Discover Bank has been around for a while, being an offshoot of Discover Credit Card and Lending. The bank itself is predominantly an online Internet operation, but it does have a street address for taking paper deposits where needed.
Currently, Discover Bank is offering a savings rate of 0.80 percent annually for liquid savings deposited in the bank. While this rate isn’t a stellar level, it is paying more than most brick and mortar banks in the same market.
Setting up a bank account with Discover is fairly easy; the entire process can be established and completed online at Discover Bank’s website. The Bank offers services in savings, CD savings, retirement, and of course lending.
All deposits for savings in Discover Bank are covered by federal government financial insurance as administered through the FDIC. To make amassing savings easier, the Bank utilize multiple electronic transfer tools, allowing savers to move money from a variety of institutions into their online savings accounts. In this regard, Discover Bank becomes quite competitive to neighborhood banks, especially when savers can still keep their current checking accounts and just zap money to Discover via the Internet.
It should be noted that while a saver can open a Discover Bank account with less, to obtain the best rate offered a minimum deposit of $500 is necessary for new savers. Once the savings account is opened, however, it also gives savers access to other Discover Bank saving tools such as CDs with competitive rates and money market accounts.