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Ally Bank vs. Capital One 360: Which Bank Makes Sense for You?Discover Bank Boosts Long-Term CD Rates
Discover Bank spread a little early Christmas cheer on Wednesday by raising rates on its 5-year CD (2.20% APY) and 7-year CD (2.25% APY). These are the highest rates for both CDs in more than four years.
The minimum opening deposit for any of Discover Bank’s CDs is $2.5K, with no balance cap. Both CDs are also available as IRAs (Traditional and Roth) earning the same APYs and with the same funding requirements.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 3.50% | $0 | - | Discover® | 5 Year CD | |
| 3.50% | $0 | - | Discover® | 7 Year CD | |
| 3.50% | $0 | - | Discover® | 5 Year IRA (Traditional, Roth) | |
| 3.50% | $0 | - | Discover® | 7 Year IRA (Traditional, Roth) |
As stated in Discover Banks’s Certificate of Deposit Account Guide, the Early Withdrawal Penalty (EWP) reads as follows:
5 years: 18 months simple interest on principal amount withdrawn
7+ years: 24 months simple interest on principal amount withdrawn
DA readers may recall that in March 2013 and February 2014, Discover Bank increased its EWPs, making the option of an early closure much less attractive. The history of these increases is as follows:
Availability
Headquartered in Greenwood, Delaware, Discover Bank is an internet bank with no brick-and-mortar branches. To qualify to open an account of any kind with Discover Bank,
each Account owner must be a U.S. citizen or other U.S. person, be at least 18 years old, have a valid Taxpayer Identification Number, have a valid physical U.S. address and provide an electronic consent and signature.
Opening a CD must done online. Funding the CD can be done by 1) online transfer from an eligible Discover Bank Account or an external bank account, 2) phone transfers (available for initial funding only), or 3) by mail.
Bank Overview
Discover Bank of Commerce (FDIC Certificate # 5649) has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 5.56% (excellent) based on September 30, 2015 data. In the past year, Discover Bank has increased its total deposits by $3.2 Billion, an excellent annual growth rate of 7.24%. Please refer to our financial overview of Discover Bank for more details.
As one of the largest financial services firm in the country, Discover Bank traces its roots back to the Greenwood Trust Company, which was established in 1911. Discover Bank came into being following the purchase of the Greenwood Trust Company in 2000. Today, Discover Bank has assets in excess of $84 Billion and more than 415,000 ATMs spread across the United States.
How the CDs Compare
When compared to the 114 similar length-of-term CDs tracked by DepositAccounts.com available nationally, Discover Bank’s 5-Year CD APY currently ranks in the top five.
When compared to the 11 similar length-of-term CDs tracked by DepositAccounts.com available nationally, Discover Bank’s 5-Year CD APY currently ranks first.
The above rates are accurate as of 12/26/2015.
To search for nationwide CD rates and CD rates in your state, please refer to the CD rates section of DepositAccounts.com.