Discover Bank Increases Interest Rates On Savings Accounts and Money Market Accounts (June 2023)
ST
Last updated 04/08/2024 by
SuperMoney TeamEdited by
Summary:
Discover Bank has announced an increase in the annual percentage yield (APY) of its Online Savings Account to 4.00% from its previous rate of 3.90%. Its CD rates go up to 4.75% and money market accounts have an APY of up to 3.95%.
Discover Bank increased the APY on its high-yield savings account from 3.90% to 4.00%. Discover Bank Online Savings is a high-yield savings account with no minimum balance and no monthly fee. This interest rate increase is significant and welcome news for consumers looking to grow their savings.
Compare CD Accounts
Compare certificates of deposit. Discover your best option.
Discover Bank’s APY increase in context
In recent months we have seen a trend of higher APYs for savings accounts as a result of the Federal Reserve’s decision to raise interest rates multiple times in 2023.
Another factor contributing to the trend of higher APYs is the increased competition among banks and financial institutions. With so many options available to consumers, banks are looking for ways to differentiate themselves and attract new customers.
Offering a higher APY is one way to do this, as it can be a deciding factor for consumers who are looking to grow their savings. However, recent economic reports seem to indicate that the Federal Reserve may stop raising rates in the mid-to-long term, which has caused many financial institutions to lower the APYs on CD accounts with longer terms.
Discover offers APYs of up to 4.75% on CDs
In addition to its high-yield savings account, Discover customers can also choose from a variety of CD options. APYs are still high, but Discover did lower its maximum APY on its CD accounts to 4.30% APY.
| APY (Annual Percentage Yield) range: | 2.00% – 4.75% |
|---|---|
| 3-Month APY | 2.00% |
| 6-Month APY | 3.40% |
| 9-Month APY | 3.50% |
| 12-Month APY | 4.75% |
| 18-Month APY | 4.75% |
| 2-Year APY | 4.30% |
| 30-Month APY | 4.30% |
| 3-Year APY | 4.30% |
| 4-Year APY | 4.00% |
| 5-Year APY | 4.00% |
| 7-Year APY | 3.80% |
| 10-year APY | 3.80% |
Discover Bank’s CD rates are competitive and offer the potential to earn higher returns on your savings than with a checking or savings account. However, there is a minimum opening deposit of $2,500 to open an account, and a penalty may be imposed if you withdraw principal from your account before the term ends. Compare Discover Bank’s rates and terms to those of other CD accounts before you make a decision.
Key takeaways
- Competitive interest rates: Discover Bank increased its rates on its savings accounts to 4.00% APY. CD accounts can now earn a maximum of 4.75% APY.
- Range of options: Discover Bank offers a variety of savings, checking, money market, and CD accounts with terms ranging from three months to 10 years.
- Digital banking tools: Discover Bank has a strong focus on technology and offers a range of digital banking tools, including mobile banking, to make it easy for customers to manage their accounts on the go.
- FDIC-insured: Discover Bank is FDIC-insured, which means that deposits are insured up to $250,000 per depositor, providing an added layer of protection for customers’ savings.
About Discover Bank
Discover Bank is a financial services company that offers a range of products and services, including checking and savings accounts, credit cards, personal loans, home equity loans, and mortgage products. It is based in Riverwoods, Illinois, and is a subsidiary of Discover Financial Services. The bank was founded in 1911 as the Sears, Roebuck, and Co. Employees’ Credit Association and has since grown to become a major player in the financial industry. Discover Bank is known for its innovative products and services, such as its high-yield savings account, rewards credit cards, and its cashback checking account.
Pro Tip
A good saving account provides competitive annual percentage yields (APYs) and doesn't charge fees. SuperMoney reviewed hundreds of savings accounts and these are our top picks of the best savings accounts on the market
Share this post: