If you’re considering opening any type of retirement account, this account by Discover Bank may be the most ideal for you!
Available nationwide, open a Discover Bank IRA CD account online and earn up to 3.10% APY!
Discover Bank offers a great rate and many tools that will help you save. Their customer service is available by phone, e-mail, or through online chat. They have a fantastic, easy-to-use mobile app, and the features they have for their accounts are amazing!
Discover Bank is FDIC-insured and is known for their online convenience as well as their ability to provide high interest yields while providing a safe and secure way to save money each month.
Opening a new account is simple because it’s just filling out basic information! If you apply online, just click on open an account, and fill out the information required. Applying by phone is easier because you have an associate talking you through everything.
To get started, click the “Apply Now” button below. When you are on Discover Bank’s webpage press “Open an Account” and begin inputting your information!
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|Discover Cashback Debit||$360 Cash||Review|
|Discover Bank CD||Up to 3.10% APY||Review|
|Discover Bank Money Market||2.00% APY||Review|
|Discover Bank IRA CD||Up to 3.10% APY||Review|
Table of Contents
- 1 IRA CD Overview
- 2 Discover IRA CD Advantages & Disadvantages
- 3 Discover Bank IRA CD Rates
- 4 Discover Bank IRA CD Info
- 5 Discover Bank IRA CD Roth vs Traditional
- 6 Discover Bank Online Banking
- 7 Discover Bank Mobile Banking
- 8 Discover Debt Consolidation
- 9 Discover Bank IRA CD Requirements
- 10 Bottom Line
IRA CD Overview
An IRA (individual retirement account) is simply an account through which you can invest in a variety of investments.
A CD (certificate of deposit) is a savings vehicle where the money earns interest and the money cannot be withdrawn until the specified maturity term is reached. Early withdrawals are subject to penalties.
The IRA CD is simply a CD that’s owned within either a traditional or a Roth IRA.
The primary benefit of IRAs are the tax advantages. With a traditional IRA, saving in an IRA CD would reduce your taxable income. With a Roth IRA, all the interest you earned in an IRA CD is tax-free. On the other hand, a regular CD would mean you’d get taxed on interest income and receive a 1099-INT tax form at the end of the year. IRA CDs are still subject to early withdrawal penalties and are also insured by the FDIC up to the maximum limit of $250,000 per depositor.
Discover IRA CD Advantages & Disadvantages
- Safety: With Discover Bank being insured by the FDIC, your deposit accounts held in IRAs get up to $250,000 of coverage in the event of a bank failure.
- Predictability: Use a calculator, and you can see exactly how much money you’ll earn over the term of the certificate, allowing you to plan your retirement date without worrying it’ll be disrupted by a massive market downturn.
- Easy-To-Do: It’s no different from purchasing a regular CD, but instead of transferring money into a CD from your checking or savings account, you would buy a CD using funds in your IRA.
- Less Fees: You won’t have to worry about fees unless you’re penalized for tapping into your account before it matures. Retirement investing is plagued by all kinds of fees. Having investments managed by a brokerage firm can get expensive.
- Limited Access: The major drawback to owning CDs in an IRA is that your money is locked away earning very low returns. Typically, CD terms range from 6 months to 5 years. Plus, you usually have to make a minimum deposit, such as $1,000, to purchase a CD.
- Fairly Low Interest Rate: If you have many years to go before retirement, earning just 1% or 2% on CDs probably won’t be enough to reach your goals. That low rate of growth won’t even keep up with inflation, which historically has been about 3%. Although rates are low, this offer by Discover is one of the highest out there.
Discover Bank IRA CD Rates
|IRA CD Term||APY Rate|
|3-Month Term||0.35% APY|
|6-Month Term||0.65% APY|
|9-Month Term||0.70% APY|
|12-Month Term||2.65% APY|
|18-Month Term||2.65% APY|
|24-Month Term||2.70% APY|
|30-Month Term||2.70% APY|
|3-Year Term||2.75% APY|
|4-Year Term||2.80% APY|
|5-Year Term||3.00% APY|
|7-Year Term||3.05% APY|
|10-Year Term||3.10% APY|
Discover Bank IRA CD Info
- Account Type: Discover Bank IRA CD
- Availability: Nationwide
- Expiration Date: None
- Monthly Fee: $0
- Insured: FDIC
Discover Bank IRA CD Roth vs Traditional
The difference between a Roth IRA and a Traditional IRA is when you pay. For a Roth IRA, you pay initially while you pay later for a Traditional IRA.
Advantages for Roth
- Pay Now, Save Later: Funded with after-tax dollars, Earnings and withdrawals are tax-free, Contributions are not tax deductible.
- Get Taxes Out of the Way: If you expect tax rates to be higher when you begin making withdrawals, this is your account.
- Eligibility: Taxable earned income within IRS Limits; Limits are based on income and tax filing status.
- Withdrawals: Anytime you wish. Contributions can be withdrawn without IRS penalty at any time. Earnings can be withdrawn without penalty at age 59½ if your account is at least 5 years old.
Advantages for Traditional
- Earn Now, Pay Later: Funded with pre-tax dollars. Earnings are tax-deferred.Tax-deductible up to certain income limit.
- Wait to Pay Taxes Later: If you expect to have a lower tax rate when making withdrawals, open this account.
- Eligibility: Anyone under 70½ with taxable earned income.
- Withdrawals: Contributions and earnings can be withdrawn without IRS penalty at 59½. Distributions are required by age 70½.
Discover Bank Online Banking
As an online bank, Discover’s online banking is one of the best and they make it easy to access your account information. With Discover Online Banking, you will be able to:
- Manage your accounts and account information online
- View and download statements and account activity
- Schedule and make transfers to and from other banks
- Schedule and make transfers between Discover Bank accounts
- Create banking reports
- Open new accounts
- Receive and manage account alerts
- Send secure messages
How to get started:
- Create a Discover Bank account if you have not already.
- Go to Discover.com, log in and view your account information.
Discover Bank Mobile Banking
Discover Bank Mobile Banking helps keep your busy life and finances moving ahead. There’s no stopping you with these free services that help you manage your money anytime, anywhere. With the mobile banking app, you will be able to:
- View your account activity and details
- Complete transfers
- Deposit checks through your mobile device
- Update your personal information
- Access secure messaging and send emails to the bank
- View your account documents
How to get started:
- If you already use Online Banking, download the app via iOS or Android.
- Open the app and log in with your existing username and password. If you don’t have log in information, you can create a username and password right in the app.
- Once you log in, you’ll see your account(s). You can view your balance and transactions, make transfers, send and receive money, deposit checks, pay bills, view online statements, and more.
Discover Debt Consolidation
Consolidating debt is the process of combining multiple debts from credit cards, high-interest loans, and other bills into one monthly payment. With Discover’s Debt Consolidation solutions may lower your interest rate, which can help you save money on interest, lower your monthly payments, and pay down debt faster. Whether you choose a loan or a balance transfer, you can consolidate debt from credit cards, including store cards and gas cards; high-interest loans; medical bills; and more.
Discover Bank IRA CD Requirements
Follow the steps below in order to get started with your Discover Bank IRA CD Account!
- Apply for a Discover Bank IRA CD account.
- Enter Info: They need your address, phone, email and social security number
- Verify Information: Verify information and electronically sign your application.
- Confirmation: They’ll send a confirmation letter where you’ll have to sign and return to Discover.
- Fund Account: You can send them a check or transfer funds from an existing bank account.
It would be a good idea to open a retirement savings, because nobody wants to struggle with money when they’re older. This is great for people of all walks of life for their retirement plan. Discover Bank IRA CD account offers a good interest rate with their individual retirement plan. Consumers seeking to maximize their future with financial stability by saving will benefit from this account!
For these reasons, the Discover Bank IRA CD account is ideal for people with large balances to deposit who do not mind putting it into a IRA CD account which locks your savings for a given amount of time to earn up to 3.10% APY. If you are not a Discover customer, and would like many banking features while you save, sign up today for a Discover Bank IRA CD account!
If this account is not for you, feel free to get more information on the Best Savings Rates, Best CD Rates, and even Broker Bonuses! Our posts’ are filled with various financial institutions from banks, credit unions, and even federal credit unions that are offering great rates!
Disclaimer: Rates / APY terms above are current as of the date indicated. These quotes are from banks, credit unions and thrifts. Bank, thrift and credit union deposits are insured by the FDIC or NCUA. Contact the bank for the terms and conditions that may apply to you. Rates are subject to change without notice and may not be the same at all branches.
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