Discover’s high-interest IRA CD
If you’re like me — fighting to make ends meet in this tight economy and juggling a growing family’s daily activities — retirement can seem like a long way off. But think back 20 years ago, when middle age seemed a lifetime away. Time flies, doesn’t it? Before we all know it, we’ll be checking on our Social Security benefits and trying to figure out how to budget our savings in retirement.
Today’s abysmal CD rates aren’t making the future look any rosier, but Discover has a high interest IRA CD that may be perfect for you. If you hang in for 10 years (and you should if you’re serious about planning for your retirement) you get 2.96 percent on your CD rates, which works out to 3 percent APY. If you don’t want to wait that long, a 12-month commitment will get you 1.19 percent (1.20 APY).
Advantages:
- Your choices of traditional or Roth IRAs.
- Choose terms as little as 3 months at lower interest rates.
- Interest compounded daily. Compounding daily, instead of quarterly or monthly, helps your money grow faster.
- Manage your account online.
- FDIC insured.
Disadvantages:
- 10-year commitment to get the highest interest rate.
- Online only. No brick-and-mortar building.
- Minimum of $2,500 required to open account.
- Penalties for early withdrawal.
Discover Bank is celebrating its 100th anniversary. It originally opened in Greenwood, Del., as Greenwood Trust Company, but was renamed Discover Bank in 2000. It is part of Discover Financial Services
More at www.discoverbank.com.
