Discover Bank 12 Month CD Rate

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12 month cd rateDiscover Bank is offering a 12 month CD Rate of 3.70% with an annual percentage yield of 3.76%. The minimum deposit on the 12 month certificate of deposit and all CDs at Discover Bank is $2,500.  All deposits are temporarily insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per account. The new FDIC limits were raised, from $100,000 to $250,000, on October 3rd, 2008 to help ease run on banks. The new limits will be in place until December 31st, 2009.

As with all CD accounts there is an early withdrawal penalty, the penalty for a certificate of deposit with a term of 1 year to 5 years is 6 months of simple interest, so be sure you won't need access to your funds if you decide to invest in a 1 year CD.

What is simple interest? Interest that is calculated on a sum that does not include previous interest earnings.

Discover Bank Certificate of Deposit Application
Author: Lisa Graham
December 6th, 2008