Discover Bank offers traditional high yield CDs and IRA CDs, both with competitive interest rates which increase with term length. Discover also has a variety of account ownership options such as trust, custodial, guardian, and estate, along with the option to add multiple account beneficiaries. This wide variety of CD account benefits sets Discover apart from many of the other banks we evaluate.

Since the company is mainly an online bank, investors are given the option to open, track, and fund the account online or over the phone. In addition to that, the company allows investors to fund the IRA CDs by initiating a direct or indirect rollover of an existing IRA.

Discover also offers some perks like the company’s best rate guarantee that allows investors to lock up the best interest rate if the account is funded within 10 days of opening, and the option to withdraw the account’s interest anytime without penalties.

Discover Bank doesn’t charge monthly maintenance fees on CDs, but like most financial institutions, the company has an early withdrawal fee. The early withdrawal fee ranges from 3 to 24 months of simple interest depending on the CD’s term length and year in which it was opened or renewed. It should be noted than in some cases, the early withdrawal fee might reduce the principal balance.

In addition to that, Discover has a $30 fee for outgoing wire transfers, but doesn’t have fees for incoming wire transfers, and customers may withdraw interest anytime without penalties.

Discover Bank started as The Greenwood Trust Company in 1911. Discover Financial Services acquired the company in 1985 and renamed it Discover Bank in 2000. Discover holds stable ratings from S&P and Moody's, which means the company’s financial strength is high. Discover has an A+ rating from the Better Business Bureau, but like any other company of its size, it has a large number of complaints with this organization as well as with the Consumer Financial Protection Board.