Discover Bank - Online Savings

Average Score:

•   Discover update

  Discover just went down to 1.35% for their online savings (as of 1 Feb 10). However, if you have a certain amount, they give you a higher rate - I don't know the threshold for getting the higher rate but I'm getting 1.59% on $27K (1 Feb 10)

  Posted by quedita -- Feb. 1, 2010

•   Fees for moving large amounts of money

  Although this account is currently offering one of the top rates available, there are some drawbacks to the account for which you should be aware.

  First, there are limits on how much money you can withdraw from your account via their online tools - no more than $50,000 per month and $35,000 per day. I didn't know this when I signed up for the account, so I called them and they said I could withdraw larger amounts by calling them to get a check mailed to me or a wire transfer, but there'd be a fee ($5/check) and ($20/wire transfer). Not the end of the world, but definitely annoying.

  Second, their website is outdated and they don't offer online statements - just paper ones. It's confusing to use their site, which you'd think wouldn't be the case for a large bank like Discover - if I didn't mind a bad website, I'd probably go to a smaller community bank.

  Finally, discover bank's whole process of setting up online banking after registering for the account was a pain - taking multiple steps, lots of emails back and forth, waiting, etc.

  For an online bank account, it's not very internet friendly - if it weren't for the current high rate, I wouldn't consider this account at all.

  Posted by jay_squared -- Sept. 21, 2009

•   A plain ol’ good account

  Discover Bank avoids two pitfalls that make me hate a bank. They don’t lie to me and they don’t make it hard to move my money around. Specifically, this means they disclose their fees ($15 overdraft is annoying, but they’re very up-front about it) and they make it easy to use their online banking and/or other banks’ online banking to transfer lots of money in and out of the account quickly (via ACH transfers).

  Also, they’re giving a good rate with low minimums. Making this a solid, meat-and-potatoes savings account. I’m reminded of Ally’s savings account, which is also worth checking out if you think this account looks good. I’d pick whichever of the two was giving the highest rates at the time.
  

  Posted by greg -- Sept. 9, 2009