Discover Bank just did another increase to their CD rates. The long term rates are near the top as compared to other online banks. AAA members who live in certain areas can receive an extra 5 basis points on the rates. Below is the full list of the long-term CD rates for both the regular Discover customers and the AAA customers:
Certificate of Deposit Rates as of 5/29/08
Term Disc Disc/AAA
18 months 3.81% 3.86%
24 months 4.02% 4.08%
30 months 4.02% 4.08%
36 months 4.26% 4.32%
48 months 4.57% 4.62%
60 months 4.81% 4.86%
To find the AAA rates at Discover's website, refer to my previous AAA/Discover post.
The details about Discover's CDs are listed at their CD overview page and the CD FAQs. Some of the details include:
- Fund CD with an ACH electronic funds transfer or check
- At maturity, they don't allow for a reverse ACH transfer. Options to receive funds include wire transfer ($20 fee), free check by mail or transfer into your Discover MMA.
- Early withdrawal penalty of 6 months interest on amount withdrawan for terms of 1 to 5 years
- Grace period is 9 calendar days after the CD matures
In a previous post, a reader mentioned in the comments about his problems with Discover Bank's customer service. In his opinion the customer service "is often unavailable, and unreliable at best." If you've been a Discover Bank customer, your comments are appreciated.
For those who are looking for a healthy bank, Discover Bank may be a good option. It has a 4 star ranking (excellent) at BauerFinancial based on 12/31/07 data. Discover Bank is a member FDIC (Certificate # 5649).