Discover Bank CD Rates

Discover CD rates are some of the best in the business, accompanied by flexible term lengths, no additional fees and a streamlined online application process. When you compare the APY rates you can earn at Discover with those of traditional banks — it’s no competition.

Min. Deposit
4 / 5.0
SimpleScore Discover, Member FDIC 4
1Y APY 5
3Y APY 4
Customer Satisfaction 5
Support 5
Minimum Deposit 1

While a higher than normal minimum deposit may serve as a barrier to entry for some, you are rewarded with impressive returns. Discover Bank, founded in 1911 and with its headquarters in Delaware, is most famously recognized as a credit card provider. However, the company offers many other great banking products that have propelled it to be the 27th largest bank in the U.S., according to the Federal Reserve.

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In this article

    Discover Bank, Member FDIC at a glance

    BankMinimum Deposit1-Year APY3-Year APYPenalty
    Discover$2,5000.50%0.55%180 days of interest for 12 and 36- month CDs

    What we like about it

    Rates. Rates. Rates. Discover Bank has some of the best industry-leading APY rates on its CD products, which can’t be ignored. What’s even more impressive is the high rates start on shorter-term CDs. A 3-month Discover CD has an APY of 0.20%, which is higher than many traditional banks offer on five and 10-year CDs. As you reach the one-year mark, those rates jump to 0.50% APY and continue growing until capping out at 0.60% at five years.

    Things to consider

    One of the bigger drawbacks of a Discover Bank CD is the minimum deposit required to open an account. Generally, online banks are big proponents of low or no minimum deposits with these types of accounts. However, Discover Bank breaks the mold requiring a $2,500 minimum. This is even higher than some traditional banks like Bank of America and Chase Bank, which only require a $1,000 minimum CD investment.

    What you need to know

    Discover Bank CDs are offered with term lengths as short as three months and extending to a maximum of 10 years. Rates for these CDs span from 0.20% in the shortest terms and slowly grow to a maximum of 0.60% for a five-year CD.

    As is standard across the industry, Discover CDs don’t carry any fees to apply for an account, open an account or maintain an account. You also don’t need to be an existing Discover customer to open an account. Feel free to conduct your other banking elsewhere and use Discover for its impressive APY rates or move all your banking needs over — both options are available.

    Early withdrawal penalties

    has some of the more specific early withdrawal penalties outlined on its website. Where most banks and credit unions have two-to-three tiers of penalties, Discover Bank has five. This may help some people and may hurt others that have to withdraw early, depending on where you fall in the time scale.

    Interest penalties are three months of interest on CDs under 12 months; six months interest on CDs one to four years; nine months interest on CDs four-to-five years; 18 months interest on CDs over five-to-seven years; and 24 months of interest on the longest CDs over seven years.

    Compared to the industry, the penalty on CDs over five years is a bit higher. For example, if you have a 10-year CD and need to withdraw your money after six years, you are going to incur a 24-month interest penalty. With another bank like Capital One, the penalty would only be 180 days (six months). While you should never take out a CD with plans to withdraw your money early, it’s important to be prepared.

    Other CD products

    Currently, Discover Bank CD rates only come with one type for its customers to invest in. This CD can be taken out as a standard investment or included in an IRA portfolio. Discover Bank does not offer higher CD rates based on the amount of investment, which is where many other banks have various products available.

    Rate guarantees

    There are no rate guarantees available at Discover Bank outside of the guarantee you receive with a CD account. Whatever rate you receive when you open your account will be the guaranteed rate of return earned for the entire duration of your investment.

    How do I pick the best CD?

    Choosing the right CD to invest in is critical due to the penalties involved for early withdrawal. If you choose incorrectly, you could miss out on returns or put yourself in a less than ideal position.

    What should you consider when picking out the best CD? First, make sure any CD you are going to invest in is FDIC or NCUA insured. This should be a deal-breaker if it’s not. Next, find all of the CDs with the term lengths you’re looking for and an account minimum you can afford. Once you’ve narrowed those down, start comparing based on APY rates, fees and any other potential perks. Ultimately, the decision should be about producing the most out of your investment, no matter the length.

    Compare top bank accounts

    We welcome your feedback on this article and would love to hear about your experience with the checking accounts we recommend. Contact us at with comments or questions.



    The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.

    For every review, our editorial team:

    • Identifies five measurable aspects to compare across each brand
    • Determines the rating criteria for each aspect score
    • Averages the five aspect scores to produce a single SimpleScore

    Here’s a breakdown of the five aspect scores and their rating criteria for our review of the best CDs of 2020.

    Why do some brands have different SimpleScores on different pages?

    To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.

    However, it’s possible for brands to have multiple SimpleScores. For instance, if we compare CDs offered by Discover, it scores a 3.75 out of 5 SimpleScore according to our metrics and rating system. But if we review Discover’s savings account according to our SimpleScore, it scores a 4.5 out of 5. We adjust our rating system to account for different products and industry standards.

    Questions about our methodology?

    Email Hayley Armstrong at

    12-month APY

    We awarded brands that offered higher APYs on 12-month certificates of deposit — the higher the APY, the higher the score.

    3-year APY

    We awarded brands that offered higher APYs on 3-year CDs — the higher the APY, the higher the score.

    Customer satisfaction

    We leveraged J.D. Power’s 2020 U.S. Retail Banking Satisfaction Study and 2020 U.S. Direct Banking Satisfaction Study to rate each brand for customer satisfaction. The higher the satisfaction score, the higher the SimpleScore.

    Minimum deposit

    Some providers require a minimum deposit to open a CD. We rated and rewarded brands that required low minimum deposits with higher scores.

    Customer support

    Providers with multiple channels of customer support were rewarded with higher scores in this aspect. We considered social media, mobile app support, in-branch support, phone and email as channels of support for customers.

    Jason Lee

    Contributing Writer

    Jason Lee is a U.S.-based freelance writer with a passion for writing about dating, banking, tech, personal growth, food and personal finance. As a business owner, relationship strategist, and officer in the U.S. military, Jason enjoys sharing his unique knowledge base and skill sets with the rest of the world. Follow Jason on Facebook here

    Reviewed by

    • Sean Jackson
      Sean Jackson
      Contributing Writer

      Sean Jackson is a creative copywriter living in Florida. He’s had work published with, theScore, ESPN and the San Francisco Chronicle. In his free time, Sean likes to play drums, fail miserably at improv and spend time at the beach.