabeth AldrichDeputy Editor, Banking

With eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel. Her work has been featured in Business Insider, The Motley Fool, Bankrate, Investopedia, LendingTree, Student Loan Hero, ValuePenguin, USA Today, Credit Karma, NASDAQ, Yahoo! Finance and more.

Fact Checked

Elizabeth Aldrich

Elizabeth AldrichDeputy Editor, Banking

Deputy Editor, Banking

Fact Checked

Updated: May 3, 2024, 5:39pm

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Discover® Bank offers 12 certificate of deposit (CD) terms, ranging from three months to 10 years. The bank’s CD rates tend to be competitive among online banks. There’s a $2,500 minimum deposit requirement to open a CD with Discover.

Here’s an overview of Discover® Bank’s CD rates. Rates are accurate as of May 3, 2024.

CD Term	APY	Minimum Deposit
3 Months	2.00%	$2,500
6 Months	4.25%	$2,500
9 Months	4.25%	$2,500
12 Months	4.70%	$2,500
18 Months	4.40%	$2,500
24 Months	4.00%	$2,500
30 Months	3.75%	$2,500
36 Months	3.75%	$2,500
48 Months	3.75%	$2,500
60 Months	3.75%	$2,500
84 Months	3.75%	$2,500
120 Months	3.75%	$2,500

Overview of Discover® CDs

Discover® Certificates of Deposit require a minimum opening balance of $2,500. Interest is compounded daily and credited to your account monthly. If you take money out of your CD during the agreed-upon term, before its maturity date, you’ll be charged a penalty for early withdrawal.

The penalty for an early withdrawal depends on the length of the term of your CD. For terms of less than one year, the penalty is three months of simple interest. For terms between one and four years, the penalty is six months of simple interest.

For longer term CDs, the penalty increases, ranging from nine months of simple interest to 24 months of simple interest. Before you commit to a long-term CD, make sure you’re prepared to leave that money alone until the maturity date, so you don’t have to pay early withdrawal penalties.

Overview of Discover® Bank CDs
Minimum Deposit	$2,500
Term Lengths	3, 6, 9, 12, 18, 24, 30, 36, 48, 60, 84, 120 months
Compounding Schedule	Daily
Early Withdrawal Penalty	Terms of less than 1 year: 3 months’ simple interest Terms of 1 year to less than 4 years: 6 months’ simple interest Terms of 4 years to less than 5 years: 9 months’ simple interest Terms of 5 years to less than 7 years: 18 months’ simple interest Terms of 7 years to 10 years: 24 months’ simple interest
Grace Period for Penalty-Free Withdrawals After Maturity	9 days

How Much Can You Earn With Discover’s CD Rates?

Before opening a Discover CD, crunch the numbers to see how much you can earn. Discover’s website provides a convenient calculator to show how much you can earn, based on your initial deposit, CD term and current APY rates.

Use our CD calculator to find out what you can earn with Discover’s CDs:

How Discover’s CDs Compare

Discover’s CD yields are a bit lower than the best CD rates, but they’re competitive and significantly higher than the rates offered by traditional brick-and-mortar banks. Discover’s CD rates are also significantly higher than the national average CD rates. For example, according to the FDIC, the national average rate for a 12-month CD is 1.81% as of April 2024. Discover offers 4.70% APY for the same term.

If you want to get the best CD rates, expand your search beyond your bank. Check multiple banks and credit unions and compare their CD rates. By doing your research and understanding the landscape of CD rates, you’ll have a better chance of getting the highest possible return on your investment.

About Discover® Bank

Though it may be widely known for its credit cards, Discover isn’t only a credit card issuer; it’s a full-service online bank offering personal banking products, loans and other financial services. Discover Bank has no brick-and-mortar branches, but it provides a highly rated mobile app, 24-hour customer service and access to a network of more than 60,000 fee-free ATMs.

Frequently Asked Questions (FAQs)

How can you choose the best CDs?

There’s no one correct way to choose the best CDs. It depends on your financial goals, what you are saving for, how soon you need access to the money and, of course, the interest rate and investing environment.

If you’re putting money into CDs for short-term savings goals—like a down payment on a house, a big vacation or a destination wedding—align the term you choose with the date of your event. If you are using CDs to boost the yield for your emergency fund, you may want an even shorter term.

Longer-term CDs typically offer higher interest rates, but they require you to lock up your money for several years. Consider whether you want to commit your money to a fixed interest rate for that long. If interest rates go up within the next four or five years, you could miss out on higher-yielding opportunities.

Choosing the right CD for your situation depends on what you want the money to accomplish and how much you’re willing to risk.

Are Discover Bank’s CDs FDIC insured?

Yes. Discover is a member of the FDIC (FDIC certificate No. 5649) and its CDs are FDIC insured up to $250,000 per depositor, per account ownership category, in the event of a bank failure.

How can I avoid a CD early withdrawal penalty?

Before you commit to a CD, make sure you are comfortable with leaving the money in the CD until the term is up. If not, consider depositing less money into the CD and keeping more money in a savings account or other liquid account.

If you’re not sure when you may need your money, you can choose a type of CD called a no-penalty CD. This gives you the safety of a CD but with the flexibility to pull your money out without incurring an early withdrawal penalty.