Certificate of Deposit Rates as of 8/14/08
Term Disc Disc/AAA
9 months 3.40% 3.45%
12 months 3.76% 3.82%
18 months 4.18% 4.23%
24 months 4.41% 4.46%
30 months 4.60% 4.65%
36 months 4.81% 4.86%
48 months 4.96% 5.02%
60 months 5.23% 5.28%
Discover's standard rates are listed at its CD rates table page. 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.
My last post on Discover Bank was on July 2nd. Rates for terms over 12 months have gone up by 10 to 20 basis points. However, 9-month and 12-month rates have gone down by around 20 basis points.
The details about Discover's CDs are listed at their CD overview page and the CD FAQs. Please refer to my previous post for a summary of the CD features.
Like the short-term CD rates, Discover Bank's money market account yield has dropped a little. It's now 3.04% APY for balances between $2,500 and $25,000. Last month it had been 3.14% APY.
A reader in my previous post commented about his experience with Discover Bank:
Application process is straight-forward. Online system is nearly identical to AmTrust Direct except: You have to phone a CSR to have your "profile" changed each time you open a new CD to be able to view all accts online, and the MoneyHQ process is slow if you use the 3-day "free" transfer process. Prefer to initiate transfers from my other banks. Customer service seems good so far.
Other comments have reported Discover Bank's customer service often being unavailable and unhelpful. If you've been a Discover Bank customer, your comments are appreciated.
For those who are looking for a financially healthy bank, Discover Bank may be a good option. Its rating at Bankrate actually increased this year to 5 stars (superior) based on 3/31/08 data. It previously had a 4-star rating based on 12/31/07 data. It continues to have a 4-star rating (excellent) at BauerFinancial based on 3/31/08 data.
Discover Bank is a member FDIC (FDIC Certificate # 5649).