Banking » Compare Banks » Marcus vs Discover: Which Offers Better CD Rates?
Advertiser Disclosure

This website is an independent, advertising-supported comparison service. The product offers that appear on this site are from companies from which this website receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This website does not include all card companies or all card offers available in the marketplace. This website may use other proprietary factors to impact card offer listings on the website such as consumer selection or the likelihood of the applicant’s credit approval.

This allows us to maintain a full-time, editorial staff and work with finance experts you know and trust. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impacts any of the editorial content on The Smart Investor. While we work hard to provide accurate and up to date information that we think you will find relevant, The Smart Investor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof.

Learn more about how we review products and read our advertiser disclosure for how we make money. All products are presented without warranty.

Marcus vs Discover: Which Offers Better CD Rates?

Discover the best CD rates Marcus and Discover offers with our comprehensive comparison, including early withdrawal penalty.
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

Table Of Content

Investing in a certificate of deposit (CD) is a smart way to earn higher interest rates on your savings while keeping your money safe. In this article, we'll compare the CD offerings from Marcus and Discover, two popular online banks with competitive rates and flexible terms.

We'll take a closer look at their minimum deposit requirements, term options, interest rates, and early withdrawal penalties to help you decide where to invest your money.

Marcus
Discover
CD Range
3.70% – 4.75%
2.00% – 4.75%
Minimum Deposit
$500
$2,500
Early Withdrawal penalty
90 – 270 days of of interest
3 – 24 months of interest
Terms
6 – 72 months
3 – 120 months

How Do CD Rates Compare?

As we can see in the table below, Marcus and Discover CD rates are similar. There is  small advantage to Marcus when it comes to short term CDs, while Discover rates may be better for the long term CDs.

The significant difference between them is the minimum deposit required – Discover $2,500 minimum is much higher than Marcus, which require only $500 to open a CD.

If you're looking for a 2-year CD, the rates are quite similar – but you can find better 2-year CD rates on other banks.

CD Term
Discover APY
Marcus APY
3 Months
2.00%
N/A
6 Months
3.40%
4.25%
9 Months
3.50%
4.30%
12 Months
4.75%
4.75%
18 Months
4.75%
4.75%
24 Months
4.30%
4.35%
30 Months
4.30%
N/A
36 Months
4.30%
4.30%
48 Months
4.00%
4.00%
60 Months
4.00%
3.80%
72 Months
N/A
3.70%
84 Months
2.00% – 4.75%
N/A
120 Months
3.80%
N/A

When It Comes to No Penalty CD - Marcus Wins

Marcus's no penalty CD option is another standout product, but the offering a current rate that is lower than the shorter-term Marcus CDs.

One of the main advantages of this CD is that customers have more flexibility since they are not required to keep the CD until it matures. This means that they can withdraw their funds before the end of the 13-month term without incurring any penalty fees.

CD Term
APY
Marcus 13 Months – No Penalty
3.50%

CD Early Withdrawal Penalty Comparison

When it comes to early withdrawal penalty, Marcus and Discover penalties are very similar. The penalty for early withdrawal on Discover CDs varies based on the term. For CD terms less than one year, you'll be charged three months of simple interest (or 90 days with Marcus).

For terms of one to four years, the penalty increases to six months of simple interest (180 days with Marcus). 

CD Term
Discover
Marcus
3 Months
3 months of interest
N/A
6 Months
3 months of interest
90 days of interest
9 Months
3 months of interest
90 days of interest
12 Months
6 months of interest
180 days of interest
18 Months
6 months of interest
180 days of interest
24 Months
6 months of interest
180 days of interest
30 Months
6 months of interest
N/A
36 Months
6 months interest
180 days of interest
48 Months
6 of months interest
180 days of interest
60 Months
18 months interest
180 days of interest
72 Months
N/A
270 days of interest
84 Months
24 months interest
N/A
120 Months
24 months interest
N/A

About Marcus

Goldman Sachs' branch, Marcus, provides a range of investment opportunities and savings accounts, in addition to some lending products.

This institution caters to those interested in investing, but it does not offer a checking account in its product line. Being an online bank, Marcus lacks physical branches, but it provides customer support online, via phone, or through the app.

The online platform and app are designed to provide an excellent user experience, and its website is comprehensive, featuring a FAQ section, and users can access live chat through the Marcus website.

About Discover Bank

Discover Bank is an online bank that has been operating for over 30 years. It offers a range of banking products including savings accounts, checking accounts, money market accounts, CDs, and loans.

Discover Bank is known for its competitive interest rates and low fees, making it a popular choice among customers looking for an online banking solution. The bank has a mission to help people achieve a brighter financial future and aims to be a leading digital bank.

Compare CD Rates

Lorraine Smithills

Lorraine Smithills

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
Best CD Rates

Table of Contents

$200 Chase Total Checking Banner

Advertiser Disclosure

The product offers that appear on this site are from companies from which this website receives compensation.