Discover Bank has been a consistent interest rate leader for certificates of deposit lately as many other nationally available rates seem to have dwindled.
One of the more noteworthy rates offered by Discover Bank is their 10 year IRA CD which yields an APY of 4.0%. If you are looking for a conservative (FDIC-insured) investment to plop into your IRA account this is most likely one of your best bets as far as rates are concerned.
Discover Bank, based out of Delaware, is the 25th largest bank in the US by asset size. If you’ve been searching for various banking products online, you’ve undoubtedly come across them. With their two locations in Delaware and nearly 8,000 employees, they acquire new customers almost entirely from the web. Their popular online products such as their online savings account and certificates of deposit can all be opened and fully managed online. Many of their liquid savings accounts are at the for front of innovation (including features such as remote check deposit).
After we were made aware of this offer, we scoured some message boards checking out some Discover bank reviews and found the major complaints to revolve around customer service (or lack their of). Many customers were concerned about a lack of knowledge by the customer service agents when helping provide guidance with the online interface. There were also some concerns over the amount of time it took to retrieve funds out of an expiring CD. Interest rates, on the other hand, have always been the most praised feature of Discover Bank’s products.
A few weeks back we deemed Discover Bank as the “Consistently High APY” bank and their rates are still holding strong.
Unlike a lot of high savings rate offers, these are all available throughout the country (no geographical restrictions). If you have any experience with Discover Bank that you would like to share, please leave a comment.
This is an ideal time to lock into a long term bank deposit. We expect savings rates to continue to dwindle as the FED continues to lower key rates. CD rates will likely bottom out sometime in 2011 or 2012 but will stay at historically low levels until we climb out of this recession.