Certificate of Deposit Rates as of 6/18/08
Term Disc Disc/AAA
9 months 3.56% 3.61%
12 months 3.76% 3.82%
18 months 4.02% 4.08%
24 months 4.23% 4.28%
30 months 4.34% 4.39%
36 months 4.44% 4.49%
48 months 4.70% 4.75%
60 months 4.96% 5.02%
Discover's standard rates are listed at this CD rates table. To find the AAA rates at Discover's website, start at AAA's financial services page and enter your zip code. You should then see a Discover Bank link on the right. Note, this Discover Bank AAA accounts don't seem to be available for all zip codes.
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- Early withdrawal penalty of 6 months interest on amount withdrawn for terms of 1 to 5 years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 still has a 4 star ranking (excellent) at BauerFinancial based on 3/31/07 data. Discover Bank is a member FDIC (Certificate # 5649).
Thanks to the reader who mentioned these new Discover rates in the finding-the-best-deals post..