interest rates

Discover Bank is offering a 3.35% APY CD rate on its 5 year CD, and 1.95% APY CD rate on it’s penalty free 12 month CD.

Discover’s CD rates are generally higher than the national average for all terms. But the “penalty free” CD is really unique and could be a life saver if you lose your job. It also gives you more flexibility when building a CD ladder so that you can access funds if needed.

The 3.35% Annual Percentage Yield (APY) offer applies to personal accounts only on the five year CD. The Discover Bank CD rate is based on a $2,500 minimum balance. A penalty may be charged for early CD withdrawal. Fees could reduce earnings on the account.

How the Discover “No Penalty CD” Works

The Discover Bank “No Penalty CD” benefit applies to 12-month Certificates of Deposit and/or 12-month IRA Certificates of Deposit (“CD”) opened or renewed between July 1, 2009 and December 31, 2009 and held as a sole ownership or joint-tenant account. The No Penalty CD Benefit waives the early CD withdrawal penalty fee in the event you experience an involuntary job loss.

In order to qualify for the “no penalty benefit” accountholders employed by a business or organization who were employed full time for at least 30 days when the CD was opened or renewed just need to provide proof of unemployment to Discover Bank if they involuntarily lose their full-time job. Accountholders who are self-employed when the CD was opened or renewed can withdraw funds in the event of business property or inventory damage or a business closure for at least 5 business days due to fire or flood. Proof of such event will be required at time of request. The Benefit does not apply within the first 30 days of account opening or renewal.