Discover CD rates are highly competitive compared to many other banks. However, what helps set them apart is the number of CD terms offered. You can choose from Discover CDs ranging from three months to ten years.

They offer traditional CDs and IRA CDs, but unfortunately, you won’t have the option for no-penalty CDs or Bump CDs.

Current Discover CD Rates

Discover CD rates are going to depend on the term you choose. Below is a chart showing the different CD rates you can receive.

Key Features of Discover Bank CDs

• No Minimum Deposit: No minimum deposit is required to open a Discover CD.
• Interest Compounds Daily: Interest on Discover CDs is compounded daily and paid out monthly.
• Multiple Terms Available: Choose from CD terms ranging from three months to ten years.
• FDIC Insured: Discover CD accounts are FDIC insured up to $250,000 per depositor and per account.
• Early Withdrawal Penalty: If you withdraw your money before the CD reaches maturity, you will face an early withdrawal penalty. The penalty will depend on the length of the CD. If your CD term is less than one year, the penalty is three months of simple interest. CD terms from one year to less than four years, and the penalty is six months of interest. CD terms from four years to less than five years, and the penalty is nine months of interest. CD terms from five years to less than seven years, and the penalty is 18 months of interest. The penalty is 24 months of interest for CD terms from seven to ten years.

How Do Discover CD Rates Compare?

Do you want to compare the current Discover CD rates to other options? Here are a few other options to consider.

Pros and Cons of Discover Bank CD Rates

Pros of Discover CDs

• Competitive Interest Rates: Discover CD rates are competitive with most other banks, especially their 24-month CD.
• Low Minimum Opening Deposit: You can open a Discover Bank CD with a $0 deposit.
• Interest Compounds Daily: Interest earned on a Discover CD compounds daily and is paid out monthly.
• Many CD Terms Available: You can choose Discover CD terms ranging from three months to ten years.

Cons of Discover CDs

• High Early Withdrawal Penalties: Early withdrawal penalties can be as high as 24 months of simple interest, depending on your CD term.
• Lower Interest Rates on Long-Term CDs: Most longer-term Discover CDs have lower interest rates than other banks.
• No Physical Locations: Discover is an online bank, so they have no physical locations if you want to bank in person.

How to Open a Discover Bank CD

Opening a Discover Bank CD is quick and can be done by following these simple steps.

1. Click the button below to visit the Discover Bank website and choose your desired CD term.
2. Provide the required information, including your name, address, and Social Security number. You’ll also need to provide a copy of a government-issued ID, like a driver’s license.
3. Fund your CD from an external account or another Discover account.

Alternatives to Discover CDs

Before deciding to move forward with a Discover CD, make sure you consider some of the alternatives.

High-Yield Savings Accounts: If you don’t want your money locked into a CD, you could choose a high-yield savings account instead. The Discover online savings account offers a generous APY and allows you to access your money anytime.

Money Market Account: Money market accounts are similar to savings accounts, except they offer check writing abilities, and you’ll receive a debit card.

Another CD: Discover CD rates are competitive, but you may find better rates for your preferred CD term. Check out our best CD rates page to learn more about other banks.