Discover Bank emailed me the other day to let me know they have a redesigned website with some new features. I took a look and it also prompted me to see how they were doing on rates.

In terms of the website, here's what's new:

Financial calculators. They added four new financial calculators to help you see how Discover rates compare to national averages. These include:

• Savings Goal Calculator - helps you understand the trade-off between monthly contribution and savings horizon to reach your savings goal

• IRA Calculator - this calculator can help you understand how your money will grow tax-free over time through investing in FDIC insured CDs in an IRA account
• Money Market Calculator - use it to compare Discover Bank rates against the national average for various deposit amounts
• CD Calculator - use it to Discover Bank rates against the national average for various CD terms

They also added some new content including articles on FDIC insurance coverage limits, and retirement savings goals.

Perhaps best of all from my perspective, they've expanded their phone service support to 24x7.

Competitive CD Rates

Discover has had competitive CD rates for some time. At the moment, their most competitive terms are 3 year, 4 year, and 5 year CDs. For 5-year CDs, they have an especially competitive rate that's currently at 3.5% APY.

UFBDirect.com is offering a 12-month CD for a competitive rate of 2.90% APY. This is currently the top 12-month CD rate on the BestCashCow rate tables.

Accounts can be opened nationally via an online application. The account can be opened instantly online as long as all of the information can be verified. Once that happens, you'll be able to transfer money via ACH, which takes between 2-3 days, or by wire, which takes 24 hours. The rate for CDs locked when UFBDirect receives the funds.

UFBDirect is run by Waterfield Financial Services (WFSI) who contracts with its affiliate bank Waterfield Bank to provide deposit products and services. Deposits are either kept at View Waterfield Bank FDIC Certificate #34976, The Huntington National Bank, FDIC Certificate #6560 , or Countrywide Bank, FDIC Certificate #33143.

It's unclear which bank will receive the money but all three are FDIC insured. UFBDirect seems to act as a deposit broker for these three banks. As long as you are under FDIC limits this doesn't represent a problem.

Charter Bank, located in New Mexico, is offering a 14-month CD with a 3% APY. That's higher than the top 12 month CD rate and the top 18 month CD rate on the BestCashCow rate tables.

Accounts can be opened online. The CD rate locks once you submit the application. From that point you'll have 10 days to transfer the money, which can be done via ACH, check or wire transfer. They'll also be sending a signature card in the mail.

Charter Bank has approximately $1 billion in assets and $700 million in deposits. It has been FDIC insured since (FDIC Cert: 32498) 1986 and has a 2 out of 5 star Bauer rating (problematic) for safety and soundness.