Discover Bank Raises Its 5 Year CD Rate To 2%

It’s great to discover that CD rates are going up, and it seems that Discover Bank just topped the 5 year CD term with a 2.00% APY rate. Other banks that offer this rate is First Internet Bank of Indiana and Intervest Bank. Discover Bank is also one of those banks who offer several terms for CD’s allowing you to choose the term that fits to your investment needs. Below is a list of Discover Bank’s competitive CD Rates

Discover Bank’s CD Rates

3 month CD – 0.40% APY
6 month CD – 0.80% APY
9 month CD – 0.90% APY
12 month CD – 1.00% APY
18 month CD – 1.15% APY
24 month CD – 1.25% APY
30 month CD – 1.35% APY
3 year CD – 1.50% APY
4 year CD – 1.75% APY
5 year CD – 2.00% APY
7 year CD – 2.25% APY
10 year CD – 2.50% APY

How Does Discover Bank Compare to Other Bank’s CD’s?

First of all, let’s start with the short term CDs. The highest 3 month CD term is currently from OneWest Bank and Virtual Bank with a rate of 0.60%. This puts Discover Bank’s rate a little behind, but still competitive. Again both OneWest Bank and Virtual Bank are at the top of the 6 month term with a rate of 0.85%. Since Discover Bank’s rate is 0.80%, it’s almost comparable.

As for 1 year CDs, the leading rate for banks is 1.15% from Popular Bank. Discover is also offering this rate, but for an 18 month CD. Discover Bank is also consistently doing well with their long term CD’s since the highest for the 3 year term is from CIT Bank with 1.54%, this leaves Discover’s rate only 0.04% behind.

About Discover Bank

Discover Bank has had its roots ever since 1911, showing their experience and strength in the banking industry. Today, they manage an incredible amount of over $34 billion in deposit accounts. Discover Bank has also stayed ahead of the field with their 24/7 online banking showing that their roots may be traditionally brick and mortar, but that they can also keep up with the changing times. They also have an online security guarantee.

Discover Bank accounts are FDIC insured, meaning your money is safe up until the amount of $250,000. Aside from that, they also insure “non-interest bearing” transaction accounts to the full amount beginning from December 31, 2010 up until December 31, 2012.

With Discover Bank’s reputation and years of experience, banking with them at such generous rates should be worth your while.

Fairwinds Credit Union Offers as High as 2.33% on 5-yr CD

Currently the highest 5-year CD rate being offered is by First Indiana Bank and Intervest Bank at 2.00% APY. However, at Fairwinds Credit Union you can get as high as 2.33% on a 5 year CD. Now, why is it “as high as”? First of all, the 5-year CD rate of the credit union is actually at 1.82% which isn’t so bad in itself. However, the union allows its depositors to earn a higher interest rate simply by getting some “relationship rewards” points. By doing so, you can get a rate of 2.07% on a 5 year CD, or even as high as 2.33%.

How does Relationship Rewards Work?

The Fairwinds Credit Union Relationship Rewards is simply their member loyalty program. The points that you earn in the program can allow you to bring your CD rates higher or reduce your auto loan rates. Earning points is simple, the more products and services you use, the more points you can earn. Here are the ways to earn your points:

– 2,500 points for every family member or friend referred that opens a checking account
– 250 points for every Fairwinds loans you set up on auto pay from a Fairwinds checking or savings account
– 100 points for each year of membership
– 1 point for every $1 paid in interest on loans
– 1 point for every $1 in interest or dividends earned on deposit accounts

How Can You Get A Higher CD Rate?

The Rewards Relationship program allows you to add 0.25% to 0.50% on their currently existing CD rates. By having 2,500 rewards points, you are eligible to add 0.25% to your rate, and by earning 5,000 rewards points, you can add a whopping 0.50%.

Since their 5 year CD rate is currently at 1.82%, having 2,500 reward points will give you the 2.07% rate, while having 5,000 points will earn you the highest 5 year CD rate available at 2.33%.

The same can also be done to other rates at different terms.

Fairwinds Credit Union Membership

Most of the time, the only thing that’s stopping us from joining a credit union is because of its membership eligibility. Some of their eligibility requirements include being a resident, working, or schooling at certain counties in Florida, being an employee in several companies in Florida, and being related to any account holder. Further details can be found at their website.

5 year CD Rates Going Down

If home mortgages are going up, CD rates are going down. Although the average one year CD remains the same at 0.44 percent, the five year CD yield is down to 1.61 percent which is 2 basis points from last week.

For the jumbo CD rates, the average one year CD stays the same at 0.48 percent but the five year jumbo CD rates is down 3 points to 1.62 percent.

Apparently, it’s the 5 year CD’s that are dipping low this week while 1 year Cd’s are still remaining at their rate from last week.

Leading the 1 year CD rates is AloStar Bank of Commerce NR at 1.27% APY. AloStars rates are compounded daily, giving the highest yield possible. Bank of Internet USA also gives the same 1.27% APY compounded daily. Both have the same minimum deposit of $1,000.

Following closely is E-loan at 1.26% APY, but their minimum deposit is much higher at $10,000. Sallie Mae, Aurora Bank, Discover Bank, and Colorado Federal Savings Bank all follow suit at 1.20% APY. The best deal among them is Sallie Mae with $0 minimum deposit.

As for 5 year jumbo CD’s, Bank of Internet USA gives a soaring rate of 2.49%, which is considerably higher than the other CD rates at 2.40% and lower. It is First Internet Bank of Indiana who can give the 2.40%, followed by EverBank at 2.37%, Aurora Bank at 2.36%, Discover Bank at 2.35% and finally Ally Bank at 2.33%.

It looks like the big banks are competing well in the 5-year jumbo CD. Of course, the minimum deposit for every bank $100,000.

With 5 year CD rates down this week, investors may be considering placing their money in shorter term CD’s instead. However, short term CD’s do always have a lower interest rate, so even if long term CD’s aren’t performing well this week, their rates are still higher than the short terms.