Discover now offers an online savings account; until last year, the bank only offered Certificates of Deposit, Individual Retirement Accounts, and Money Market Accounts. Since adding the full service online savings account to their list of services, the bank’s popularity has increased and they are now in direct competition with established online banks. As with most banking institutions, the deposits made to Discover’s online checking account is insured by the FDIC. The bank also has received an outstanding rating from Bankrate because of the competitive APY. Discover makes it easy with a user-friendly online application process and requires your date of birth as well as your social security number in order to start the application process. There is also an option to add a joint owner to the account.
The minimum amount to open the account is $500 and the initial opening deposit can be funded electronically from another account. There is also the option of funding the account by bank wire or echeck. If you elect to fund the opening deposit via echeck, an electronic signature will be required. Discover also requires account holders to have a signature on file and this can be completed electronically as well. As part of the authentication process, there will be prompts to answer questions related to your creditors and credit report.
At the conclusion of the application and approval process, an account number is issued. The account number and account information can also be printed from the confirmation page. It is important to print the page or make note of the full account number because it will be needed for online registration and access. The bank also sends customer welcome packages in the mail within two weeks after opening the account. The online account can be set up to receive recurring transfers through an automated savings plan. There is also the option to link a new account; once the account has been verified, the transfer process is speedy.
When compared to other online savings accounts, Discover may soon stand out as a leader. There are no hidden fees or minimum balance requirements. They have even stepped it up and offer a limited number of free money transfers and free incoming wires. The savings account offers a rate and APY that is higher than the National Savings Average. The current APY yield offered by the bank on the savings account is 1.20% APY with an interest rate of 1.19%. When compared to savings accounts offered by large banks such as Bank of America, the rate and APY at Discover are higher. On the website, there is a list of current rates offered on other online savings accounts that customers can refer to when making a comparison. The hassle free application process, high APY, low initial deposit and free transfers make the Discover online savings account an attractive banking option.