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Consumers Credit Union Review: 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.

Consumers Credit Union’s checking account options

Free Checking account

Consumers Credit Union’s Free Checking account offers a standard range of basic checking services in a free wrapper, but it doesn’t pay any interest.
  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: $0, but $1 for every ATM withdrawal exceeding six per month
  • ATM fee refund: None
  • Overdraft fee: $30, or $10 if signed up for automatic transfer of funds to cover overdrafts

The Free Checking account is a straightforward option for banking clients who need basic checking account access, but don’t want to pay any fees. Although the account doesn’t earn any interest, it has no minimum balance requirements and provides a number of free features and benefits, including the following:

  • Online and mobile banking access
  • Unlimited check writing
  • Online bill pay
  • Mobile pay via a linked debit card using Google Pay, Apple Pay or Samsung Pay
  • Mobile remote deposit of checks via smartphone

The Free Checking account carries a steep overdraft fee, but that can be reduced by signing up for transfers from a backup funding account. ATM access is available via debit card, and withdrawals up to six times per month are free of charge.

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Student Choice Checking

This account is designed for younger customers from 13 to 17 years old. Accounts must be opened jointly with a parent or guardian who is legally responsible for all account activity.
  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0; $10 if maintained after age 19 and not converted to a Rewards Checking account
  • ATM fee: $0, but $1 for every ATM withdrawal exceeding six per month
  • ATM fee refund: Up to $25 per month
  • Overdraft fee: No overdrafts allowed

Consumers Credit Union’s Student Choice checking account is a starter account for minors, who must open the account with a designated adult.

Daily debit card withdrawals are limited to $310. No checks are included and no overdrafts are allowed. However, the account does provide a generous up to $25 maximum ATM fee monthly rebate for non-network ATMs, and it allows minors to apply for a Visa credit card through the account.

Other benefits include free electronic statements and online banking. As with the Free Checking account, however, no interest is paid on the Student Choice checking account.

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Free Rewards Checking

The Consumers Free Rewards checking account pays high rates of interest on smaller balances, but it has a complicated, multi-tier structure.
Tier A
APYMinimum Balance to Earn APY
5.09%
$0
0.20%
$20,000.01
0.10%
$25,000.01
Tier B
APYMinimum Balance to Earn APY
4.09%
$0
0.20%
$15,000.01
0.10%
$25,000.01
Tier C
APYMinimum Balance to Earn APY
3.09%
$0
0.20%
$10,000.01
0.10%
$25,000.01
  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: $0, if basic service requirements met
  • ATM fee refund: Unlimited, if basic service requirements met
  • Overdraft fee: $30, or $10 if signed up for automatic transfer of funds to cover overdrafts

Free Rewards account holders can earn high rates of interest but must clear certain hurdles earn the best rates. To qualify for Tier C, customers must ensure that each month, the following occurs:

  • Complete at least 12 debit/check card point-of-sale purchases of any amount (must be made without the use of a PIN code and must clear and post as a credit transaction by the end of the month)
  • Receive one direct deposit, pay one bill using the credit union’s online bill pay service, or make one ACH debit
  • Access online banking at least once
  • Receive bank correspondence (such as statements and notices) via the eDocuments service

Tier B customers must complete all of the above every month, and also spend $500 or more in Consumers Credit Union Visa credit card purchase transactions. Customers who spend $1,000 or more monthly on their Consumers Credit Union Visa credit card are bumped up to Tier A.

On top of the enhanced interest payments, the Free Rewards checking account offers the following additional benefits:

  • Reimbursement for any and all ATM fees, if Tier C or higher requirements are met
  • Online banking and bill pay
  • Mobile banking
  • No minimum balance requirement
  • No monthly maintenance fees
  • Unlimited check writing

If Tier C or higher requirements are not met, customers lose the fee reimbursement provision and are only paid interest at a 0.01% APY. To help customers keep on track, the credit union offers a service that shows activity such as monthly debit transactions and Visa spending.

How to open Consumers Credit Union’s checking accounts

As noted earlier, Consumers Credit Union has an online application for its flagship Free Rewards Checking account. Customers looking to open a Free Checking or Student Choice account can visit a branch or call the customer service line at (877) 275-2228.

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How Consumers Credit Union’s checking accounts compare

Consumers Credit Union offers a no-frills Free Checking account, but since the enhanced Free Rewards Checking account has no monthly maintenance fee, it would generally be the better choice. This is particularly true for account holders who can meet the credit union’s activity requirements — these actions make the interest rate rise dramatically.

The best rates that the credit union offers not only smash the national average rate, they easily top the best national checking rates offered by competitors. The primary downside is that the rates paid are limited to deposits of no more than $20,000.

Consumers Credit Union’s savings account options

Membership Share Savings account

The Membership Share Savings account is Consumers Credit Union’s traditional savings account.
APYMinimum Balance to Earn APY
0.05%
$5
  • Minimum opening deposit: $5
  • Monthly account maintenance fee: $0
  • ATM fee: $0, but $1 for every ATM withdrawal exceeding six per month
  • ATM fee refund: None
  • Overdraft fee: $30, or $10 if signed up for automatic transfer of funds to cover overdrafts

A $5 deposit into a new Consumers Credit Union Membership Share Savings account is mandatory for any customers who want to be members of the credit union.

As required by Federal Reserve Regulation D, you are limited to up to six certain transactions each month from Consumers Credit Union’s Membership Share Savings or money market account. The credit union will assess a $5 fee for each additional transaction. Your account may also be closed, at the discretion of the institution.

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Christmas Savings account

The Christmas Savings account has limited access until the holiday period every year, but it does pay interest.
APYMinimum Balance to Earn APY
0%
$5
  • Minimum opening deposit: $5
  • Monthly account maintenance fee: $0
  • ATM fee: n/a
  • ATM fee refund: n/a
  • Overdraft fee: n/a

The Christmas Savings account pays a higher interest rate than the credit union’s Membership Share Savings account, but funds must remain on deposit in the account from Nov. 1 through Oct. 31 of the following year, at which point money is automatically transferred into the account holder’s Membership Share Savings account.

The account requires a new $5 minimum deposit every year and automatically renews.

How to open Consumers Credit Union’s savings accounts

The credit union has a single online application for its accounts. Customers looking to open a Membership Share Savings or Christmas Savings account can also visit a branch or call the customer service line at (877) 275-2228

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How Consumers Credit Union’s savings accounts compare

Consumers Credit Union’s savings accounts pay low interest rates. The primary savings account doesn’t even match the national average savings account rate, and it falls far below the highest online savings rates available, The Christmas Savings account has a better-than-average rate, but it too is no comparison to the best available at other institutions. The accounts do come free of any monthly maintenance fees, but they don’t provide any exceptional services or payouts.

Consumers Credit Union’s CD rates

Regular CDs

TermAPYMinimum Balance to Earn APY
91 days0.50%
$250
6 months1.25%
$250
1 year1.70%
$250
15 months*2.75%
$250
18 months1.75%
$250
2 years1.75%
$250
30 months1.80%
$250
3 years1.90%
$250
45 months*3.25%
$250
4 years2.00%
$250
5 years2.15%
$250
* indicates a promotional rate
  • Minimum opening deposit: $250
  • Minimum balance amount to earn APY: $250
  • Early withdrawal penalty: for terms of one year or less, 60 days’ dividends; for terms of longer than one year, 120 days’ dividends

Consumers Credit Union’s CDs range in maturity from 91 days to 5 years, with rates guaranteed for the duration of the term. After a minimum deposit of $250, dividends are compounded daily and posted monthly. Promotional rates are offered in the 15 month and 45 month maturities. Withdrawing funds before CDs mature will trigger an early withdrawal penalty of between 60 and 120 days’ worth of dividends.

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Jumbo CDs

Consumers Credit Union’s Jumbo CDs match the maturity schedule as the credit union’s regular CDs, but rates may vary.
TermAPYMinimum Balance to Earn APY
91 days0.50%
$100,000
6 months1.25%
$100,000
1 year1.80%
$100,000
15 months*2.85%
$100,000
18 months1.85%
$100,000
2 years1.85%
$100,000
30 months1.90%
$100,000
3 years2.00%
$100,000
45 months*3.35%
$100,000
4 years2.10%
$100,000
5 years2.25%
$100,000
*indicates a promotional rate
  • Minimum opening deposit: $100,000
  • Minimum balance amount to earn APY: $100,000
  • Early withdrawal penalty: for terms of one year or less, 60 days’ dividends; for terms of longer than one year, 120 days’ dividends

Customers with $100,000 or more to invest have access to the credit union’s jumbo certificate rates, which are higher for some maturities than the credit union’s regular certificate accounts. Promotional rates are offered for the same 15 and 45 month maturities as Consumers Credit Union’s regular CDs. Dividends are credited daily and posted monthly, with rates guaranteed for the life of the CD.

How to get Consumers Credit Union’s certificate rates

Consumers Credit Union has one online application for all account types, including regular and jumbo CDs.

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How Consumers Credit Union’s CD rates compare

Although Consumers Credit Union offers additional interest on some CD maturities for jumbo deposits, the bump in rates isn’t particularly noteworthy. The best rates in Consumers Credit Union’s CDs are available on the two promotional maturities of 15 and 45 months, on both the regular and jumbo CDs. Overall, rates at Consumers Credit Union are far above the national average CD rates, and while these rates don’t approach the best CD rates available nationally, they are respectable. Early withdrawal penalties are fairly standard.

Consumers Credit Union’s money market account option

Money Market account

This account is Consumers Credit Union’s version of a traditional money market account, with larger balances earning higher interest rates.
APYMinimum Balance to Earn APY
0.15%
$2,000
0.15%
$20,000
0.25%
$40,000
0.50%
$70,000
1.00%
$100,000
  • Minimum opening deposit: $0
  • Minimum balance to earn APY: $2,000+ (see above table)
  • Monthly account maintenance fee: $0
  • ATM fee: n/a
  • ATM fee refund: n/a
  • Overdraft fee: $30, or $10 if signed up for automatic transfer of funds to cover overdrafts

Consumers Credit Union’s Money Market account pays a higher rate than the credit union’s savings account, but offers more access than its CDs. Rates are tiered, with the highest APY paid for balances of $100,000 or more.

Federal Reserve Regulation D requires that an account classified as a “savings deposit” must not permit more than six transfers or withdrawals per month. In the case of Consumers Credit Union, account holders will be assessed a fee of $5 per instance each time they exceed that limit — in some cases, the credit union may close the account in response to excess withdrawals. The account has no ATM access.

How to get Consumers Credit Union’s money market account

As noted earlier, Consumers Credit Union has one online application for all account types, including the money market account.

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How Consumers Credit Union’s money market account compares

Consumers Credit Union’s sole money market account is just about average when it comes to interest rates. Deposits below $20,000 earn less than the national average for money market accounts, while deposits of $100,000 or more earn about double the national average. Rates for all tiers fall well short of the highest available money market rates at other banks. On the plus side, the account carries no monthly maintenance fee.

Consumers Credit Union’s IRA rates

IRA CDs

Consumers Credit Union pays the same rates on its IRA CDs as it does on its non-IRA accounts. Jumbo certificates are available in the credit union’s IRAs as well.

Regular IRA CDs

TermAPYMinimum Balance to Earn APY
91 days0.50%
$250
6 months1.25%
$250
1 year1.70%
$250
15 months*2.75%
$250
18 months1.75%
$250
2 years1.75%
$250
30 months1.80%
$250
3 years1.90%
$250
45 months*3.25%
$250
4 years2.00%
$250
5 years2.15%
$250
*indicates promotional rates
  • Minimum opening deposit: $250
  • Minimum balance amount to earn APY: $250
  • Early withdrawal penalty: For terms of one year or less, 60 days’ dividends; for terms of longer than one year, 120 days’ dividends

Consumers Credit Union’s IRA CDs follow the same format as the credit union’s non-IRA CDs. Minimum deposits are $250, and rates vary over the 91 day to 5 year maturity schedule. Higher rates are paid for the promotional maturities of 15 and 45 months. Early withdrawal penalties apply, at a cost of either 60 days’ or 120 days’ worth of dividends.

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Jumbo IRA CDs

TermAPYMinimum Balance to Earn APY
91 days0.50%
$100,000
6 months1.25%
$100,000
1 year1.80%
$100,000
15 months*2.85%
$100,000
18 months1.85%
$100,000
2 years1.85%
$100,000
30 months1.90%
$100,000
3 years2.00%
$100,000
45 months*3.35%
$100,000
4 years2.10%
$100,000
5 years2.25%
$100,000
*indicates promotional maturities
  • Minimum opening deposit: $100,000
  • Minimum balance amount to earn APY: $100,000
  • Early withdrawal penalty: For terms of one year or less, 60 days’ dividends; for terms of longer than one year, 120 days’ dividends

For IRA customers with at least $100,000 to invest, jumbo CDs are available in Consumers Credit Union’s IRA products. Rates are higher for some maturities than the credit union’s regular IRA CDs. Promotional rates are available for maturities of 15 and 45 months. Dividends are credited daily and posted monthly.

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IRA Money Market account

Rates for the Consumers Credit Union IRA Money Market account are the same as the credit union’s regular money market account.
APYMinimum Balance to Earn APY
0.15%
$2,000
0.15%
$20,000
0.25%
$40,000
0.50%
$70,000
1.00%
$100,000
  • Minimum opening deposit: $0
  • Minimum balance to earn APY: $2,000+ (see table above)
  • Monthly account maintenance fee: $0
  • ATM fee: $0
  • ATM fee refund: n/a
  • Overdraft fee: $30, or $10 if signed up for automatic transfer of funds to cover overdrafts from IRA Savings account

Consumers Credit Union’s IRA Money Market account has the same interest rates as its non-IRA money market account. It pays more than the credit union’s IRA savings account, but for the most part, rates are lower than its IRA CD rates. Tiered rates pay the highest APY on balances of $100,000 or more. There is no ATM access with this account.

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IRA Savings

The IRA Savings account pays the same interest rate on all balances above the minimum.
APYMinimum Balance to Earn APY
0.25%
$10
  • Minimum opening deposit: $10
  • Minimum balance to earn APY: $10
  • Monthly account maintenance fee: $0
  • ATM fee: n/a
  • ATM fee refund: n/a
  • Overdraft fee: $30, or $10 if signed up for automatic transfer of funds to cover overdrafts from IRA Money Market

The IRA Savings account at Consumers Credit Union is an interest-bearing account for cash that is not invested elsewhere, such as in the credit union’s CDs. The same rate is paid for every deposit above the account minimum of $10. There are no monthly fees with this savings account.

How to get Consumers Credit Union’s IRA rates

Consumers Credit Union requires applicants for IRA products to call (877) 275-2228 or visit a branch. No online application is available for an IRA product at the credit union.

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How Consumers Credit Union’s IRA rates compare

Rates for the money market and CD accounts in the credit union’s IRAs are the same as in the credit union’s non-IRA accounts. For the latter, this means that, overall, they are far above the national average CD rates, but well below the best IRA CD rates available nationally. Jumbo CD deposits earn slightly higher rates, but the promotional terms of 15 and 45 months are where investors will find the best rates at Consumers Credit Union. Rates are the same regardless of the size of deposit, with the exception of some jumbo maturities.

The credit union’s IRA savings account pays a modest amount of interest, above the national average savings rate.

Overall review of Consumers Credit Union’s banking products

Consumers Credit Union offers a mixed bag of banking options for customers. The clear highlight of the credit union’s entire roster is its Rewards Checking account, which pays an outstanding rate for balances of up to $20,000. However, the multi-tier structure of the account can be confusing, and it can take some doing to earn the best rate. For determined savers, however, it can be hard to find a better rate at any institution across the country.

The credit union also does well with its promotional CD rates, although they only come in two maturities. Other CD rates are respectable, but not noteworthy.

Beyond that, Consumers Credit Union’s other offerings are lackluster, with the savings accounts paying below-market rates and the money market account not leaping to new heights either.

Overall, Consumers Credit Union offers a wide range of products with low or no fees, which can be appealing to many consumers. With the exception of the exceptional flagship checking rate, however, better options can likely be found at other institutions.

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.

John Csiszar
John Csiszar |

John Csiszar is a writer at MagnifyMoney. You can email John 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.

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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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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