Discover Bank Savings and CD Rates: How Do They Compare?

Photo to accompany a story about Discover's savings and CD rates
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While you may know Discover for its popular cash back credit cards, the digital bank also offers an array of banking products including savings accounts, money market accounts, and certificates of deposit (CDs)

These accounts from Discover Bank carry great interest rates that are competitive with the best online banks and considerably higher than the most popular national banks. You can do all your banking online or through the mobile app, and pay no monthly fees. 

With the Fed making moves to raise interest rates throughout 2022, now is an excellent time to revisit where you keep your savings and whether your account is working for you and your goals.

To help you get started, here’s more about what you can get from Discover Bank and how to decide if Discover is right for you:

Discover Savings Rates by Account Type

Discover offers both a high-yield savings account and a money market account. Both accounts have competitive interest rates but different account details that may make one better suited for you than the other. There’s also an IRA version of the Discover savings account, which is similar to the regular account but comes with tax advantages for retirement.

The chart below shows the main features of Discover’s savings accounts and money market accounts, including minimum deposit requirements and fee information:

Annual Percentage Yield (APY)Minimum DepositFees
Discover Online Savings Account3.00% APY$0None
Discover Money Market Account2.90% APY for balances under $100,000

2.95% APY for balances over $100,000
$0None

Note: The above APYs are accurate as of Nov. 30, 2022. The NextAdvisor editorial team updates this information regularly, though it is possible rates have changed since they were last updated.

If you’re looking at rate alone, the high-yield savings may be the better choice, since it offers a higher rate with no minimum balance. However, while you’ll need to save more money to earn more interest, the money market account also comes with some added benefits that make your savings easier to access, including a debit card you can use to access cash fee-free at more than 60,000 ATMs nationwide.

While these accounts typically have a transaction limit of six transfers or withdrawals per month, Discover says it is currently not enforcing the limit.

How Do Discover Savings Rates Compare to Other Banks?

Discover offers competitive savings account rates compared to other banks today. 

To start, its rates are far better than those offered by many large banking brands with branches nationwide. For example, Chase and Wells Fargo currently offer a 0.01% APY yield on standard savings accounts. Even Wells Fargo’s higher-earning Platinum Savings Account has a much lower 1.01% APY, but requires a minimum balance of $100,000.

And when it comes to other high-yield online savings accounts, Discover still has good rates, though it’s not the best. A few of the best savings account rates today are upwards of 3.50% APY. Money market accounts are similar: many of the best rates are around 3.00% APY, like Discover, but some offer as high as 4.00% APY.

Overall, Discover Bank offers competitive rates on savings accounts. If the other account features fit your financial plan and goals, the interest rate you’ll earn is among the best available today.

Discover CD Rates by Type

Discover also offers a range of certificates of deposit (CDs) with fixed rate returns and no account fees. You can lock in your rate for anywhere from three months to 10 years, and earn the best rates on CDs with terms of 12 months or longer.

Discover also offers an IRA certificate of deposit (CD), which comes in the same range of yields and terms as regular CDs, but with advantages for retirement planning.

The chart below shows Discover’s current available CD terms and other account details.

TermAnnual Percentage Yield (APY)Minimum Deposit
3 months1.50% APY$2,500
6 months2.75% APY$2,500
9 months2.85% APY$2,500
12 months4.00% APY$2,500
18 months4.05% APY$2,500
24 months4.10% APY$2,500
30 months4.10% APY$2,500
36 months4.15% APY$2,500
48 months4.20% APY$2,500
60 months4.25% APY$2,500
84 months4.25% APY$2,500
120 months4.25% APY$2,500

Note: The above APYs are accurate as of Nov. 30, 2022. The NextAdvisor editorial team updates this information regularly, though it is possible rates have changed since they were last updated.

Discover CD Rates vs. Other Banks

Discover’s CD rates are competitive among online, high-yield CDs, and much higher than the under-1.00% APYs you’ll find from large national banks. That’s particularly true when you choose a 12-month CD term or longer.

However, the minimum deposit amount for Discover CDs is $2,500, which can be a drawback for some savers. Some other CDs with great rates have lower minimum deposit requirements or even none at all.

Compared to other top CD rates today, Discover is among the best for longer terms. The highest one, three, and five-year CD rates right now are around 4.50% or slightly more, but Discover isn’t far behind. We count Discover’s CD options among the best high-yield CDs we track here at NextAdvisor. However, when it comes to shorter CDs, you can find higher rates elsewhere for three- to six-month terms.

Is Discover a Good Choice for a Savings Account or CD?

With great interest rates, no monthly fees, and various account options, Discover can make a great addition to your savings portfolio. Discover accounts also come with standard FDIC insurance, so you can rest assured you’ll have protection for up to $250,000 in deposits per account.

Like any new account, make sure you determine your goal for your savings balance before you decide on an account type. For emergency funds, for example, it’s better to stick with more accessible high-yield savings or money market accounts. But for longer-term goals, a CD can be a good option for earning a higher yield without the option to use the money for anything else. 

Also keep the potential account restrictions in mind, such as the $2,500 you’ll need to open a CD or the lack of ATM access for savings accounts. 

You can open a Discover account online and from home, and you can use the Discover app or online website for money transfers and tracking your balance.