Discover Bank: Checking, Savings, and CD Rates Review

Shawn Plummer

CEO, The Annuity Expert

Discover Bank provides money-saving products including 3-month to 10-year CD rates, checking accounts, and savings accounts. In this guide, we’ll compare Discover Bank’s interest rates to CD, checking, and savings account rates from the top banks in the USA.

Let’s take a look!

Earn The Highest Interest Rates On Savings Today

Fixed annuities are almost identical to Certificates of Deposit (CDs) accounts and provide higher interest rates and penalty-free withdrawals for income. Why settle for less than 1% on your money when you can earn 3% and liquidity?

TermInsurance CompanyInterest Rate
24 MonthsOceanview Annuity2.85%
36 MonthsCanvas Annuity3.80%
48 MonthsOceanview Annuity3.35%
60 MonthsAthene Annuity3.85%
72 MonthsOceanview4.30%
*Fixed annuities are only for saving money to use in retirement.

Disclaimer: This is a review. The Annuity Expert is not associated with a bank or credit union. However, fixed annuities are sold at most financial institutions. Our goal is to help you find the highest interest rates for your retirement savings.

About Discover Bank

Discover Bank was founded in 1911 by Sears Roebuck and Company. The bank originally operated as a subsidiary of Sears, but it was spun off as an independent company in 1985. Discover is headquartered in Riverwoods, Illinois, and it offers a wide range of financial products and services, including checking and savings accounts, loans, and credit cards.

Discover is best known for its cashback rewards program, which allows cardholders to earn rewards on everyday purchases. The bank also offers a wide array of online and mobile banking services, making it easy for customers to manage their finances on the go.

Today, Discover is one of the largest issuers of credit cards in the United States, with over 50 million cardholders. And with a strong focus on customer service and innovation, Discover is well positioned for continued success in the years to come.

Discover Money Market Rates

Their money market account is one such product that offers peace of mind and security alongside excellent returns. With the ability to earn interest on your account balance, access your funds with ease, and take advantage of a range of online banking tools, the Discover Bank money market account gives you everything you need to make sound financial decisions.

Whether you’re saving for retirement or building an emergency fund, this account can help put you on the path to success. So why wait? Sign up today and start reaping the benefits of a Discover Bank money market account!

Minimum BalanceAPY
$0.010.30%
$100,000.000.35%

Discover Savings Account Rates

Discover Bank is a leading online bank that offers a variety of savings account options to its customers. One of the most popular Discover Bank savings account options is the High-Yield Savings account. This account offers customers a competitive interest rate, as well as no monthly maintenance fees.

In addition, the High-Yield Savings account provides customers with 24/7 online access to their account balance and transaction history. Discover Bank also offers other savings account options, such as the CD-Rate Savings account and the Money Market Savings account. No matter which account option you choose, Discover Bank makes saving easy and convenient.

TypeMinimum BalanceAPY
Online Savings Account$0.010.40%
*APY=Annual Percentage Yield.

Discover Bank CD Rates

Discover Bank is a trusted provider of high-quality, long-term investment vehicles like certificates of deposit. Whether you’re looking to grow your savings over the long term or simply protect your cash from market fluctuations, Discover Bank has the perfect CD for your needs.

With flexible terms ranging from 1 month to 5 years, a wide range of interest rates, and zero maintenance fees, Discover Bank makes it easy for you to build wealth and achieve your financial goals. So why wait? Sign up for a certificate of deposit with Discover Bank today and start investing in your future!

TermMinimum DepositAPY
1 Year$2,5001.20%
18 month$2,5001.50%
24 Month$2,5001.60%
3 Year$2,5001.70%
4 Year$2,5001.80%
5 Year$2,5002.15%
APY = Annual Percentage Yield

Discover vs.

Certificates of Deposit vs. Fixed Annuity

The Top Fixed Annuities

Fixed annuities offer a guaranteed return for a set amount of years, similar to a CD. Guaranteed crediting rates for the terms below:

  • 2-YEAR TERM: 2.85%
  • 3-YEAR TERM: 3.80%
  • 4-YEAR TERM: 3.70%
  • 5-YEAR TERM: 3.85%
  • 6-YEAR TERM: 4.30%
  • 7-YEAR TERM: 4.10%
  • Grow your money as fast as possible
  • Principal protection
  • The interest rate is locked for the term you select
  • Tax-deferred growth
  • Withdraw annually without penalty
  • Lump-sum death benefits
  • Accepts cash, 401(k), and IRA Funds

What’s The Difference Between a Fixed Annuity and a CD?

FeatureFixed AnnuityCD
Who OffersInsurance CompanyBanks
Premium Amounts$2,500 to $1 Million$500 – No Maximum
Terms2 Years to 20 Years3 Months to 7 Years
Guaranteed Interest RatesUp to 3.25%Up to 1.25%
Triple CompoundingYesNo
Principal ProtectionYesYes
Can Lose Money?NoNo
Liquid After Term100%100%
How Are Gains Taxed?Tax-DeferredTaxed Annually
Annual LiquidityUp to 10% AnnuallyNo Liquidity
Who Protects My Money?Insurance Company/SGAFDIC
Accepts IRAYesNo
Accepts 401(k)YesNo
Death BenefitLump-SumLump-Sum

Are Annuities FDIC Insured?

Fixed annuities are not FDIC insured, but they have similar protections for your money. An annuity is an insurance policy guaranteed by the insurance company’s claims-paying ability. The insurance companies are members of the state insurance guarantee associations in each state where they do business. Each state insurance guarantee association protects consumers in the unlikely event that their insurance company fails and defaults on their obligations to their consumers (limits vary per state).

For example, Georgia insures up to $250,000 of the annuity’s cash value per insured life if the insurance company becomes insolvent and can not fulfill its obligations to the insured.

The Best CD Rates Today

3 Month CD Rates

Best 3-Month CD RatesRateTermMinimum
Spectrum Federal Credit Union0.50% APY3 Months$500.00
Navy Federal Credit Union0.40% APY3 Months$1,000.00
Chevron Federal Credit Union0.50% APY3 Months$500.00

6 Month CD Rates

Best 6-Month CD RatesRateTermMinimum
CommunityWide FCU0.80% APY6 Months$500.00
Edward Jones 0.75% APY6 Months$1,000.00
Charles Schwab0.80% APY6 Months$1,000.00

1 Year CD Rates

Best 12 Month CD RatesRateTermMinimum
CommunityWide FCU0.90% APY12 Months$1,000.00
Edward Jones1.20% APY12 Months$1,000.00
Charles Schwab1.40% APY12 Months$1,000.00

2 Year CD Rates

Best 2-Year CD RatesRateTermMinimum
Amarillo National Bank1.75% APY24 Months$1,000.00
Edward Jones2.20% APY24 Months$1,000.00
Oceanview Fixed Annuity2.85% APY24 Months$80,000.00

3 Year CD Rates

Best 3-Year CD RatesRateTermMinimum
Edward Jones 2.55% APY36 Months$1,000.00
Canvas Annuity3.80% APY36 Months$2,500.00

4 Year CD Rates

Best 4-Year CD RatesRateTermMinimum
Edward Jones2.60% APY48 Months$1,000.00
Guggenheim3.05% APY48 Months$5,000.00

5 Year CD Rates

Best 5-Year CD RatesRateTermMinimum
Edward Jones2.30% APY60 Months$1,000.00
Canvas Annuity3.80% APY60 Months$2,500.00

The Best Fixed Annuity Rates Today

CompanyTermRateWithdrawals
Oceanview2 Years2.85%10% Annually
Canvas3 Years3.35%10% Annually
Oceanview4 Years3.35%10% Annually
Canvas5 Years3.35%10% Annually
Oceanview6 Years3.65%10% Annually
Canvas7 Years3.35%10% Annually

Key Takeaway – Retirement Income Planning

Consider a deferred annuity with a lifetime income rider if you’re spending the interest from a CD or a fixed annuity to supplement your retirement income. These annuities would offer a guaranteed income for life (even if the annuity ran out of money), removing the concern of making your money last in retirement and running out of money.

Some lifetime income riders offer a retirement income that increases to keep up with inflation, help pay for long-term care expenses, and offer an enhanced death benefit to help your beneficiaries.

Learn the differences and benefits between Fixed Annuities and Certificate of Deposits (CD).

Disclaimer: I may receive a small referral fee if you purchase something using a link in this article.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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