Discover Bank CDs

Discover Bank has a certificate of deposit rate of 1.8% APY for their 3 year CD. Discover Bank online CDs are personal accounts only. The CD also features::

  • Minimum opening deposit of $2,500
  • $2,500 minimum balance to earn best interest rate
  • Fees may reduce earnings
  • Penalty for early withdrawal
  • Insured by Federal Deposit Insurance Corp. (FDIC) up to $250,000 per depositor
  • Interest is compounded daily and credited monthly

Interest earned on CDs can remain in the account or be transferred monthly to a Discover Bank Money Market or another bank account. If you receive interest payments via a check, there is a $5 fee. You receive statements each year in January. But if you choose to have interest automatically transferred to another bank account, you receive monthly statements. You can also view statements online.

Discover Bank notifies you about three weeks before the CD matures with options to renew. The CD automatically renews if you do not contact the bank at least 10 days prior to maturity. Additional deposits can only be made during the grace period following maturity.

iGOBanking Drops 24 Month CD Rate

iGObanking just lowered their 24 month CD rate from 2.25% to 2.00% APY, which is still over a quarter point higher than the next leading rate from Bank of Internet at 1.72% APY. Even though iGObanking dropped their 2 year CD rate to 2.00%, that rate is actually amongst the best rates for the 3 year CDs.

iGObanking is an online division of Flushing Savings Bank in New York.

Here are the next best nationally available 2 year CD rates:

  • Melrose Credit Union at 1.76% with a minimum deposit of $5,000, based out of Queens, New York.
  • Bank of Internet at 1.72% with a minimum deposit of $1,000, based out of San Diego, California.
  • Discover Bank at 1.65% with a minimum deposit of $2,500, the online bank of the major credit card company.

All of these banks and credit unions allow anyone to purchase their certificates of deposit and impose no other restrictions.

Melrose Credit Union allows anyone, anywhere to join for only $1 and must keep at least $25 in a savings account.

Be sure to check out our best CD rates leader-board for the best CDs in your area.

Best Savings Rates - 11/8/2010

Online banks are overall offering better savings account interest rates than local banks and credit unions. The primary reason for this is that online banks have much lower overhead costs, and do not need to maintain a brick and mortar physical locations. Often you'll be able to find better savings rates in local community credit unions. However, as interest rates continue to stay low, online banks have been the place to go to find the best savings rates.

Top Money Market and Savings Rates from Online Banks: