Certificate of Deposit                    APY                                  APY Change

3 months                                         0.40%

6 months                                         0.75%

9 months                                         0.80%                                 (0.05%)

12 months                                      1.00%

18 months                                      1.05%                                   (0.05%)

24 months                                      1.15%                                    (0.05%)

30 months                                      1.20%                                   (0.05%)

36 months                                      1.35%                                    (0.05%)

48 months                                      1.55%                                    (0.05%)

60 months                                      1.75%                                   (0.05%)

84 months                                      2.00%                                   (0.05%)

120 months                                    2.45%                                   (0.05%)

All other rates remain the same. However, you can make a comparison by comparing the above certificate of deposit rates with what was being offered by Discover Bank in December 2011. Discover Bank 12 month certificate of deposit rate ranked 3rd in the highest certificate of deposit rates for January.

Discover Bank has a five (5) star or superior rating according to bankrate.com’s Safe and Sound Rating System for commercial banks, savings institutions and credit unions.

1. Alliant Credit Union 12 month CD – 1.00%APY with $1,000 minimum required to open

2. First Internet Bank 12 month CD – 1.00%APY. Also $1,000 minimum required to open

3. Discover Bank 12 month CD accounts – 1.00%APY. Discover Bank requires a higher minimum amount to open the CD account of $2,500. You can view previous months certificate of deposit rates of the bank here.

4. GoldWater Bank 12 month CD – 1.00%APY. Requires a much higher amount of $5,000 minimum to open

The rest of the certificate of deposit rates offered are way below 1.00%APY.

For example, Ally Bank offers 0.99%APY for a 12 month CD, but it has no minimum balance requirement. Ally Bank also offers a No Penalty CD, an 11 month term CD, with no minimum amount required to open at a rate of 0.91%APY. Please note that Ally Bank is an online bank and is ideal only for those who are comfortable banking online.

You can compare the above certificate of deposit rates with what was offered in November 2011.

Here are the current IRA CD rates offer of Discover Bank:

• 3 months – 0.40%APY
• 6 months – 0.75%APY
• 9 months – 0.85%APY
• 12 months – 1.00%APY
• 18 months – 1.10%APY
• 24 months – 1.20%APY
• 30 months – 1.30%APY
• 3 years – 1.45%APY
• 4 years – 1.65%APY
• 5 years – 1.90%APY
• 7 years – 2.10%APY
• 10 years – 2.50%APY

The above IRA CD rates offer applies to personal accounts only and are based on a $2,500 minimum balance. Thus, not applicable for business accounts and for account balances that falls below the minimum balance requirement. Also, if you make an early withdrawal, you  may be charged a penalty. The above rates may change daily so it’s best to check back more often for updates.

If you have reviewed the best IRA CD rates for October 2011, you will notice that Discover offered a rate of 2.15%APY on its 5 year term IRA CD with the same minimum balance requirement. The said rate was the same for September 2011. It is only this month  (December 2011) that the 5 year IRA CD rate falls 0.25%APY. It is quite a big drop from the previous months’ rate.

In addition, Discover’s 7 year IRA CD rate for this month is only 2.10%APY compared to what it offered in September 2011, which was at 2.45%APY. A difference of 0.35%APY, which is also quite a big drop.

If you are into a short term CD then you may want to check out CIT Bank 1 year achiever CD which currently is at 1.15%APY. Discover offers 1.00%APY.

IRA CD rates are falling but it should not be the main reason why you should stop investing.

Update: December 20, 2011

Below are updated Discover Bank certificate of deposit rates.

*All other rates remain the same.