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Eastman 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.

Eastman Credit Union’s checking account options

ECU Beyond Free Checking

A tiered checking account with very few fees.
APYMinimum Balance to Earn APY
0.05%
$0
0.10%
$10,000
0.15%
$25,000
0.20%
$50,000
0.25%
$100,000
0.30%
$200,000
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $5 or $30

The ECU Beyond Free Checking is not a bad account. It has no minimum balance requirements, no minimum opening deposit and won’t sock you with ATM fees when you use an out-of-network ATM unless they’re charged by the ATM owner.

The APY on this Eastman Credit Union account isn’t the best, but sometimes it can be exciting that a checking account offers dividends at all. Typically, you hold money in a checking account only to spend it throughout the month, so while you can find special deals and great rates outside of Eastman Credit Union, you will also find some financial institutions offering 0.00% APY on their checking accounts. The credit union’s rates are fairly standard though not the highest on the market.

Overdraft fees on all accounts at Eastman Credit Union are either $5 or $30. If you sign up for overdraft protection, you will be charged $5 every time the credit union has to pull funds from your savings account to cover your purchase. If you sign up for overdraft protection plus, you will be charged $30 every time you overdraw, but the credit union will allow you to make purchases until your account is -$500. Not that the $30 fee will reduce the amount available ($500) to pay other items. If you don’t sign up for any of these protections, you will be charged $30 every time you overdraw, and on top of it, Eastman will not allow the purchase to go through.

How to get Eastman Credit Union’s Beyond Free Checking

You can apply for Beyond Free Checking online or by visiting your local branch.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

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How Eastman Credit Union’s checking account compares

The ECU Beyond Free Checking does not offer the best rates on the market, but they’re not the worst either. Aided by no minimum balance requirements and limited fees, this account is worthy of your consideration as you compare other checking accounts.

Eastman Credit Union’s savings account options

Regular Savings

This account is required to establish your membership at Eastman Credit Union.
APYMinimum Balance to Earn APY
0.30%
$5
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $5
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $5 or $30

Eastman Credit Union’s Regular Savings account doesn’t offer even close to the highest APY on the market, but that’s not the real reason to open one of these accounts. In order to establish membership at the credit union, you must have a savings account to access any of their other accounts, making things like lackluster APY and relatively low fees a moot point.

Because it is a savings account, certain terms are dictated by federal regulation. Specifically, Fed Regulation D says that you can make up to six certain withdrawals/transfers from a savings account per month. If you do go over, Eastman Credit Union will charge you an $8 excessive withdrawal fee for any transaction over six in any given month. You also risk having your account shut down, which could result in a loss of membership with this particular account.

How to get Eastman Credit Union’s Regular Savings Account

You can open this account online or in person.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

Christmas Club Account

An account that empowers you to save for the holidays but recognizes you might need cash for early shopping.
APYMinimum Balance to Earn APY
0.30%
$5
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $5
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Early withdrawal fee: $10, if you withdraw before September
  • Overdraft fee: $5 or $30

Saving for the holidays? It’s really easy to dip into that savings pot when something like a big back-to-school sale or an opportunity to take a long weekend trip pops up. The Christmas Club Account is built specifically with this situation in mind.

You can stash money in your Christmas Club Account all year, and then during the first week of November, everything you’ve saved will be disbursed to your regular savings account. To encourage you to keep money in your account throughout the year, you will be charged a $10 fee when you withdraw. The only exceptions are withdrawals made in September and October, for which there are no fees.

How to get Eastman Credit Union’s Christmas Club Account

You can open a Christmas Club Account online or at your local branch.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

Stash Your Cash Account

A club account that allows you to save for more than just the holidays.
APYMinimum Balance to Earn APY
0.30%
$5
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $5
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $5 or $30

The Stash Your Cash Account is similar to the Christmas Club Account, except that you can use the money you’re saving for any purpose, whether that be vacation or a wedding. You can also set the date that your funds will be released to your Regular Savings, making the account flexible to match your individual financial goals.

Remember that both this account and the Christmas Club Account are still savings accounts, so if you do have to make early withdrawals/transfers, make sure you’re planning ahead to avoid making more than six per month.

How to get Eastman Credit Union’s Stash Your Cash Account

You can open this account by visiting your local branch. If there is no branch local to you, call (800) 999-2328.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

Health Savings Account

A tax-sheltered account for your health care costs.
APYMinimum Balance to Earn APY
0.30%
$5
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $5
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $5 or $30

If you have a High-Deductible Health Plan (HDHP), you can put up to $3,450 into a Health Savings Account (HSA) in 2018 — $6,900 if your HDHP offers family coverage.

These contributions are tax-deductible, and earnings are tax-free when you take the money out for qualified health expenses. You can also enjoy tax-free withdrawals if you are disabled or at least the age of 65.

The fact that the credit union offers this type of account is fairly unique. If you have an HDHP and no other insurance, it’s a good way to shelter the dollars you spend on health care costs from the IRS, and since the money is carried over from year to year, it can also serve as an extremely tax-effective retirement account if you don’t end up needing the money for health-related expenses. Granted, if you open it with Eastman Credit Union, the dividends won’t be enough to keep your money from losing value to inflation.

How to get Eastman Credit Union’s Health Savings Account

To get the process of opening an HSA started, call (800) 999-2328.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

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How Eastman Credit Union’s savings accounts compare

Eastman Credit Union offers a pittance of an APY when compared with the best savings accounts on the market, yet each account it does offer serves a very unique purpose that may put it beyond dividend comparisons.

The Regular Savings account is required to open any type of account at Eastman Credit Union, whether or not you’re a fan of the APY. Christmas Club and special savings accounts exist to enforce self-discipline rather than to rake in extra money through dividends, and HSAs are a way to become more tax efficient with your health care spending.

Rather than comparing these accounts with those with the highest savings rates, you’ll be better off digging in deep and comparing them with accounts at other financial institutions that help you achieve the same goals.

Eastman Credit Union’s CD rates

Investment Certificates

Fairly competitive certificates with an opportunity to increase your APY.
TermAPYMinimum Opening Deposit
1-3 Months0.30%
$2,500
3-6 Months0.50%
$2,500
6-12 Months0.65%
$2,500
9 Months2.25%
$2,500
12-24 Months2.25%
$1,000
18-19 Months2.40%
$1,000
24-36 Months2.30%
$1,000
36-48 Months2.40%
$1,000
48-60 Months2.50%
$1,000
60 Months2.60%
$1,000
72 Months2.90%
$1,000
  • Minimum opening deposit: Varies based on desired term and APY
  • Minimum balance amount to earn APY: Same as minimum opening deposit
  • Early withdrawal penalty:
    • The greater of 7 days’ worth of dividends or all dividends earned to date on certificates with terms of up to 6 months;
    • 90 days’ worth of dividends on certificates with terms between 6 and 23 months;
    • 180 days’ worth of dividends on certificates with terms between 24 and 60 months;
    • 1 years’ worth of dividends on certificates with terms of 72 months.

The dividend rates on Eastman Credit Union’s Investment Certificates — which are the equivalent of certificates of deposit or CDs — are fairly competitive. It should be noted that this is especially true as you extend the term; the 72 month certificates are far more competitive than the 12 month CDs.  Further, you can add 0.05% APY to your certificate to make it a jumbo certificate with all the same terms save a minimum balance requirement of $100,000.

Also know that if you make a withdrawal that brings you below your minimum opening deposit, you’ll not only incur an early withdrawal penalty, but you’ll also see your certificate shut down. You cannot keep this account open without earning APY, and you can’t continue to earn APY without keeping your minimum opening deposit intact. The only exception to this is jumbo certificates. If you fall below the $100,000 minimum balance threshold, your certificate will just revert to normal rates.

How to get Eastman Credit Union’s CDs

You can open your investment certificate online or in person.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

Lifeline Savers Certificate

A low-yield certificate with an extremely low barrier to entry.
TermAPY
1 Year0.55%
  • Minimum opening deposit: $100
  • Minimum balance amount to earn APY: $100
  • Early withdrawal penalty: 90 days’ worth of dividends

In addition to the Investment Certificate, Eastman Credit Union also offers the Lifeline Savers Certificate. One unique feature compared with Eastman’s other certificate products is that you can add to the balance of this certificate at any time — even midterm. Your rate will be lower than with an Investment Certificate, but the barrier to entry is also far lower with only a $100 required deposit and balance.

That doesn’t mean that this account is competitive overall, though. At this term tier, you can find certificates from other financial institutions offering rates nearly five times higher requiring only about $400 more for a minimum opening deposit.

How to get Eastman Credit Union’s Lifeline Savers Certificate

You can open this account in person or via the online application.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

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How Eastman Credit Union’s CD rates compare

At lower rate tiers, Eastman’s certificates are barely competitive. However, as you move up through the ranks of longer term periods, its certificates rival some of the best rates out there. Those should be considered as a viable option as you compare other CDs.

Eastman Credit Union’s money market account options

Money Market

A somewhat standard money market account with high minimum balance requirements for unsatisfying dividends.
APYMinimum Balance to Earn APY
0.25%
$0
0.30%
$10,000
0.35%
$25,000
0.40%
$50,000
0.45%
$100,000
0.55%
$200,000
  • Minimum opening deposit: $1
  • Minimum balance to earn APY: $0; $10,000; $25,000; $50,000; $100,000; or $200,000 depending on desired rate
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $5-$30

The idea behind a credit union money market account is to pull more in from dividends than you would on your typical savings account. Traditionally, this has meant that there are larger minimum balance requirements in order to earn the higher APY.

Eastman Credit Union’s money market account does raise dividend rates as its tiered minimum balance requirements increase, but those rates are extremely low. If you have under $10,000 in your account, you’d be earning less APY than if you kept your money in a savings account at the credit union. But even at higher minimum balance requirements, the APY offered by Eastman Credit Union falls far short when compared with other options on the market.

Money market accounts are regulated by the federal government in the fashion of savings accounts, so remember that if you make more than six certain withdrawals/transfers from this account, you could be facing an $8 excessive withdrawal fee from the credit union per each instance. Beyond that, your account could even be shut down all together.

How to get Eastman Credit Union’s Insured Money Market account

You can open an Insured Money Market Account in person or via the online application.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

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How Eastman Credit Union’s money market accounts compare

As mentioned above, traditionally money market accounts have required higher minimum balances in order to earn a higher APY. However, with the advent of online-only banks, we have seen a shift in this practice. Now, many internet banks offer a high APY on money market accounts with low or even no minimum balance requirements, rendering accounts like the one offered by Eastman Credit Union fairly obsolete.

To earn a dramatically higher APY with lower minimum balance requirements, be sure to check out the best money market accounts on the web.

Eastman Credit Union’s IRA account options

IRA CD rates

IRA Investment Certificate

Same rates as a certificate outside of an IRA make this account uncompetitive.
TermAPYMinimum Opening Deposit
1-3 Months0.30%
$2,500
3-6 Months0.50%
$2,500
6-12 Months0.65%
$2,500
9 Months2.25%
$2,500
12-24 Months2.25%
$1,000
18-19 Months2.50%
$1,000
24-36 Months2.30%
$1,000
36-48 Months2.40%
$1,000
48-60 Months2.50%
$1,000
60 Months2.60%
$1,000
72 Months2.90%
$1,000
  • Minimum opening deposit: $1,000 or $2,500 depending on term
  • Minimum balance amount to earn APY: Same as minimum opening deposit
  • Early withdrawal penalty:
    • All dividends on 1-month certificates;
    • 7 days’ worth of dividends on 3-month certificates;
    • 90 days’ worth of dividends on certificates with terms between 6 and 23 months;
    • 180 days’ worth of dividends on certificates with terms between 24 and 60 months;
    • 1 years’ worth of dividends on certificates with terms of 72 months.

Many financial institutions increase the interest rates offered on certificates when they are held within an IRA, though Eastman Credit Union keeps them static. If you have over $100,000 in an Investment Certificate, it turns into a jumbo certificate and you’ll see a rate hike of 0.05%, but it’s still not enough to compensate for the higher rates offered for lower minimum balances elsewhere.

While the early withdrawal penalties charged by Eastman Credit Union are listed above, remember that any time you take money out of an IRA, you could also owe penalties to the IRS, as well.

How to get Eastman Credit Union’s IRA CDs

You cannot open IRA products with Eastman Credit Union online. Instead, you’ll have to open this account by visiting your local branch. If there is no branch local to you, call (800) 999-2328.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

Accumulation Account

A competitive savings account within your IRA meant to be used before you retire.
APYMinimum Balance to Earn APY
0.30%
$5.00
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $5
  • Monthly account maintenance fee: None
  • Overdraft fee: N/A

The Accumulation Account is a savings account inside your IRA and is meant to be used before your reach retirement age. Eastman Credit Union’s offered rates are not competitive for a portfolio holding of this class. You can find rates more than six times higher elsewhere.

Because you have to come in to fill out paperwork and make withdrawals, you will not be able to accidentally overdraw this account. You should also be aware that with few exceptions, should you make withdrawals from an IRA prior to reaching retirement age, you will have to pay penalties and fees.

How to get Eastman Credit Union’s Accumulation Account

Because Eastman’s IRA products are not available online, you will have to either call (800) 999-2328 to set up your account, or visit your local branch.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

Access Account

A savings account within your IRA meant to be used in retirement.
APYMinimum Balance to Earn APY
0.25%
$10,000
  • Minimum opening deposit: $10,000
  • Minimum balance to earn APY: $10,000
  • Monthly account maintenance fee: None
  • Overdraft fee: N/A

The Access Account is very similar to the Accumulation Account in its intent. It is a savings account within an IRA, though it is meant to be used as you approach retirement. When you reach retirement age, you will be able to take money out of this account — hence the name “access.”

There are higher minimum opening and balance requirements with this account, but that is because you are closer to retirement and will likely want to keep more of your retirement savings in more conservative accounts. The APY is also a little lower than the Accumulation Account, which obviously means this account does not offer a competitive APY either.

How to get Eastman Credit Union’s Access Account

To open any type of product within an IRA, you’ll have to either visit a branch or call (800) 999-2328.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

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How Eastman Credit Union’s IRA CD rates compare

You can do better with your IRA certificate than accepting the low rates offered by Eastman Credit Union. Look for financial institutions that up their APY when offering certificates inside an IRA rather than keeping them static. Even if you have more than $100,000 to open a jumbo certificate and get the rate hike, the APY offered by the competitors still dwarfs the credit union’s offerings.

Overall review of Eastman Credit Union’s banking products

At the end of the day, with the potential exception of certain certificate tiers outside of an IRA, Eastman Credit Union’s products simply aren’t competitive with the best options on the market. To be sure, its savings accounts do offer a wide range of services that may help you reach your financial goals outside of APY earnings. For all other products, it’s more likely in your favor to look elsewhere.

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.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here

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Credit Cards, Reviews

American Express Gold Card: Good Travel Rewards for a Fee

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

pay credit card_lg

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

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

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

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

The basics of the American Express® Gold Card

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

$100 airline fee credit.

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

American Express® Gold Card

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Terms Apply | Rates & Fees

American Express® Gold Card

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

How to redeem Membership Rewards® Points earned

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

Flights, hotels, and vacations

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

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

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

Transferring your Membership Rewards® Points

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

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

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

Occasionally, there are transfer specials for participating loyalty programs.

Statement credit and gift cards

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

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

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

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

Other rewards

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

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

The fine print

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

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

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

Benefits and protections

Car Rental Loss and Damage Insurance

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

Purchase Protection

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

Pros and cons

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

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

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

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

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

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

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

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

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

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

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

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

Taylor Gordon
Taylor Gordon |

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

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 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.

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

2.10%

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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on Discover Bank’s secure website

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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