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Reviews

INOVA Federal Credit Union Review: Checking, Savings, CD, Money Market and IRA Accounts

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

Year Established1942
Total Assets$0.4B
LEARN MORE INOVA Federal Credit Union’s secure websiteNCUA Insured

INOVA Federal Credit Union was first established in 1942, initially serving employees of Miles Laboratories, a medical research company based in Elkhart, Indiana.

It has since grown to serve more than 34,000 members and employees from more than 500 companies. INOVA Federal Credit Union currently has seven branch locations (six in Indiana and one in California), as well as 5,000 service center locations and 30,000 free in-network ATMS across the United States. Membership requires paying a one-time $10 membership fee, in addition to opening a Membership Savings account before opening any other products.

INOVA offers customers a wide range of personal, business, loan and credit products. In this review, we will go over its checking, savings, certificate, money market and IRA accounts, and see how they stack up against the competition.

INOVA Federal Credit Union’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.01%

Savings

INOVA Federal Credit Union Membership Savings

2.20%

Barclays Online Savings Account

on Barclays’s secure website

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INOVA Federal Credit Union checking account options

Shield Checking

An account that goes the extra mile on personal security and allows you to earn high dividends to boot.
APYMinimum Balance Amount to Earn APY
3.00%
$15,000
  • Minimum opening deposit: $10
  • Monthly account maintenance fee: $5
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

This account is loaded with perks and is a great option to earn high interest if you’re able to maintain a balance of $15,000. If you’re able to do that with no problem, the $5 monthly maintenance fee is likely negligible.

As an added bonus, this account comes with IDProtect®, an identity theft monitoring service that includes up to $10,000 in identity theft reimbursement coverage in the event that your identity is stolen. There’s also a cell phone protection feature when you pay your monthly bill through this account.

Other perks include unlimited check writing with no fees, a free Visa debit card and online banking services. You’ll also receive a thank-you gift when you open this account. Finally, INOVA Federal Credit Union will buy back your unused checks and debit card from another bank for up to $10.

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Simply Free Checking

A basic, non-interest earning account with minimal requirements.
  • Minimum opening deposit: $10
  • Monthly account maintenance fee: None
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

Although this account doesn’t have the ability to earn interest, it could be a good option for members who want a simple checking account without having to worry about hidden fees or balance requirements. Like the Shield Checking account, this free account also comes with a thank-you gift at opening, the opportunity to sell the credit union your old checks and debit cards for $10, as well as unlimited check writing, online banking services and a free Visa debit card.

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Performance Checking

A interest-earning checking account with minimal requirements.
APYMinimum Balance Amount to Earn APY
0.07%
$0.01
  • Minimum opening deposit: $10
  • Monthly account maintenance fee: $0.01
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

If you can’t meet the high minimum balance requirement to earn the APY on the Shield Checking account, this checking account is the one to get. It doesn’t have a monthly service charge or a minimum balance requirement to earn interest; all you have to do is make sure you have one direct deposit or make one automatic payment each month.

In addition to online banking services and a free Visa debit card, this account also offers unlimited check writing capabilities with no fees, a free thank-you gift at opening and the option to sell the credit union your old checks and debit cards from your previous bank.

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Advantage 50 Checking

A checking account exclusively for credit union members age 50 or older.
APYMinimum Balance Amount to Earn APY
0.07%
$0.01
  • Minimum opening deposit: $10
  • Monthly account maintenance fee: $0.01
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

Although this account is available exclusively to credit union members age 50 and over, its offerings, fees and other details are mostly the same as with the Performance Checking account, down to to the APY.

As with the Performance Checking account, you do have to make sure you have one direct deposit or make one automatic payment per month with this account. The only added perk with this account is that you can get 50 free personalized checks at any given time, while the Performance account has a fee for the checks.

This account also doesn’t have a monthly fee or minimum balance requirement. It comes with online banking services, a free Visa debit card, unlimited check writing with no fee, as well as a thank-you gift at opening and the option to sell the credit union your old checks and debit card from your previous bank.

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Elite Checking

Tiered dividend levels makes this checking account ideal for those able to maintain higher balances.
APYMinimum Balance Amount to Earn APY
0.11%
$0.01-$1,999.99
0.25%
$2,000
  • Minimum opening deposit: $10
  • Monthly account maintenance fee: $7.50 (can be waived with a maintained balance of $2,000 or more)
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

Like the Shield Checking account, this account is also more suited for those who can maintain higher account balances. However, its minimum balance requirement to earn a higher APY is much lower than the other account. This account does have a low monthly fee, but you have the ability to waive it if you maintain a balance of at least $2,000, the same balance you need to be able to earn that higher rate. It also comes with online banking capabilities, a free Visa debit card and free personalized checks, along with a thank you gift at its opening and the chance to sell the credit union your old checks and debit card from your previous bank.

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How INOVA Federal Credit Union’s checking accounts compare

If you’re able to maintain the minimum balance requirements on INOVA Federal Credit Union’s Shield and Elite checking accounts, you’ll have the opportunity to earn a great APY rate. However, despite the lack of fees and requirements for the credit union’s more basic accounts, when you take a look at the rates, they just don’t compare to some of the best checking account options out there. The bonuses like thank-you gifts and check buyback are a nice touch, but don’t do much in the long term.

INOVA Federal Credit Union savings account options

Membership Savings

Anyone joining the credit union is required to opening this account.
APYMinimum Balance Amount to Earn APY
0.01%
$100
  • Minimum opening deposit: $5, plus a one-time $10 membership fee
  • Minimum balance to earn APY: $100
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: $29

Opening this savings account is a requirement to join INOVA Federal Credit Union and open any of its other products. That’s not really such a bad thing, though, as it only requires a $5 deposit to open and has no monthly fee. It doesn’t really come with any added perks, though, aside from online banking capabilities. And, like all savings accounts, this account is subject to Federal Reserve Regulation D, which limits certain withdrawals up to six per month.

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Special Savings

A simple savings account that allows you to save for a goal with no requirements.
APYMinimum Balance Amount to Earn APY
0.01%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

If you’ve got funds you want to stash aside for, say, a new car or vacation, this account is a great way to do it while earning interest. This account comes with no monthly fees or minimum balance requirements and has online banking capabilities. As with other savings accounts, it’s subject to Regulation D, which limits certain withdrawals up to six per month.

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Christmas Club

A savings account specifically for holiday-related expenses.
APYMinimum Balance Amount to Earn APY
0.01%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

This account is similar to the Special Savings account; the key difference is that it’s specifically intended for holiday-related expenses. This interest-earning account doesn’t have any monthly fees or minimum balance or deposit requirements. You can make deposits at any time up until Oct. 31 of a given year before funds are transferred to your Member Savings account.

Keep in mind that this account does have an early withdrawal fee of $10 if you dip into it before Nov. 1. And as with other savings accounts, this account is subject to Federal Reserve Regulation D, limiting certain withdrawals up to six per month.

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How INOVA Federal Credit Union’s savings accounts compare

None of INOVA Federal Credit Union’s savings accounts offer spectacular rates, so we wouldn’t recommend joining the credit union for a savings account alone — though it is a requirement to open any other product. While we like the idea behind the Special Savings and Christmas Club accounts, they offer the same APY as the required Members Savings account, so it seems a little redundant to open both. If you’re simply in search of a savings account with great rates, we suggest looking elsewhere, as there are much better savings account options to be had out there.

INOVA Federal Credit Union certificate rates

Certificates

These offerings give you the opportunity to earn higher rates than with a savings account.
TermAPYMinimum Balance Requirement to Earn APY
30 day0.35%
$200
60 day0.35%
$200
91 day0.35%
$200
5 month0.75%
$200
6 month0.75%
$200
7 month0.85%
$200
14 month 1.25%
$200
14 month 3.00%
($50,000 or more of new money)
18 month1.50%
$200
30 month2.50%
$200
30 month3.25%
($50,000 or more of new money)
1 year1.00%
$200
2 year1.85%
$200
3 year2.50%
$200
4 year2.75%
$200
5 year3.00%
$200
6 year3.25%
$200
  • Minimum opening deposit: $200
  • Minimum balance amount to earn APY: Varies
  • Early withdrawal penalty: Terms of less than 90 days is 30 days’ dividends; terms of 90 days to one year is 90 days’ dividends; terms of longer than 1 year is 180 days’ dividends

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Step Up Certificates

These certificates offer you a one-time chance to increase your rate.
TermAPYMinimum Balance Requirement to Earn APY
91 day0.35%
$200
6 month0.75%
$200
14 month1.25%
$200
18 month1.50%
$200
30 month2.50%
$200
1 year1.00%
$200
2 year1.85%
$200
3 year2.50%
$200
4 year2.75%
$200
5 year3.00%
$200
6 year3.25%
$200
  • Minimum opening deposit: $200
  • Minimum balance amount to earn APY: $200
  • Early withdrawal penalty: Early withdrawal penalty: Terms of less than 90 days is 30 days’ dividends; terms of 90 days to one year is 90 days’ dividends; terms of longer than 1 year is 180 days’ dividends

NOVA Federal Credit Union offers share certificates with fixed rates that are higher than its regular savings account products, and those rates get higher the longer the term you select (available terms range from 30 days to 6 years). These certificates require a minimum deposit of $200 to open, lower than many other offerings out there.

The credit union also offers flexible Step Up certificates that allow you to increase your rate once during the term if you see rates go up on its regular products. Lastly, there is a chance to earn a higher rate on the 14-month and 30-month certificates if you deposit at least $50,000 in “new money” that is not currently on deposit in any other INOVA Federal Credit Union accounts.

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How INOVA Federal Credit Union’s certificate rates compare

When you compare INOVA Federal Credit Union’s certificate rates to the best CD rates out there, you’ll see that, for the most part, these rates don’t stack up. Still, if you prefer a much smaller minimum deposit than many other options out there, then these might be a good fit for you.

Generally speaking, though, we would suggest holding out for a better rate when you have more funds to deposit, or simply opening a CD with the same term length and a higher rate from an online-only bank.

INOVA Federal Credit Union’s money market account options

Gold Money Market

An account offering a decent rate and minimal requirements, other than a high minimum deposit.
APYMinimum Balance Amount to Earn APY
1.25%
$50,000
  • Minimum opening deposit: $50,000
  • Minimum balance to earn APY: $50,000
  • Monthly account maintenance fee: None
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

This account does offer a competitive rate in exchange for a high minimum deposit requirement of $50,000. On the plus side, it doesn’t come with a monthly service charge and does have online banking capabilities. Since this is a savings account, you are allowed to make up to six certain electronic transactions per month, as per Federal Reserve Regulation D.

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Platinum Money Market

The bank’s other money market account option, offering a higher rate and an even higher minimum balance requirement.
APY`Minimum Balance Amount to Earn APY
1.50%
$100,000
  • Minimum opening deposit: $100,000
  • Minimum balance to earn APY: $100,000
  • Monthly account maintenance fee: None
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

This is INOVA Federal Credit Union’s other money market account option, which also offers a high APY rate with a high minimum deposit and balance requirement. As with the Gold Money Market account, this account has no monthly fee, comes with online banking services, and limits you up to six certain transactions per month, as per Federal Reserve Regulation D.

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How INOVA Federal Credit Union’s money market accounts compare

INOVA Federal Credit Union’s money market account rates are on par with some of the best money market accounts out there. The main difference is that most others don’t require such a high minimum opening deposit and minimum balance requirement, which can be a limiting factor for many people. If you don’t have that much cash saved up to put aside, you can easily find another option from another financial institution with just as good a rate (if not better) and more flexible requirements.

INOVA Federal Credit Union IRA Certificate options

IRA Certificates

These offer the same terms and conditions as the credit union’s regular certificates, it’s just the rates that vary.
TermAPYMinimum Balance Requirement to Earn APY
91 day0.60%
$200
6 month1.00%
$200
7 month1.10%
$200
14 month1.50%
$200
14 month3.25%
$50,000 in new money
18 month1.75%
$200
30 month2.75%
$200
30 month3.50%
$50,000 in new money
1 year1.25%
$200
2 year2.10%
$200
3 year2.75%
$200
4 year3.00%
$200
5 year3.25%
$200
6 year3.50%
$200
  • Minimum opening deposit: $200
  • Minimum balance amount to earn APY: Varies
  • Early withdrawal penalty: Terms of less than 90 days is 30 days’ dividends; terms of 90 days to year is 90 days’ dividends; terms of longer than 1 year is 180 days’ dividends

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Step Up IRA CDs

As with the regular Step Up certificates, these allow you to increase your rate once during the term.
TermAPYMinimum Balance Requirement to Earn APY
91 day0.60%
$200
6 month1.00%
$200
18 month1.75%
$200
30 month2.75%
$200
1 year1.25%
$200
2 year2.10%
$200
3 year2.75%
$200
4 year3.00%
$200
5 year3.25%
$200
6 year3.50%
$200
  • Minimum opening deposit: $200
  • Minimum balance amount to earn APY: $200
  • Early withdrawal penalty: Terms of less than 90 days is 30 days’ dividends; terms of 90 days to year is 90 days’ dividends; terms of longer than 1 year is 180 days’ dividends

Aside from the varying rates, INOVA Federal Credit Union’s IRA certificates don’t differ much from its regular certificate products. As with the regular certificates, these offer fixed rates and terms that range from 91 days to six years.

These certificates require a minimum deposit of $200 to open, which is lower than many other offerings out there. There is also the option to open flexible Step Up IRA certificates, which allow you increase your rate one time during the term if you see the rates go up on the regular certificates.

Lastly, you have the opportunity to earn a higher rate on the 14-month and 30-month IRA certificates if you deposit at least $50,000 in “new money,” or funds that are not currently on deposit in any other INOVA Federal Credit Union accounts.

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How INOVA Federal Credit Union’s IRA CD rates compare

There’s no getting around it — compared to the best IRA CD rates out there, INOVA Federal Credit Union’s rates are pretty low. The wide range of term lengths and the minimum required deposit might appeal to some people, but, again, we say hold off until you have a bit more cash to deposit so you can take advantage of being able to earn a much higher rate.

INOVA Federal Credit Union IRA options

IRA Savings

This IRA offers a very low rate compared to the credit union’s other offerings.
APYMinimum Balance Amount to Earn APY
0.01%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

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IRA Money Market Savings

A slightly better rate than the traditional IRA savings account, but still not the best out there.
APYMinimum Balance Amount to Earn APY
0.05%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

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IRA Financial Management Account

This account allows you to earn higher dividends with higher balances.
APYMinimum Balance Amount
0.01%
$0.00 (up to $10,000)
0.10%
$10,000.01 to $25,000
0.20%
$25,000.01 to $50,000
0.35%
$50,000 to $100,000
0.40%
$100,000.01
  • Minimum opening deposit: $2,000
  • Minimum balance to earn APY: $0.00
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

INOVA Federal Credit Union’s regular IRA savings accounts currently offer the same rates as its regular savings account, with no opening, monthly or yearly fees to boot. Its IRA Money Market Savings and IRA Financial Management Accounts, meanwhile, offer higher rates, especially if you make a larger deposit into the latter account.

While there is no minimum deposit or balance requirement on any of these accounts, you can only contribute up to $5,500 per year, with an additional $1,000 “catch up” deposit allowed for account holders ages 50 and over. Some differences between the traditional and Roth IRAs are:
The traditional has no income limits to open, while the Roth does; and, the earnings on the Roth IRA are 100% tax-free at withdrawal, while the traditional account’s earnings are not. Both accounts allow withdrawals to begin at age 59½, although the traditional IRA requires you to begin making withdrawals by age 70½, while the Roth has no limits on making contributions as long as you’re still earning income.

Early withdrawals on all accounts are subject to a penalty and possible taxes, although certain instances such as healthcare expenses and buying a first home qualify as exceptions. Penalty amounts vary depending on how much you have in the account and how long it’s been open. All accounts are subject to Federal Reserve Regulation D, which limits certain transfers and transactions up to six per month.

How to get INOVA Federal Credit Union’s banking products

If you are over 18 years of age and meet one of the eligibility requirements, you can easily apply for membership at INOVA Federal Credit Union and open any of the above mentioned products online, once you agree to also open a Membership Savings account. You’ll need to provide personal information such as your name, address, Social Security number, government-issued ID number (e.g., drivers license or passport), as well as a debit or credit card or check from another financial institution to fund the account. You can also open an account at one of the credit union’s seven branch locations, or by calling 800-826-5465.

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How INOVA Federal Credit Union’s IRA rates compare

Of INOVA’s IRA three account options, it’s the IRA Financial Management Account that shines, even with its higher balance requirements to earn higher dividends. As with the credit union’s IRA CD rates, the wide range of term lengths and the minimum required deposit might appeal to some people.

Overall review of INOVA Federal Credit Union banking products

Most of INOVA Federal Credit Union’s personal banking products offer rates far below similar products at other institutions. The more flexible minimum balance and deposit requirements on the certificates might appeal to some people, but we would still advise you to do your research and hold out for better offerings. Meanwhile, the rates on its money market accounts are definitely competitive, but the high deposit and balance requirements could be a limiting factor to many people.

All in all, we would say take the time to comparison shop to make sure you get the best rate out there while still reaping the benefits of minimal fees and flexible requirements.

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.

Emilia Benton
Emilia Benton |

Emilia Benton is a writer at MagnifyMoney. You can email Emilia here

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Earning Interest, Reviews

Discover Bank CD Rates Review

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

Discover Bank
Most people know Discover as a credit card company, but it also operates an online bank and offers some of the best rates and terms on checking and savings accounts and certificates of deposit (CDs).

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

As a bank, Discover offers some of the best products on the market. Currently, they’re offering a major deal on their online savings account, which currently earns 2.10% APY. If you apply for their savings account for the very first time by 06/03/19 and deposit a balance of at least $15,000 by 06/17/19, 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. The bonus will be credited to your account by 07/01/19. You can apply online or over the phone. Just be sure to enter or mention the promo code MM519 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

2.65%

18 months

2.65%

24 months

2.70%

30 months

2.70%

3 years

2.75%

4 years

2.80%

5 years

3.00%

7 years

3.05%

10 years

3.10%

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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 2.70% 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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Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

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

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Reviews

An In-Depth Review of Discover’s Banking Products

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

Year Established1911
Total Assets$108.0B

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

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

Discover Bank is offering a $150-$200 bonus. Here's how it works:
If you're able to deposit a balance of at least $15,000 by 06/17/19 in your first Discover Online Savings Account, you will receive a $150 bonus. If you're able to deposit a balance of at least $25,000, you will receive a $200 bonus. In order to qualify for the bonus, you'll have to apply for the savings account by 06/03/19 and your funds must be deposited by 06/17/19. On 07/01/19, the bonus will be credited to your account. You can easily get the bonus offer online by clicking on the Learn More button above or by calling Discover bank. Just be sure to enter or mention the promo code MM519. Discover's online savings account currently earns an APY of 2.10%.

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

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

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Discover Bank’s Most Popular Accounts

APY

Account Type

Account Name

2.10%

Savings

Discover Bank Online Savings

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2.65%

CD Rates

Discover Bank 12 Month CD

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2.00%

Money Market

Discover Bank Money Market

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0.00%

Checking

Discover Bank Discover Cashback Debit

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Discover Online Savings account

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

APY

Minimum Balance Amount

2.10%

$0

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

There is no minimum balance to open a Discover Online Savings account, nor do they charge any monthly maintenance fees. While account holders do not have the ability to withdraw money from their savings account via an ATM, they are able to access and manage their savings account via Discover’s online banking and mobile app.The online banking and mobile app lets users deposit and transfer money to both Discover Bank and non-Discover bank accounts. However, you’ll get hit with a $30 fee for an outgoing wire transfer, as well as a $15 charge per item for exceeding the Federal Reserve’s Regulation D limitation of six withdrawals or transfers in one calendar month. Overdrafting your online savings account results in a $30 fee, which you can avoid by signing up for overdraft protection.

Currently, you can earn a competitive interest rate of 2.10% APY on a Discover Online Savings account. This is compounded daily and deposited into your savings account every month. As soon as you deposit money in your account, you’ll begin earning interest.

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

There are no eligibility requirements to open a Discover Online Savings account since they do not require an initial minimum deposit or any minimum balance. There is currently a bonus being offered if you apply for the savings account for the very first time by 06/03/19. If you meet qualifications by 06/17/19, you could receive the $150 or $200 bonus. Click the button below for full details.

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How Discover Bank’s savings account compares

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

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

Discover Bank’s CD Rates

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

CD term

Annual Percentage Yield (APY)

3 months

0.35%

6 months

0.65%

9 months

0.70%

12 months

2.65%

18 months

2.65%

24 months

2.70%

30 months

2.70%

3 years

2.75%

4 years

2.80%

5 years

3.00%

7 years

3.05%

10 years

3.10%

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

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

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

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

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

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How Discover Bank’s CD rates compare

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

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

Discover CashBack Debit account

Discover CashBack Debit offers no monthly fees and pays decent cashback rewards.
  • Monthly account maintenance fee: None.
  • ATM fee: None as long as the ATM is within Discover’s network.
  • ATM fee refund: None.
  • Overdraft fee: $30

The Discover CashBack Debit account is appealing because it carries very few fees — that means no monthly maintenance fee, no minimum balance requirements and no fees for check ordering or debit card replacement.

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

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

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

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

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

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How Discover Bank’s checking account compares

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

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

Discover Bank’s Money Market Account

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

APY

Minimum Balance Amount

1.95%

Less than $100,000

2.00%

Greater than $100,000

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

Opening a money market account with Discover Bank requires a minimum initial deposit of $2,500. While their money market accounts don’t charge any monthly maintenance fees, account holders must maintain a minimum balance of $2,500 to avoid a $10 fee. They don’t even beat out Discover’s saving account rates.

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

Discover Bank does not charge ATM fees, however if you use an out-of-network ATM they will not reimburse the fee. It’s important to note, that your money market account is subject to the same Federal Reserve regulations limiting transfer and withdrawals to six per month. If you exceed the six withdrawals you’ll be charged a $15 fee per item; however this does not apply to withdrawals from ATMs or via official check that is mailed to you. Discover Money Market accounts also give you the ability to sign up for online bill pay, as well as, overdraft protection.

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

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How Discover Bank’s money market account compares

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

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

Discover IRA CD rates

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

Term

APY

3 Months

0.35%

6 Months

0.65%

9 Months

0.70%

12 Months

2.65%

18 Months

2.65%

24 Months

2.70%

30 Months

2.70%

3 Years

2.75%

4 Years

2.80%

5 Years

3.00%

7 Years

3.05%

10 Years

3.10%

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

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

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

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

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How Discover Bank’s IRA CD compares

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

Overall review of Discover Bank’s deposit products

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

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

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

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

Jackson Wise
Jackson Wise |

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

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