Discover Bank Certificate of Deposit Review

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Discover Bank Certificate of Deposit


Whether you’re investing for the short-term or longer-term portfolio a Certificate of Deposit is sure to add to your portfolio and investment strategy. Discover offers terms ranging from three months to ten years.

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Advertiser Disclosure


CD rates consistently exceeded the National Average.


Flexible terms from 3 months to 10 years.


0.95% APY (12-month term).

Account Details

Credit Needed

Applicants should have a credit score of 620 or higher for a better chance of approval, although this is not required to apply.

Benefits

Discover CDs offer a combination of access, liquidity, safety, and growth potential that make them an ideal choice for those looking to reduce risk in their portfolios. With flexible terms and great guaranteed rates, Discover CDs help provide the peace of mind that can be impossible to achieve when your savings are rising and falling in step with potentially volatile investment markets.

Never lose your principal

With a CD you can lock in a rate and not worry about losing your principal. The savings you hold in Discover CDs are always FDIC insured up to the maximum allowed by law. Discover CDs offer a great potential for growth. You can open multiple CDs with different maturity dates, a strategy called “CD laddering.” It’s a great way to take advantage of the best CD rates for longer terms and ensure you have liquidity and flexibility when you need it, since one or more CDs will always be approaching maturity.

Customer Service

Expect great service when you bank with Discover. As a Discover Bank customer, you’ll enjoy the same commitment to customer service that has ranked Discover card among the highest in customer loyalty for 18 consecutive years.

Open Multiple CDs

Open multiple CDs with different maturity dates. “CD laddering” is a great way to take advantage of the best CD rates for longer terms and ensure you have liquidity and flexibility when you need it, since one or more CDs will always be approaching maturity. Discover offers a full range of high-yield CDs with terms from 3 months to 10 years.

Pros

If liquidity and security is your concern a CD offers a greater variety of short-term investment options. CDs can be an ideal for investors seeking to avoid the volatility of higher-risk assets such as stocks. Prices of bonds and bond mutual funds can also vary considerably since they react to changes in market interest rates.

Cons

The biggest drawback of Discover Certificate of Deposit is the minimum deposit amount to open a Certificate of Deposit is $2,500. CDs typically come with early withdrawal penalties, which can wipe out returns on even the best CD interest rates if you need to take the money out before the term is up. So, make sure the maturities you select work with your cash needs.

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    Summary of Key Benefits:
  • CD rates that have consistently exceeded the National Averages
  • Flexible terms from 3 months to 10 years
  • Open your CD account with as little as $2,500
  • Deposits are FDIC insured up to the maximum allowed by law
  • Convenient renewal options at maturity
  • Fund your CD account online from an existing bank account
The editorial content on this page (including, but not limited to, Pros and Cons) is not provided by the credit card issuer. Opinions expressed here are author’s alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. The credit card offers that appear on this site are from credit card companies from which this site may receive compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers.

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