Interest rates for savings accounts are extremely low today and you want to be sure you’re getting the best rate available. While researching banks that offer high interest rates I found that Discover Bank’s online savings account has the best rates for High Yield savings accounts.
Discover Savings Account Overview
- Opening a Discover Online Savings Account is very easy and fast. You’ll be able to use Discover’s Online Saving Account to save and grow your money.
- Opening a savings account with Discover only requires a minimum deposit of $500.
- After opening a savings account with Discover and making your minimum deposit of $500, there’s no maintenance fees or monthly minimum account requirements.
Discover’s Online Savings Account interest rate is 0.90% which is the best rate I’ve found for a savings account. Also, interest on Discover’s savings account is compounded daily and you’ll feel safe knowing that deposits you make to your Discover savings account are FDIC insured.
Transferring Money is Simple and Free
Discover’s savings account is online so all of your banking will be done electronically. Depositing and withdrawing funds to and from your Discover account is easy. Normally you’ll also want to have checking account with a local brick and mortar bank or credit union to sync with your Discover Online Savings Account. This way you’re able to make in person deposits to your local financial institution and then transfer those deposits from your local checking account to your Discover account, or vise versa, withdraw money from your Discover account to your local checking account.
Also, Discover allows you to set up an automated system to withdraw funds from your current checking account into your Discover savings account.
Discover does limit you to six withdraws per statement cycle. If you do more than six withdraws in a statement cycle they’ll charge you a $15 fee per additional withdrawal. Although, if you’re using Discover’s savings account to reach savings goals it’s unlikely you’ll be making more than six withdrawals per statement cycle.
The Benefits of a Discover Savings Account
Discovers Online Savings Account offers their account members a variety of benefits. These benefits are what make Discover stand out from competitors, including:
- Offering a Current Interest Rate of 0.90%.
- Discover’s interest rates are 5X the National Average.
- Discover’s interest rates will stay competitive as the economy improves, meaning as interest rates increase, Discover’s interest rate will increase.
- Interest Compounds Daily
- Low Minimum Deposit.
- You only need a $500 minimum opening deposit.
- No Maintenance Fees or Monthly Minimum Deposit.
- Live 24/7 Customer Service Support.
- Transfer Money Free and Easily Online.
- Use an Existing Bank Account to Fund Your Discover Savings Account.
- FDIC Insured.
- Mobile Banking App.
Opening a High Yield Savings Account with Discover is Easy!
Step 1: Provide Basic Information
To open a Discover Online Savings Account you’ll need to provide some basic information when filling out the savings account application. Be prepared to provide your Mailing Address, Email, Phone Number, Tax ID or Social Security Number, and your Current Bank Account and Routing Numbers.
Step 2: Fund Your Account ($500 Minimum Deposit)
After simply filling in your personal information, the next step of the application process is to provide how you want to fund your savings account. I found the easiest way to fund your account is to link your current bank account (I use my checking account). Other ways to fund your account is by Wire Transfer or Check (Check deposits can be done by mobile or mail).
Step 3: Verify Your Information and Electronically Sign Application
All you do in this part of the application is verify the information you provided is correct, then simply sign your application electronically and you’re done!
Discover does a good job of making their application process for opening an Online Savings Account quick and painless.
Learn More by Visiting Discover’s Website
Author: Tyler DeBroux
Tyler started Oddball Wealth towards the end of 2014 after graduating college, as a way to stay relevant in his area of study, stimulate his mind, and to educate and help others.
Tyler has worked in the financial services industry, as a financial advisor, helping his clients make wise financial decisions and personalized long-term financial plans. Since graduating college in December of 2014, Tyler has paid off more than $15,000 in student loan debt and counting, his goal is to have all his student loans paid in full by the in of 2016.
Tyler is an entrepreneur and an expert in personal finance. Two of his many hobbies include investing and building online businesses. He is also a big advocate of early retirement and an aggressive saver, who utilizes any financial resources and tools available to him to help reach his goals for achieving financial independents.