BankVibe.com was just tipped off on a pretty impressive deal by Discover Bank. Currently Discover Bank is offering $50 for opening a new CD account online between now and February 28, 2009. To receive the $50 bonus you must open the account online as well as fund it with a minimum of $10,000. This is a pretty solid deal considering their 12 month CD yields an APY of 2.75%, which is currently 0.50% higher than the national average.
You must enter the Offer Code: D100740 on the online form in order to qualify (the above link will automatically fill it in for you).
Terms and Conditions:
To earn the cash offer, a minimum deposit of $10,000 in new funds must be received byand those funds must remain on deposit for at least 90 days. The cash offer will be credited to your Discover 4 to 6 weeks after the 90-day period. Offer limited to one per customer and not applicable for accounts opened via phone or mail.
About Discover Bank’s CD Rates:
Discover Bank usually sits within the top 25 CD rates nationwide. Their most popular product is their traditional 12 month CD, however, they frequently offer promotional deals throughout the year, but they only last for a limited time. Unlike their traditional CDs which only require a minimum balance of $2,500, their promotional CDs almost always require several thousand dollars to open.
Outlook on Deposit Rates:
The outlook for bank cd rates is, frankly, not good. Given our current recession, you should expect savings rates to lower over the next few years before bottoming out likely around 1 percent. The FED is likely going to continue to lower key rates to stimulate borrowing and growth. We would suggest locking into a longer term CD with an attractive yield before these rates begin to fall as well. Inflation, while fluctuating rather widely lately, is projected to remain around 2 and 3 percent in the coming years as we dig ourselves out of this recession. If you can lock in CDs with higher interest rates than the projected rate of inflation this may be a wise move as inflation rates will likely surpass CD rates in the near future.