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Discover®️ Bank CDs Review

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Discover Bank, formerly known as The Greenwood Trust Company, was founded in 1911 and is based in Greenwood, Delaware. Discover Bank is a subsidiary of Discover Financial Services and is mainly and online financial institution that offers a variety of financial products such as CDs, credit cards, and loans, among others.
 
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How is Discover®️ Bank CDs rated?

Breakdown

0.0/5
Types of CDs
4.0/5
Term Lengths and Features
4.0/5
Minimum Deposits, Fees, and Penalties
4.0/5
Customer Experience

Overall Rating: 3.9 / 5 (Very good)

Discover Bank is a good option for those interested in traditional or IRA CDs. The company offers high yield CDs (traditional and IRA) with flexible terms that go up to 10 years with no maintenance fees, optional automatic renewals, and the ability to withdraw interest anytime without penalties. Discover offers a variety of account ownership options such as trust, guardian, and custodial, among others. Additionally, multiple beneficiaries may be added to some of the CDs.

Since Discover is mainly an online bank, investors can open, fund, and track their CDs online, which is very convenient. The company has customer support 24/7 through chat, phone, email, text, and social media. All in all, if you’re looking for CDs with high interest rates, flexible terms, interest withdrawals with no penalties, and account ownership options, Discover Bank is an option to definitely consider.

Discover®️ Bank CDs Account Features

Term Lengths and Features - 4 / 5

Discover Bank offers traditional high yield CDs and IRA CDs, both with competitive interest rates which increase with term length. Discover also has a variety of account ownership options such as trust, custodial, guardian, and estate, along with the option to add multiple account beneficiaries. This wide variety of CD account benefits sets Discover apart from many of the other banks we evaluate. Discover requires a minimum deposit of $2,500 to open the account, and there is no maximum specified.

Since the company is mainly an online bank, investors are given the option to open, track, and fund the account online or over the phone. In addition to that, the company allows investors to fund the IRA CDs by initiating a direct or indirect rollover of an existing IRA.

Discover also offers some perks like the company’s best rate guarantee that allows investors to lock up the best interest rate if the account is funded within 10 days of opening, and the option to withdraw the account’s interest anytime without penalties.
Type of Rate (Traditional)
Fixed
Types of CDs
Traditional CD
IRA CD
Account Ownership Types
Trust
Custodial
Guardian
Estates
Interest Compounded
Daily
Term Range
3, 6, 9, 12, 18, 24, 30 months and 3, 4, 5, 7, 10 years
Minimum Deposit Amount
$2,500.00
Maximum Balance Limit
No maximum mentioned
Best Rate Guarantee
Yes
CD Calculator
Yes

Discover®️ Bank CDs Fees and Penalties

Minimum Deposits, Fees, and Penalties - 4 / 5

Discover Bank doesn’t charge monthly maintenance fees on CDs, but like most financial institutions, the company has an early withdrawal fee. The early withdrawal fee ranges from 3 to 24 months of simple interest depending on the CD’s term length and year in which it was opened or renewed. It should be noted than in some cases, the early withdrawal fee might reduce the principal balance.

In addition to that, Discover has a $30 fee for outgoing wire transfers, but doesn’t have fees for incoming wire transfers, and customers may withdraw interest anytime without penalties.
Early Withdrawal Penalty
3 months to 24 months interest depending on term length and year CD was opened or renewed
Other Fees
Outgoing Wire Transfer

Discover®️ Bank CDs Financial Strength and Reputation

Customer Experience - 4 / 5

Discover Bank started as The Greenwood Trust Company in 1911. Discover Financial Services acquired the company in 1985 and renamed it Discover Bank in 2000. Discover holds stable ratings from S&P and Moody's, which means the company’s financial strength is high. Discover has an A+ rating from the Better Business Bureau, but like any other company of its size, it has a large number of complaints with this organization as well as with the Consumer Financial Protection Board.
Year Founded
1911
Standard & Poor's Financial Rating
BBB
Moody's Financial Rating
Baa3
Live Help 24/7
Yes
Contact Methods
Phone
Email
Chat
Social Media
Text
BBB Rating
A+
BBB Total Complaints
892
BBB Resolved Complaints
151
Trust Pilot Rating
7.4 out of 10
Consumer Financial Protection Board (CFPB) Complaints
11,594
Date Collected
2018-09-26

Company Profile

Full Name
Discover®️ Bank CDs
Company Website
https://www.discover.com/
Headquarters
502 East Market Street, Greenwood, DE, 19950

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Customer Comments & Reviews

Loading Reviews ...
Patrick C
11/29/2022
You had better change your site to reflect Discover Bank's new policy on "withdrawing interest anytime without penalties". As a long-time Discover Bank customer with Discover IRA and Non-Ira CD's paying monthly interest directly to our local bank, On 11/17/22, I received a message and letter from Discover, which states that as of 12/10/22 "CD accounts will no longer have the option to transfer interest to an external bank account." They are, in effect, cutting off a significant portion of our monthly retirement income with very little warning. No reason for this was given and their customer service representatives know nothing. I thought that Discover Bank was trust-worthy and... Read More

Top Rated
Our Partner
  • Earn 4.70% with Discover®️ CDs
  • Term: 12 months & 18 months
  • Min. deposit required: $2,500
     
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