Discover Bank Savings Account Review

All of us have heard about a Discover card being used as a from of payment, but did you know that Discover offers online money market and savings accounts, as well as CD’s and an IRA CD that is tax differed. Discover’s savings account is amongst the highest yielding simple savings accounts available to you and it’s a completely online account.

Savings Account:

Discover’s savings account has a yield of 1.35%APY with a minimum deposit of $500. They offer free online transfers from any other established account with any other bank that offers online services via online transfer. If you do not have an existing online account, you can simply mail a check. There is no minimum balance on your Discover savings account, but beware that you only receive six free authorized transfers from your savings account before a fee will be assessed. These include automatic as well as telephone transfers. The 1.35%APY only applies to a balance of over $500, if your balance falls below this level you will not be assessed a fee, but your interest rate may be marginally lower. The interest rate is very attractive however because it’s roughly 5 times higher than the national average for savings accounts. Discover is also protected under the FDIC so your money will be insured up to $250,000. Beyond a fee for over six authorized transfers per statement cycle, Discover has no hidden fee’s attached to their savings account which makes online banking a simple non-frustrating process.

Discover Bank Current Rates

Discover Bank Offers Money Market

Discover’s online money market account can be treated in the same respects as a checking account. The money market account has an APY of 1.20% on any balance over $10,000. The money can be withdrawn from the money market account via any ATM with the PULSE or Discover logo. The same principles apply with their money market account as with the savings where you will only receive six free authorized transfers per statement cycle. You can withdraw money from your Discover money market account via Discover debit card which will be provided upon opening the account, or checks which you will also have the option to obtain upon opening your money market account. There is no limit to the amount of withdrawals made with your debit card or through check.

Also Offer Competitive CD’s

Discover offers a range of CD’s that are all FDIC insured ranging from 3 months to 10 years. The rates are highly competitive and you have the option to leave the interest in the account, or have it transferred to a separate account of your choosing. The CD’s also have no market risk so your principle is secure which makes it not subject to market fluctuations. Discover also offers an IRA CD which you will be able to roll over an existing 401k into the Discover IRA CD with no tax consequence. They offer an attractive 3.5% APY on their IRA CD.

Discover Customer Service:

Discover is a well known brand name so if you’re a skeptic of online accounts, Discover may be a good option for you. They offer online customer support as well as 24 hour phone service at 1-800-347-7000. The web sit is easy to use and simple to navigate. Upon setting up your first account whether it be Savings or CD, you will not have to re-fill out the paper work for up to a total of five accounts. If you decided to make Discover your sole banking option, they will make the switch easy and with less paperwork.

Interested in checking out Discover Bank? Click here to check out their rates today.

Leave a Comment

Your email address will not be published. Required fields are marked *