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%.
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
-- By +Chris Duncan