topic Re: Discover online savings 1.75% in Personal Finance

Discover online savings 1.75%

Anonymous — Sun, 22 Jul 2018 18:25:32 GMT

Does anyone have anything negative to say about this product?

It seems pretty sweet. I’m thinking about moving some savings here.

Thanks for any DPs you may have.

Re: Discover online savings 1.75%

Anonymous — Sun, 22 Jul 2018 18:57:22 GMT

I'm about to close my Discover Savings after receiving my $200 sign up bonus, 1.75% is ok but I got others that are way higher (2.26% MMA Northern Bank...etc). That said, my main reason for closing (even though it costs nothing to keep it open) is that it has by far the slowest ACH push/pull I have ever encountered, that says a lot because I have upwards of 20+ accounts, even when you try to bypass their ACH service by pushing money into this account initiated by an external account, Discover will still hold the funds for 5 business days after receiving the funds, totally unheard of, the closest one is Marcus by GS which holds for 4 business days.

My opinion, if you got the mailer offer for $200 SUB go for it, easy peasy $200. But as far as keeping it afterwards for everyday use, there are better rates and easier banks to work with out there.

Re: Discover online savings 1.75%

Anonymous — Sun, 22 Jul 2018 19:08:05 GMT

@Anonymous wrote:
I'm about to close my Discover Savings after receiving my $200 sign up bonus, 1.75% is ok but I got others that are way higher (2.26% MMA Northern Bank...etc). That said, my main reason for closing (even though it costs nothing to keep it open) is that it has by far the slowest ACH push/pull I have ever encountered, that says a lot because I have upwards of 20+ accounts, even when you try to bypass their ACH service by pushing money into this account initiated by an external account, Discover will still hold the funds for 5 business days after receiving the funds, totally unheard of, the closest one is Marcus by GS which holds for 4 business days.

My opinion, if you got the mailer offer for $200 SUB go for it, easy peasy $200. But as far as keeping it afterwards for everyday use, there are better rates and easier banks to work with out there.

Thanks. That kinda confirms what I’ve been reading.

Re: Discover online savings 1.75%

Anonymous — Sun, 22 Jul 2018 19:13:10 GMT

No problem.

Re: Discover online savings 1.75%

DaveInAZ — Sun, 22 Jul 2018 20:39:01 GMT

I can echo Oldman's comments. I opened a Disco savings earlier this year for a bonus, and preparing to close it down - by far the slowest for ACH in or out, holding funds for 5 days, and there's better rates for savings.

I'm happy with Amex savings, also 1.75%. Fast on ACH but not an account you want to do alot of transfers on, a rep called me when I moved some funds out to meet the Disco bonus. Rep just wanted to verify the to/from accounts were personal, but still strange to get a call just for moving funds out. I have Blue Cash Everyday card with 0% intro ending in August and an Everyday card with 0% until next year, so I just park the funds to payoff the cards there.

I'm also happy with Memory Bank, an online only division of Republic Bank. 1.65% interest on checking with unlimited transactions. There are a few checking accounts with higher rates but they are usually a HP to join and require xx debit card transactions to get the rate, I'm not a fan of forced debit card transactions. Memory Bank recently added a Money Market account that pays 1.85% interest, limit of 6 transactions per statement period. I'm leaning toward also opening a MM account with them, like their checking you can fund up to $500 on a CC that posts as a purchase ("professional services"), useful in meeting a spend for new CC bonus or cashback on a good rewards card.

Finally, there's Premier Members CU in Colorado. Open nationwide with a $5 donation to their education fund, SP to join. They pay 4% on up to $2k on their Money Market account, and offer free checking, so easy to use checking for payments and move excess from the MM. A $50 bonus if you join with a referral code from a member, I'm a member.

Re: Discover online savings 1.75%

Gmood1 — Sun, 22 Jul 2018 21:08:05 GMT

Another no hassle free savings and checking is Redneck Bank / All America Bank.
The Mega Money Market account is 2%. You get debit cards for each account. Makes it more accessible than the average high interest savings accounts.
And the Checking is 2.5%. No sign up bonuses. But you only need 10 debit transactions to get the 2.5% on checking. Which is easy to do reloading gift cards for .50 a pop through Amazon.
Transfers aren't the fastest but not the slowest either.
I normally push, instead of pulling from other accounts. Normally 24 hr transfers when initiated this way.

Re: Discover online savings 1.75%

Anonymous — Sun, 22 Jul 2018 21:30:39 GMT

All great options in their own right. Taking out all my 5% specialty accounts and ladder CDs, my current daily drivers are Northern Bank MMA @ 2.26% (where all emergency funds resides) in conjunction with WyHy FCU 4% Checking (up to 15k/10 debit transactions), all my CC bills are now autopayed through WyHy on due day, Northern then feeds WhHy whenever it dips under 15k. Been running this setup for 2 cycles now and very happy with it.

PS (Dave) Other than the Premier Members FCU's regular 4% on 2k MMA, you can also open the IRA version of the same MMA account, I just contributed some this year's IRA into the IRA version. I also tried to complete the trifacta by opening the Business version but it's in branch only.

Re: Discover online savings 1.75%

Anonymous — Mon, 23 Jul 2018 00:08:16 GMT

@Anonymous wrote:
Does anyone have anything negative to say about this product?
It seems pretty sweet. I’m thinking about moving some savings here.
Thanks for any DPs you may have.

I opened one for an online-only ACH hub. Recently I opened Alliant CU checking (faster ACH) so will likely be closing Discover down. Or maybe just keep open since it doesn't cost anything...

Re: Discover online savings 1.75%

iced — Mon, 23 Jul 2018 18:07:20 GMT

@DaveInAZ wrote:
I can echo Oldman's comments. I opened a Disco savings earlier this year for a bonus, and preparing to close it down - by far the slowest for ACH in or out, holding funds for 5 days, and there's better rates for savings.

To clarify, when people here say they're holding the funds for 5 days are they saying it takes Discover 5 days to credit the deposit to the account or they won't let you withdraw it again for 5 days?

If the former, I agree that's a little on the ridiculous end, but the latter is rather normal among savings accounts - several other banks also do this. Nobody should be withdrawing money deposited into savings so soon, and in the event they do, they can pull from the amount that's been in there longer than 5 days.

Re: Discover online savings 1.75%

Anonymous — Mon, 23 Jul 2018 19:38:38 GMT

@iced wrote:
@DaveInAZ wrote:
I can echo Oldman's comments. I opened a Disco savings earlier this year for a bonus, and preparing to close it down - by far the slowest for ACH in or out, holding funds for 5 days, and there's better rates for savings.

To clarify, when people here say they're holding the funds for 5 days are they saying it takes Discover 5 days to credit the deposit to the account or they won't let you withdraw it again for 5 days?

If the former, I agree that's a little on the ridiculous end, but the latter is rather normal among savings accounts - several other banks also do this. Nobody should be withdrawing money deposited into savings so soon, and in the event they do, they can pull from the amount that's been in there longer than 5 days.

I have spoken to Discover extensively about this subject, the 3-5 days hold period (so far it has been all 5 business days with 1 exception of a 4 day push to Chase) applies to all accounts, including discover checking, on outgoing and incoming ACH transfers initiated either by Discover or externally, the only exceptions to that policy are direct deposits and internal transfers between your Discover checking and Savings. That is not normal by any stretch of imagination, most of my other accounts (checking, MMA, savings or even prepaid debit card accounts), with a few exceptions (like Marcus by GS), clears within a few days and a handful that clears on the very next day, unless of course they're pulling or receiving from Discover.

Re: Discover online savings 1.75%

iced — Mon, 23 Jul 2018 19:38:09 GMT

@Anonymous wrote:
@iced wrote:
@DaveInAZ wrote:
I can echo Oldman's comments. I opened a Disco savings earlier this year for a bonus, and preparing to close it down - by far the slowest for ACH in or out, holding funds for 5 days, and there's better rates for savings.

To clarify, when people here say they're holding the funds for 5 days are they saying it takes Discover 5 days to credit the deposit to the account or they won't let you withdraw it again for 5 days?

If the former, I agree that's a little on the ridiculous end, but the latter is rather normal among savings accounts - several other banks also do this. Nobody should be withdrawing money deposited into savings so soon, and in the event they do, they can pull from the amount that's been in there longer than 5 days.
I have spoken to Discover extensively about this subject, the 3-5 days hold period (so far it has been all 5 business days with 1 exception of a 4 day push to Chase) applies to all accounts, including discover checking, on outgoing and incoming ACH transfers initiated either by Discover or externally, the only exceptions to that policy is direct deposit and internal transfer between your Discover checking and Savings. That is not normal by any stretch of imagination, most of my other accounts (checking, MMA, savings or even prepaid debit card accounts), with a few exceptions (like Marcus by GS), clears within a few days and a handful that clears on the very next day, unless of course they're pulling from Discover.

So when you ACH money to Discover, it doesn't even show up in your account for 5 days? Or you can't withdraw it for at least 5 days?

Same questions for when you ACH money from Discover.

Re: Discover online savings 1.75%

Anonymous — Mon, 23 Jul 2018 19:49:40 GMT

When ACH in, you see it and it at least earns interest but it's not available. On the other hand when you ACH out, the money is deducted from Discover immediately but nothing happens on the other side until 3-5 days requirement is satisfied on the Discover side.

Re: Discover online savings 1.75%

iced — Mon, 23 Jul 2018 19:54:42 GMT

@Anonymous wrote:
When ACH in, you see it and it at least earns interest but it's not available. On the other hand when you ACH out, the money is deducted from Discover immediately but nothing happens on the other side until 3-5 days requirement is satisfied on the Discover side.

Ah, now it's clear. Yeah, that's a little odd. Outbound should be instant or next-day; inbound taking 5 days (earning interest but not available for withdrawal) is pretty normal.

Re: Discover online savings 1.75%

Anonymous — Mon, 23 Jul 2018 20:10:24 GMT

5 days to clear is one of the worst in the industry, I have accounts that clears immediately the very next day when it's received while the sending account is still showing pending LOL, most others fall somewhere inbetween but none takes 5 days, not even Marcus whom I thought was the worst until Discover.

Re: Discover online savings 1.75%

Gmood1 — Mon, 23 Jul 2018 20:51:41 GMT

Same here 5 days sucks! I've become accustomed to Ally and USAA posting times. Even one of my small CUs posted within 24 hrs. Capitol one 360 and Wells Fargo are two of the worst at this. Similar to Discover.
If I pull from USAA, the funds are immediately available. No waiting at all!

Re: Discover online savings 1.75%

Anonymous — Mon, 23 Jul 2018 21:13:25 GMT

Let me provide 2 examples for comparison.

1. On July 1st, I initiated (discover) 4 pulls of 5k each from my 4 insight accounts to meet the $200 SUB requirement, all showed up at Discover on the 3rd and sat there until the 10th, I then immediately sent 15k to Chase savings for its $200 SUB and 5k back to one of the two Insights who survived the purge, money didn't show up in Chase and Insight until the 16th.

2. On July 18th I initiated 2 direct deposits 1k each from my TD Business checking to Citizens ($400 SUB) and Santander ($225 SUB), both DDs showed up on Friday the 20th and available, I then immediately initiated ACH from both accounts to WyHy FCU getting ready to pay my CC bills, when I woke up this morning (Monday) I got 2 emails from Mint for large deposits in WyHy FCU, sure enough 2k was deposited and ready to use.

Re: Discover online savings 1.75%

DaveInAZ — Mon, 23 Jul 2018 21:44:19 GMT

@Anonymous wrote:
When ACH in, you see it and it at least earns interest but it's not available. On the other hand when you ACH out, the money is deducted from Discover immediately but nothing happens on the other side until 3-5 days requirement is satisfied on the Discover side.

Yep, I learned pretty quick to never push money out from Discover, funds deducted immediately and not credited to the other account for 3-5 days. Actually I stopped doing any ACH's from Discover, I pull or push from other accounts.

Re: Discover online savings 1.75%

Anonymous — Mon, 23 Jul 2018 21:53:21 GMT

I have stopped using it altogether with a $1.38 current balance, procrastinating on closure because it has no minimum or fees.

Re: Discover online savings 1.75%

Anonymous — Tue, 24 Jul 2018 02:27:24 GMT

I’m leaning towards the PenFed 1.65 savings. It would just seem easier to move money around as I have an acct already.

Re: Discover online savings 1.75%

Gmood1 — Tue, 24 Jul 2018 02:31:10 GMT

Screw easy Mr.Bro. Grab a 2% or higher. Lol
I dropped Cap one 360 because they kept pussyfooting around on raising their rates. Same with one of my CUs.
If their going to continue to raise interest rates. You may as well get as much as you can back from them.😉