You are here: Home » Banking » Discover Bank Review

Discover Bank Review

by

Are you looking for a new online savings account with high interest rates?

I recently opened a Discover Bank account and thought I would share a little bit about their bank. If you are looking for a new online bank, then Discover is one worth consideration as they currently offer one of the best online savings accounts based on criteria such as interest rates, ease of use, and bank features. Interest rates at Discover Bank are currently over 4 times the national average – which was enough to pique my interest!

Discover Bank Review

Discover Bank has been around since the year 2000, when Greenwood Trust Company joined Discover Financial Services, and changed its name to Discover Bank. Greenwood Trust Company was also the issuing bank for Discover Credit Cards. Even though Discover Bank has been around for over a decade, I didn’t know they had a bank until about a year ago, when they began more heavily promoting their online bank (I currently use a Discover Business Card, so I probably should have known this!).

Discover Bank Products

Along with their well known credit cards, Discover Bank offers a wide range of banking and other financial products.

All of these accounts share the following common features: Interest rates over 4x national average, 24/7 Live Customer Service,  Online Account Management, FDIC Deposit Insurance up to $250,000 per individual account holder (FDIC certificate 5649).

  • Online Savings. You need a minimum of $500 to open a Discover Bank account, but there is no minimum daily balance, no fees, and Discover Bank currently offers some of the highest rates in the US. Discover Bank offers great interest rates – usually near the top in the nation.
  • Money Market. Discover Bank money market accounts have a minimum opening balance and  minimum daily balance of $2,500. These accounts are similar to a high interest checking account, but are limited to 6 withdrawals per month. They are usually good for paying bills and gaining access to your funds more easily than with a standard savings account. However, you need to maintain a balance of $10,000 to have a comparable interest rate to the savings account. The interest rates frequently change, You can find Discover Bank Money Market rates by visiting their site.
  • Certificates of Deposit. Like most banks, Discover offers Certificates of Deposit (CDs) with higher rates depending on the length of the term. Based on what I have seen at BankRates and a few other interest rate aggregator sites, Discover Bank has very competitive CD Rates. Because the rates change frequently based on length of the CD and other factors, I can’t list them all here, but you can find current Discover Bank CD Rates by visiting their site.
  • IRA CDs. Many, but not all online banks offer IRA CDs. Personally, I prefer to open IRAs at a brokerage over banks, but I understand the need or desire to use CDs as an investment vehicle, particularly if you want an investment with a guaranteed return and no risk. Discover Bank offers IRA CDs up to 10 years in length. Discover offers IRA CDs.

See more about product offerings and rates at http://www.discoverbank.com/

Discover Bank Money Market Account

Opening a Discover Bank Account

Opening a Discover Bank account is quick and easy. It is a 4 step process which can be quickly handled online. Like opening most financial accounts, it takes about 15 minutes and requires some personal information including your name, birthdate, and SSN.

  • Step 1. Enter personal info. I opened a joint account, so I had my wife’s info at hand.
  • Step 2. Fund the account. You can fund your new Discover Bank account with an ACH transfer, from another checking account, or by wire transfer if you wish.
  • Step 3. Verify information and electronically sign your application.
  • Step4. Verify information against your credit report (a common form of identity verification for many online financial applications. You will probably be asked questions regarding any loans or credit accounts you have opened).

That’s it! Afterward you will receive a verification e-mail. In a few days you will receive a welcome package in the mail.

Discover Bank Customer Service

So far I have only had to contact customer service once (directly after opening my account) and they were prompt and curteous, which is more than you will find at the customer service for some banks.

Discover Bank contact information


Published or updated February 21, 2012.
Print or e-mail this article:
Print Friendly

{ 1 comment… read it below or add one }

1 Roger

Opening an online savings account with Discover Bank is a mistake. I found out the hard way. They are a day or two slow in transferring money out. That hurt a little but one can live with that. There are several other minor things that are troublesome, including horrible customer service. One can live with some of these things, as long as my money is fine. The big issue came when I transferred everything out of the account on the 24th of the month. I was stunned when I didn’t get any interest for the month, 24 days in. They told me that I forfeited that when I transferred everything out. AWFUL.

I never thought I’d say this but American Express (http://personalsavings.americanexpress.com/) is much better. Money transfers on time, better rates, plus, they do not steal your interest money. I have learned from experience, I hope no one else suffers my fate.

Reply

Leave a Comment

Previous post:

Next post:

.