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Amalgamated Bank Reviews: Checking, Savings, CD, Money Market, and IRA Accounts

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Amalgamated Bank’s checking account options

Online Checking

This interest-bearing checking account has no monthly maintenance fees and comes with added protections on your debit card.

APY

Minimum Balance Amount

0.10%

none

0.60%

$2,500

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: Free at Amalgamated Bank and Allpoint ATMs, $1.50 for out-of-network ATMs
  • ATM fee refund: Up to two domestic transactions per month
  • Overdraft fee: $10

This checking account is best for those who intend on using the account for their everyday banking. This tiered checking account comes with mobile banking and an enhanced Mastercard debit card. Some of the perks include: price guarantee, satisfaction guarantee and extended warranty for qualified purchases. Most of these only allow up to four claims per year.

Account holders are also eligible to participate in the Donate The Change program, which supports a bank-selected non-profit organization every time you make a purchase with your debit card. Once you open an account and receive your debit card, Amalgamated Bank will donate 10 cents (up to $200) every time you make a $10 debit card purchase. Currently, the bank is supporting The Solutions Project, a nonprofit supporting clean energy solutions.

How to get the Online Checking account

You can only apply for this checking account online. To do so, head over to Amalgamated Bank’s site and complete an application form. You’ll need to provide personal information such as your name, address, a government-issued ID and your Social Security number. Then you’ll need to fund the account.

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Give-Back Checking

The bank’s contribution of an amount equal to half the interest you earn to an organization of your choosing is a key feature of this account.

APY

Minimum Balance Amount

0.10%

none

0.60%

$2,500

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: Free at Amalgamated Bank and Allpoint ATMs, $1.50 for out-of-network ATMs
  • ATM fee refund: Up to two domestic transactions per month
  • Overdraft fee: $34

This checking account is great for those who are looking for an everyday checking account and an opportunity to help fund worthy progressive causes. While the Online Checking account has a philanthropic component, the Give-Back account lets you choose from a list of participating organizations and the bank will donate the equivalent of half of the interest you earn on your behalf. You can review the list of organizations account holders can select by heading to their site.

Other features of the account include free mobile banking and an enhanced Mastercard debit card. This card gives some consumer perks such as satisfaction guarantee, extended warranty and price guarantee for qualified purchases, usually up to four claims each year.

How to get the Give-Back Checking account

First, you’ll need to decide which organization you want to support by heading to their product page. You’ll find a description of current organizations you can support and under each one is a link to apply for the checking account. You’ll need to fill out an application with your personal details such as your name, address, government-issued ID and Social Security number. Afterwards, you’ll need to fund your account.

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Convenience Checking+

Minimal interest, but you can waive the monthly maintenance fee.

APY

Minimum Balance Amount

0.06%

none

0.10%

$500

0.15%

$1,000

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $10 (this can be waived)
  • ATM fee: Free at Amalgamated Bank and Allpoint ATMs, $1.50 for out of network ATMs
  • ATM fee refund: Up to two domestic transactions per month
  • Overdraft fee: $34

This account is a step up from the standard Convenience Checking account, but it doesn’t offer as high of a rate as the Online Checking account. You do get access to mobile banking, an enhanced Mastercard debit card – offering consumer protections for qualified purchases such as extended warranty and price guarantee.

There’s also the Donate the Change program, where Amalgamated Bank will donate $0.10 to a nonprofit organization every time you make a $10 debit card purchase. Right now, that organization is The Solutions Project, a nonprofit that helps to change the landscape of clean energy sources by bringing leaders together to help fund projects.

Although there is a monthly maintenance fee, you can get that waived if you make a recurring qualifying direct deposit each month. You also get one overdraft charge waived per year.

How to get the Convenience Checking+ account

This account can only be opened in person at a branch. Click here to find one closest to you.

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Convenience Checking

This account doesn’t earn any interest and can only be opened at a branch.
  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $5 (this can be waived)
  • ATM fee: Free at Amalgamated Bank and Allpoint ATMs, $1.50 for out of network ATMs
  • ATM fee refund: Up to two domestic transactions per month
  • Overdraft fee: $34

This checking account is best for those who want to use their checking account for frequent transactions and are willing to forego earning interest for the convenience.

There are some perks to the account. For example, you can waive the monthly maintenance fee if you make a qualifying direct deposit each month, such as your salary or Social Security benefits. Also, every 12 months you’ll get one overdraft fee waived. And, mobile banking is free.

You will get the enhanced Mastercard debit card which comes with protections such as extended warranty and price guarantee for qualified purchases. It also gives you the opportunity to participate in Amalgamated Bank’s Donate the Change program.

How to get the Convenience Checking account

You can only open this account in person. Click here to find a branch closest to you.

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Affordable Checking

A step up from the Access Checking account.
  • Minimum opening deposit: None
  • Monthly account maintenance fee: $0
  • ATM fee: Free at Amalgamated Bank and Allpoint ATMs, $1.50 for out-of-network ATMs
  • ATM fee refund: None
  • Overdraft fee: $34

This checking account is a small step up from the Access Checking account in that you do get check writing capabilities and overdraft protection. Account holders also get a Mastercard debit card and free mobile banking.

Because you don’t earn any interest, you’re better off with one of the other account options, such as Online Checking which doesn’t require a monthly maintenance fee either.

How to get Affordable Checking account

You can only open an Affordable Checking in person. You can head over to their locations page to find a branch near you.

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How Amalgamated Bank’s checking accounts compare

As far as rates go, most of their products are on par with some of the best offerings out there. Like many of its competitors, Amalgamated Bank requires no opening minimum balance or monthly maintenance fees. These checking accounts are also unique in that it offers you a chance to give back to a nonprofit organization.

However, for those seeking the highest APYs on the market, you’ll want to look at our list of the current best online checking accounts.

Amalgamated Bank’s savings account options

Online Savings

A simple online savings account with no monthly maintenance fees.

APY

Minimum Balance Amount

1.60%

none

  • Minimum opening deposit: $0
  • Minimum balance to earn APY: $0
  • Monthly account maintenance fee: $0
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: None

This is a great account for those who want a free savings account earning a competitive rate. However, that rate is promotional and may change after the first 12 months. Afterwards, the bank may change the APY at their discretion.

Account holders get free online and mobile banking, including mobile check deposit and Touch ID login if your phone’s compatible. While there’s no ATM access, you can link this account to a checking account to transfer money.

Federal Reserve Regulation D mandates that savings accounts are limited to six withdrawals a month. Amalgamated Bank charges an excessive withdrawal fee of $5 per withdrawal if you make more than six.

How to get an Online Savings account

Head over to Amalgamated Bank’s website and fill out an online application form, which should take around 10 minutes. The form requires you to fill in personal details such as your name, employment information, Social Security number and state-issued ID. You’ll then be asked to fund your account.

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Give-Back Savings

A simple online savings account with no monthly maintenance fees.

APY

Minimum Balance Amount

1.00%

none

  • Minimum opening deposit: $0
  • Minimum balance to earn APY: $0
  • Monthly account maintenance fee: $0
  • ATM fee: None for Allpoint and Amalgamated Bank ATMs. $1.50 for out-of-network ATMs
  • ATM fee refund: None
  • Overdraft fee: None

Just like the Give-Back checking account, this savings account lets you choose from a list of participating organizations and Amalgamated Bank will donate the equivalent of half of the interest you earn on your behalf.

Account holders also get an ATM card for cash withdrawals, up to a maximum of $500 per day. Because this is a savings account, you’re limited to six non-ATM withdrawals per month as mandated by Federal Reserve Regulation D. If you exceed that limit, you’ll be charged an excessive withdrawal fee of $5 per transaction.

How to get the Give-Back Savings account

First decide which organization you want to support on their product page and click on the corresponding link to apply for a account under each organization. You’ll be taken to an online application form where you can fill in details, including your name, address, employment information, Social Security number and government-issued ID. You’ll then be asked to fund your account.

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Convenience Savings

You’ll get a better deal with the online savings account options.

APY

Minimum Balance Amount

0.06%

None

0.15%

$100

  • Minimum opening deposit: None
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: $0
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This is pretty much a bare bones savings account and you’re probably better off with Amalgamated Bank’s Online Savings account option if you’re looking for better rates. There’s no ATM access and you’re limited by federal regulation D to six withdrawals a month. If you make more than that in a month, you’ll be charged $5 for each.

How to get the Convenience Savings account

You can only open this account in person. You check their locations page or call customer service to find a branch near you.

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on Amalgamated Bank’s secure website

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How Amalgamated Bank’s savings accounts compare

Both savings accounts are pretty much on par with what’s currently being offered out there. Although some of their competitors offer slightly higher rates, Amalgamated Bank requires a comparatively low minimum opening deposit. Plus, these accounts offer you the opportunity to donate to worthy causes, whereas other banks may not.

You can always check our list of the current best rates to nab the best deal on a savings account.

Amalgamated Bank’s CD rates

Fixed rate CDs

Earn a guaranteed rate of return though with less than stellar rates.

Term

APY

3 months

0.50%

6 months

1.05%

7 months

1.05%

12 months

1.60%

24 months

1.65%

36 months

1.70%

60 months

1.75%

  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: Depends on length of term:
    • Between 3 to 12 months – 90 days interest
    • Between 13 and 30 months- 180 days interest
    • 31 months or more – 270 days interest

This fixed rate CD is best for those who don’t have a lot of money to invest and want a guaranteed rate of return on their cash. Interest is compounded differently depending on the length of your term. If you have an account that matures in a year or less, there isn’t compounding and interest will be credited upon maturity. Accounts with terms of more than a year will have interest compounded yearly and credited at maturity. You can choose to have interest credited to another Amalgamated Bank account or kept in the CD.

You’ll receive a notice before your CD is set to mature. When it does, you’ll have a 10-day grace period in which you can close the account, make additional deposits or renew it for another term. Otherwise, your CD will automatically be renewed.

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Jumbo CD

This CD offers shorter term options for a big balance, but at the cost of low rates.

Term

APY

14 days

0.25%

30 days

0.25%

60 days

0.25%

3 months

0.50%

120 days

0.60%

150 days

0.60%

6 months

0.60%

210 days

0.60%

270 days

0.60%

12 months

0.85%

  • Minimum opening deposit: $250,000
  • Minimum balance amount to earn APY: $250,000
  • Early withdrawal penalty: Depends on length of term:
    • Less than 61 days – all interest
    • 3 to 12 months – 90 days interest
    • 13 to 30 months – 180 days interest
    • Over 30 months – 270 days interest

This CD is best for those who have a large amount of money and want a guaranteed rate of return on it in a short-term investment vehicle. However, there are better rates elsewhere. In fact, even with the bank’s longer term the fixed rate CD is the better deal.

Interest earned isn’t compounded and is credited to your account when it matures. The account won’t be automatically be renewed, so you can either close the account, make withdrawals or make additional deposits.

How to get Amalgamated Bank’s CDs

You can only open a CD account at a branch. Click on this link or call customer service to find a location closest to you.

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How Amalgamated Bank’s CD rates compare

Unfortunately, these rates fall short in comparison to what other banks and credit unions are offering. Amalgamated Bank’s competitors also offer low minimum opening deposits and different account terms. With the jumbo CDs, these rates are pretty low, though they do offer short term options. If you’re after the best APYs – no matter how much you intend on depositing – you’re better off looking at our list of the current best CD rates.

Amalgamated Bank’s money market account options

Money Market account

A simple money market account that doesn’t offer anything out of the ordinary.

APY

Minimum Balance Amount

0.20%

none

0.25%

$25,000

0.30%

$50,000

0.40%

$100,000

  • Minimum opening deposit: $0
  • Minimum balance to earn APY: $0
  • Monthly account maintenance fee: $0
  • ATM fee: $0 if at an in-network or Allpoint ATM. $1.50 per transaction for out-of-network ATMs
  • ATM fee refund: None
  • Overdraft fee: None

While the rates for the money market account aren’t anything to write home about, you do get ATM access, even if that is limited to a maximum of $500 in cash withdrawals. If having ATM access is important, this account could be a great option. Otherwise, Amalgamated Bank’s savings accounts are a better option as they have higher rates.

You’re limited to six withdrawals a month as per Federal Reserve Regulation D. If you make more than that, you’ll be charged $5 per withdrawal.

How to get Amalgamated Bank’s money market account

You can only open a money market account at a local branch. Click on this link to find a location closest to you.

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How Amalgamated Bank’s money market account compares

The money market account rates here fall way short in comparison to other online banks and credit unions. Others offer rates almost five times that of Amalgamated Bank’s and have low minimum opening deposit amounts. Some even offer ATM cards with higher withdrawal limits than this bank does.

In short, you’re better off opening an account somewhere else. You can do some comparison shopping using our list of the current best money market rates.

Amalgamated Bank IRA options

IRA CD rates

Get a fixed rate of return with this conservative investment option.

Term

APY

3 months

0.40%

6 months

0.50%

7 months

1.05%

12 months

0.60%

18 months

1.11%

24 months

0.85%

36 months

1.10%

  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: Depends on term of CD:
    • 3 to 12 months – 90 days interest
    • 13 to 30 months – 180 days interest
    • 31 months or more – 270 days interest

This account is best for those looking for a conservative retirement account option. Any interest you earn is compounded and credited monthly. Account holders can choose to keep interest in the CD or deposited into another Amalgamated Bank account when it matures or as it’s credited to your account.

You’ll get a notice when your CD is set to mature. Upon maturity, you’ll get a 10-day grace period in which you can withdraw your funds, renew for another term or make additional deposit or allow it to be automatically renewed by doing nothing.

Because this is an IRA account, you may have to pay taxes and penalties imposed by the IRS, depending on your age. However, you won’t be penalized by Amalgamated Bank if you’re over 70 ½ and make an early withdrawal, but only if you’re depositing the funds into another Amalgamated Bank account.

How to get Amalgamated Bank’s IRA CDs

You can only open an IRA CD account at a local branch. Click on this link to find a location closest to you.

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on Amalgamated Bank’s secure website

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How Amalgamated Bank’s IRA CD rates compare

The promotional rates as well as the 36-month IRA CD are slightly lower than the other offerings out there, but the other terms fall way short when looking at our list of the top IRA CD rates. However, other competitors require higher minimum opening deposits so you’ll need to do some comparison shopping to see if you’re able to meet those amounts. If you can, then you’re better off looking elsewhere.

IRA savings account

A simple IRA savings account that lets you set aside money for retirement.

APY

Minimum Balance Amount

0.40%

$10

  • Minimum opening deposit: $10
  • Minimum balance to earn APY: $10
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This IRA savings account is best for those seeking a retirement account that won’t tie their funds to a time deposit account like the IRA CDs. The minimum balance amount is pretty low, but do be aware that the IRS limits how much you can deposit into the account each year.

Because this is a savings account, you may be limited to six withdrawals a month as mandated by Federal Reserve Regulation D. Also, you may be subject to tax penalties by the IRS if you’re under the age of 59 ½.

How to get Amalgamated Bank’s IRA savings account

You can only open an IRA CD account at a local branch. Click on this link to find a location closest to you.

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Overall review of Amalgamated Bank’s banking products

Overall, Amalgamated Bank’s products aren’t all that stellar. Their CD rates are significantly less than other online competitors, but their promotional accounts are ok since they’re only slightly lower than the highest rates out there. Their IRA accounts aren’t that great either, and there are much better options elsewhere.

Where the bank shines is their savings accounts, as the rates are fairly competitive compared to others. There’s no monthly maintenance fees, minimum balance amounts and you can get ATM access with the Give-Back account. The checking account is also unique in that it offers you the opportunity to contribute to charitable causes without needing to donate your own funds.

Another shortcoming with Amalgamated Bank’s products is that not all of its products can be opened online. Unless you live near a branch, you’re pretty much out of luck when it comes to the CD, IRA and money market accounts.

If you want a great rate for a savings account and a basic checking account that offers ATM refunds, Amalgamated Bank has you covered. Otherwise, it’s probably a good idea to see what others have to offer.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Sarah Li Cain
Sarah Li Cain |

Sarah Li Cain is a writer at MagnifyMoney. You can email Sarah Li here

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Credit Cards, Reviews

American Express Gold Card: Good Travel Rewards for a Fee

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners. This site may be compensated through a credit card partnership.

pay credit card_lg

The American Express® Gold Card is an upgraded American Express charge card without a pre-set spending limit. It’s also a card that rewards cardholders with American Express Membership Rewards® Points for airfare, dining, gas, and grocery spending.

A charge card is one that you need to pay off completely each billing cycle, so there’s no interest. However, since there’s no pre-set spending limit either, you need to keep an eagle eye on spending activity to make sure you can pay off the statement in full at month’s end. Making a late payment can cause you to forfeit Membership Reward points earned during that billing cycle.

In this post, we’ll discuss the American Express® Gold Card terms and how to redeem points. Keep reading for an overview on:

  • American Express® Gold Card basics
  • How to redeem Membership Rewards points earned
  • The fine print details
  • The benefits and protections
  • The pros and cons

The basics of the American Express® Gold Card

3X Membership Rewards® points for flights booked directly with airlines or on amextravel.com and 4X points at restaurants worldwide and U.S. supermarkets (on up to $25,000 per year in purchases, then 1X).

$100 airline fee credit.

You can get up to $100 airline fee credit on your statement each calendar year to cover incidentals charged by an airline of your choosing. Qualifying incidentals are charges separate from your airline ticket like baggage fees and not ticket upgrades.

American Express® Gold Card

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Terms Apply | Rates & Fees

American Express® Gold Card

Annual fee
$250
Rewards Rate
3X Membership Rewards® points for flights booked directly with airlines or on amextravel.com and 4X points at restaurants worldwide and U.S. supermarkets (on up to $25,000 per year in purchases, then 1X).
Credit required
good-credit
Excellent/Good

How to redeem Membership Rewards® Points earned

Through Membership Rewards®, cardholders can transfer points to participating travel and lodging loyalty programs or redeem points for travel bookings, gift cards, statement credits, and other rewards. The value of your points varies depending on how you choose to use them.

Flights, hotels, and vacations

You can pay with points for flights, hotels, and vacations on the American Express Travel site. Using points for flights offers excellent value.

Here’s the point value breakdown on travel and accommodations:

  • Flights: $10 per 1,000 points
  • Hotels, cruises, and vacation packages: $7 per 1,000 points

Transferring your Membership Rewards® Points

If you choose to transfer your points to another program, generally, 1,000 Membership Rewards® Points will transfer as 1,000 miles, points, or credits.

However, transfers that have a different value include (as of the publication date of this article):

  • British Airways and Iberia: 250 Membership Rewards points = 200 Avios
  • El AL Israel Airlines: 1,000 Membership Rewards points = 20 Matmid points
  • Hilton: 1,000 Membership Rewards points = 1,500 HHonors points
  • JetBlue Airways: 250 Membership Rewards points = 200 JetBlue TrueBlue points
  • Starwood Preferred Guest: 1,000 Membership Rewards points = 333 Starpoints
  • Virgin America: 200 Membership Rewards points = 100 Elevate points

Occasionally, there are transfer specials for participating loyalty programs.

Statement credit and gift cards

Using points to put a dent in your credit card bill won’t be the best use of your points. 1,000 points equals just $6 in a statement credit.

Several of the gift cards through Membership Rewards® will give you more in cash value. For example, 1,000 points can get you a $10 gift card at restaurants, retail stores, and hotels including:

  • Hyatt Hotels and Resorts
  • Mandalay Bay Resort & Casino
  • Maggiano’s Little Italy
  • Seasons 52
  • Banana Republic
  • Crate and Barrel

There’s an entire list of the redemption values for gift cards on the Membership Rewards® site.

Other rewards

Using points for shopping, charitable donations, and entertainment are other redemption options. But, again, these options won’t give you as much value for your points as redeeming for flights and gift cards.

The value of 1,000 points ranges from $5 to $7 when shopping at retailers through Membership Rewards® or at Ticketmaster, Amazon.com, BestBuy.com, or Newegg.com.

The fine print

The American Express® Gold Card has an annual fee of $250. If you spend a lot of money on the card, the fee can be worthwhile. However, if you don’t spend a lot, you might want to consider a no fee option.

In addition – when you transfer points to a U.S. frequent flyer program, there’s a $0.0006 fee charged per point to compensate for the federal excise tax. Although this fee has a lot of zeros in it, the cost may still be impactful if you’re transferring a lot of points. For instance, 100,000 points transferred will cost you $60.

On the plus side, this card has no foreign transaction fee.

Benefits and protections

Car Rental Loss and Damage Insurance

If you pay for a qualifying car rental with your American Express® Gold Card, the rental car is covered against damage and theft after declining the collision damage waiver. Rentals that won’t qualify for coverage are trucks, off-road vehicles, full-size sport vehicles, and exotic cars.

Purchase Protection

If an item you purchase is lost, stolen, or damaged within 90 days of purchase, you may be reimbursed for it.

Pros and cons

Pro: 3X points on travel. If you fly often for work or play, this card rewards you well each time you use it.

Con: The fee. The biggest con here is the annual fee. But, since there are several ways you can earn points in the 3X and 2X categories, you may be able to easily cover this fee throughout the year.

Pro: Membership Rewards. This card is enrolled in the Membership Rewards® Points program and gives you many options for point redemption. The Membership Rewards® site is also incredibly easy to navigate, and there’s no ambiguity in point value. The rewards portal shows examples of exactly what your points are worth for each redemption option.

Con: The fee to transfer points. The ability to transfer points to another program is a pro, but being charged for U.S. frequent flyer program transfers is a tiny gotcha in the fine print.

Pro: No foreign transaction fees. One area in the fees where you do catch a break is with foreign transaction fees. This aspect of the card is fitting since it’s one that rewards you for planning travel.

Who will benefit most from the American Express® Gold Card?

Your ability to earn enough points to surpass the fee will determine whether this is a good card for you.

And if you’re shopping around for a rewards program that will give you the most value for travel, Chase Ultimate Rewards® is an option you should compare to American Express Membership Rewards®.

The Chase Sapphire Preferred® Card*, in particular, is part of the Chase Ultimate Rewards® program and allows you to transfer points to other travel partners as well. Plus, it has an offer that gives 1.25 cents per point for travel. This is slightly more value than what you get for flights with American Express Membership Rewards® since 1,000 points per $10 works out to 1 cent per point.

Before signing up for any rewards card, you should do this type of comparison shopping to figure out which offer will give you the most value for your spending habits.

*The information related to Chase Sapphire Preferred® Card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor here

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Earning Interest, Reviews

Discover Bank CD Rates Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Discover Bank
Most people know Discover as a credit card company, but it also operates an online bank and offers some of the best rates and terms on checking and savings accounts and certificates of deposit (CDs).

Savings account bonus offer: Earn up to $200 on your first Discover savings account

As a bank, Discover offers some of the best products on the market. Currently, they’re offering a major deal on their online savings account, which currently earns 1.80% APY. If you apply for their savings account for the very first time by 12/02/19 and deposit a balance of at least $15,000 by 12/16/19, you can earn a $150 bonus. If you deposit a balance of at least $25,000 by the same date, you can earn a $200 bonus. Applying for the account is easy as you don’t need to go to a branch. Bonuses will be credited to your account by 12/30/19. You can apply online or over the phone. Just be sure to enter or mention the promo code MM1119 when you apply.

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If you’re looking for CDs in particular, Discover is currently considered to have some of the best CDs due to their customer service and digital tools.

Discover Bank CD rates

CD term

Annual Percentage Yield (APY)

3 months

0.35%

6 months

0.65%

9 months

0.70%

12 months

2.10%

18 months

2.10%

24 months

2.15%

30 months

2.15%

3 years

2.15%

4 years

2.15%

5 years

2.20%

7 years

2.25%

10 years

2.30%

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How do Discover Bank CD rates compare?

While Discover Bank CD rates aren’t always the highest available, they are consistently among the top offers across all terms. However, you may be able to find a similar or even better rate with a CD that has a lower minimum deposit than Discover’s $2,500 requirement. Currently, several nationwide banks offered a 12-month CD at a rate higher than Discover’s 12-month CD APY, while requiring a lower minimum deposit. For example, at the same time the above rates were available at Discover, there were 12-month CDs with rates as high as 2.10% APY with a lower minimum balance amount to earn the APY.

It’s always great to go for the highest interest rates possible, but keep your CD investing strategy in mind. If you’re investing in CDs using the ladder strategy, it might be easier to keep everything in one bank since you’ll be switching in and out of CDs frequently.

Discover also stands out from its competition in the CD space with its mobile app and 24/7 U.S.-based customer service. If you value such features, keep those particulars in mind when weighing Discover CD rates against others’.

What you need to know about Discover Bank’s CDs

Discover Bank is very transparent in terms of fine print. It’s not difficult to understand what’ll happen with your money after you invest it. We’ll cover the basics here about what you need to know to invest in Discover Bank’s CDs.

How to open a CD

It’s very simple to open up a CD with Discover Bank. Go to their CD webpage and click on the orange “Open an Account” button near the top right of the page. You can then choose which accounts you’d like to open. Select “CD,” choose a CD term and enter how much you’d like to deposit.

You’ll then need to complete the application by providing your name, address, date of birth, phone number, Social Security number, employment status and possibly even your driver’s license. Once your application is complete and accepted, you’ll need to fund the account.

How to fund the CD

You’ll need to fund it within 45 days of submitting your application, which you can do in one of three ways:

  • Transfer funds from another bank account over the phone. (You can only do this when you first fund your account.)
  • Transfer funds from another bank via online transfer.
  • Write a check to yourself and send it to the following address:Discover Bank
    P.O. Box 30417
    Salt Lake City, UT 84130

The minimum deposit amount for each of Discover Bank’s CDs is $2,500. Once you open a CD, you can’t deposit more money later, so it’s a good idea to make sure you have all the cash you want to invest before you open the account.

Withdrawing funds from the CD

When you want to withdraw money from your CD, the biggest thing to consider is whether that CD has matured yet, or finished its term.

If your CD has not matured, you’ve got options: You can take the interest out penalty-free at any time, or you can withdraw the principal (or the money you deposited) at any time as long as you pay an early-withdrawal penalty. This penalty varies depending on the original term of your CD:

  • less than one year: three months’ worth of simple interest
  • one year to less than four years: six months’ worth of simple interest
  • four years: nine months’ worth of simple interest
  • five years to less than seven years: 18 months’ worth of simple interest
  • seven years or longer: 24 months’ worth of simple interest

If your CD has finished its term, you can withdraw your money penalty-free, allow the CD to renew or roll it into a CD of a different term length. (More on that in a bit).

Earning interest on a Discover CD

Your CD will start earning interest on the same business day that you fund the account. The interest will be added to your account once each month, however.

When it comes to what to do with your interest, you have two options: The default option is to allow it to compound within the CD (meaning you’ll earn interest on that interest), or you can have it automatically deposited each month into another Discover bank account.

What happens once the CD matures?

You’ll get a heads-up notice about a month before your CD matures so you can decide what to do with the money. You have two main options: Either reinvest it into another CD (of the same term length or a different term length), or withdraw the money from the CD and put it into another account (such as a checking or savings account, or perhaps a CD at a different institution).

If you don’t let Discover know what you want to do with the maturing CD, the CD will automatically renew into another one of the same term length. You have a nine-day grace period after your CD automatically rolls over to make any changes or withdrawals penalty-free.

The bottom line

As far as big-name banks go, Discover offers great CD products. Wells Fargo, for example, only offers interest rates as high as 1.55% APY on a $5,000 deposit for a 58-month CD. Chase Bank offers even lower maximum rates — an abysmal 1.05% APY, and only if you can commit a minimum of $100,000 for 10 years.

If you’re the kind of person who likes to keep your finances in one place, Discover also has great credit cards, as well as competitive online savings and checking accounts. No matter how long you’re considering putting money in a CD, Discover is worth a look. Even if it doesn’t have the best available rate, it’s usually within several basis points of the top offerings and well above the average APY.

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Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here