Advertiser Disclosure

Reviews

Chase Bank Reviews: CD, Checking, and Savings Rates

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.

Chase Bank’s CD rates

Chase’s CDs come with many different term length options, but don’t expect the interest rates on these CDs to make you a millionaire.

Standard rates

Term

APY

1 Month0.01%
2 Month0.01%
3-5 Months0.01%
6-8 Months0.01%
9-11 Months0.01%
12-14 Months0.01%
15 - 17 Months0.01%
18-20 Months0.01%
21-23 Months0.50%
24-29 Months0.30%
30-35 Months0.30%
36-41 Months0.45%
42-47 Months0.50%
48-59 Months0.50%
60-83 Months0.50%
84-119 Months0.50%
120 Months0.45%

Relationship rates

$1,000-$9,999

$10,000-$99,999

$100,000+

1 Month

0.02%

0.02%

0.02%

2 Month

0.02%

0.02%

0.02%

3-5 Months

0.02%

0.02%

0.02%

6-8 Months

0.02%

0.02%

0.02%

9-11 Months

1.01%

2.00%

2.00%

12-14 Months

0.02%

0.02%

0.05%

15 - 17 Months

0.05%

0.15%

0.20%

18-20 Months

1.00%

1.00%

0.01%

21-23 Months

1.40%

1.50%

1.50%

24-29 Months

1.15%

1.25%

1.25%

30-35 Months

1.15%

1.25%

1.25%

36-41 Months

1.30%

1.40%

1.45%

42-47 Months

1.49%

1.54%

0.50%

48-59 Months

1.40%

1.50%

1.55%

60-83 Months

1.40%

1.50%

1.55%

84-119 Months

1.40%

1.50%

1.55%

120 Months

1.39%

1.44%

0.45%

  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty:
    • For CDs of less than 24 months, you’ll pay 1% of the amount withdrawn.
    • For CDs of longer than 24 months, you’ll pay 2% of the amount withdrawn.

    In either case, the penalty won’t be more than the total interest you’ve earned.

Chase Bank offers many different CD term lengths, which can allow you to customize your savings plan. This feature is especially handy if you’re trying a creative CD laddering strategy. You can also withdraw the interest earned at any time without paying a penalty, which is a convenient feature if you need this income before the CD matures. However, you’ll still face an early withdrawal fee if you want to withdraw any of the principal (the amount you initially put in the CD).

When you open up a Chase CD, it’ll automatically renew for the same term length once it matures. However, after this happens, you’ll still have a 10-day grace period where you can withdraw the money or make any changes to your CD without penalty.

You can open up a CD with Chase Bank online as long as you’re a U.S. citizen and you have some form of government-issued ID. In addition, you’ll also need a way to fund your new account.

LEARN MORE Secured

on Chase Bank’s secure website

Member FDIC

magnifying glass

How Chase Bank’s CD rates compare

We’ll be blunt. Chase Bank’s CD interest rates don’t even come close to the current top competitors for best CD rates. While it’s nice that it offers many different term length options, this isn’t what’s going to give you the greatest returns: high interest rates will. That’s why we suggest passing on these CDs and instead choosing another bank if you want to earn the most money possible.

Chase Bank’s checking account options

Chase Premier Plus Checking

This checking account comes with very high fees, but offers nice rewards for military members.

APY

Minimum balance amount

0.01%$0
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $25
  • ATM fee: $2.50 for non-Chase ATMs within the U.S. If you’re using a foreign ATM, you’ll pay $5 per withdrawal and $2.50 per transfer or inquiry, plus a 3% foreign exchange fee.
  • ATM fee refund: Your first four non-Chase ATM uses are free.
  • Overdraft fee: $34 per each item over $5, up to three per day. If your account is overdrawn for five or more consecutive days, you’ll also face a $15 extended overdraft fee.

This account is probably best for current and former military members, as well as those with deep pockets and/or other banking relationships with this bank. People who fall under this umbrella can get the high monthly account maintenance fee waived under one of these options:

  • Be an active-duty military member or veteran with a military ID
  • Have an average daily balance of $15,000 across all your eligible linked Chase accounts and investments
  • Sign this account up to make automatic payments to your Chase first mortgage

If you have this account, you’ll also get a few other minor perks. You can get free checks, a free 3” x 5” security box (as long as there are some available) at your local Chase branch and free money orders and cashier’s checks.

In addition, if you are a current military member and have your military paycheck deposited into this account, you’ll get a few more free perks: no fees at all for using non-Chase ATMs, free wire transfers and no foreign exchange fees for ATM or debit card transactions.

You can easily open a Chase Premier Plus checking account online as long as you’re a U.S. citizen. You’ll need an ID number (such as a driver’s license number) and a way to fund your new account, such as via a transfer from another checking account or by debit card.

LEARN MORE Secured

on Chase Bank’s secure website

Member FDIC

Chase Sapphire Checking

This new checking account replaced Chase’s old-guard premium checking account, the Platinum Premier checking account as of Aug. 27, 2018.
APYMinimum Balance to Earn APY
0.01%
$0-$24,999
0.01%
$25,000-$49,999
0.01%
Over $50,000
  • Minimum opening deposit: $100
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $25, unless you keep at least $75,000 in any combination in this account and linked qualifying deposits accounts or investments
  • ATM fee: None
  • ATM fee refund: Chase Bank will refund all ATM surcharge fees
  • Overdraft fee: Your first four overdrafts within a 12-month period are free. After that, you’ll only pay an overdraft fee if your account is overdrawn by $5 or more at the end of the day. If you do have to pay an overdraft fee, you’ll pay $34 per item on up to three items per day.

Chase seems to be piggybacking off of the success of its Sapphire line of credit cards with this new account. It’s based on the old Platinum Premier checking account model (the account that this one is replacing) and has the same policies in terms of its monthly fee, and the requirement to waive the monthly fee.

What happens to your old Platinum Premier account?
If you already had the Platinum Premier checking account, you should have already gotten a notice in the mail that your old checking account will be automatically converted into this new Chase Sapphire Checking account.

What new features does the Sapphire Checking account have?
The Sapphire Checking account brings in some of the more traveler-friendly features that made the Sapphire credit cards so successful. Notably, there are no ATM fees for anything, no foreign transaction fees for using this card abroad, and unlimited ATM surcharge fee reimbursements.

This account also waives some of the random, miscellaneous fees that most people don’t pay anyways. For example, you’ll get a free 3” x 5” security box and you won’t pay a fee for stop payment orders, returned checks, rush debit card replacements, wire transfers, money orders or cashier’s checks. You’ll also get free stock and ETF trades through J.P. Morgan’s online investing platform, You Invest.

Finally, Chase sprinkles in a few other random perks. You’ll get premier relationship interest rates on a linked Premier Savings account (though these interest rates aren’t much higher, to be honest). You can also get early access and special access to certain entertainment and sports events, just like with the Chase Sapphire Preferred® Card. But on the whole, however, these perks seem a bit like fresh sprinkles on a week-old donut: the checking account itself isn’t the greatest, and the perks don’t really do enough to freshen it up. You can find better donuts with tastier sprinkles elsewhere.

LEARN MORE Secured

on Chase Bank’s secure website

Member FDIC

Chase Total Checking

A solid checking account option but look at other no-fee checking accounts if you want to avoid fees.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $12
  • ATM fee: $2.50 for non-Chase ATMs within the U.S. If you’re using a foreign ATM, you’ll pay $5 per withdrawal and $2.50 per transfer or inquiry, plus a 3% foreign exchange fee.
  • ATM fee refund: None.
  • Overdraft fee: $34 per each item over $5, up to three per day. If your account is overdrawn for 5 or more consecutive days, you’ll also face a $15 extended overdraft fee.

If you don’t quite have the high balances required to waive the monthly maintenance fees on the more premium checking accounts, the Total Checking account might be a better option for you. With this account, you can have the monthly maintenance fee waived in one of three ways each month:

  • Have at least $500 direct-deposited into your account
  • Keep a balance of $1,500 in your account
  • Have at least $5,000 in this and other linked Chase accounts and investments

This account offers no interest and none of the perks of Chase Bank’s other accounts, such as free checks or free ATM uses.

If you’re a U.S. citizen and have the number from your government-issued ID handy, you can easily open an account online. You’ll also need to provide a method to fund your new account, such as a transfer from another bank account or with a debit card.

LEARN MORE Secured

on Chase Bank’s secure website

Member FDIC

Chase College Checking

Chase Bank’s College Checking account is free for college students for their first five years in college. Once you pass the five-year mark, you might be better off graduating into a no-fee checking account option unless you meet the requirements to have the fee waived.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $6 (your first five years are free, however)
  • ATM fee: $2.50 for non-Chase ATMs within the U.S. If you’re using a foreign ATM, you’ll pay $5 per withdrawal and $2.50 per transfer or inquiry, plus a 3% foreign exchange fee.
  • ATM fee refund: None.
  • Overdraft fee: $34 per each item over $5, up to three per day. If your account is overdrawn for 5 or more consecutive days, you’ll also face a $15 extended overdraft fee.

If you’re a college student between the ages of 17 and 24 (and can prove your status), you’re eligible to open up a College Checking account with Chase.

There won’t be any monthly maintenance fees for the first five years after you open the account. If it takes you a long time to graduate or if you go to grad school and extend your college career past the five-year mark, however, there are still a couple of ways you can get the monthly maintenance fee waived:

  • Have at least one direct deposit (any amount) per month
  • Keep an average daily balance of $5,000 in your account

If you’re a U.S. citizen, and a college student between the ages of 17 and 24, you can open a College Checking account with Chase Bank online. You’ll also need to provide a way to fund the account, and a government-issued ID.

LEARN MORE Secured

on Chase Bank’s secure website

Member FDIC


Bonus offer: Chase College Checking account

For a limited time (until Aug. 13, 2018), Chase Bank is offering a special $50 bonus to new customers who open up a College Checking account. You’ll need to go on the website to get a coupon, which you then can bring into a local branch (the offer is not available for people who sign up online).

When you open your account, you’ll need to enroll in electronic statements. Finally, you’ll need to make at least 10 transactions with your new checking account within 60 days to be eligible for the $50 bonus. If you meet all these qualifications, you’ll get your bonus money within 10 days.

One final heads up: Don’t close your account for at least six months after you open it. Otherwise, Chase will deduct the $50 bonus from your account.

Chase High School Checking

This student account comes with a $6 monthly fee, but it’s highly unlikely you’ll ever have to pay it if you have a parent who already banks with Chase.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $6
  • ATM fee: $2.50 for non-Chase ATMs within the U.S. If you’re using a foreign ATM, you’ll pay $5 per withdrawal and $2.50 per transfer or inquiry, plus a 3% foreign exchange fee.
  • ATM fee refund: None.
  • Overdraft fee: $34 per each item over $5, up to three per day. If your account is overdrawn for 5 or more consecutive days, you’ll also face a $15 extended overdraft fee.

This checking account is available to high school students between the ages of 13 and 17 who apply along with a parent. Parents who already have a banking relationship with Chase (not including a College Checking or High School Checking account) are eligible to apply for this account as a co-owner along with their student.

Although it comes with a $6 monthly maintenance fee, it’s almost guaranteed that you won’t have to pay it, since one of the ways to waive this fee is by having a parental co-owner with a linked non-College Checking and non-High School Checking account. Conveniently, those are also the requirements to open this account.

But, if Chase Bank ever does change the rules, or you find yourself in some weird loophole where this doesn’t apply to you, there are a couple of other ways that you can get the $6 monthly maintenance fee waived:

  • Have at least one monthly direct deposit made into the account
  • Keep a daily average of at least $5,000 in this account

Once the student co-owner turns age 19, this account will automatically transform into a Chase Total Checking account. It’s a good idea to keep this in mind, since the Total Checking account comes with a $12 monthly maintenance fee that you definitely do not want to be surprised by.

If you, as a parent, already have a qualifying personal checking account with Chase Bank and are prepared to be a co-owner on the checking account with your 13- to 17-year-old, then they are eligible for this account.

You’ll need to provide a way to fund the account along with your and your child’s government-issued IDs. Finally, you’ll need to apply for this account in-person at a local branch, rather than online.

magnifying glass

How Chase Bank’s checking accounts compare

Overall, we’re not too impressed with Chase Bank’s checking accounts. Each account charges a monthly maintenance fee, and while it is possible (and even probable, in some cases) to have this fee waived, you’ll still need to be on your toes each month to make sure you meet the requirements.

Furthermore, only two of its checking accounts offer any interest on your deposit. And even then, it’s worth noting that it’s only currently at 0.01% APY, which is the smallest amount of interest a bank can offer while still technically saying that it does offer interest.

If you’re looking for a higher interest-earning online checking account, take a look at these top-rated online checking account options instead.

Chase Bank’s savings account options

Chase Savings Account

Earn rock-bottom interest rates while trying to skirt the monthly fee with Chase Bank’s Savings Account.

APY

Minimum Deposit Amount

0.01%$0
  • Minimum opening deposit: $5
  • Monthly account maintenance fee: None.
  • ATM fee: $2.50 for non-Chase ATMs within the U.S. If you’re using a foreign ATM, you’ll pay $5 per withdrawal and $2.50 per transfer or inquiry, plus a 3% foreign exchange fee.
  • ATM fee refund: None.
  • Overdraft fee: $34 per each item over $5, up to three per day. If your account is overdrawn for five or more consecutive days, you’ll also face a $15 extended overdraft fee.

You don’t get much with this savings account. Furthermore, you’ll need to find ways to waive the monthly maintenance fee, otherwise this fee could easily wipe out any earnings you receive for the month. There are four different ways you can get this monthly maintenance fee waived:

  • Keep at least $300 in this account
  • Set up a recurring monthly deposit of at least $25 from a linked Chase Bank personal checking account
  • Be under the age of 18
  • Have a linked Chase Premier Plus, Premier Platinum or Private Client checking account

You’ll also need to make an opening deposit of at least $25 to establish the account. This account also comes with a $5 “savings withdrawal limit fee” that will be charged each time you exceed six withdrawals per month. Unlike with the Chase Premier Savings account, there is no way to have this fee waived, so if you think you’ll be making a lot of withdrawals, you may want to consider another savings account.

Finally, if you exceed the Federal Regulation D limits (not including ATM or in-person withdrawals), the bank may also downgrade your account to a Chase Total Checking account.

Chase Bank does make it easy to sign up for a Savings Account online. U.S. citizens are eligible to apply, and all you’ll need is a way to fund the account and a government-issued ID number.

LEARN MORE Secured

on Chase Bank’s secure website

Member FDIC

Chase Premier Savings

Chase’s Premier Savings account doesn’t offer much in the way of returns or consumer-friendly benefits.

Standard rates

APY

Minimum Deposit Amount

0.05%$0

Relationship rates

APY

Balance Amount

0.10%$0-$49,999
0.20%$50,000-$99,999
0.30%$100,000-$249,999
0.40%$250,000+
  • Monthly account maintenance fee: $25
  • ATM fee: $2.50 for non-Chase ATMs within the U.S. If you’re using a foreign ATM, you’ll pay $5 per withdrawal and $2.50 per transfer or inquiry, plus a 3% foreign exchange fee.
  • ATM fee refund: None.
  • Overdraft fee: $34 per each item over $5, up to three per day. If your account is overdrawn for 5 or more consecutive days, you’ll also face a $15 extended overdraft fee.

Chase’s Premier Savings account offers you the best chance to earn high interest rates with a savings account at this bank. However, you’ll need to watch out for the $25 monthly maintenance fee, which you can skirt in one of two ways:

  • Keep at least $15,000 in this account
  • Have a linked Chase Premier Plus or Chase Premier Platinum Checking account

You’ll also need to make an opening deposit of at least $100 to open this account (however, the balance can drop below that afterward). If you make more than six withdrawals per month, you’ll also face a $5 “savings withdrawal limit fee,” unless you have more than $15,000 in your account.

This is different from the Federal Regulation D limits, which limit you to six transactions per month, not including ATM or in-person transfers. If you exceed these limits, your account may automatically be downgraded to a Chase Total Checking account instead.

If you’re interested in opening a Premier Savings account with Chase Bank online, you’ll need to be a U.S. citizen. In addition, you’ll also need a way to fund your new account (such as with a transfer from an existing bank account) and you’ll need to provide the bank with a government-issued ID number.

LEARN MORE Secured

on Chase Bank’s secure website

Member FDIC

magnifying glass

How Chase Bank’s savings accounts compare

Like many traditional bricks-and-mortar banks, Chase Bank offers some less-than-stellar interest rates. Case in point: the current highest-yielding online savings accounts are paying 15X what the maximum interest rate Chase offers, and with a lot less hassle. It may be convenient for you to open a savings account with Chase if you want to bank with a local branch, but if you want to earn the most money possible from your savings account, this isn’t the account to choose.

Overall review of Chase Bank’s products

Chase Bank has made quite a name for itself over the years. However, when it comes to its personal deposit accounts, there’s a lot left to be desired. Each of these accounts comes with high fees and super-low interest rates that make it hardly worthwhile to bank with Chase.

There may be good reasons to bank with Chase, such as if you prefer to use a conveniently-located branch near you. But in terms of earning the most money possible from your bank deposits, Chase Bank is definitely one to pass up.

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.

Lindsay VanSomeren
Lindsay VanSomeren |

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

Advertiser Disclosure

Reviews

An In-Depth Review of Discover’s Banking Products

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 Online Savings account

A completely fee-free online savings account, with no minimum balance requirements, and competitive interest rates.

APY

Minimum Balance Amount

2.00%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: None as long you use an ATM within Discover’s network.
  • ATM fee refund: None.
  • Overdraft fee: None.

There is no minimum balance to open a Discover Online Savings account, nor do they charge any monthly maintenance fees. While account holders do not have the ability to withdraw money from their savings account via an ATM, they are able to access and manage their savings account via Discover’s online banking and mobile app. The online banking and mobile app lets users deposit and transfer money to both Discover Bank and non-Discover bank accounts. This account doesn’t come with any fees. Even if you exceed the Federal Reserve’s Regulation D limitation of six withdrawals or transfers in one calendar month, Discover will not charge an excessive withdrawal fee. If you exceed six certain transactions more than once, your account may be closed. Discover will only do this if you exceed the limit “more than on an occasional basis”. Be sure to read the Deposit Account Agreement for specifics around this limit.

Currently, you can earn a competitive interest rate of 2.00% APY on a Discover Online Savings account. This is compounded daily and deposited into your savings account every month. As soon as you deposit money in your account, you’ll begin earning interest.

This is a solid savings account for anyone who already has a checking account with Discover, has a substantial amount of savings, or wants to earn a competitive interest rate on their savings account. It stands out for being fee-free and requiring no minimum balance or deposit, but falls short when compared with all the current interest rates out there.

There are no eligibility requirements to open a Discover Online Savings account since they do not require an initial minimum deposit or any minimum balance. There is currently a bonus being offered if you apply for the savings account for the very first time by 09/09/19. If you meet qualifications by 09/23/19, you could receive the $150 or $200 bonus. Click the button below for full details.

Learn More Secured

on Discover Bank’s secure website

Member FDIC

See Advertiser Website for Full Details

magnifying glass

How Discover Bank’s savings account compares

Compared with other online savings accounts, Discover Bank does not have the best offerings. That’s not to say it’s bad. Next to what major banks are currently offering, this account is a major win. However, with a little research, you can find better interest rates out there that also don’t have minimum balance requirements.

To see what other rates and offers are out there that fit your savings goals check out our Best Online Savings Account Guide.

Discover Bank’s CD Rates

A minimum deposit of $2,500 gives you competitive CD rates among online banks, but higher rates can be found.

CD term

Annual Percentage Yield (APY)

3 months

0.35%

6 months

0.65%

9 months

0.70%

12 months

2.40%

18 months

2.40%

24 months

2.45%

30 months

2.45%

3 years

2.45%

4 years

2.45%

5 years

2.50%

7 years

2.60%

10 years

2.70%

  • Minimum opening deposit: $2,500
  • Early withdrawal penalty:
    • For CDs that are less than one year, the penalty will be worth 3 months of simple interest.
    • For 1-3 year CDs, the penalty is 6 months of simple interest.
    • For a 4 year CD, the penalty is 9 months of simple interest.
    • For a 5 year CD, the penalty is 18 months of simple interest.
    • For 7-10 year CDs, the penalty is 24 months of simple interest.

Discover Bank offers certificates of deposits with terms ranging from three months to 10 years. Interest is compounded daily and is deposited every month. As with most CD rates, the longer the term of the CD, the higher the rate you will receive. To make sure you lock in the highest possible rate for your CD, make sure you fund your account within ten days of application.

There are early withdrawal penalties for taking your money out before the end of the term. The penalty amount varies depending on how far you are into your CDs term.

While there are penalties for withdrawing your money early, you do have the option to withdraw any interest earned on your CD to a Discover bank account without penalty. This money can also be left in your CD to compound throughout the life of your CD. Account holders receive notice of CD maturity 30 days prior to the end of the term. Once a term has ended, account holders have a 9-day grace period to make a change to their CD before incurring penalties. If no action is taken, Discover CDs will automatically renew at the same rate and term.

You can open a Discover CD online or by phone. The only eligibility requirements come in the form the $2,500 minimum deposit, which can be paid via phone, check or an online transfer from your bank. Discover provides the option of opening your CD in the form of a Trust, Guardian, Estate or Custodial account, but in order to do so, you must call one of their Banking Specialists.

LEARN MORE Secured

on Discover Bank’s secure website

Member FDIC

magnifying glass

How Discover Bank’s CD rates compare

Overall, Discover Bank CD rates are competitive. They certainly beat out most of the major banks by far when it comes to APY. However, if you do some digging, there are better rates out there for CDs, both in terms of minimum deposit and interest rate earned.

Discover’s minimum deposit of $2,500 is the biggest downside to this product. While it’s not common for banks to offer no-fee withdrawals on CDs, there are some out there. To find the most competitive CD rates on the market right now, check out our Best CD Rates page.

Discover CashBack Debit account

Discover CashBack Debit offers no monthly fees and pays decent cashback rewards.
  • Monthly account maintenance fee: None.
  • ATM fee: None as long as the ATM is within Discover’s network.
  • ATM fee refund: None.
  • Overdraft fee: None.

The Discover CashBack Debit account is appealing because it doesn’t carry any fees — that means no monthly maintenance fee, no minimum balance requirements and no fees for check ordering or debit card replacement.

They offer free online and mobile banking options like bill-pay, wire transfers and account management.

One of the account’s main selling points is the cashback reward, which pays 1.00% on debit card transactions up to $3,000 on purchases each month. In other words, if you spend up to $3,000 in a month you receive $30 cash back. This 1.00% return is not an interest rate, but rather a cashback reward. There are no qualifications to earn the cashback rewards — when you spend with your debit card, you’re earning rewards. These rewards can be redeemed as a credit to your checking account or transferred to a Discover CashBack Bonus card account.

Discover recently partnered with AllPoint and MoneyPass to increase their in-network ATM locations by 60,000+. While Discover does not charge ATM fees for going out-of-network, they do not reimburse ATM fees incurred by third-party ATMs.

Since Discover Bank is considered an online bank, you must open your account online via their website or by phone. There are no minimum deposit requirements, nor do they require account holders to keep a minimum balance. Once you open your account, you’ll receive your debit card within 10 business days. Discover offers free checks for their CashBack Debit account, although you must request them.

LEARN MORE Secured

on Discover Bank’s secure website

Member FDIC

magnifying glass

How Discover Bank’s checking account compares

The Discover CashBack Debit account stacks up against other banks when it comes to offering a no-fee checking account. While they do boast a large ATM network, in part to their partnerships, they still do not reimburse out-of-network ATM fees. When it comes to rewards, their cashback reward is decent.

There are better cashback rewards programs out there, as well as, accounts that don’t require you to spend money to make money. If you spend a significant amount money via your debit card every month, this rewards program might make sense. If not, there are other banks that currently offer better rates on checking accounts for less effort on your end.

Discover Bank’s Money Market Account

Good withdrawal options, but with a high minimum balance requirement and interest rates that don’t stack up.

APY

Minimum Balance Amount

1.85%

Less than $100,000

1.90%

Greater than $100,000

  • Minimum opening deposit: $2,500
  • Monthly account maintenance fee: None
  • ATM fee: None, but only if you use an ATM within Discover Bank’s network.
  • ATM fee refund: None.
  • Overdraft fee: None.

Opening a money market account with Discover Bank requires a minimum initial deposit of $2,500. They don’t even beat out Discover’s saving account rates.

There are a few account features worth noting, starting with the withdrawal options. Unlike the Discover Online Savings account, account holders will receive checks and a free debit card. Your debit card can be used to withdraw money via ATMs and at stores.

Discover Bank does not charge ATM fees, however if you use an out-of-network ATM they will not reimburse the fee. It’s important to note, that your money market account is subject to the same Federal Reserve regulations limiting transfer and withdrawals to six per month. If you exceed the six transfers or withdrawals more than on an occasional basis, Discover might just close your account. Luckily, this does not apply to withdrawals from ATMs or via official check that is mailed to you. Discover Money Market accounts also give you the ability to sign up for online bill pay, as well as, overdraft protection.

The only eligibility requirements to open a Discover Money Market account is an initial minimum deposit of $2,500. You can open an account either online or by calling one of their Banking Specialists. To fund your account, you have the option of an online transfer, direct deposit or check, which can be mailed or deposited via Discover Bank’s Mobile Check Deposit app.

LEARN MORE Secured

on Discover Bank’s secure website

Member FDIC

magnifying glass

How Discover Bank’s money market account compares

Looking at the overall market offerings, Discover Bank Money Market accounts do not stack up. Their competitive account features like a large ATM network, free checks and a debit card are nice, but their rates do not compete.

You can find other banks offering lower deposit requirements, as well as better rates. To see how this account compares, check out MagnifyMoney’s Best Money Market Rates guide.

Discover IRA CD rates

Competitive rates with a higher-than-average minimum deposit for both traditional and Roth options.

Term

APY

3 Months

0.35%

6 Months

0.65%

9 Months

0.70%

12 Months

2.40%

18 Months

2.40%

24 Months

2.45%

30 Months

2.45%

3 Years

2.45%

4 Years

2.45%

5 Years

2.50%

7 Years

2.60%

10 Years

2.70%

  • Minimum opening deposit: $2,500
  • Early withdrawal penalty:
    • For CDs that are less than one year, the penalty will be worth 3 months of simple interest.
    • For 1-3 year CDs, the penalty is 6 months of simple interest.
    • For a 4 year CD, the penalty is 9 months of simple interest.
    • For a 5 year CD, the penalty is 18 months of simple interest.
    • For 7-10 year CDs, the penalty is 24 months of simple interest.

Similar to other Discover Bank CD products, the minimum deposit to open an IRA CD is $2,500. This is also the minimum balance required to earn your interest rate. They offer both Traditional and Roth IRA CD options, with interest rates that vary depending on the CD term you choose. Terms can be as short as 3 months to up to 10 years. Their early withdrawal penalties remain the same for both IRA and non-IRA CDs.

An IRA CD is a worthwhile investment if you aren’t touching your savings and want to earn a higher APY than what’s being offered for your savings account. IRA CDs make the most sense if you’re looking for a long-term investment. While they don’t pay crazy high returns, if you have extra capital, it’s a good investment vehicle to have in your portfolio.

Opening an IRA CD account with Discover Bank can be done by phone or online, and requires an initial minimum deposit of $2,500. Funding your account can be done by phone, via check or via a bank-to-bank transfer from an existing IRA. Discover also allows account holders to initiate a direct or indirect rollover from an existing IRA.

LEARN MORE Secured

on Discover Bank’s secure website

Member FDIC

magnifying glass

How Discover Bank’s IRA CD compares

Compared with other IRA CD’s out there, Discover Bank’s rates fall somewhere in the middle. The minimum deposit is higher than other offerings out there and the rates are competitive, but not high enough to be the best on the market.

Overall review of Discover Bank’s deposit products

Discover has created a suite of banking products that can compete in today’s market. Their online and mobile banking has all the necessary features to access and manage your account, and they boast a large ATM network that limits, but does not completely remove, ATM fees from your life.

Compared with the traditional big banks, Discover Bank has them beat when it comes to rates and offerings. However, if you take the entire market into consideration, adding in online banks, community banks and credit unions, Discover banking products fall somewhere in the middle.

Based on the fact that all of the reviewed products above do not have monthly maintenance fees attached to them and pay some form of interest or cash back, means you aren’t going to be wrong by opening an account. However, if you’re looking for the best of the best, Discover Bank is not quite there yet.

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.

Jackson Wise
Jackson Wise |

Jackson Wise is a writer at MagnifyMoney. You can email Jackson here

Advertiser Disclosure

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 2.00% APY. If you apply for their savings account for the very first time by 09/09/19 and deposit a balance of at least $15,000 by 09/23/19, 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 10/07/19. You can apply online or over the phone. Just be sure to enter or mention the promo code MM819 when you apply.

Learn More Secured

on Discover Bank’s secure website

Member FDIC

See Advertiser Website for Full Details

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

2.40%

18 months

2.40%

24 months

2.45%

30 months

2.45%

3 years

2.45%

4 years

2.45%

5 years

2.50%

7 years

2.60%

10 years

2.70%

LEARN MORE Secured

on Discover Bank’s secure website

Member FDIC

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 2.40% 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.

LEARN MORE Secured

on Discover Bank’s secure website

Member FDIC

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.

Lindsay VanSomeren
Lindsay VanSomeren |

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