Discover Bank offers strong options for online savings
When you say "Discover," many people think of the company's iconic credit cards. Discover revolutionized the credit card industry by introducing the first cash-back rewards credit card in 1986, but Discover Bank -- the part of the company that offers online deposit accounts -- has expanded in recent years to offer its own enticing options for savings accounts, money market accounts and CDs.
Discover Bank services
With a Discover Bank deposit account, you can rest assured that your funds are fully FDIC-insured to the maximum limit of $250,000 per depositor. If you choose to open a joint account at the bank, you and the account co-owner will each be insured up to the limit of $250,000.
Discover Bank began offering debit cards in 2006, and today you can access the funds in your money market account through an ATM network with 675,000 locations. You can also use your debit card with retailers up to six times per month.
Discover Bank and PayPal have also partnered to offer a new service called Money Messenger to Discover Bank customers. This service allows you to immediately transfer money using your computer or mobile phone to anyone if you know their email address or mobile phone number. The service is free to Discover Bank customers.
Discover Bank account options
Due in part to the low overhead that comes with being a direct online banker, Discover Bank aims to offer higher interest rates than traditional brick-and-mortar banks. It currently offers four types of deposit accounts:
Online savings account. You can open an online savings account with a minimum deposit of $500. No minimum balance requirements or monthly maintenance fees are imposed with this account.
Online money market account. Another option to consider is a money market account, which requires a minimum opening balance of $2,500. To avoid monthly maintenance fees you need to maintain a balance of $2,500 as well.
Certificates of deposit (CDs). Discover Bank also offers CDs with terms from three months to 10 years. Like the money market account, each CD requires a minimum deposit of $2,500. There are no monthly maintenance fees.
IRA CD. You can open a traditional or Roth IRA CD with a minimum deposit of $2,500. Terms are available from three months to 10 years. The IRA CDs are also fully FDIC-insured.
Starting a Discover Bank account
The online nature of Discover Bank makes it easy to open an account from your computer. You'll need only your name, address, Social Security number and a check or account information from your existing bank to help fund the new account.
For the latest rates and details on Discover Bank, please review the tables below.