Discover online savings 1.75%

Anonymous · ‎07-22-2018

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.

Anonymous · ‎07-22-2018

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.

Anonymous · ‎07-22-2018

@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.

Anonymous · ‎07-22-2018

No problem.

DaveInAZ · ‎07-22-2018

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.

Gmood1 · ‎07-22-2018

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.

Anonymous · ‎07-22-2018

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.

Anonymous · ‎07-22-2018

@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...

iced · ‎07-23-2018

@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.

Anonymous · ‎07-23-2018

@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.