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Flagstar Bank 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.

Flagstar Bank checking account options

SimplyChecking

You don’t earn any interest with this account, but you could get perks like rate discounts for loans and increased rates for CDs.
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: None
  • ATM fee: $2.50 for out-of-network ATMs
  • ATM fee refund: None, according to bank representative
  • Overdraft fee: $36

The SimplyChecking account is great for those wanting a basic checking account option without needing to worry about monthly fees or minimum deposit requirements. This account also requires a fairly low minimum opening deposit and over 55,000 surcharge-free ATMs at Flagstar Bank and the Allpoint network. Other features include a free Visa debit or ATM card, free bill pay, mobile deposit, online, telephone and mobile banking.

If you have more than $5,000 in deposits across your Flagstar Bank checking, savings and money market accounts, you could get preferred CD rates — not including promo rates. These rates aren’t currently being advertised on their website so you’ll need to call the bank to find out. Account holders are also eligible for a 0.50% rate reduction if you make automatic payments from this account toward your Flagstar Bank home equity loans, home equity lines of credit or personal loans.

How to get the SimplyChecking account

You need to open an account at any one of Flagstar Bank’s branch locations. You can call 1-888-248-6423 for more information on what to bring, but you’ll most likely need to bring your government-issued ID and Social Security number.

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SimplyPlus+ Checking

The rates aren’t great but you do get ATM refunds and the ability to waive the monthly maintenance fee.
APYMinimum Balance to Earn APY
0.01%$0
0.01%$1,000
0.02%$10,000
0.02%$25,000
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: $10 (this can be waived)
  • ATM fee: $2.50 for out-of-network ATMs
  • ATM fee refund: Up to 2 times each month
  • Overdraft fee: $36

The SimplyPlus+ Checking account is slightly above the SimplyChecking account in that you do earn interest and receive two ATM refunds. However, the rates are miniscule and they charge a $10 monthly maintenance fee. On the bright side, you can get that waived if you can maintain a minimum average daily balance of $1,000, or $5,000 across your Flagstar checking, saving and money market accounts or if you’re at least 50 years old. You also receive a free box of checks each year.

Like the SimplyChecking account, you get a free Visa debit/ATM card, bill pay, mobile check deposit, online, mobile and telephone banking. You can also get access to over 55,000 surcharge-free ATMs through the Allpoint network. If you have a personal loan, home equity line of credit or a home equity loan, you may be eligible to receive a 0.50% rate reduction if you enroll in autopay from this account. You may also qualify for better CD rates if you maintain a minimum of $5,000 in the account, though you’ll need to contact the bank to see what they are.

How to get the SimplyPlus+ Checking

You need to open an account in person. You can call 1-888-248-6423 for more information but you’ll most likely need to bring your government-issued ID and Social Security number.

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on Flagstar Bank’s secure website

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SimplyMax Checking

You can get a higher APY and more ATM refunds, but it comes with a higher monthly maintenance fee.
APYMinimum Balance to Earn APY
0.02%$0
0.04%$5,000
0.05%$25,000
0.05%$50,000
0.05%$100,000
0.05%$1,000,000
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: $25 (this can be waived)
  • ATM fee: None
  • ATM fee refund: Up to $20 each month upon request
  • Overdraft fee: $36

This checking account offers the highest APY out of all Flagstar Bank but it requires a high minimum deposit amount in order to qualify for it. The monthly maintenance fee seems pretty steep but you can waive it if you maintain a minimum average daily balance of $5,000 or have $25,000 in combined balances from Flagstar bank deposit accounts (except IRA products).

Like the other checking accounts, you could get a rate reduction on home equity line of credit, home equity and personal loans. You may also qualify for higher CD rates, though you’ll need to contact the bank to find out what they are. Other features include a free Visa debit or ATM card, bill pay, mobile, online and telephone banking. Account holders also get a box of checks for free each year.

How to get the SimplyMax Checking account

You’ll need to head to a local branch to open an account. To find out more, call customer service at 1-888-248-6423.

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How Flagstar Bank’s checking accounts compare

We’re sad to say that Flagstar Bank’s checking account rates don’t even come close to what is being offered out there. Other places on our list of the best online checking accounts have low or no monthly maintenance fees (that doesn’t require minimum balance amounts like Flagstar Bank does) and some even offer ATM refunds. Flagstar Bank does offer some ATM refunds with their SimplyPlus+ and SimplyMax checking accounts, but they’re limited to a certain amount per month.

Trust us, you’re probably better off looking elsewhere.

Flagstar Bank savings account options

SimplySavings

The APY is miniscule but you do get ATM access.
APYMinimum Balance to Earn APY
0.05% (regular rate)$0.01
1.30% (promo rate) $0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $3 (this can be waived)
  • ATM fee: $2.50 for out-of-network ATMs
  • ATM fee refund: None, according to bank representative
  • Overdraft fee: N/A

This savings account offers a low monthly maintenance fee and a promotion rate for new money only, which Flagstar Bank defines as money currently not on deposit with the bank. The rate is only available for Michigan residents. This rate will only be for the first 12 months after account opening and it’ll fall back down to the regular rate afterward.

To waive the monthly maintenance fee, you’ll need to either maintain a $300 minimum average balance or if you have a Flagstar Bank checking account. Other features of the account include a free Visa debit/ATM card, online, mobile and telephone banking. There’s also a rate reduction for personal and home equity loans, plus preferred CD rates if you maintain a minimum of $5,000 in your account. Federal Regulation D allows you up to six certain debits a month, so you’ll need to fork over $10 in excessive transaction fees to the bank if you go over the allotted amount.

How to get the SimplySavings account

Currently, you can only open an account in person.

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SimplyMax Savings

The promo rate is pretty good considering there isn’t a minimum balance requirement.
APYMinimum Balance to Earn APY
1.30% (promo rate)$0.01
0.03% $0.01
0.05%$5,000
0.10%$25,000
0.10%$50,000
0.10%$100,000
0.10%$1,000,000
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $25 (this can be waived)
  • ATM fee: $2.50 for out-of-network ATMs
  • ATM fee refund: None
  • Overdraft fee: N/A

The SimplyMax Savings account also offers a promo rate for new money, meaning cash that isn’t currently on deposit with the bank. Unfortunately, it’s only limited to Michigan residents. After 12 months of account opening, it’ll go back to the regular rate.

Like the SimplySavings account, you get a free Visa debit/ATM card, bill pay, online, mobile and telephone banking. You also get preferred rates for a CD account if you maintain a minimum of $5,000 in combined account balances, and a rate reduction on your personal or home equity loans if you make auto payments with this account.

You can waive the monthly maintenance fee if you have a Flagstar Bank checking account or maintain a minimum average daily balance of $25,000. Since this is a savings account, you’re allowed up to six certain debits a month as mandated by Regulation D. Otherwise, you’ll need to pay a $10 excess transaction fee to the bank for each withdrawal you exceed.

How to get the SimplyMax Savings

You can only open an account at a local branch.

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High-Yield Savings

These are the highest savings rates Flagstar Bank offers, but the promo rate has restrictive requirements.
APYMinimum Balance to Earn APY
1.30% (promo rate)$0.01
0.03% $0.01
0.40%$50,000
0.55%$100,000
0.70%$250,000
0.80%$500,000
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $35 (this can be waived)
  • ATM fee: $2.50 for out-of-network ATMs
  • ATM fee refund: None, according to a bank representative
  • Overdraft fee: N/A

Like the other savings accounts mentioned above, the High-Yield savings account is also offering a promo rate that doesn’t have any minimum balance requirements. It’s only available to Michigan residents and the rate is for the first 12 months of account opening. You’ll need new money for this account, meaning any cash that isn’t currently on deposit with Flagstar Bank. After the promo period, it goes down to the regular rate.

The monthly maintenance fee seems a bit steep but you can get it waived if you have a checking account or keep a $50,000 minimum daily average balance. You also get free bill pay, mobile deposit, a Visa debit/ATM card, mobile, online or telephone banking. Remember, Regulation D allows you up to six certain debits each month and you could be paying $10 for each excessive transaction to the bank.

How to get the High-Yield Savings account

Currently, the only option to open an account is in person.

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SimplyKids Savings

For those until the age of 23.
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: $2.50 for out-of-network ATMs
  • ATM fee refund: None, according to bank representative
  • Overdraft fee: N/A

The SimplyKids savings account is for children and needs a parent or guardian as a joint owner. Only those 13 years and up can receive a Visa debit or ATM card. Otherwise, you can only make transfers between the parental and minor account, said a bank representative. Account holders are allowed up to six certain debits a month because of Regulation D or else you’ll be charged a $10 excessive transaction fee from the bank.

With this account, you get higher rates on your first $500 deposited, free online statements, online and telephone banking. If you maintain at least $5,000 in combined deposit accounts you could qualify for preferred CD rates, though you’ll need to check with Flagstar Bank to find out current rates.

Once the child turns 23 years old, the SimplyKids savings account will automatically be converted to the SimplySavings account.

How to get the SimplyKids Savings account

You need to open an account in person.

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How Flagstar Bank’s savings accounts compare

Overall, their promo rates fall slightly short of some off the best offerings out there. Flagstar Bank also doesn’t require a minimum opening or deposit amount on its savings accounts, which we think is great.

You can only open the SimplyKids account in person, which can be limiting depending on your location. If that’s the case, then you may want to look at our list of the best online savings accounts.

Flagstar Bank CD rates

Certificate of deposit

These fixed-rate CDs aren’t really that great, though it does have a low minimum opening deposit.
TermAPY
30 to 89 days0.05%
90 to 179 days0.05%
180 to 364 days0.05%
12 to 17 months0.15%
18 to 23 months0.15%
24 to 29 months0.20%
30 to 35 months0.20%
36 to 47 months0.20%
48 to 59 months0.30%
60 to 71 months0.40%
72 to 83 months0.40%
84 to 95 months0.40%
96 to 107 months0.40%
108 to 120 months0.40%
  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: Depends on length of term:
    • 30 to 179 days — 30 days’ interest
    • 180 to 364 days — 90 days’ interest
    • 12 to 35 months — 180 days’ interest
    • 36 to 120 months — 364 days’ interest

This account is a great option if you don’t have a large chunk of cash laying around to set aside for savings. It’s also great if you’re looking to earn a guaranteed rate of return, though the promo rates for the savings account is higher than some of the CD terms.

Interest you earn is compounded daily and credited to your account monthly, according to a bank representative. You may qualify for higher rates if you maintain at least $5,000 in combined checking, savings or money market accounts, though you’ll need to contact the bank directly.

Upon maturity, you have a 10-day grace period to make changes, or else it’ll automatically be renewed for the same term.

However, the following terms do have exceptions:

  • A 13 month term will be renewed to a 12 month term
  • A 19 month term will be renewed to a 18 month term
  • A 25 month term will be renewed to a 24 month term

How to get Flagstar Bank’s CDs

You’ll need to head to a local branch to open a CD account. You’ll mostly likely need to bring a government-issued ID, your Social Security number and a way to fund the account.

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on Flagstar Bank’s secure website

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How Flagstar Bank’s CD rates compare

Sadly, the rates for Flagstar Bank’s CDs are much lower than other competitors on our list of the best CD rates. It does offer a pretty low minimum opening deposit, but so do many other ones. If you don’t have a large amount of cash to spare, then these CDs could work, but only if you’re close to a local branch.

Flagstar Bank money market account options

SimplyMoney Market

The rates are pretty miniscule but the account does come with check-writing capabilities.
APYMinimum Balance to Earn APY
0.02%$0.01
0.04%$5,000
0.04%$10,000
0.04%$25,000
0.04%$50,000
0.04%$100,000
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $10
  • ATM fee: $2.50 for out-of-network ATMs
  • ATM fee refund: None, per bank representative
  • Overdraft fee: N/A

The money market account is best for those who want a hybrid checking and savings account, though the rates aren’t as good as the savings promo rate. You get ATM access and check-writing capabilities, though you are allowed up to six certain debits a month because of Regulation D. If you go over that, you’ll be charged a $10 excessive transaction fee from the bank.

You also get online, telephone and mobile banking with the account. If you have at least $5,000 across your checking, savings and money market accounts, you can get preferred CD rates, though you’ll need to contact Flagstar Bank to find out what they are. There’s also a possible 0.50% rate reduction on home equity lines of credit or personal loans if you use autopay from this money market account.

To waive the monthly fee, you’ll need to either maintain a $5,000 minimum average daily balance or have an open Flagstar Bank personal checking account.

How to get the SimplyMoney Market account

Head to your local branch to open a money market account.

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on Flagstar Bank’s secure website

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How Flagstar Bank’s money market accounts compare

We’re not impressed with these money market rates as there are much higher ones out there. Some of their competitors also have limited check-writing capabilities and no minimum balance requirements.

In other words, you’re better off doing some comparison shopping from our list of the best money market rates or considering Flagstar Bank’s savings accounts.

Flagstar Bank IRA account options

IRA CD rates

IRA CD

The annual fee is a bit of a turnoff.
  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: Depends on length of term:
    • 30 to 179 days — 30 days’ interest
    • 180 to 364 days — 90 days’ interest
    • 12 to 35 months — 180 days’ interest
    • 36 to 120 months — 364 days’ interest

The IRA CD account is best for those who want to start small with their retirement savings and prefer a more conservative investment vehicle. Any interest you earn is compounded daily and deposited into your account each month. Unlike the regular CD, there is a $5 annual fee which covers all your accounts under the retirement plan.

When your CD matures, you can make changes such as withdraw cash, make additional deposits or renew for another term within the 10-day grace period. Otherwise, it’ll automatically be renewed, with the exception of the following terms:

  • 13 months — renews to 12 month term
  • 19 months — renews to a 18 month term
  • 25 months — renews to a 24 month term

How to get Flagstar Bank’s IRA CDs

Like the other accounts so far, you’ll need to head to the nearest branch to open an account.

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on Flagstar Bank’s secure website

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How Flagstar Bank’s IRA CD rates compare

We want to give this IRA CD a chance, but the rates fall short compared with other places. Many other places on our list of the best IRA CD rates also offer a low minimum opening deposit amount and a wide range of terms, ranging from three months to five years — Flagstar Bank offers rates less than half of their competitors. Plus, you need to open an account in person, which is pretty limiting if you don’t live anywhere near a Flagstar Bank branch.

In short, you’re better off looking elsewhere.

IRA savings account

You can get the annual fee waived upon request.
  • Minimum opening deposit: $500
  • Minimum balance to earn APY: None, per bank representative
  • Annual account maintenance fee: $5 (covers all IRA accounts)
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

The IRA savings account is great for those who want the option to deposit and withdraw cash without many restrictions — there is still the limit of six debits a month as mandated by Regulation D, or else you face a $10 excessive withdrawal fee from the bank.

The annual fee can be waived, but you’ll need to make that request, according to a bank representative.

How to get Flagstar Bank’s IRA savings account

Head to the nearest branch to open an IRA savings account.

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Overall review of Flagstar Bank’s banking products

From what we’ve been able to find, the rates offered at Flagstar Bank aren’t that great apart from their promo rates. In addition, their CD and savings accounts offer rates that require a pretty low opening deposit. The promo rates for the savings account (except for SimplyKids) are pretty high, falling slightly lower than their competitors. Those who don’t have a lot of cash laying around will like the fact that you can open most accounts with no minimum opening deposit requirements.

However, the downfall of Flagstar Bank is that it is primarily a brick-and-mortar bank, meaning you can only open an bank account in person at any one of their California and Michigan locations. Hopefully that may change in the future, but for now, if you don’t live near a branch, you’ll have to go 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.

Sarah Li Cain
Sarah Li Cain |

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

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Credit Cards, Reviews

American Express Gold Card: Good Travel Rewards for a Fee

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

pay credit card_lg

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

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

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

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

The basics of the American Express® Gold Card

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

$100 airline fee credit.

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

American Express® Gold Card

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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