Update: Discover Bank is no longer offering a No Penalty CD. You can find other no-penalty CDs here.
Discover Bank has recently added two products to their line-up: a no-penalty CD and a high yield savings account. Both are worth considering as they offer some of the best interest rates currently available. Here are some of the details on each.
Discover Bank No Penalty CD
Discover Bank’s 12-month no penalty CD is designed to allow depositors to withdraw their money without penalty should they lose their job. According to Discover Bank,
To be eligible, account holders must open or renew a 12-month CD with a minimum $2,500 balance between July 1 and Dec. 31, 2009. If the account holder involuntarily loses his or her job during the term of the CD, they will be allowed to make a partial withdrawal of the funds or close the account with a full return of their principal and any credited interest with no penalties. The program also applies to self-employed people under certain circumstances.
Ally Bank also has a 9-month no penalty CD. Unlike Discover Bank’s offer, Ally allows a depositor to withdraw his or her money penalty free for any reason.
Discover Bank offers a number of CD products, and we have added it to our list of the best CD rates.
Discover Bank High Yield Savings Account
Discover Bank also has launched an online savings account that currently pays an extremely competitive rate. There is no minimum balance requirement, and Discover Bank’s top rate now applies to all accounts, regardless of the amount in deposits. There are no monthly maintenance fees, and you can set up direct deposit from your checking account.
We have added Discover Bank to your list of high yield savings accounts.