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College Students and Recent Grads, Reviews

Discover it for Students Review: Earn Cash Back and Build Credit

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

If you are a student, a credit card can be a great way to build your credit score. It can also be a useful tool when shopping online or renting a car. But credit cards also come with a temptation — to spend too much. We recommend getting a student credit card as long as: (a) there is no annual fee, and (b) you have the self-discipline to pay your statement balance in full every month and use the card wisely.

Discover it is one of our favorite credit cards for students — largely because it charges no annual fee, offers generous cash back and rewards the right behavior. There are some other nice perks — like a free FICO score. The Discover it® for Students card is featured as one of our recommendations for best student credit cards of 2018.

Discover it<sup>®</sup> for Students

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Rates & Fees

Discover it® for Students

Annual fee
$0
Cashback Rate
5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate. 1% unlimited cash back automatically on all other purchases.
Regular APR
14.49%-23.49%

Variable

Credit required
fair-credit
Fair

What We Like About the Discover it® for Students Card

You can easily build your credit history and score.

This credit card reports to all three credit bureaus, which will help you establish credit and improve your score with wise use over time. Our tip: never use more than 10%-20% of the available credit, so you keep your utilization low. Pay your bill on time every month (ideally, automate the payment). By the time you graduate, you should have an excellent score.

 $0 annual fee.

We believe that you should be able to build your credit score without paying an annual fee. Fortunately, Discover does not charge an annual fee on its student cards. Discover does not charge an annual fee on any of its cards.

You will be able to see your FICO score for free.

It is getting much easier to get your credit score for free — you do not need to take out a credit card to have access. However, we do like that you will be able to see your FICO score on your statement and online. This will help you keep tabs on your credit as you learn about it and (hopefully) see it increase over time. Having a good credit score when you graduate can be very helpful – especially if you want an auto loan, mortgage or apartment.

Monitor Your Social Security Number for free.

Discover will monitor your Social Security Number and alert you if they find your Social Security Number on any of thousands of risky websites when you sing up. This is a great feature that will help alert you of possible fraud and add an extra layer of protection to your account.

Interesting feature: rewards for good grades.

This credit card also has a sweet bonus: you can get a $20 statement credit each school year your GPA is 3.0 or higher for up to the next 5 years. This is a nice feature to reward what really matters in college — getting good grades and graduating.

And, yes — there is cash back.

Discover invented the concept of cash back in the 1980s, and they are regularly generous with the rewards that they offer. On this card, you can earn 5% cash back in rotating categories each quarter like Amazon.com, restaurants, ground transportation and more, up to the quarterly maximum each time you activate. Plus, unlimited 1% cash back on all other purchases.

There is another bonus.

At the end of your first year as a cardholder, you will get a dollar-for-dollar match of all the cash back you’ve earned – automatically. That will be a really nice one year anniversary gift.

Watch Out for These Pitfalls

Interest rates are not low.

This is not unique to Discover — but most student cards charge higher interest rates because students are higher risk. Your goal with a student card is to build your credit history — not to go deeper into debt. So long as you pay your statement balance in full and on time every month, you should not have to worry about the interest rate.

Limited acceptance overseas — especially in Europe.

If you plan on studying abroad or backpacking across Europe, you might find it difficult to use your Discover card. In Asia, you get better coverage with JCB (Japan) and China UnionPay. However, in Europe you will be relying upon the Diners Club International network, which is limited.

Who the Card is Best For

If you are a responsible student looking to build your credit while earning rewards along this way, this card could be appropriate for you. With no annual fee and up to 5% cash back, this is a great first card.

Alternatives

While the $0 card is a great choice, there may be better options depending on your situation.

Spend a lot at Gas Stations and Restaurants?

If you’re a commuter student, the Discover it® chrome for Students card may make more sense. This card offers many of the same perks as the Discover it® for Students, like the Good Grades Rewards program, no annual fee, and a cash back match at the end of your first year. But the Discover it® chrome for Students offers a higher 2% cash back rewards rate on gas and restaurant purchases, up to $1,000 in combined purchases per quarter. After that, you’ll earn 1% cash back — and you don’t need to activate these rewards categories like with the Discover it® for Students card.

If You Want to Travel Abroad

If you plan on traveling abroad, consider the Journey® Student Rewards from Capital One®. Because the card is a Visa, it will have more acceptance overseas. And Capital One does not charge foreign transaction fees – making this a great travel companion. In addition, you can earn 1% Cash Back on all purchases; 0.25% Cash Back bonus on the cash back you earn each month you pay on time.

Student Credit Cards: FAQs

A student card is a credit card specially designed by a lender to get college students started with credit. It helps them build a relationship with customers early on and helps you build your credit score.

The major difference between a student credit card and a regular credit card is that the student card will likely have a higher interest rate. That’s because the bank has no way to prove you are a reliable borrower yet since you have little to no credit history. Regular cards tend to average about 15% annual interest. In a recent MagnifyMoney study, we found the average student credit card carries an interest rate of 21.4%.

Your goal with your student credit card is to build your credit so that by the time you graduate, you have a healthy credit score in the high 600s to mid 700s. That way, when you graduate, you’ll be in a great position to make larger purchases like a new car or your first home. At that point you may actually want to earn rewards, and you’ll qualify for the best cards because you have a great score.

You should really only get a credit card if you want to build your credit score, not because you need extra money to make ends meet. If you can’t afford your monthly expenses as it is, a credit card might only make things worse.

Let’s say you charged $300 to your student card for books at the start of the semester. If you made a minimum monthly payment of $9, it would take four years and four months to pay off a card with a 21.4% annual percentage rate (APR). At that point you would have paid a total of $460, assuming your books were your first and only charge on the card.

The easiest strategy is this: set up one recurring bill (like your Netflix or Spotify account) on your card. And pay it off in full each month. Follow that advice while you’re in school and you will absolutely graduate with a great credit score.

You can still build up your credit without having to open a card on your own. Ask your parents if you can become an authorized user on their account. All of their good credit behavior will be reported on your credit report as well. Also, consider opening a secured credit card. It’s a tool that’s meant precisely to help build credit but doesn’t have the same risks as a regular credit card. Read more about secured cards here.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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Reviews

Chase Bank Reviews: CD, Checking, and Savings Rates

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Year Established1974
Total Assets$0.1B
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Chase Bank is one of the biggest of the so-called “big banks” in the U.S. The bank can trace its roots all the way back to 1877 when it was known as “Chase National Bank,” named after Salmon Chase, appointed by former President Abraham Lincoln as secretary of the treasury. Chase Bank currently exists under the umbrella of the JPMorgan Chase & Co., a massive conglomerate made up of over 1,200 individual financial mergers and acquisitions since 1799.

Chase Bank is ubiquitous, operating 5,100 branches and 16,000 ATMs across the country. It’s not hard to find a local Chase Bank branch — or several — in your community, which is one reason why it’s become so popular. In fact, Chase claims that nearly half of all American households have some sort of a financial relationship with them.

But just because the bank is widespread doesn’t necessarily mean it’s the right bank for you. We’ll dive into the details of its accounts in this review and give you all the information you need to make an informed decision.

One final note: The interest rates below are as of May 25, 2018 and may vary at different Chase Bank locations across the country. To compare apples to apples and keep everything consistent, we’ll be reporting rates from the 10017 area code (New York, N.Y.), which is where Chase Bank’s headquarters is located.
Chase’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.01%

Savings

Chase Chase SavingsSM

0.02%

CD Rates

Chase 1 Year Certificates Of Deposit

0.15%

CD Rates

Chase 3 Years Certificates Of Deposit

0.35%

CD Rates

Chase 5 Years Certificates Of Deposit

Chase Bank’s CD rates

Chase’s CDs come with many different term length options, but don’t expect the interest rates on these CDs to make you a millionaire.

Standard rates

Term

APY

1-17 months

0.01%

18-41 months

0.05%

42-59 months

0.10%

60-119 months

0.25%

120 months

0.70%

Relationship rates

$1,000-$9,999

$10,000-$99,999

$100,000+

1-11 months

0.02%

0.02%

0.02%

12-14 months

0.02%

0.02%

0.05%

15-17 months

0.05%

0.15%

0.20%

18-20 months

0.15%

0.25%

0.30%

21-35 months

0.65%

0.75%

0.75%

36-47 months

0.70%

0.80%

0.85%

48-59 months

0.75%

0.95%

1.01%

60-119 months

0.75%

0.95%

1.01%

120 months

1.16%

1.26%

1.30%

  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty:
    • For CDs of less than 24 months, you’ll pay 1% of the amount withdrawn.
    • For CDs of longer than 24 months, you’ll pay 2% of the amount withdrawn.

    In either case, the penalty won’t be more than the total interest you’ve earned.

Chase Bank offers many different CD term lengths, which can allow you to customize your savings plan. This feature is especially handy if you’re trying a creative CD laddering strategy. You can also withdraw the interest earned at any time without paying a penalty, which is a convenient feature if you need this income before the CD matures. However, you’ll still face an early withdrawal fee if you want to withdraw any of the principal (the amount you initially put in the CD).

When you open up a Chase CD, it’ll automatically renew for the same term length once it matures. However, after this happens, you’ll still have a 10-day grace period where you can withdraw the money or make any changes to your CD without penalty.

You can open up a CD with Chase Bank online as long as you’re a U.S. citizen and you have some form of government-issued ID. In addition, you’ll also need a way to fund your new account.

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How Chase Bank’s CD rates compare

We’ll be blunt. Chase Bank’s CD interest rates don’t even come close to the current top competitors for best CD rates. While it’s nice that it offers many different term length options, this isn’t what’s going to give you the greatest returns: high interest rates will. That’s why we suggest passing on these CDs and instead choosing another bank if you want to earn the most money possible.

Chase Bank’s checking account options

Chase Premier Plus Checking

This checking account comes with very high fees, but offers nice rewards for military members.

APY

Minimum balance amount

0.01%

$0

  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $25
  • ATM fee: $2.50 for non-Chase ATMs within the U.S. If you’re using a foreign ATM, you’ll pay $5 per withdrawal and $2.50 per transfer or inquiry, plus a 3% foreign exchange fee.
  • ATM fee refund: Your first four non-Chase ATM uses are free.
  • Overdraft fee: $34 per each item over $5, up to three per day. If your account is overdrawn for five or more consecutive days, you’ll also face a $15 extended overdraft fee.

This account is probably best for current and former military members, as well as those with deep pockets and/or other banking relationships with this bank. People who fall under this umbrella can get the high monthly account maintenance fee waived under one of these options:

  • Be an active-duty military member or veteran with a military ID
  • Have an average daily balance of $15,000 across all your eligible linked Chase accounts and investments
  • Sign this account up to make automatic payments to your Chase first mortgage

If you have this account, you’ll also get a few other minor perks. You can get free checks, a free 3” x 5” security box (as long as there are some available) at your local Chase branch and free money orders and cashier’s checks.

In addition, if you are a current military member and have your military paycheck deposited into this account, you’ll get a few more free perks: no fees at all for using non-Chase ATMs, free wire transfers and no foreign exchange fees for ATM or debit card transactions.

You can easily open a Chase Premier Plus checking account online as long as you’re a U.S. citizen. You’ll need an ID number (such as a driver’s license number) and a way to fund your new account, such as via a transfer from another checking account or by debit card.

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Chase Premier Platinum Checking

Chase Bank’s highest-level interest-bearing checking account charges a higher monthly fee, but you get several other fees waived in exchange.

APY

Minimum balance amount

0.01%

$0

  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $35 if you live in CT, NJ or NY. $25 everywhere else.
  • ATM fee: No ATM fees for using non-Chase ATMs, however you’ll pay a 3% foreign transaction fee if you withdraw cash from a foreign ATM.
  • ATM fee refund: Your first four non-Chase ATM uses are free.
  • Overdraft fee: If you have overdrafted your account by four times or less in the past 12 months, you won’t pay any overdraft fees. Otherwise, it’ll be $34 per each item over $5, up to three per day.

This account also comes with a high monthly fee. But if you’ve got deep pockets, you can get it waived each month simply by keeping an average daily balance of $75,000 in your eligible linked Chase Bank accounts and investments.

In addition to the ATM and overdraft fees being waived in certain cases, you’ll also get several other fees waived. These are mostly oddball fees that few people pay regularly anyway, but these waived fees still might be useful in your situation.

You’ll get free checks, a free rush order on new debit card replacements, free stop-payment orders, free incoming wire transfers, free money orders and cashier’s checks, free statement copies and a free 3” x 5” safe deposit box, as long as one is available in your local branch.

Finally, if you do have this account, you can get the monthly maintenance fees waived on certain other Chase checking, savings and business accounts.

If you’re a U.S. citizen and have a government-issued ID number handy, you can easily apply online. You’ll also need to provide a way to fund your new account, such as by check card or ACH transfer.

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Chase Total Checking

A solid checking account option but look at other no-fee checking accounts if you want to avoid fees.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $12
  • ATM fee: $2.50 for non-Chase ATMs within the U.S. If you’re using a foreign ATM, you’ll pay $5 per withdrawal and $2.50 per transfer or inquiry, plus a 3% foreign exchange fee.
  • ATM fee refund: None.
  • Overdraft fee: $34 per each item over $5, up to three per day. If your account is overdrawn for 5 or more consecutive days, you’ll also face a $15 extended overdraft fee.

If you don’t quite have the high balances required to waive the monthly maintenance fees on the more premium checking accounts, the Total Checking account might be a better option for you. With this account, you can have the monthly maintenance fee waived in one of three ways each month:

  • Have at least $500 direct-deposited into your account
  • Keep a balance of $1,500 in your account
  • Have at least $5,000 in this and other linked Chase accounts and investments

This account offers no interest and none of the perks of Chase Bank’s other accounts, such as free checks or free ATM uses.

If you’re a U.S. citizen and have the number from your government-issued ID handy, you can easily open an account online. You’ll also need to provide a method to fund your new account, such as a transfer from another bank account or with a debit card.

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Chase College Checking

Chase Bank’s College Checking account is free for college students for their first five years in college. Once you pass the five-year mark, you might be better off graduating into a no-fee checking account option unless you meet the requirements to have the fee waived.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $6 (your first five years are free, however)
  • ATM fee: $2.50 for non-Chase ATMs within the U.S. If you’re using a foreign ATM, you’ll pay $5 per withdrawal and $2.50 per transfer or inquiry, plus a 3% foreign exchange fee.
  • ATM fee refund: None.
  • Overdraft fee: $34 per each item over $5, up to three per day. If your account is overdrawn for 5 or more consecutive days, you’ll also face a $15 extended overdraft fee.

If you’re a college student between the ages of 17 and 24 (and can prove your status), you’re eligible to open up a College Checking account with Chase.

There won’t be any monthly maintenance fees for the first five years after you open the account. If it takes you a long time to graduate or if you go to grad school and extend your college career past the five-year mark, however, there are still a couple of ways you can get the monthly maintenance fee waived:

  • Have at least one direct deposit (any amount) per month
  • Keep an average daily balance of $5,000 in your account

If you’re a U.S. citizen, and a college student between the ages of 17 and 24, you can open a College Checking account with Chase Bank online. You’ll also need to provide a way to fund the account, and a government-issued ID.

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Bonus offer: Chase College Checking account

For a limited time (until Aug. 13, 2018), Chase Bank is offering a special $50 bonus to new customers who open up a College Checking account. You’ll need to go on the website to get a coupon, which you then can bring into a local branch (the offer is not available for people who sign up online).

When you open your account, you’ll need to enroll in electronic statements. Finally, you’ll need to make at least 10 transactions with your new checking account within 60 days to be eligible for the $50 bonus. If you meet all these qualifications, you’ll get your bonus money within 10 days.

One final heads up: Don’t close your account for at least six months after you open it. Otherwise, Chase will deduct the $50 bonus from your account.

Chase High School Checking

This student account comes with a $6 monthly fee, but it’s highly unlikely you’ll ever have to pay it if you have a parent who already banks with Chase.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $6
  • ATM fee: $2.50 for non-Chase ATMs within the U.S. If you’re using a foreign ATM, you’ll pay $5 per withdrawal and $2.50 per transfer or inquiry, plus a 3% foreign exchange fee.
  • ATM fee refund: None.
  • Overdraft fee: $34 per each item over $5, up to three per day. If your account is overdrawn for 5 or more consecutive days, you’ll also face a $15 extended overdraft fee.

This checking account is available to high school students between the ages of 13 and 17 who apply along with a parent. Parents who already have a banking relationship with Chase (not including a College Checking or High School Checking account) are eligible to apply for this account as a co-owner along with their student.

Although it comes with a $6 monthly maintenance fee, it’s almost guaranteed that you won’t have to pay it, since one of the ways to waive this fee is by having a parental co-owner with a linked non-College Checking and non-High School Checking account. Conveniently, those are also the requirements to open this account.

But, if Chase Bank ever does change the rules, or you find yourself in some weird loophole where this doesn’t apply to you, there are a couple of other ways that you can get the $6 monthly maintenance fee waived:

  • Have at least one monthly direct deposit made into the account
  • Keep a daily average of at least $5,000 in this account

Once the student co-owner turns age 19, this account will automatically transform into a Chase Total Checking account. It’s a good idea to keep this in mind, since the Total Checking account comes with a $12 monthly maintenance fee that you definitely do not want to be surprised by.

If you, as a parent, already have a qualifying personal checking account with Chase Bank and are prepared to be a co-owner on the checking account with your 13- to 17-year-old, then they are eligible for this account.

You’ll need to provide a way to fund the account along with your and your child’s government-issued IDs. Finally, you’ll need to apply for this account in-person at a local branch, rather than online.

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How Chase Bank’s checking accounts compare

Overall, we’re not too impressed with Chase Bank’s checking accounts. Each account charges a monthly maintenance fee, and while it is possible (and even probable, in some cases) to have this fee waived, you’ll still need to be on your toes each month to make sure you meet the requirements.

Furthermore, only two of its checking accounts offer any interest on your deposit. And even then, it’s worth noting that it’s only currently at 0.01% APY, which is the smallest amount of interest a bank can offer while still technically saying that it does offer interest.

If you’re looking for a higher interest-earning online checking account, take a look at these top-rated online checking account options instead.

Chase Bank’s savings account options

Chase Savings Account

Earn rock-bottom interest rates while trying to skirt the monthly fee with Chase Bank’s Savings Account.

APY

Minimum Deposit Amount

0.01%

$0

  • Minimum opening deposit: $5
  • Monthly account maintenance fee: None.
  • ATM fee: $2.50 for non-Chase ATMs within the U.S. If you’re using a foreign ATM, you’ll pay $5 per withdrawal and $2.50 per transfer or inquiry, plus a 3% foreign exchange fee.
  • ATM fee refund: None.
  • Overdraft fee: $34 per each item over $5, up to three per day. If your account is overdrawn for five or more consecutive days, you’ll also face a $15 extended overdraft fee.

You don’t get much with this savings account. Furthermore, you’ll need to find ways to waive the monthly maintenance fee, otherwise this fee could easily wipe out any earnings you receive for the month. There are four different ways you can get this monthly maintenance fee waived:

  • Keep at least $300 in this account
  • Set up a recurring monthly deposit of at least $25 from a linked Chase Bank personal checking account
  • Be under the age of 18
  • Have a linked Chase Premier Plus, Premier Platinum or Private Client checking account

You’ll also need to make an opening deposit of at least $25 to establish the account. This account also comes with a $5 “savings withdrawal limit fee” that will be charged each time you exceed six withdrawals per month. Unlike with the Chase Premier Savings account, there is no way to have this fee waived, so if you think you’ll be making a lot of withdrawals, you may want to consider another savings account.

Finally, if you exceed the Federal Regulation D limits (not including ATM or in-person withdrawals), the bank may also downgrade your account to a Chase Total Checking account.

Chase Bank does make it easy to sign up for a Savings Account online. U.S. citizens are eligible to apply, and all you’ll need is a way to fund the account and a government-issued ID number.

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Chase Premier Savings

Chase’s Premier Savings account doesn’t offer much in the way of returns or consumer-friendly benefits.

Standard rates

APY

Minimum Deposit Amount

0.01%

$0

Relationship rates

APY

Balance Amount

0.04%

$0-$49,999

0.07%

$50,000-$99,999

0.08%

$100,000-$249,999

0.11%

$250,000+

  • Monthly account maintenance fee: $25
  • ATM fee: $2.50 for non-Chase ATMs within the U.S. If you’re using a foreign ATM, you’ll pay $5 per withdrawal and $2.50 per transfer or inquiry, plus a 3% foreign exchange fee.
  • ATM fee refund: None.
  • Overdraft fee: $34 per each item over $5, up to three per day. If your account is overdrawn for 5 or more consecutive days, you’ll also face a $15 extended overdraft fee.

Chase’s Premier Savings account offers you the best chance to earn high interest rates with a savings account at this bank. However, you’ll need to watch out for the $25 monthly maintenance fee, which you can skirt in one of two ways:

  • Keep at least $15,000 in this account
  • Have a linked Chase Premier Plus or Chase Premier Platinum Checking account

You’ll also need to make an opening deposit of at least $100 to open this account (however, the balance can drop below that afterward). If you make more than six withdrawals per month, you’ll also face a $5 “savings withdrawal limit fee,” unless you have more than $15,000 in your account.

This is different from the Federal Regulation D limits, which limit you to six transactions per month, not including ATM or in-person transfers. If you exceed these limits, your account may automatically be downgraded to a Chase Total Checking account instead.

If you’re interested in opening a Premier Savings account with Chase Bank online, you’ll need to be a U.S. citizen. In addition, you’ll also need a way to fund your new account (such as with a transfer from an existing bank account) and you’ll need to provide the bank with a government-issued ID number.

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How Chase Bank’s savings accounts compare

Like many traditional bricks-and-mortar banks, Chase Bank offers some less-than-stellar interest rates. Case in point: the current highest-yielding online savings accounts are paying 15X what the maximum interest rate Chase offers, and with a lot less hassle. It may be convenient for you to open a savings account with Chase if you want to bank with a local branch, but if you want to earn the most money possible from your savings account, this isn’t the account to choose.

Overall review of Chase Bank’s products

Chase Bank has made quite a name for itself over the years. However, when it comes to its personal deposit accounts, there’s a lot left to be desired. Each of these accounts comes with high fees and super-low interest rates that make it hardly worthwhile to bank with Chase.

There may be good reasons to bank with Chase, such as if you prefer to use a conveniently-located branch near you. But in terms of earning the most money possible from your bank deposits, Chase Bank is definitely one to pass up.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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Reviews

An In-Depth Review of Discover’s Banking Products

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Year Established1911
Total Assets$98.7B
LEARN MORE on Discover Bank’s secure website
Discover Bank, which originally was introduced as a credit card via Sears-owned Greenwood Trust Company, first came on the market in 1985. Since then, Discover has gone on to become one of the largest credit card issuer in the U.S., known for their customer loyalty. Discover Bank, which runs completely as an online bank, has made strides over the past decade to compete in the financial sector by offering an array of financial products that go beyond credit cards.

Discover Bank offers competitive rates on their banking products, which include CDs, savings, checking, and money market accounts, which also boast perks like no monthly fees. However in recent years, many online banks have begun offering similar, if not better, rates for their deposit products.

In this article we’ll take an in-depth look at Discover Bank’s products. We’ll cover account features, rates and anything else you might need to know to make the most informed decision on your financial needs. Most of our research was conducted by analyzing rates from Depositaccounts.com, which is another LendingTree-owned site.
Discover Bank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

1.60%

Savings

Discover Bank Online Savings

2.10%

CD Rates

Discover Bank 12 Month CD

2.35%

CD Rates

Discover Bank 3 Year CD

2.60%

CD Rates

Discover Bank 5 Year CD

All rates listed below are as of 5/25/2018

Discover Bank’s CD Rates

A minimum deposit of $2,500 gives you competitive CD rates among online banks, but higher rates can be found.

Term

APY

3 Months

0.35%

6 Months

0.65%

9 Months

0.70%

12 Months

2.10%

18 Months

2.15%

24 Months

2.20%

30 Months

2.20%

3 Years

2.35%

4 Years

2.50%

5 Years

2.60%

7 Years

2.65%

10 Years

2.70%

  • Minimum opening deposit: $2,500
  • Early withdrawal penalty:
    • For CDs that are less than one year, the penalty will be worth 3 months of simple interest.
    • For 1-3 year CDs, the penalty is 6 months of simple interest.
    • For a 4 year CD, the penalty is 9 months of simple interest.
    • For a 5 year CD, the penalty is 18 months of simple interest.
    • For 7-10 year CDs, the penalty is 24 months of simple interest.

Discover Bank offers certificates of deposits with terms ranging from three months to 10 years. Interest is compounded daily and is deposited every month. As with most CD rates, the longer the term of the CD, the higher the rate you will receive. To make sure you lock in the highest possible rate for your CD, make sure you fund your account within ten days of application.

There are early withdrawal penalties for taking your money out before the end of the term. The penalty amount varies depending on how far you are into your CDs term.

While there are penalties for withdrawing your money early, you do have the option to withdraw any interest earned on your CD to a Discover bank account without penalty. This money can also be left in your CD to compound throughout the life of your CD. Account holders receive notice of CD maturity 30 days prior to the end of the term. Once a term has ended, account holders have a 9-day grace period to make a change to their CD before incurring penalties. If no action is taken, Discover CDs will automatically renew at the same rate and term.

You can open a Discover CD online or by phone. The only eligibility requirements come in the form the $2,500 minimum deposit, which can be paid via phone, check or an online transfer from your bank. Discover provides the option of opening your CD in the form of a Trust, Guardian, Estate or Custodial account, but in order to do so, you must call one of their Banking Specialists.

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How Discover Bank’s CD rates compare

Overall, Discover Bank CD rates are competitive. They certainly beat out most of the major banks by far when it comes to APY. However, if you do some digging, there are better rates out there for CDs, both in terms of minimum deposit and interest rate earned.

Discover’s minimum deposit of $2,500 is the biggest downside to this product. While it’s not common for banks to offer no-fee withdrawals on CDs, there are some out there. To find the most competitive CD rates on the market right now, check out our Best CD Rates page.

Discover Online Savings account

A completely fee-free online savings account, with no minimum balance requirements, and competitive interest rates.

APY

Minimum Balance Amount

1.60%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: None as long you use an ATM within Discover’s network.
  • ATM fee refund: None.
  • Overdraft fee: None.

There is no minimum balance to open a Discover Online Savings account, nor do they charge any monthly maintenance fees. While account holders do not have the ability to withdraw money from their savings account via an ATM, they are able to access and manage their savings account via Discover’s online banking and mobile app.

The online banking and mobile app lets users deposit and transfer money to both Discover Bank and non-Discover bank accounts. However, you’ll get hit with a $30 fee for an outgoing wire transfer, as well as a $15 charge per item for exceeding the Federal Reserve’s Regulation D limitation of six withdrawals or transfers in one calendar month. Overdrafting your online savings account results in a $30 fee, which you can avoid by signing up for overdraft protection.

Currently, you can earn a competitive interest rate of 1.55% APY on a Discover Online Savings account. This is compounded daily and deposited into your savings account every month. As soon as you deposit money in your account, you’ll begin earning interest.

This is a solid savings account for anyone who already has a checking account with Discover, has a substantial amount of savings, or wants to earn a competitive interest rate on their savings account. It stands out for being fee-free and requiring no minimum balance or deposit, but falls short when compared with all the current interest rates out there.

There are no eligibility requirements to open a Discover Online Savings account since they do not require an initial minimum deposit or any minimum balance. Opening an account can be done online or by phone.

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How Discover Bank’s savings account compares

Compared with other online savings accounts, Discover Bank does not have the best offerings. That’s not to say it’s bad. Next to what major banks are currently offering, this account is a major win. However, with a little research, you can find better interest rates out there that don’t charge fees or have minimum balance requirements.

To see what other rates and offers are out there that fit your savings goals check out our Best Online Savings Account Guide.

Discover Bank’s CashBack Checking Account

If you use your debit card often, Discover CashBack Checking offers no monthly fees and pays decent cashback rewards.
  • Monthly account maintenance fee: None.
  • ATM fee: None as long as the ATM is within Discover’s network.
  • ATM fee refund: None.
  • Overdraft fee: None.

Discover Bank’s CashBack Checking account is appealing because it carries very few fees — that means no monthly maintenance fee, no minimum balance requirements and no fees for check ordering or debit card replacement.

They offer free online and mobile banking options like bill-pay, wire transfers and account management.

One of the account’s main selling points is the cashback reward, which pays 1.00% on debit card transactions up to $3,000 on purchases each month. In other words, if you spend up to $3,000 in a month you receive $30 cash back. This 1.00% return is not an interest rate, but rather a cashback reward. There are no qualifications to earn the cashback rewards — when you spend with your debit card, you’re earning rewards. These rewards can be redeemed as a credit to your checking account or transferred to a Discover CashBack Bonus card account.

Discover recently partnered with AllPoint and MoneyPass to increase their in-network ATM locations by 60,000+. While Discover does not charge ATM fees for going out-of-network, they do not reimburse ATM fees incurred by third-party ATMs.

One of the few fees you’ll find is an overdraft fee. Their overdraft fee is $30 per transaction, which is on par with other financial institutions. You can avoid an overdraft fee by opting in to overdraft protection, which requires account holders to link their checking account with a Discover savings account.

Since Discover Bank is considered an online bank, you must open your account online via their website or by phone. There are no minimum deposit requirements, nor do they require account holders to keep a minimum balance. Once you open your account, you’ll receive your debit card within 10 business days. Discover offers free checks for their CashBack Checking Account, although you must request them.

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How Discover Bank’s checking account compares

Discover Bank’s CashBack Checking stacks up against other banks when it comes to offering a no-fee checking account. While they do boast a large ATM network, in part to their partnerships, they still do not reimburse out-of-network ATM fees. When it comes to rewards, their cashback reward is decent.

There are better cashback rewards programs out there, as well as, accounts that don’t require you to spend money to make money. If you spend a significant amount money via your debit card every month, this rewards program might make sense. If not, there are other banks that currently offer better rates on checking accounts for less effort on your end.

Discover Bank’s Money Market Account

Good withdrawal options, but with a high minimum balance requirement and interest rates that don’t stack up.

APY

Minimum Balance Amount

1.45%

Less than $100,000

1.50%

Greater than $100,000

  • Minimum opening deposit: $2,500
  • Monthly account maintenance fee: None
  • ATM fee: None, but only if you use an ATM within Discover Bank’s network.
  • ATM fee refund: None.
  • Overdraft fee: None.

Opening a money market account with Discover Bank requires a minimum initial deposit of $2,500. While their money market accounts don’t charge any monthly maintenance fees, account holders must maintain a minimum balance of $2,500 to avoid a $10 fee. They don’t even beat out Discover’s saving account rates.

There are a few account features worth noting, starting with the withdrawal options. Unlike the Discover Online Savings account, account holders will receive checks and a free debit card. Your debit card can be used to withdraw money via ATMs and at stores.

Discover Bank does not charge ATM fees, however if you use an out-of-network ATM they will not reimburse the fee. It’s important to note, that your money market account is subject to the same Federal Reserve regulations limiting transfer and withdrawals to six per month. If you exceed the six withdrawals you’ll be charged a $15 fee per item; however this does not apply to withdrawals from ATMs or via official check that is mailed to you. Discover Money Market accounts also give you the ability to sign up for online bill pay, as well as, overdraft protection.

The only eligibility requirements to open a Discover Money Market account is an initial minimum deposit of $2,500. You can open an account either online or by calling one of their Banking Specialists. To fund your account, you have the option of an online transfer, direct deposit or check, which can be mailed or deposited via Discover Bank’s Mobile Check Deposit app.

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How Discover Bank’s money market account compares

Looking at the overall market offerings, Discover Bank Money Market accounts do not stack up. Their competitive account features like a large ATM network, free checks and a debit card are nice, but their rates do not compete.

You can find other banks offering lower deposit requirements, as well as better rates. To see how this account compares, check out MagnifyMoney’s Best Money Market Rates guide.

Discover IRA CD rates

Competitive rates with a higher-than-average minimum deposit for both traditional and Roth options.

Term

APY

3 Months

0.35%

6 Months

0.65%

9 Months

0.70%

12 Months

1.90%

18 Months

1.95%

24 Months

2.00%

30 Months

2.00%

3 Years

2.05%

4 Years

2.10%

5 Years

2.45%

7 Years

2.45%

10 Years

2.45%

  • Minimum opening deposit: $2,500
  • Early withdrawal penalty:
    • For CDs that are less than one year, the penalty will be worth 3 months of simple interest.
    • For 1-3 year CDs, the penalty is 6 months of simple interest.
    • For a 4 year CD, the penalty is 9 months of simple interest.
    • For a 5 year CD, the penalty is 18 months of simple interest.
    • For 7-10 year CDs, the penalty is 24 months of simple interest.

Similar to other Discover Bank CD products, the minimum deposit to open an IRA CD is $2,500. This is also the minimum balance required to earn your interest rate. They offer both Traditional and Roth IRA CD options, with interest rates that vary depending on the CD term you choose. Terms can be as short as 3 months to up to 10 years. Their early withdrawal penalties remain the same for both IRA and non-IRA CDs.

An IRA CD is a worthwhile investment if you aren’t touching your savings and want to earn a higher APY than what’s being offered for your savings account. IRA CDs make the most sense if you’re looking for a long-term investment. While they don’t pay crazy high returns, if you have extra capital, it’s a good investment vehicle to have in your portfolio.

Opening an IRA CD account with Discover Bank can be done by phone or online, and requires an initial minimum deposit of $2,500. Funding your account can be done by phone, via check or via a bank-to-bank transfer from an existing IRA. Discover also allows account holders to initiate a direct or indirect rollover from an existing IRA.

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How Discover Bank’s IRA CD compares

Compared with other IRA CD’s out there, Discover Bank’s rates fall somewhere in the middle. The minimum deposit is higher than other offerings out there and the rates are competitive, but not high enough to be the best on the market.

Overall review of Discover Bank’s deposit products

Discover has created a suite of banking products that can compete in today’s market. Their online and mobile banking has all the necessary features to access and manage your account, and they boast a large ATM network that limits, but does not completely remove, ATM fees from your life.

Compared with the traditional big banks, Discover Bank has them beat when it comes to rates and offerings. However, if you take the entire market into consideration, adding in online banks, community banks and credit unions, Discover banking products fall somewhere in the middle.

Based on the fact that all of the reviewed products above do not have monthly maintenance fees attached to them and pay some form of interest or cash back, means you aren’t going to be wrong by opening an account. However, if you’re looking for the best of the best, Discover Bank is not quite there yet.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Jackson Wise
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Jackson Wise is a writer at MagnifyMoney. You can email Jackson here

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Reviews, Strategies to Save, Uncategorized

American Express® Personal Savings Account Review: A Solid Choice for Online Banking

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

American Express National Bank
If you’re working hard to stay disciplined and stash away a portion of your income, you’ll want to earn the highest interest rate possible on your money. Unfortunately, that’s difficult as bank savings accounts earn an average of 0.07% in interest annually, according to April 30, 2018 data from the FDIC. Our advertiser, American Express National Bank, offers a rate on the American Express Personal Savings high yield savings account that is nearly 20 times that rate. It’s currently advertised (as of 5/24/2018) at 1.60% annual percentage yield (APY). What’s better, the high yield savings account does not require a minimum deposit or charge fees, so you don’t need anything but your personal information on hand to open the account.

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American Express Personal Savings Account

This account is a great option for anyone who wants the flexibility of earning a high interest rate without the withdrawal restrictions that come with a CD.

APY (%)

1.60% Variable

Minimum Deposit Amount

$0

Account Minimum

$0

Permitted Monthly Withdrawals

6

Annual Fee

$0

FDIC Insured?

Yes

Mobile App?

No

Transfer Time

Deposits will be available within five business days.
Transfers from savings to a checking account
take one to three business days.

As of 5/24/2018

In an American Express® Personal Savings account, your money earns 1.60% variable APY. It’s currently one of the best rates you can earn from an online savings account. The account does not have a monthly fee and they don’t require a minimum deposit, which makes it an affordable account to open. You will have to fund your account within 60 days of applying, and the FDIC insures your deposits up to full legal limit.

How the American Express Personal Savings account works

The American Express savings account compounds daily at a variable 1.60% APY, and interest earned is credited to your account on your monthly cycle date. The rate is variable, so American Express can raise or lower the interest rate at any time without notice to you before or after the savings account is opened.

Account holders must fund the account within 60 days, which you can do by setting up a bank transfer or direct deposit to the savings account, as well as by sending a check.

What we like about the American Express Personal Savings account

  • High interest rate The 1.60% variable APY is better than what you would earn putting your money in the accounts most brick-and-mortar banks offer. While there are higher rates to be had, American Express has a good offer.
  • Automatic savings It’s easy to make saving automatic when you have an online savings account. With the American Express Personal Savings account, you can easily set up a recurring deposit to pull funds from an external savings or checking account. To make it even easier to resist touching your savings, you can even have a portion of your paycheck directly deposited to the account.
  • Discourages spending With your money in an online account like the American Express Personal Savings account, you can only get your cash after making a transfer to an external checking account to which you have debit card access. The inconvenience makes it that much more difficult to spend your savings.

What we don’t like about the American Express Personal Savings account

  • No ATM card Not having card access is great when you need to prevent yourself from spending your savings, but the hassle of setting up and making an ACH transfer from your online American Express Personal Savings account can be problematic in a pinch. (American Express says transfers will take one to three business days for funds to become available in your checking account.) If you’re worried about this, you can instead turn to an online bank like Synchrony Bank that makes it easier to access your savings by issuing an ATM card tied to your high yield savings account.
  • Variable interest rate The annual yield rate American Express is offering on this savings account is high at 1.60%, but the bank can change that rate at any time for any reason, as the rate is variable. If you’re looking for a more predictable rate of return, consider a certificate of deposit.
  • Limited withdrawals Because this is a high yield savings account, banks are limited by Federal Reserve Board Regulation D to a maximum of six withdrawals and/or transfers from your online savings account per statement cycle without penalty. With that in mind, before you decide how much you’ll put away each month, make sure it’s not more than you can afford to, so you aren’t repeatedly reaching into your savings.

How the American Express Personal Savings account compares

American Express vs Other Online Banks


American Express


Goldman Sachs Bank USA


Synchrony Bank


Barclays Bank

APY

1.60%

1.70%

1.65%

1.65%

Minimum Amount to Open

None

None

None

None

Minimum Balance Amount

None

$1

None

None

Permitted Monthly Withdrawals

6

6

6

6

Annual Fee

None

None

None

None

FDIC Insured?

Yes

Yes

Yes

Yes

Mobile App?

No

No

No

No

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As indicated earlier, the American Express Personal Savings account offer is strong, but how does it compare to other savings accounts?

Goldman Sachs Bank USA – 1.70% APY and $1 minimum balance

Goldman Sachs Bank USA

Goldman Sachs Bank USA currently offers an APY of 1.70% on their Marcus Savings Account. You don’t need to deposit a minimum amount to open the account, but you will need to have a minimum balance amount of $1 to earn the APY.

Interest on the Marcus Savings Account starts accruing the business day you deposit funds into the account. Goldman Sachs Bank USA doesn’t apply any service charges to their savings accounts.

Synchrony Bank – 1.65% APY and no minimum balance

Synchrony Bank

With $0 to open the account, you can earn an annual yield of 1.65% on savings account balances through Synchrony Bank and there are no monthly fees.

Savings accounts through Synchrony interest is compounded daily and is credited to the account monthly. An ATM card is offered through this account and you can still easily transfer or deposit funds through an ACH transaction or online.

Barclays Bank – 1.65% APY and no minimum balance

Barclays

With $0 to open the account, you can earn an annual yield of 1.65% on savings account balances through Barclays. While there are no monthly fees, an account that has a balance that is less than $1 for 180 days or more may be closed by Barclays. Savings accounts through Barlcays will start accruing interest the day your initial deposit posts to your account, and interest is compounded daily. While an ATM card is not offered through this account, you can easily transfer or deposit funds through an ACH transaction or online through your account.

Online banks vs. brick-and-mortar banks

Online banks have been having a moment not only because of the rise in mobile banking among consumers, but also because they can simply offer consumers more benefits because they don’t have to worry about as many overhead expenses as brick-and-mortar banks. An August 2017 study by DepositAccounts.com shows the annual percentage yield internet banks offer on savings accounts is more than four times what brick-and-mortar banks or credit unions offer. The same analysis shows annual percentage yields on internet bank savings accounts have surged 29 percent since January 2016.

Simply put, the main benefit of putting your money in an online savings account is your money does more for you. To show this, DepositAccounts provided an example, based on the average APYs in those savings categories: If a saver were to put $100,000 in a savings account and leave it alone for 10 years, they would earn $8,338.79 at an online bank versus $1,747.04 in a brick-and-mortar bank and $1,895.28 in a credit union, assuming a fixed APY.

The bottom line

Overall, the American Express Personal Savings Account is a solid online savings option. The interest rate they offer is high and the features of the account are comparable to other online banks’ savings accounts. While there are certain aspects of the Personal Savings account that could use improvement, other online banks present the same obstacles. As was mentioned earlier, the American Express Personal Savings account is one of the best options available.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Brittney Laryea
Brittney Laryea |

Brittney Laryea is a writer at MagnifyMoney. You can email Brittney at brittney@magnifymoney.com

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Reviews

Synchrony Bank Review: CD, Savings Account, Money Market, and IRA Rates

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

synchrony bank review
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Synchrony Bank is a relative newcomer to the banking scene, having opened up right around the same time as the World Wide Web was being developed in the late 1980s. Today, it’s one of the largest online-only banks around, offering a range of products including high-interest savings accounts, CDs, money market accounts, and IRAs.

Big banks can have notoriously high fees and low rates, so since Synchrony is a smaller, online bank, we put them to the test. In general, they offered very high rates on their savings and CD accounts, but their money market accounts are a little behind in the rate department. Read on to find out the specific details. This will help you decide whether or not this bank is right for you.

Synchrony Bank CD rates

You might need a higher-than-average minimum deposit for these CDs, but you’ll earn a very good interest rate.

Term

APY

3-months

0.75%

6-months

1.00%

9-months

1.25%

12-months

2.25%

14-months

2.35%

18-months

2.15%

24-months

2.45%

36-months

2.55%

48-months

2.65%

60-months

2.85%

As of 5/22/2018

  • Minimum opening deposit: $2,000
  • Minimum balance to earn APY: $2,000
  • Early withdrawal penalty: For CDs of 12 months or less, you’ll pay 90 days’ worth of interest. For CDs of between 12 months up to 48 months, you’ll pay 180 days’ worth of interest. For CDs over 48 months, you’ll pay 365 days’ worth of interest.

You’ll need to come to the table with a fairly hefty minimum deposit of $2,000 to open a CD at Synchrony. But, once you have it, this bank offers a fair amount of flexibility in how you are paid your dividends. You can elect to roll them over in the CD account, or have them paid out to you directly in the form of a check or an electronic deposit into another Synchrony, or other external, bank account.

Once your CD completes its term, you also have a few options. Your CD will automatically roll over into another CD of the same term length, but you’ll get a 10-day grace period to make any changes. During this grace period, you can withdraw the cash, add more cash, and/or open up a new CD with a different term length.

How to open a CD account with Synchrony

You can easily open up a CD account with Synchrony Bank online. You’ll need to provide some basic identifying information, such as your Social Security number and date of birth (this is required of all banks in order to comply with the USA PATRIOT Act). You’ll also need to provide a government-issued ID, such as a driver’s license.

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How Synchrony Bank’s CD rates compare

While Synchrony doesn’t currently offer the highest rates, they’re still consistently among the top of the pack for the current highest CD rates. Specifically, their 12-month and 60-month CDs are among some of the best offerings out there right now.

The early-withdrawal penalties at Synchrony Bank are also right on par with many of their competitors. You can rest assured that you won’t be paying inordinately high fees should you need to withdraw your cash early.

Synchrony Bank savings account

Synchrony charges no fees and offers a very high interest rate to boot.

APY

Minimum Balance Amount

1.65%

$0

As of 5/1/2018.

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: None; however, the ATM’s owner may charge a separate surcharge fee in order to withdraw cash.
  • ATM fee refund: Synchrony will refund up to $5 per month in ATM surcharge fees.
  • Overdraft fee: None.

This is one of the most accessible high-interest savings accounts for people looking for low fees and low minimum balance requirements. While most banks charge an overdraft fee if you overdraw your account, Synchrony Bank does something different: They may not honor the withdrawal, meaning that you won’t incur an overdraft fee.

Watch out, though: you’re limited to six withdrawals and transfers per month as per Federal Regulation D (not including ATM withdrawals). If you go over that amount, Synchrony Bank reserves the right to close your account for you for “misuse.”

How to open a savings account with Synchrony

You can easily open up a savings account with Synchrony Bank online. You’ll need to provide some basic identifying information, such as your Social Security number and date of birth (this is required of all banks in order to comply with the USA PATRIOT Act). You’ll also need to provide a government-issued ID, such as a driver’s license. Finally, by signing up for an account, you authorize Synchrony to run your application through ChexSystems, which checks to see if you have any negative standings with other financial institutions.

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How Synchrony Bank’s savings account compares

Synchrony currently has one of the best online savings accounts. For people looking for a no-minimum-balance account, or those looking to grow a small savings account balance into a larger one, you can’t go wrong with this account.

Synchrony Bank money market account

Synchrony’s money market account doesn’t offer very high interest rates, but does give you the power to write checks.

APY

Minimum Balance Amount

1.05%

$0

As of 5/1/2018.

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: None; however, the ATM’s owner may charge a separate surcharge fee in order to withdraw cash.
  • ATM fee refund: Synchrony Bank will refund up to $5 per month in ATM surcharge fees.
  • Overdraft fee: None.

Money market accounts technically work a little differently than savings accounts. But for you, the consumer, Synchrony Bank’s money market and savings accounts essentially operate the same way. One big difference is that the money market account offers a lower interest rate than their savings account. One other important difference is that you can actually request and write checks using your money market account, whereas the savings account doesn’t come with this option.

Otherwise, you can still expect the same withdrawal limits dictated by Federal Regulation D. You’re stuck with six transactions (minus ATM withdrawals) per month, lest the bank close your account for “misuse.” You’ll also incur few, if any, fees with this account. Given that these two accounts are so similar, we recommend going with the regular savings account, because that one offers a truly exceptional interest rate with the same terms of this money market account.

How to get Synchrony Bank’s money market account

You can easily open up a money market account with Synchrony Bank online. You’ll need to provide some basic identifying information, such as your Social Security number and date of birth (this is required of all banks in order to comply with the USA PATRIOT Act). You’ll also need to provide a government-issued ID, such as a driver’s license.

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How Synchrony’s money market account compares

Synchrony Bank offers exceptional rates on their savings accounts and CDs. However, their money market account is a little underwhelming in the interest rate department. If you’re looking for the best money market account rates, you can easily find better accounts at other banks and credit unions.

However, Synchrony Bank still does stand out in the fee department. This account — like Synchrony’s savings account — comes with very little fees attached.

Synchrony Bank IRA rates

These IRA CDs are virtually identical to Synchrony’s regular CDs — and still, the fairly high minimum deposit requirements may exclude some savers.

Term

APY

3-months

0.75%

6-months

1.00%

9-months

1.25%

12-months

2.25%

18-months

2.15%

24-months

2.45%

36-months

2.55%

48-months

2.65%

60-months

2.85%

As of 5/22/2018.

  • Minimum opening deposit: $2,000
  • Minimum balance to earn APY: $2,000
  • Early withdrawal penalty: For CDs of 12 months or less, you’ll pay 90 days’ worth of interest. For CDs of between 12 months up to 48 months, you’ll pay 180 days’ worth of interest. For CDs over 48 months, you’ll pay 365 days’ worth of interest.

These IRA CDs work just like Synchrony Bank’s regular CDs, with one exception: they play by the rules of IRA accounts. That means you can open them up within a Roth or traditional IRA, complete with all of the rules governing these two accounts.

Just like Synchrony’s regular CDs, these IRA CDs come with some fairly high minimum deposit requirements. This will exclude some people who can’t come to the table with a full $2,000 — but for those folks, Synchrony Bank has another option: the IRA money market account (discussed below).

If you need to withdraw your money early (if you decide to move it to another company to invest in the stock market, for example), you’ll still face an early withdrawal penalty. However, if you are at the age where you need to take required minimum distributions from CD money held in a traditional IRA, Synchrony Bank will waive the early withdrawal penalty.

How to open an IRA CD with Synchrony

You can easily open up an IRA CD account with Synchrony Bank online. You’ll need to provide some basic identifying information, such as your Social Security number and date of birth (this is required of all banks in order to comply with the USA PATRIOT Act). You’ll also need to provide a government-issued ID, such as a driver’s license.

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How Synchrony Bank’s IRA CD rates compare

Synchrony’s IRA CDs are again very close to being the top IRA CD rates around. However, there are a few banks offering higher rates on IRA CDs, so if this is your preferred retirement savings option, it may pay to shop around.

Synchrony’s IRA money market account

This money market account — like Synchrony’s regular money market account — doesn’t offer very high rates.

APY

Minimum Balance Amount

1.05%

$0

As of 5/1/2018.

  • Minimum opening deposit: $250
  • Monthly account maintenance fee: $0
  • ATM fee: None; however, the ATM’s owner may charge a separate surcharge fee in order to withdraw cash.
  • ATM fee refund: Synchrony Bank will refund up to $5 per month in ATM surcharge fees.
  • Overdraft fee: None.

If you need a bit more flexibility in your retirement savings or can’t afford the minimum deposit requirement of Synchrony’s IRA CDs, you might want to consider their IRA money market account.

You can deposit or withdraw cash at any time, however you’re still subject to Federal Regulation D that limits you to six transactions per month. Since this is an IRA account, you’ll also need to stick to the rules of whichever IRA you choose — Roth or traditional — lest you end up paying a tax penalty at the end of the year.

However, in return for this flexibility and low cash requirement to open an account, you’ll pay for it with lower interest rates. You can earn much higher rates on your retirement savings with Synchrony Bank’s IRA CDs, or even with an IRA savings or money market account at another bank entirely. In fact, many of the best money market accounts out there also offer you the ability to open them as an IRA.

How to open an IRA money market account with Synchrony

You can easily open up an IRA money market account with Synchrony Bank online. You’ll need to provide some basic identifying information, such as your Social Security number and date of birth (this is required of all banks in order to comply with the USA PATRIOT Act). You’ll also need to provide a government-issued ID, such as a driver’s license.

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Overall review of Synchrony’s banking products

We really like Synchrony Bank for their low-fee, high-yielding savings products, especially their savings account and CDs. These accounts are among the top contenders for highest interest rates available.

However, Synchrony’s money market account falls a bit short in the interest rate department. Once upon a time, money market accounts offered higher interest rates than savings accounts, but today that’s often not true — and Synchrony Bank is no exception.

On the whole, however, Synchrony is a great option for people looking for high interest rates on their savings — just skip their money market account.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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Reviews

EverBank Reviews: CD Rates, Checking Account and Money Market Account

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Year Established1998
Total Assets$34.3B
LEARN MORE on EverBank’s secure website
As far as major banks go, EverBank is relatively young but gives other banks a run for their money. They started up in 1961 and since then, they’ve ramped up their business and provide a suite of award-winning bank accounts.

Although EverBank offers a wide range of lending, investment and banking services, in this review, we’ll just focus on the crux of their business — their banking products. Although EverBank offers consistently high rates on their accounts, that’s not the only thing you need to consider when deciding whether or not to open an account at this bank.

We’ll cover everything else you need to know — rates, fees, minimum deposits and rules — in this review as well.
EverBank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

1.50%

Savings

EverBank Yield Pledge Money Market - First Time Client (1st Yr)

2.25%

CD Rates

EverBank 1 Year Yield Pledge CD

2.70%

CD Rates

EverBank 3 Year Yield Pledge CD

2.85%

CD Rates

EverBank 5 Year Yield Pledge CD

EverBank’s CD rates

Yield Pledge CDs

EverBank offers some of the top rates out there on this standard CD account.

Term

APY

3 months

1.25%

6 months

1.45%

9 months

1.60%

1 year

2.25%

18 months

2.35%

2 years

2.50%

2.5 years

2.50%

3 years

2.70%

4 years

2.75%

5 years

2.85%

As of 5/18/2018

  • Minimum opening deposit: $5,000
  • Minimum balance amount to earn APY: $0.01
  • Early withdrawal penalty: For each of the following CDs, the early withdrawal penalty will be:
    • For each of the following CDs, the early withdrawal penalty will be:
    • 6-month CD: 45 days’ worth of interest
    • 9-month CD: 68 days’ worth of interest
    • 1-year CD: 91 days’ worth of interest
    • 18-month CD: 136 days’ worth of interest
    • 2-year CD: 182 days’ worth of interest
    • 2.5-year CD: 228 days’ worth of interest
    • 3-year CD: 273 days’ worth of interest
    • 4-year CD: 365 days’ worth of interest
    • 5-year CD: 456 days’ worth of interest

EverBank’s Yield Pledge CD has pretty standard terms, which means you don’t need to worry about any funny business. You’re allowed to withdraw the interest earned without penalty, but if you do so, you might not earn the stated APY (the stated APY assumes that you let interest pile up within the account rather than withdrawing it).

Once the CD matures, it’ll automatically roll over into a new CD of the same type. But, you also get a 10-day grace period from the date of maturity to make any changes, such as withdrawing the money, adding any funds and/or changing the terms of the CD.

It’s easy to open a Yield Pledge CD account online. All you have to do is provide some basic personal information about yourself to help verify your identity, such as your name and Social Security number. After you’ve applied for an account, you’ll also need a way to fund it. You can do this by writing a check and mailing it in, or using their mobile deposit app, setting up a wire transfer or depositing the funds online from another bank.

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How EverBank’s CD rates compare

When it comes to high rates on a CD, you can’t really go wrong with EverBank. They currently offer some of the best CD rates available, which puts them on par with some of the bigger online banks.

In particular, we really like EverBank’s Yield Pledge promise, which states that EverBank will always keep their rates among the top 5% of all banks. This makes them a really attractive bank to stick with if you plan on opening multiple CDs, or doing a CD ladder strategy. This gives you peace of mind that the bank isn’t luring you in with temporarily high rates, only to drop them back down after you’ve already got a bunch of CDs with them. You can rest assured you’ll always get high rates, even in the future.

EverBank’s checking account

Yield Pledge Checking

High interest rates and low (or even no) ATM fees make this a great checking account for people who use ATMs frequently.

APY

Minimum Balance Amount

1.21% (1-Year Intro APY)

$5,000 - $250,000

0.25%

$0-$9,999.99

0.46%

$10,000-$24,999.99

0.51%

$25,000-$49,999.99

0.61%

$50,000-$99,999.99

0.71%

$100,000-$10,000.000

As of 5/8/2018

  • Minimum opening deposit: $5,000
  • Monthly account maintenance fee: None
  • ATM fees: None (we are excluding any ATM surcharge fees charged by the ATM’s owner).
  • ATM fee refunds: Unlimited ATM surcharge fee refunds each month if you keep an average daily balance of $5,000 in your account.
  • Overdraft fees: $30 insufficient funds fee, up to twice daily, if you don’t have overdraft protection enabled. Otherwise, an overdraft transfer from a linked EverBank account is free.

You’ll need a hefty amount of money to open this account, but if you’ve got it, it’s one of the highest-earning bank checking accounts. You’ll even earn a higher premium rate in your first year, regardless of how much you have in the account. After that, it’ll drop back down to the normal (but still high) interest rates for this account.

This account is especially great for people who use ATMs frequently and keep a large amount of money in their checking account. You’re not required to keep $5,000 in your account after opening it, but if you do, you get an added bonus: EverBank will refund all ATM surcharge fees that other ATM owners charge. Plus, they, themselves won’t charge you any fees for using whichever ATM you wish. It’s truly free-for-all ATM use.

It’s easy to open a Yield Pledge Checking account online. All you have to do is provide some basic personal information about yourself to help verify your identity, such as your name and Social Security number. After you’ve applied for an account, you’ll also need a way to fund it. You can do this by writing a check and mailing it in, or using EverBank’s mobile deposit app, setting up a wire transfer or depositing the funds online from another bank.

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How EverBank’s checking account compares

EverBank offers exceptional rates on their checking account. In fact, it’s one of the best online checking accounts available. There’s only one catch: You need to have a large opening deposit of at least $5,000, which is a lot of cash for most people.

But, once you open the account, you don’t necessarily need to keep it funded with $5,000 every day, although you do get some ATM perks and can earn higher interest rates by doing so. Still, it’s a great checking account for most people, although you can earn even higher interest rates by keeping your excess cash in an EverBank Money Market account.

EverBank’s money market account

Yield Pledge Money Market

EverBank’s Money Market account also offers great rates and low (or no) ATM charges.

APY

Minimum Balance Amount

1.50% (1-Year Intro APY)

$5,000 - $250,000

1.05%

$0-$9,999.99

1.10%

$10,000-$24,999.99

1.15%

$25,000-$49,999.99

1.25%

$50,000-$99,999.99

1.35%

$100,000-$10,000.000

As of 5/8/2018

  • Minimum opening deposit: $5,000
  • Monthly account maintenance fee: $0
  • ATM fees: None (not including any ATM surcharge fees charged by the ATM’s owner).
  • ATM fee refunds: Unlimited ATM surcharge fee refunds each month if you keep an average daily balance of $5,000 in your account.
  • Overdraft fees: $30 NSF fee, up to twice daily, if you don’t have overdraft protection enabled. Otherwise, an overdraft transfer from a linked EverBank account is free.

You can earn high rates with EverBank’s Checking account, but you can earn even higher rates for your savings in an EverBank Money Market account. Plus, it’s a tiered account, so as your balance grows, you’ll earn even more money.

Just watch out; you’re limited to six transactions per month with this account, unless they’re in-person, by mail or ATM transactions. If you go over that amount, you’ll pay $10 per transaction, and they may even close your account or convert it into a checking account if you do this enough times.

It’s easy to open a Yield Pledge Money Market account online. All you have to do is provide some basic personal information about yourself to help verify your identity, such as your name and Social Security number. After you’ve applied for an account, you’ll also need a way to fund it. You can do this by writing a check and mailing it in, or using EverBank’s mobile deposit app, setting up a wire transfer or depositing the funds online from another bank.

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How EverBank’s money market account compares

EverBank also offers high interest rates on their Money Market account. Unlike their Yield Pledge Checking account, however, they’re not actually among the current top contenders for best money market account rates. There are many other banks out there offering higher rates on money market accounts than EverBank.

You also need to bring a lot of cash to the table with this account — $5,000, which again, is a lot for many people.

Overall review of EverBank’s products

We really like EverBank and their Yield Pledge promise, which states that they commit to being among the top 5% of banks offering the highest interest rates on their accounts. This makes them especially appealing if you’re doing a CD ladder because you might not want to fuss around every few years figuring out where you’re going to deposit your CD money next, depending on who’s offering the highest interest rates. With EverBank, you can plop it down in one spot and rest assured that you’ll earn great rates.

One thing we do not like about EverBank is that it requires high minimum deposits for all of their accounts. This precludes a lot of people from getting started with their savings. Still, it’s an all-around great option for folks who already have a small pile of cash saved up to earn even more money on their deposits.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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