CD Accounts

CD Accounts FAQ

How do I receive the interest from my Discover Bank CD?

You can allow the interest earned to remain in your account and take advantage of compounding, have the interest transferred to your Discover Bank Money Market Account or to another bank account, withdraw the interest earned via electronic funds transfer or withdraw the money through an official bank check for a $5 fee per check.

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What happens to my account when my CD matures?

Discover Bank will notify you approximately three weeks before the maturity date to offer you a variety of renewal options. For your convenience, if you don't respond, your CD will automatically renew for the same term at the current rate. If you do not want your CD to automatically renew, you should notify us as least ten calendar days prior to maturity. Simply call us at 1-800-347-7000 (TDD 1-800-347-7454) and indicate whether you wish to:

  • Add funds
  • Withdraw funds
  • Transfer funds to your Discover Bank Money Market Account or another non-Discover Bank account
  • Change the term of your CD upon maturity

We also provide a nine-calendar-day grace period after your CD's maturity date, during which you can make changes to your account, such as adding or withdrawing funds or opting not to renew, without paying an early withdrawal penalty.

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When will I receive my Discover Bank CD statements?
Statements are sent annually in January.  You can also view your statement online by logging into Discover Bank. Additionally, maturity notices are sent approximately three weeks before your CD matures.

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How often is interest credited to my Discover Bank CD?

Interest is compounded daily and credited monthly.

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What is APY and why is it used?

"APY" stands for "annual percentage yield." The annual percentage yield represents the amount of interest earned in one year expressed as a percentage rate on an account based on the interest rate and the frequency of the compounding. Interest on Discover CD Accounts are compounded daily and credited monthly. The more often compounding takes place, the more interest is earned on the account.

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Can I withdraw interest from my Discover Bank CD every month and still receive the quoted APY?

No. APY takes into account the effects of compounding; therefore, in order to receive the quoted APY, the interest earned must remain in the account.

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What is the minimum deposit for a Discover Bank CD?

An initial deposit of at least $2,500 is required to open a Discover Bank CD Account.

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What are the transaction limits for Discover Bank CDs?

The following limitations apply to your Discover Bank CD:

  • After your account is opened, you may not make additional deposits until maturity. Additional deposits may be made during the grace period following maturity.
  • Posted interest may be withdrawn from your account at any time.
  • Withdrawals other than interest are subject to an early withdrawal fee except at maturity date. See list of Early Withdrawal Fees for CD Accounts below for details.

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What fees are associated with my Discover Bank CD?

Fees are assessed for special services and for early withdrawal, as outlined below.

Fee1 Schedule for CD Accounts
Incoming Domestic WireFree
Incoming International WireFree
Foreign Check ConversionAt cost
Outgoing Domestic Wire$20
Outgoing International Wire$40
Paper Copy of Statement, Check, Deposit Item$5
Priority Mail$20
Returned Deposit Item $15
Withdrawal by Official Bank Check$5

1. If interest in account does not cover fee, your principal will be affected.

Early Withdrawal Fees
Term of CD ProductFee for Early Withdrawal
Less Than 1 Year until Maturity3 Months simple interest on the amount withdrawn
1 Year up to and Including 5 Years until Maturity6 months simple interest on the amount withdrawn
Greater Than 5 Years until Maturity9 months simple interest on the amount withdrawn

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