Here is the email that the reader reported receiving:
3.25% APY 5 yr CD Exclusively for Discover Cardmembers. Offer only available through the end of August.
Offer Code: D120119
When you open a Discover Bank CD, you lock in a great rate, guarantee your returns and - for a limited time - earn Cashback Bonus on your Discover Card.
Exclusive Limited Time Offer
Deposit $2,500 during August with the offer code: D120119 and earn up to 1% Cashback Bonus on your savings and up to $250 Cashback Bonus, based on your savings amount, credited to your Discover Card account*. Deposit more, and earn more!
$2,500 CD earns $25 Cashback Bonus
$10,000 CD earns $100 Cashback Bonus
$25,000 CD earns $250 Cashback Bonus
The current rates as listed at Discover Bank's CD rates page as of 7/29/09 are 2.75% APY for the 3-year CD and 3.25% APY for the 5-year CD. So with a 1% cash back bonus, that approximately adds 0.33% to the 3-year CD and 0.20% to the 5-year CD. So the effective rates when factoring in the bonus become 3.08% APY for the 3-year and 3.45% APY for the 5-year. It's not a hot deal, but the rates plus the bonus make for a competitive CD.
I have more details about Discover Bank CDs, money market account, and their new savings account in this previous post. It should be noted that some readers have reported customer service issues. Discover Bank is still offering 2.00% APY on their new online savings account as of 7/29/09.
Discover Bank has decent ratings for safety and soundness: 3½ stars (good) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 3/31/09 financial data. Discover Bank is a member FDIC (Certificate # 5649).
Thanks to the reader who mentioned this promotion in the Daily News & Deals Post.
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