Discover CD Rates: What To Know Before You Open One
Written by
Rudri Patel
Edited by
Elizabeth Constantineau
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Certificates of deposit (CDs) are some of the easiest investment instruments to use. You simply deposit a certain amount of money with your bank and let it earn interest for months or years until the CD matures.
Online banks such as Discover® Bank, Member FDIC, can offer higher, more competitive CD rates than big banks because they don’t have the overhead costs that come with managing brick-and-mortar branches. Keep reading to learn more about Discover Bank CD rates for 2025.
Current Discover CD Rates: October 2025
Here are Discover Bank’s CD rates that are currently on offer: Â
| Term | APY | Minimum Deposit |
|---|---|---|
| 3-month | $0 | |
| 6-month | $0 | |
| 9-month | $0 | |
| 1-year | $0 | |
| 18-month | $0 | |
| 2-year | $0 | |
| 30-month | $0 | |
| 3-year | $0 | |
| 4-year | $0 | |
| 5-year | $0 | |
| 7-year | $0 | |
| 10-year | $0 |
Pros and Cons of Discover Bank CDsÂ
Here’s a quick look at the advantages and disadvantages of Discover Bank CDs.
Pros
- Competitive interest rates. Discover CD rates are higher than the national average.
- No minimum deposit requirement. You can open a CD with no minimum deposit amount.Â
- Interest is compounded daily. CD interest gets compounded daily and is credited monthly.Â
Cons
- Early withdrawal penalties. These penalties apply to all Discover CD accounts.Â
- Not a liquid investment. You cannot easily access cash with a CD.Â
- Online banking only. There are no physical branches and you can only open a CD online.Â
How Much Can You Earn With a Discover Bank CD?
The amount you earn from a CD depends on:
- You initial deposit amount
- The length of the CD term
- The annual percentage yield (APY) offered
Here’s a simple example showing estimated earnings with Discover Bank CDs:
| Deposit Amount | Term Length | APY | Estimated Interest Earned* |
|---|---|---|---|
| $1,000 | 1-year | $40.00 | |
| $2,000 | 2-years | $146.59 | |
| $5,000 | 5-years | $967.18 | |
| $10,000 | 10-years | $4,105.99 |
How To Open a CD with Discover Bank: 4-Step Guide
Opening a Discover Bank CD is straightforward and can be done entirely online. Follow these steps:
- Visit Discover Bank’s website or app: Select the CD and APY that best fits your needs.
- Gather required information: You’ll need your Social Security number, government-issued ID and bank details for funding.
- Fund your CD: Transfer over the funds from another account at Discover or an external account.
- Review and confirm: Double-check your details and submit your application.
Discover CD Rates vs. Other Banks
Discover CD rates are competitive but how do they stack up against other banks? Here’s a side-by-side comparison:
| Bank | 1-Year CD | 5-Year CD | Minimum Deposit |
|---|---|---|---|
| Discover | $0 | ||
| Ally | $0 | ||
| Synchrony Bank | $0 | ||
| Capital One* | $0 |
Is a Discover Bank CD Right for You?
You will have to analyze your personal situation to decide whether a Discover Bank CD is right for you.Â
A Discover Bank CD is ideal for:Â
- Predictable returns. Discover Bank CD rates are fixed so investors looking for predictable returns will gravitate toward this investment.Â
- People who prefer online services. Discover Bank doesn’t have physical branches.Â
- No need for immediate cash. CDs typically have early withdrawal penalties, so if you need cash fairly quickly, you may want to consider investing in another product.Â
A Discover Bank CD is not great for:Â
- In-person banking. Discover Bank has no physical locations, so if you prefer branch services, this financial institution likely isn’t a good fit for you.Â
- Investors seeking higher returns. If you’re looking for higher returns, you may want to consider stocks or mutual funds.Â
4 Quick Tips for Getting the Best CD Rate
Keep these tips in mind when shopping around for the best CD rates.
1. Consider Relationship Banking Perks
Some banks offer higher APYs if you have an existing relationship with the bank or have multiple accounts.Â
2. Compare Multiple Terms
Shop around at multiple banks or credit unions and compare similar term CDs to find your best APYs.Â
3. Look for Promotional or Limited-Time Offers
Many banks offer promotional and limited-time offers. It pays to check in from time to time to see if these offers are available.
4. Use a CD Laddering Strategy if Liquidity Matters
If you need to access to money, using a CD laddering strategy may help with liquidity.Â
Discover Bank CDs: FAQ
Here are the answers to some of the most frequently asked questions regarding Discover CD rates.- What is the minimum deposit for a Discover Bank CD?
- There is no minimum deposit required for a Discover Bank CD.
- Do I need a Discover Bank account to open a CD?
- No, you don't need a Discover Bank account to open a CD.
- Can I open a CD online?
- Yes, you can open a CD online at Discover Bank.
- What happens if I withdraw before the term ends?
- Typically you will incur a penalty if you withdraw early from your CD.
- Are Discover Bank CD rates competitive in 2025?
- Yes. Discover Bank CD rates are competitive and range from 2.00% to 4.00% APY.
More on Discover Bank
- Discover Bank Review
- Discover Bank’s Newest Promotions
- Discover Bank Routing Number
- How To Avoid Discover Monthly Maintenance Fees
- Discover Bank Savings Account Rates
Sarah Sharkey, Sean Dennison and Daria Uhlig contributed to the reporting for this article.
*Capital One interest rates accurate as of Oct. 13, 2025. See website for all current rates.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Oct. 13, 2025.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
