Discover Bank Promo

May 11th, 2009

Discover Bank CD rates update: Aug. 18, 2009. The rates are also good for IRAs. They are offering 1Y at 2.00%, 18mo at 2.15% , 2-Year at 2.30%, 3-year at 2.75%, and 5Y at 3.25%.

Here is the link for the regular CDs: Regular CD Pageand
IRA CDs: IRA CD Page

Discover Bank is FDIC insured and their FDIC# is 5649. The rating system we use gives them 5-stars so even if the rate is lower than some other banks, they look like they will be around for a while. According to the data from the FDIC for March 2009, they have lost $69MM. They earned about $600MM for 2008. As of March, they do have about $5BB in capital, so it would seem they will be okay.

IRA CDs are insured up to $250,000 and through 12/31/09 regular CDs are insured up to the same. The rumor mill is whispering that regular CDs will have the 12/31/09 extended, but not made entirely permanent. Of course, that is just a rumor.

Have a great Day
cd :O)

-- By +Chris Duncan

5 Responses to “Discover Bank Promo”

  1. richard Says:

    I’ve just had a nightmarish experience with Discover Bank. On May 26 funds were transferred to them which they acknowledge. I mailed additional funds with a signature card. They acknowledge the additional funds but refused to acknowledge the signature card. I canceled the account but since they said I don’t have a signature card on file, I won’t receive the interest during the time that they held the money. Yet talking with another person, they said that I’d receive interest. I’ve never experienced so many lies in my entire life. I’d never to any business with this bank again

  2. CD Rates Blog Says:

    Richard, sorry to hear about the problems. We’ve worked with Discover Bank on a large scale with our institutional investors and have never had a problem. We’ve helped place over $100MM.

    What was the reason for not acknowledging the signature card? Did they claim to not have it? Seems like a new one could have been sent instead of cancelling the account. Hopefully, you will earn interest during the period.

  3. David Says:

    I opened the online savings account 2% interest with the minimum balance ($500) at Discover Bank. Not easy, constantly needed to give strangers on the other end of the line SSN, mother’s maiden name, etc.

    Their website keeps telling me there is a server error and locks me out of the account. Before moving more money into the account to get that 2% interest, I tried to transfer the funds back out to my savings — no can do, the money so far is locked up and I can’t get it.

    I wouldn’t recommend locking up any large sum of money at this bank, theis website is too flakey and so far I can’t get the money out – plus I get conflicting information from their online support (money will be transferred tommorrw) vs person on the phone (I have a negative balance and the funds are on hold 10 days)

    On the Discover Bank website my balance shows 4 cents, its supposed to be $500.03 … yikes!

  4. CD Rates Blog Says:

    Wow, two bad experiences. I do have a contact at Discover Bank. I’ll invite them to leave a comment and see if they have any ideas for correcting the issues.

    Thank you for leaving comments on your experience.

  5. allen Says:

    Ive also had a number of terrible experiences with Discover bank. At first I thought it was growing pains, but now I believe it is not well run

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