bank rates

Discover Bank Hikes CD Rates

Discover logoDiscover Bank used to regularly rank among the best nationally available CD rate offers.

But for well more than a year (and much longer than that in some terms), this online bank owned by the credit card company has not been competitive.

That started to change this spring, when Discover increased a number of long-term CD rates.

Last month, it boosted its 12-month offer. And today, it hiked a number of terms.

Discover Bank (www.discover.com) is back in the picture.

Among the changes today, Discover increased rates for the 12-, 36- and 60-month terms.

How Discover Bank CD Rates Compare

Term Old Discover rate New rate Leaderboard
12-month CD 1.00% 1.01% 1.10%
36-month CD 1.25% 1.30% 1.46%
60-month CD 1.95% 2.10% 2.30%

UPDATE 8/21: Discover’s website now shows the yield for 12-month CDs back to 1.00%.

Although we don’t regularly track long-term CD rates, it also appears Discover increased the yield on 7- and 10-year CDs, as well. Seven-year CDs pay 2.20% APY, while 10-year CDs earn 2.30% APY.

Minimum deposit on all Discover CDs is $2,500.

Perhaps the most notable term here is the 5-year CD. Discover last offered a 2% yield in late 2011. We last ranked Discover among the top offers in late 2012.

So, while there still are other better offers out there, it’s good to see Discover rates a mention again.

See how Discover compares with the other banks we’re tracking for the:

And remember, AAA members get even better rates through a partnership with the bank. Members of this motor club enjoy a 5 basis point boost on several CD terms.

With the rate bonus, AAA members earn 1.05% APY on 12-month CDs and 2.15% APY on 60-month CDs.

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