Discover Bank is an online savings option I want to tell you about that provides a safe, secure and FDIC insured way to save money each month. My preference is to use such an online savings account for emergency savings, or for money I can easily transfer to my checking account should it be needed within a few days.
As with other online banks, Discover is able to save money and offer you a higher savings rate without the overhead of a physical branch. You don’t need to worry about changing banks. Any external account can be linked up to a Discover Bank savings account.
History
Discover Bank has been in business for over 95 years and is part of Discover financial services. The bank was originally founded in 1911 in Greenwood, Delaware and was originally named Greenwood Trust Company. Bankrate.com has rated Discover Bank to be Safe & Sound and gave them their Top Tier Award for consistently high yields.
Features
Here is a quick list of the features and key information about the Discover Bank online savings account.
- Minimum $500 initial deposit requirement.
- No minimum balance requirement.
- No monthly fees.
- Interest on Discover Online Savings Accounts is compounded daily and credited monthly.
- Auto Savers plan which automatically transfers money from your personal checking account into your savings account each month.
- FDIC insured.
- Manage your account online or with the Discover mobile banking apps.
- Customer services available 27/7/365.
Opening an Account
You can open an account anytime online by completing their 4 step online form. After your account is opened you can login and access it online. You can make deposits by phone, electronic funds transfer, or mail in checks. You can access your money by conducting an ACH transfer or wire transfer. Discover provides 6 withdrawals per statement cycle which is the maximum allowed by federal law.
Auto Savers Program
The Auto Savers program helps you reach your savings goals by automatically transferring money on a recurring basis from your external checking account. Setting up recurring savings is a no brainer and having such a feature as AutoSavers is essential to make sure you’re not spending money before you save.
Mobile App
The mobile app provides a number of features which include checking your savings account balance, viewing recent activity, viewing earned interest, and the ability to make and set up transfers. The app works on the Android, iPhone and Blackberry devices.
Final Thoughts
While there is a $500 initial deposit requirement, this is a good online savings option to consider. They have a competitive interest rate and the mobile app and Autosavers program are nice features.
Have you had any experience with the Discover Online Savings Account? If so, please share your experience in the comments.
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