Discover Savings Account

Posted in Reviewson Jun 25, 2018

Recently I reviewed the Discover Cashback Checking account, which gives 1% cash back on debit card purchases.  While this account is good for those who spend a lot directly from a checking account, it is not the best place to keep large amounts of money.  For that, you could consider the Discover Savings account, which currently provides 1.65% interest.  If you have $10,000 in the account, it would pay you almost $14 per month in interest.  And the rate has been steadily increasing over the last year, so I would expect the return to get even better.

There is no minimum balance, and no monthly fees.

If you have a Discover Checking account, you can transfer money between accounts instantaneously.  Otherwise, you can link to other external checking accounts, but transfers can take a few days.

One of the limitations of a savings account is that you can only make 6 withdrawals per month.  You must also be 18 or older to open an account.

I recommend keeping a couple of months of spending money in a checking account, with several months of spending money in a high-interest savings account.  Beyond that, you could consider keeping additional money in low-risk investments or CDs.

Other comparable high-interest savings accounts are provided by American Express, Citi BankCIT Bank, and Ally.  I wrote about Discover’s savings account because I’m most familiar with it, but I don’t know that it offers much more than these alternatives.  As with all of my financial reviews, I recommend you do your own research and understand the full terms before opening an account.

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