I opened an online savings account with American Express in the past, but grew tired of rate changes. I decided to see what else was available and found the Discover Bank Online Savings Account. After some reading and research, I found that Discover Bank is offering the best publicly available option for a high-yield online savings account.
Keep in mind that a savings account is best suited for short-term financial needs. The money is readily available for withdrawal, but the interest rate paid fluctuates with changes in the economy. During times like these, interest rates are quite low and you might lose purchasing power due to inflation.
If you are looking to build wealth for retirement or other long-term goals, you should consider investing in other financial assets (such as stocks and bonds) which have outperformed cash accounts over long periods of time. If you’re looking for a place to start, I’ve written extensive reviews on great investment firms like Betterment and Wealthfront.
Now back to the Discover Savings review.
Discover has been around for many years. The banking side of their business grew in the year 2000, after a merger with another firm. They now offer numerous different account and loan options. And of course, they issue the wildly popular Discover It® – Cash Back Match that we love and use.
Discover Bank Online Savings Account Review
The Online Savings Account is a standout offering by Discover, offering their highest interest rate and a robust online interface that allows you to easily link other bank accounts.
Opening a new account requires no minimum initial deposit, and there are no monthly account minimums or maintenance fees.
As with all online savings accounts, all transfer of monies is done online. You can send and receive money from almost any source, and Discover makes it easy to connect other checking or savings accounts online. This makes it easy to send/pull money from external accounts, and Discover charges no fees to initiate a transfer.
All online savings accounts, including Discover, impose a maximum limit of 6 money transfers per statement cycle. You are allowed only six (6) transfers from your Discover savings account to any other bank account. The number of deposits into the Discover Savings Account are not restricted.
If you exceed 6 transfers, you will be charged a fee. This transaction limit is part of recent Federal regulations, and applies to all online savings accounts (not unique to Discover).
Discover Savings Account Benefits
The Discover Online Savings Account has a number of different benefits and perks:
- 24/7 (U.S. based) Customer Support: Our interactions with Discover customer support has been stellar. They are kind, helpful, and can speak English well. As an added bonus, they’ve even sent us a gift card as a moving gift in the past.
- FDIC Insurance up to $250,000: If anything should go wrong with Discover Bank, the Federal government insures each account up to $250,000.
- Discover Mobile Banking App: makes it easy to control everything from your smartphone or tablet. You can check your account balance, view recent account activity/earned interest, and make transfers. It works on Android, iPhone and Blackberry devices.
- 0.95% Current Interest Rate: compounded daily and credited monthly. This is a highly competitive rate compared to other accounts.
- No Minimum Balance
- No Monthly Fees
- Auto Saver Plan: The Discover Savings Account allows easy automatic transfers from your personal checking account into your savings account each month.
Opening a Discover High Yield Savings Account
Opening the Discover Bank Savings Account is easy and can be done online. It is a 3 step process which can be quickly handled online. Like most other financial accounts, it takes about 15 minutes and requires some personal information including your name, address, date of birth, and social security number.
- Step 1. Enter your personal info. You can choose an individual or joint account.
- Step 2. Fund the savings account. You can fund your new Discover Bank account with an ACH transfer from another checking account (our choice), or by wire transfer.
- Step 3. Verify information and electronically sign your application.Verification might ask you about items on your credit report such as old addresses or loans. But it’s an easy process.
That’s it! You’ll be completely set to use your account and earn great interest rates moving forward.
That concludes my Discover Savings Account Review. If you’d like to start saving, you can Open a New Account at Discover Bank Online.