A safer investment strategy than stocks and bonds are certificates of deposit or CDs. Certificates of deposit are money that has been deposited into an account for a specified amount of time and will pay a higher interest rate than most savings accounts. If you are searching for a great place for your CD investment, consider Discover Bank certificates of deposit. Discover Bank continues to provide competitive rates for their certificates of deposit and is a great choice for any investment strategy for those interested.

Discover Bank is impressive for certificate of deposits financings with choices that range from 3 months to 10 years. They have repeatedly stayed near the top of internet banks for certificates of deposit interest rates offered to their banking customers.

Great rates for long terms

Certificates of deposit interest rates for their 12 month CD are 1. 5% APY and 2.25% for their 3 year or 36 month CD. If you can afford to invest your monies for longer CD terms you can really get a great interest rate at 3% APY for a 5 year or 3.5% APY for their 10 year term.

One of the great things about Discover Bank CDs is they offer longer terms than most banks. For example, Ally Bank doesn’t offer CDs for any term longer than 5 years. In addition, many other lending institutions don’t have IRA CD rates that are offered by Discover Bank.

Early withdrawal penalties

If you decide to withdrawal your certificate of deposits earlier than the maturity date the lending institution may penalize you.  The early withdrawal penalty for Discover Bank CDs is calculated according to your interest earned for your CD.

If you withdrawal CDs under one year you will be penalized 3 months of interest.  For the 1 to 5 year CD 6 months of interest is penalized. Any CD of 5 years or older will have a penalty of 9 months of interest. Many banks and other lending institutions that offer CDs over 5 years have a higher rate of penalty than Discover Bank certificates of deposit. In addition, the penalty is applied only for the principal you withdraw. If you choose to withdraw only your interest,  there is never a penalty for early withdrawal.

Discover Bank also offers a special rate for their CDs for AAA members. If you are a member of AAA, Discover Bank will provide you with a 5 point bump on any certificate of deposits you choose to invest in.  You can invest in the Discover Bank CDs online through your AAA member website financial link or directly with Discover Bank through their customer service.

Ratings for Discover Banks safety and soundness exceed the average financial institution. They have ranked 3 ½ stars with BauerFinancial. BankTruth.org has ranked Discover Bank at 3 stars.  Depositaccount.com provided Discover Bank with a health score of 4 out of 5 possible points.

Not only do Discover CDs beat the national average, but also offer a wide variety of terms, from 3 months to 10 years. For whichever type of term you choose, the minimum deposit must be $2,500 to open the CD account.

The Discover Bank CDs only have a few fees when dealing with special services or early withdrawal. Some include incoming/outgoing wires, both domestic and  international. Also paper copies of statements and, of course, withdrawals.

Discover Bank is FDIC insured

Please also see Discover Bank’s best savings account.