Limited-Time Offer: This 9-Month CD Pays 5.10%
KEY POINTS
- Discover® Bank is offering a 9-month CD with an excellent 3.80% APY, but for a limited time only.
- This is an exceptional yield from a bank with a full-featured product lineup and 24/7 customer service.
- If you're worried that interest rates could start to fall, this could be an excellent CD for you.
In addition to their standard CD rates and terms, banks often offer special CDs that have even higher rates and unique terms. Discover® Bank is offering a special CD for a limited time.
Discover is offering a 9-month CD with a 3.80% annual percentage yield (APY). There is a $0 minimum deposit to open an account, making this an attractive product for those looking to lock in a high yield.
With that in mind, here's how Discover's 9-month CD rate compares to its competitors, how much money you could earn by opening an account, and whether this particular CD could be a good fit for you.
How Discover's 9-month CD offer stacks up to the competition
Discover® Bank's 9-month CD offer is a highly competitive one. In fact, it is one of the highest-paying 9-month CDs on our radar. Many CDs that have higher APYs are offered through third-party companies or require a higher ($10,000) minimum deposit.
Our Picks for the Best High-Yield Savings Accounts of 2024
| Product | APY | Min. to Earn | |
American Express® High Yield Savings
Member FDIC.
APY
3.80%
Rate info
3.80% annual percentage yield as of January 10, 2025. Terms apply.
Min. to earn
$0
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
3.80%
Rate info
3.80% annual percentage yield as of January 10, 2025. Terms apply.
|
$0
|
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
Capital One 360 Performance Savings
Member FDIC.
APY
3.80%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn
$0
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
3.80%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
|
$0
|
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
Western Alliance Bank High-Yield Savings Premier
Member FDIC.
APY
4.40%
Rate info
The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Min. to earn
$500 to open, $0.01 for max APY
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
4.40%
Rate info
The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
|
$500 to open, $0.01 for max APY
|
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
This is an especially solid APY offer from a bank that also offers a top-notch online checking account, credit cards, and other lending products. In a nutshell, it's tough to find a CD rate like this from a bank where you can easily keep your online checking and savings accounts, and get 24/7 U.S.-based customer service.
What you need to know
Like any banking product, there are a few important things to know before opening an account:
- Discover® Bank CDs are FDIC insured up to the maximum of $250,000 per depositor, per FDIC-insured bank, per ownership category.
- As mentioned earlier, there is no minimum initial deposit to open a Discover® Bank CD account.
- If you need to withdraw your money before the end of the term, Discover charges a penalty equal to three months' worth of simple interest.
- Your Discover® Bank CD will automatically renew at the current rate for a 9-month CD if you don't take any action upon maturity.
- Discover will send you a notification 30 days before the CD matures, and you'll have a grace period that lasts for nine days after the maturity date, during which you can choose to withdraw any or all of the money in the account.
How much money could you earn?
The 3.80% APR is the annualized return of the CD, so keep in mind that it only has a 9-month term length. I'll spare you the mathematics of how compound CD returns work, but as a basic example, a $10,000 deposit in this CD would earn a total of $380 in interest over nine months, at which point you could either allow the CD to renew at the current rate or withdraw the money.
Is this CD right for you?
If you're concerned about high-yield savings account rates potentially falling in the near future, but don't want your money tied up in a CD for several years, Discover's 9-month special CD offer could be worth a closer look. While there is no financial product that is a perfect fit for everyone, this is an exceptionally high yield from a top-tier online financial institution.
Our Research Expert
Matt Frankel, CFP, has been a contributing writer, analyst, and personal finance expert for The Motley Fool since 2012.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.