Our articles, research studies, tools, and reviews maintain strict editorial integrity; however, we may be compensated when you click on or are approved for offers from our partners.

Discover Bank offers strong options for online savings

| Money Rates Columnist

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 a network with more than 60,000 ATMs. You can also use your debit card with retailers up to six times per month.

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 no minimum. 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 individual retirement account 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.

John D. Winston 11 May 2016 at 6:39 am

I am trying to determine what the rates for different time periods are. I knowq they may change by the time my CD comes thru. But if I don't get an answer now, I may take out my money when it is due and give it to an institution that wilol give me some info now.

Ned 22 October 2012 at 10:22 pm

while a .8% rate for discover rate doesn't seem like much, when you look at the chart above - wow - it is, and has been, consistently so much higher than the national average savings rates