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CIT Bank Review: Savings and CD Rates

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Year Established2009
Total Assets$42.2B
LEARN MORE CIT Bank’s secure websiteMember FDIC
CIT Bank originally started as a business banking system. That’s where the acronym CIT—Commercial Investment Trust—came from. But lest that lead you to believe they aren’t for the average person, take heart: they’ve broadened their services to include several personal banking products.

Still, this is an online-only bank. That’s good news if you’re an internet-savvy consumer looking for great rates, since online-only banks typically don’t have a lot of overhead and can pass the savings along to you in the form of higher rates.

But, how good are these rates, really? And are the terms that CIT bank offers any good? With one of the highest interest rates currently on the market and zero fees, which we highlight in our review, it’s certainly a great option for savers looking for low-fee, high-yield accounts.

We’ll look at their two main personal banking products — CDs and savings accounts — in this article to help you make an informed decision about whether CIT Bank is right for you.
CIT Bank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

2.45%

Savings

CIT Bank Savings Builder

2.20%

Barclays Online Savings Account

on Barclays’s secure website

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CIT Bank Savings Builder

This accounts awards you with a high rate if you make monthly deposits of $100 or more.

APY

Minimum Balance Amount

2.45%

$25,000
or
have a balance over $100 and make monthly deposit of $100 or more

1.17%

$100 - $25,000

  • Minimum opening deposit: $100
  • Monthly account maintenance fee: None

CIT Bank currently holds one of the top spots for highest interest rate in the nation with this account. This account was designed to help you build up your savings by encouraging you to deposit $100 or more into the account. This is actually one way you can continue earning the high rate on this account.

When you open this account with $100, you’ll automatically receive the high rate as an introductory offer. The bank will then put your account through an introductory period, which will end at the end of the first full month after you opened the account. From there, the account will go through an evaluation period. During this period, CIT Bank will assess whether you’re following the requirements to continue earning the high rate. You’ll have to be following one of the two requirements:

  1. Your account has a balance of $25,000 or more
  2. You’re depositing $100 or more on a monthly basis

If you’re not meeting one of these two requirements, you’ll earn the lower rate. CIT Bank will evaluate your account on a monthly basis, so if your rate does fall to the lower tier, it’ll stay that way for a month or until you begin meeting one of the requirements again. The point of this account is to build your savings, so if you’re not putting in the money to make your savings grow, you won’t be rewarded with the high rate.

How to get CIT Bank’s Savings Builder account

You can open this account online. You’ll need to provide your personal information and be ready to fund the account via electronic transfer.

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CIT Bank high-yield savings account

A typical online savings account with a low minimum opening deposit.

APY

Minimum Balance Amount

1.55%

$100

  • Minimum opening deposit: $100
  • Monthly account maintenance fee: None

While this account technically has two interest rate tiers, the interest rate is currently the same for both tiers. However, it is possible that CIT Bank may change it in the future so there are higher interest rates for different deposit sizes.

This bank account is very accessible for anyone who wants to bank online. With a minimum deposit size of $100, nearly anyone can meet the minimum deposit requirements for this account.

The only downside of this account is that it doesn’t come with ATM access. The only way to get money in and out of your account is by electronic transfer, by requesting or sending in a physical check, or by wire transfer.

How to get CIT Bank’s high-yield savings account

It’s an easy process to open up a CIT high-yield savings account online. You’ll need to apply for an account by providing personal information such as your name, Social Security Number, and a valid form of government-issued ID.

Once you have an account set up, you can fund it by sending in a check or setting up an electronic transfer from another bank.

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How CIT Bank’s savings account compares

We really love CIT Bank’s savings accounts for two reasons. The accounts have:

  • Zero fees
  • A low, easily-achieved minimum deposit size

The Savings Builder account currently has one of the highest interest rates on the market. However, there are a couple of reasons why you may want to consider another one of our top savings account choices. Firstly, this account doesn’t come with an ATM card — leaving you out in the cold if you really need access to your money via this route. Secondly, CIT Bank doesn’t offer a matching checking account, meaning that you’ll still need to rely on another bank for your daily banking needs.

Still, if the lack of an ATM card and having your savings in an external (and very high-earning) savings account don’t bother you, then you really can’t go wrong with these accounts, especially the Savings Builder account.

CIT Bank CD rates

Term CDs

CIT Bank Term CDs provide decent returns for your investment and flexibility in determining how interest payments are handled.

Term

APY

6 months

0.72%

1 year

2.20%

13 months

2.25%

18 months

2.50%

2 years

1.40%

3 years

1.30%

4 years

1.50%

5 years

1.70%

  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty:
    • For CD terms that are one year or less, three months’ worth of interest is the penalty
    • For CD terms that are over one year up to three years, the penalty is six months’ worth of interest
    • For CD terms over three years, the penalty equals 12 months’ worth of interest

One neat thing about CIT Bank’s Term CDs (and all of their CDs, actually) is how they let you manage the interest you’ve earned on your CDs.

You can choose from three options:

  1. Invest the interest back into the CD
  2. Have the interest you earned taken out and deposited into a CIT Bank savings account
  3. Or, you can have it transferred into another account (such as your checking account at a different bank).

Be warned, though: you won’t earn as much interest over the life of the CD if you choose to withdraw the monthly interest payments.

CIT Bank will give you a heads-up 30 days before your CD matures. Once it does mature, it’ll automatically roll over into another CD with the exact same term length. However, you have a 10-day grace period to withdraw your money, add more cash, or transfer it to a different type of CD.

How to get a CIT Bank term CD

It’s an easy process to open up a CIT Bank Term CD online. You’ll need to apply for an account by providing personal information such as your name, Social Security Number, and a valid form of government-issued ID.

Once you have an account set up, you can fund it by sending in a check or setting up an electronic transfer from another bank.

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No-Penalty CD

A high-earning option for folks who might need their money before the CD matures — but it’s only available in one-term length.

Term

APY

11 months

2.05%

  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty:
    • None for this CD

If you think you might need to withdraw your CD before the term is up, CIT Bank’s No-Penalty CD might be right for you. You’re allowed to withdraw everything — principal and interest — once per term without paying an early withdrawal penalty.

The only catch is that you can only do so after a week or so has passed from the time you open your account—meaning your money is locked away for the first six days. Still, a six-day period under lock and key is way better than an 11-month period. Even better, you don’t really sacrifice any potential earnings for choosing this option — currently, the APY on this 11-month No-Penalty CD is even higher than CIT Bank’s 1-year Term CD.

You also get the option to have interest payments deposited right back into your CD account, another CIT Bank savings account, or an external account. CD maturity for this No-Penalty CD works the same as with a regular Term CD. Your 11-month No-Penalty CD will automatically roll over into another 11-month No-Penalty CD once matured, with a 10-day grace period to withdraw the cash or make any changes to the CD itself.

How to get a CIT Bank no-penalty CD

It’s an easy process to open up a CIT Bank No-Penalty CD online. You’ll need to apply for an account by providing personal information such as your name, Social Security Number, and a valid form of government-issued ID.

Once you have an account set up, you can fund it by sending in a check or setting up an electronic transfer from another bank.

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RampUp™ Plus CD

This CD gives you the option to raise your interest rate and/or add more money — but only once per term.

Term

APY

1 year

1.26%

2 years

1.27%

  • Minimum opening deposit: $25,000
  • Minimum balance amount to earn APY: $25,000
  • Early withdrawal penalty:
    • For the 1-year CD, you’ll pay three months’ worth of interest
    • For the 2-year CD, you’ll pay six months’ worth of interest

One of the downsides of being locked into CDs is that if interest rates go up or you come across a sudden windfall of cash, you’re out of luck. You can’t take advantage of those fortuitous events unless you open a new CD (assuming you have enough cash on hand to meet the CD’s minimum deposit requirement, if there is one).

CIT Bank’s RampUp™ Plus CD changes that. You’ll have the option to adjust your rate once if our rates go up, plus you can add to your deposit once during the term of your CD.

There are some limits, however; you can’t deposit more than $250,000 into your CD account (a wise decision, since this is the limit of FDIC insurance anyway), and the maximum interest rate rise they’ll honor is twice your current APY minus 0.05%. The original length of your term also stays the same — i.e., adding more money or boosting the APY does not increase the length of your term.

Your CD is handled similarly to other CIT Bank CDs once matured. It will roll over into another CD of the same type and term, but you’ll get a 10-day grace period to withdraw the cash, add more money, or change the CD to a different term or type.

How to get a CIT Bank RampUp™ Plus CD

It’s an easy process to open up a CIT RampUp™ Plus CD online. You’ll need to apply for an account by providing personal information such as your name, Social Security Number, and a valid form of government-issued ID.

Once you have an account set up, you can fund it by sending in a check or setting up an electronic transfer from another bank.

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RampUp™ CDs

This CD account is similar to the RampUp™ Plus, however you aren’t able to add more money during the CD’s term.

Term

APY

3 years

1.20%

4 years

1.38%

  • Minimum opening deposit:
    • $25,000 for the 3-year CD
    • $50,000 for the 4-year CD
  • Minimum balance amount to earn APY:
    • $25,000 for the 3-year CD
    • $50,000 for the 4-year CD
  • Early withdrawal penalty:
    • 6 months’ worth of interest for the 3-year CD
    • 12 months’ worth of interest for the 4-year CD

If you like the idea of being able to raise your rates upward, but want to invest on a slightly longer term, consider a RampUp™ CD. These CDs are offered in three- and four-year terms instead, and also allow you to boost your rates once during each term (again, with a cap of twice your current rate, minus 0.05%).

There are two important differences between these RampUp™ CDs and the shorter-term RampUp™ Plus CDs. The four-year RampUp™ CD has a much higher minimum deposit size — $50,000, versus $25,000 if you’re investing a smaller amount. Additionally, you cannot add more money into these CDs. You only have the option to raise your rates, and that’s it.

Once mature, these CDs will also automatically roll over into another RampUp™ CD of the same type. You’ll have a 10-day grace period to withdraw the money, make any changes to the CD term or type, or add more money.

How to get a CIT Bank RampUp™ CD

It’s an easy process to open up a CIT RampUp™ CD online. You’ll need to apply for an account by providing personal information such as your name, Social Security Number, and a valid form of government-issued ID.

Once you have an account set up, you can fund it by sending in a check or setting up an electronic transfer from another bank.

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Jumbo CDs

CIT Bank’s Jumbo CDs allow you to earn a slightly higher interest rate for a much larger deposit size.

Term

APY

2 years

1.45%

3 years

1.40%

4 years

1.60%

5 years

1.75%

  • Minimum opening deposit: $100,000
  • Minimum balance amount to earn APY: $100,000
  • Early withdrawal penalty:
    • 6 months’ worth of interest for the 2- and 3-year CDs
    • 12 months’ worth of interest for the 4- and 5-year CDs

If you can come to the table with deep pockets — at least $100,000 to be exact — you can open one of CIT Bank’s Jumbo CDs. These big accounts work exactly like the normal term CDs, with one exception: You can earn a slightly higher interest rate.

As with the other CDs, you can also choose to withdraw your interest payments at any time penalty-free to a CIT Bank savings accounts, an external bank account, or just let the interest payments pile up in your CD account so you earn even more.

Once your Jumbo CD matures, it’ll automatically roll over into another Jumbo CD with the same term length. Again, you’ll have a 10-day grace period if you want to withdraw the money, add more funds, or change the CD to a different type or term length.

How to Get a CIT Bank Jumbo CD

It’s an easy process to open up a CIT Jumbo CD online. You’ll need to apply for an account by providing personal information such as your name, Social Security Number, and a valid form of government-issued ID.

Once you have an account set up, you can fund it by sending in a check or setting up an electronic transfer from another bank.

LEARN MORE 

Member FDIC

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How CIT Bank’s CDs compare

We like the diversity of CD products that CIT Bank offers. Rather than just having a one-size-fits-all term CD, you can also choose from jumbo CDs and bump-rate CDs. The interest rates offered on these CDs aren’t the highest CD rates out there, but they’re pretty darn close.

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

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Reviews, Small Business

National Funding Business Loan Review

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

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National Funding is an online business lender that provides working capital and equipment financing to entrepreneurs. The San Diego-based lender has provided funding to small businesses in the U.S. since 1999.

It accepts applications online, sometimes providing funding in as little as 24 hours. It doesn’t require collateral or a down payment when you apply for a loan, and there’s no obligation to accept a loan offer. National Funding has an “excellent” rating and a majority of positive reviews on Trustpilot, a consumer review platform.

In this review, we’ll break down what National Funding has to offer to help you decide if this lender is the right match for your business.

National Funding loan details

National Funding offers several financing products to eligible small business owners. APRs range from 17.00% to 38.00% for qualified applicants, which could include an origination fee up to 2.50%.

National Funding

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Working capital

Small business loan

National Funding issues small business loans between $5,000 and $500,000. You could use a small business loan to cover a variety of expenses, including equipment upgrades, inventory and building materials. To collect payments, National Funding makes automatic daily or weekly withdrawals from borrowers’ bank accounts. Terms for small business loans range from four months to two years.

Merchant cash advance

National Funding provides merchant cash advances of up to $250,000. It gives business owners a lump sum of cash in exchange for a portion of their future credit card sales. The lender automatically takes a percentage of each credit card transaction until the advance is paid back. Merchant cash advances typically have more lenient eligibility requirements than business loans, but the fast repayment process can be difficult for some business owners.

Equipment financing

Business owners can buy new or pre-owned equipment with financing from National Funding. The lender offers up to $150,000 in equipment financing and does not require a down payment. Payments are due monthly with terms that span two to five years. National Funding offers deferred payment options, which means you could make payments seasonally or quarterly — or skip payments if you need. Though you could temporarily adjust your payments, you may later face a catch-up period and your payment amounts could increase. Be sure you to check your loan agreement to understand what National Funding would expect.

National Funding provides a “guaranteed lowest payment” for select equipment leases as well. Within seven days of receiving an equipment lease offer from National Funding, you must present a competing lease offer exceeding $10,000 with the same terms and conditions. If the competing offer provides a lower monthly lease payment than what National Funding is offering, National Funding will either beat the offer or pay you $1,000.

See our top picks for the best equipment financing companies for 2019.

What businesses are eligible for National Funding financing?

National Funding works with business in a wide range of industries. Here are some examples of the tailored product offerings:

Loans

  • Agriculture
  • Beauty and wellness
  • Construction and contracting
  • Medical
  • Restaurants
  • Retail
  • Trucking

Equipment financing

  • Automotive repair
  • Commercial trucks, trailers and vehicles
  • Construction and contractor equipment
  • Dental
  • Farming
  • Landscaping
  • Manufacturing
  • Medical
  • Restaurants

National Funding also has special interest loan programs for minority-owned, veteran-owned and women-owned businesses.

The pros and cons of National Funding

Pros:

Possible to be approved for small business loan with credit score as low as 500
“Guaranteed lowest payment” provided for select equipment leases
Early payoff discounts are offered

Cons:

Lowest possible APR is 17.00%
Could take up to seven days to receive funds
Startup businesses are ineligible

The application process and requirements

Business owners fill out an application online, which National Funding could process right away. If approved, you could see funds in your bank account in one to seven days.

All applicants are required to submit their business name, address and tax identification number. Equipment financing applications require a quote from the vendor from which you plan to buy the equipment. And merchant cash advance applications ask for your last four months of credit card statements.

Eligibility requirements depend on the product for which you’re applying:

Small business loan

  • $100,000 in annual sales
  • 1 year in business
  • FICO Score of at least 500

Equipment financing

Merchant cash advance

  • 1 year in business
  • Over $3,000 in monthly credit card transactions

After you apply, National Funding would disclose the interest rate and loan terms for which you qualify. Some online lenders provide a range of rates and terms upfront without an application, which may make it difficult to compare National Funding with other lenders while shopping.

The fine print

Discounts available for early payoff. Although you wouldn’t know the price of your loan until submitting an application, you would have an opportunity to save money by paying off your debt early. If you pay off equipment financing early at any point, you could save 6% off your total balance. If you pay off working capital financing within the first 100 days, you could receive 7% off your total amount. You must pay the balance in full and be in good standing with National Funding to take advantage of the discount.

The bottom line

National Funding provides working capital and equipment financing to business owners who may have trouble securing funding elsewhere. Entrepreneurs with less-than-perfect credit or just one year in business could qualify for a business loan or merchant cash advance from National Funding. And business owners with as few as six months in business could be eligible for equipment financing. National Funding serves businesses in a range of industries, specializing in specific areas that may match your small business.

Although National Funding does not disclose many details online, such as interest rates and certain credit requirements, the application is easy to complete. When choosing business financing, speed is likely an important factor. National Funding could help you get money for your business quickly.

LendingTree — which owns MagnifyMoney — may be a good place to start as well since you could review and compare multiple business lenders at once.

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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.

Melissa Wylie
Melissa Wylie |

Melissa Wylie is a writer at MagnifyMoney. You can email Melissa at [email protected]

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An In-Depth Review of Discover’s Banking Products

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Year Established1911
Total Assets$108.0B

LEARN MORE Discover Bank’s secure websiteMember FDIC

Discover Bank, which originally was introduced as a credit card via Sears-owned Greenwood Trust Company, first came on the market in 1985. Since then, Discover has gone on to become one of the largest credit card issuer in the U.S., known for their customer loyalty. Discover Bank, which runs completely as an online bank, has made strides over the past decade to compete in the financial sector by offering an array of financial products that go beyond credit cards.

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

Discover Bank is offering a $150-$200 bonus. Here's how it works:
If you're able to deposit a balance of at least $15,000 by 05/20/19 in your first Discover Online Savings Account, you will receive a $150 bonus. If you're able to deposit a balance of at least $25,000, you will receive a $200 bonus. In order to qualify for one of the bonuses, you'll have to apply for the savings account by 05/06/19 and your funds must be deposited by 05/20/19. On 06/03/19, the bonuses will be credited to your account. You can easily get the bonus offer online by clicking on the Learn More button above or by calling Discover bank. Just be sure to enter or mention the promo code MM419. Discover's online savings account currently earns an APY of 2.10%.

Discover Bank offers competitive rates on their banking products, which include CDs, savings, checking, and money market accounts, which also boast perks like no monthly fees. However in recent years, many online banks have begun offering similar, if not better, rates for their deposit products.

In this article we’ll take an in-depth look at Discover Bank’s products. We’ll cover account features, rates and anything else you might need to know to make the most informed decision on your financial needs. Most of our research was conducted by analyzing rates from Depositaccounts.com, which is another LendingTree-owned site.

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Discover Bank’s Most Popular Accounts

APY

Account Type

Account Name

2.10%

Savings

Discover Bank Online Savings

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0.00%

Checking

Discover Bank Discover Cashback Debit

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Discover Online Savings account

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

APY

Minimum Balance Amount

2.10%

$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. However, you’ll get hit with a $30 fee for an outgoing wire transfer, as well as a $15 charge per item for exceeding the Federal Reserve’s Regulation D limitation of six withdrawals or transfers in one calendar month. Overdrafting your online savings account results in a $30 fee, which you can avoid by signing up for overdraft protection.

Currently, you can earn a competitive interest rate of 2.10% 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 05/06/19. If you meet qualifications by 05/20/19, you could receive the $150 or $200 bonus. Click the button below for full details.

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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 don’t charge fees or 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

2.65%

18 months

2.65%

24 months

2.70%

30 months

2.70%

3 years

2.75%

4 years

2.80%

5 years

3.00%

7 years

3.05%

10 years

3.10%

  • 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.

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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: $30

The Discover CashBack Debit account is appealing because it carries very few 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.

One of the few fees you’ll find is an overdraft fee. Their overdraft fee is $30 per transaction, which is on par with other financial institutions. You can avoid an overdraft fee by opting in to overdraft protection, which requires account holders to link their checking account with a Discover savings account.

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.

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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

1.95%

Less than $100,000

2.00%

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. While their money market accounts don’t charge any monthly maintenance fees, account holders must maintain a minimum balance of $2,500 to avoid a $10 fee. 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 withdrawals you’ll be charged a $15 fee per item; however 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.

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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

2.65%

18 Months

2.65%

24 Months

2.70%

30 Months

2.70%

3 Years

2.75%

4 Years

2.80%

5 Years

3.00%

7 Years

3.05%

10 Years

3.10%

  • 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.

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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

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