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Market USA Federal Credit Union Review: Checking, Savings, CD, Money Market and IRA Accounts

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Year Established1953
Total Assets$0.1B
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Market USA Federal Credit Union was originally founded in Washington, D.C. as Giant Food Department Stores Federal Credit Union. It has since merged with four other credit unions to become Market USA Federal Credit Union, headquartered in Laurel, Md.

Membership in Market USA Federal Credit Union is currently open to anyone who joins the Market USA Cares Foundation (with a minimum donation of $5), regardless of residency status. Without this donation, any resident of Maryland, Georgia, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia, and Washington D.C. is eligible for membership, as are employees of Giant Food, BILO, C&S Wholesale and other select employer groups. Prospective members join the credit union by also opening a Membership Savings account with a minimum $5 opening deposit, and are then able to open any other deposit account. Accounts are federally insured to at least $250,000 by the National Credit Union Share Insurance Fund.

In this review, we’ll give you the details on Market USA Federal Credit Union’s checking, savings, CD, IRA and money market accounts. Read on to see how they stack up to the competition and to determine if any of these accounts are right for you.

Market USA Federal Credit Union’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.05%

Savings

Market USA Federal Credit Union Savings Account

2.20%

Barclays Online Savings Account

on Barclays’s secure website

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Market USA Federal Credit Union checking account options

VIP Checking

This checking account earns you a generous APY at two different tier levels
APYMinimum Balance to Earn APY
3.01% (Platinum tier)$0.01
2.01% (Gold tier)$0.01
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None on CO-OP network ATMs; $1 on outside ATMs. Account holders can get eight free outside ATM transactions if they’ve set up a monthly direct deposit. Additional out-of-network bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

This account offers the opportunity to earn generous interest rates at two tier levels. In order to earn the rates above, account holders must enroll in e-statements, set up a monthly direct deposit of at least $250, and make 12 Visa debit card purchases per month at a minimum of $5 each.

In order to earn the Platinum Tier-level APY, account holders must additionally make three bill payments of at least $20 each per month through Market USA Federal Credit Union’s bill pay service.

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Regular Checking

This basic checking account offers a mediocre rate with a high balance requirement to earn it.
APYMinimum Balance to Earn APY
0.05%
$1,000
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None on CO-OP network ATMs; $1 on outside ATMs. Account holders can get eight free outside ATM transactions if they’ve set up a monthly direct deposit. Additional out-of-network bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

As far as the rate is concerned, this account is far less impressive than the VIP Checking account. With a relatively high balance requirement to even earn this abysmal rate, this account might as well not even offer any interest. The only positives are the absence of deposit and balance requirements — this account also comes with a free Visa debit card, mobile check deposit and no per-check charges.

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Direct Deposit Checking

A non-interest-earning checking account meant for depositing all or part of your pay.
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None on CO-OP network ATMs; $1 on out-of-network ATMs. Account holders can get eight free outside ATM transactions if they’ve set up a monthly direct deposit. Additional outside bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

Balances in this account don’t earn interest. You’ll get a free initial order of checks, but that’s about it.

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Fresh Start Checking

Designed to help those with past checking difficulties rebuild a positive checking history.
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None on CO-OP network ATMs; $1 on out-of-network ATMs. Account holders can get eight free outside ATM transactions if they’ve set up a monthly direct deposit. Additional outside bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

This checking account is designed to give those with a bad banking history a second chance to rebuild their checking reputation. Once this account has been open for six months, it will be upgraded to a Direct Deposit Checking account, with eligibility for mobile check deposit and Privilege Pay to cover overdrafts. One thing that sets this account apart from similar second-chance accounts at other banks is that it has no balance requirements or monthly fees. This account does, however, require that you set up a direct deposit to open it. If you don’t have access to direct deposit, you can contact the bank to see if you qualify for a Provisional Checking account.

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Minor Checking

This account offers kids and teens an opportunity to build good financial habits.
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None on CO-OP network ATMs; $1 on out-of-network ATMs. Account holders can get eight free outside ATM transactions if they’ve set up a monthly direct deposit. Outside bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

This free checking account is a great option for parents or guardians who want to teach financial responsibility to their kids and teenagers. Account holders under 18 must open the account with their parent or guardian as a joint owner. This account has no minimum balance requirements or monthly fees, and account holders also get a Visa Check Card in their name, though their parent or guardian must agree to be responsible for the card’s use. Account holders are also eligible for Privilege Pay, a courtesy pay service for overdrafts.

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How Market USA Federal Credit Union’s checking accounts compare

When you take a look at rates (if the account even offers them), the only true standout at Market Federal Credit Union is its VIP Checking account, which offers an APY that’s even more generous than those on our list of the best online checking accounts. The catch, however, is that you have to qualify for its two tier programs to be able to earn it.

If you can’t meet the requirements outlined above, we say consider one of the accounts on our list instead. The only other Market USA product that offers the chance to earn interest, the Regular Checking account, offers a sub-par rate with a high balance requirement to even earn it. The Fresh Start Checking account is a nice touch: it allows people the chance to rebuild a bad checking history with minimal requirements, even if it doesn’t offer the chance to earn interest.

Market USA Federal Credit Union savings account options

Membership Savings Account

This account is a requirement for anyone wishing to join the credit union.
APYMinimum Balance to Earn APY
0.05%
$0.01
0.10%
$2,000
0.15%
$5,000
0.25%
$25,000
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: Varies (see table)
  • Monthly account maintenance fee: None
  • ATM fee: None at CO-OP network ATMs. With a direct deposit of $500 per month in their Membership Savings account, members receive eight free out-of-network ATM transactions per month. Then it’s $1 per outside ATM transaction. Additional outside bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

This is a typical savings account that’s usually a requirement to join a credit union, with a small joining fee of $5. Other than that requirement, this account offers holders the chance to earn interest at four different tier levels, though the rates aren’t very high. As with all savings accounts, this one is subject to Federal Reserve Regulation D, which limit certain transfers and withdrawals to six per month.

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Sub-Savings account

This account can be opened within the Membership Savings Account in order to save for a special occasion or purchase.
APYMinimum Balance to Earn APY
0.05%
$0.01
0.10%
$2,000
0.15%
$5,000
0.25%
$25,000
  • Minimum opening deposit: None
  • Minimum balance to earn APY: Varies (see table)
  • Monthly account maintenance fee: None
  • ATM fee: None at CO-OP network ATMs. With a direct deposit of $500 per month in their Membership Savings account, members receive eight free out-of-network ATM transactions per month. Then it’s $1 per outside ATM transaction. Additional outside bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

This account, opened within your main savings account, allows you to earn the same rates while saving for a specific goal like a vacation, college fund or a down payment for a new car. This account has no balance requirements, so simply transfer funds as often as you like, in whatever amount. However, since it’s still a savings account, the Sub-Savings account is also subject to Federal Reserve Regulation D, which limits withdrawals and transfers to six per month.

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Holiday Club account

This account allows you to set aside funds specifically for the holidays.
APYMinimum Balance to Earn APY
0.15%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $29

This account allows you to easily save for the holidays by setting aside funds to be automatically transferred into the Market USA Federal Credit Union account of your choice each fall, unless you choose to simply withdraw them. Like all savings accounts, this account is subject to Federal Reserve Regulation D, which limits withdrawals and transfers to six per month.

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Vacation Club account

Similar to the Holiday and Sub-Savings accounts, this account allows you to sock away cash specifically for a vacation.
APYMinimum Balance to Earn APY
0.15%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $29

This account is similar to the Holiday Club account, in that it offers the same rate and requirements, save for the one about dipping into the account’s savings in the fall. With this account, you can save for a vacation by setting up a direct deposit to transfer a set amount to the account each pay period. This account also has no monthly fee or minimum balance requirement. Since it’s a savings account, it’s subject to Federal Reserve Regulation D requirements, which limit account holders to six withdrawals and transfers per month.

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How Market USA Federal Credit Union’s savings accounts compare

While the Membership Savings account allows account holders to earn interest at four different tiers, even the highest rate doesn’t compare to the accounts on our roundup of the best online savings accounts.

Still, this account is a requirement for joining the credit union, and while it can’t hurt to have it if you’re interested in one of Market USA Federal Credit Union’s other products, we wouldn’t recommend seeking the credit union out for this account alone.

Market USA Federal Credit Union CD rates

Certificates

A variety of CD term lengths, mostly with “just okay” rates.
TermAPYMinimum Opening Deposit
3 months1.00%
$500
6 months1.50%
$500
12 months2.41%
$500
12 month Accumulator1.01%
$100
18 months2.46%
$500
20 months3.00%
$500
24 months2.65%
$500
36 months2.81%
$500
48 months2.86%
$500
60 months3.06%
$500
  • Minimum opening deposit: Varies (see above)
  • Minimum balance amount to earn APY: Varies (see above)
  • Early withdrawal penalty: If the certificate has an original maturity of 1 year or less, it’s 90 days’ dividends on the amount withdrawn. If the certificate has an original maturity of more than 1 year, it’s 180 days’ dividends on the amount.

Market USA Federal Credit Union offers a wide range of certificate terms. A nice bonus on these certificates, however, is that the rates include a 0.35% premium added to the standard rates if account holders have set up a monthly direct deposit and e-statements.

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How Market USA Federal Credit Union’s CD rates compare

Even with the additional premium added to these CD rates, none of them really compare to those on our list of the best CD rates, save for the 20-month promotional special. Even though the deposit requirements are on the lower end, we would still recommend considering one of the CDs on our list instead.

Market USA Federal Credit Union money market account option

Money Market account

A run-of-the-mill money market account with less-than-stellar rates.
APYMinimum Balance to Earn APY
0.10%
$0.01
0.35%
$2,000
0.45%
$10,000
0.80%
$50,000
  • Minimum opening deposit: $2,000
  • Minimum balance to earn APY: Varies (see table)
  • Monthly account maintenance fee: $2.50 if minimum balance of $2,000 is not maintained<
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $29

This run-of-the-mill money market rate, similar to that of the credit union’s main savings account, allows account holders to earn interest at four different tier levels, though none of the rates are particularly impressive. Its low monthly maintenance fee is easy to avoid if you maintain a minimum balance of the $2,000 required to open it. Like all savings accounts, this money market account is subject to Federal Reserve Regulation D restrictions, which limit certain transfers and withdrawals to six per month, including three made by check.

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How Market USA Federal Credit Union’s money market account compares

Even the highest tier’s rate on this account doesn’t compare to any on our list of the best money market account rates. Some of the accounts on our list offer rates more than twice as high, with minimum balance requirements that are much lower than what Market USA Federal Credit Union requires. We strongly urge you to consider one of those instead.

Market USA Federal Credit Union IRA options

IRA CD rates

IRA Certificates

The same products as the regular certificates, but opened within an IRA.
TermAPYMinimum Opening Deposit
3 months1.00%
$500
6 months1.50%
$500
12 months2.41%
$500
12 month Accumulator1.01%
$100
18 months2.46%
$500
20 months3.00%
$500
24 months2.65%
$500
36 months2.81%
$500
48 months2.86%
$500
60 months3.06%
$500
  • Minimum opening deposit: Varies (see above)
  • Minimum balance amount to earn APY: Varies (see above)
  • Early withdrawal penalty: If the certificate has an original maturity of 1 year or less, it’s 90 days’ dividends on the amount withdrawn. If the certificate has an original maturity of more than 1 year, it’s 180 days’ dividends on the amount.

These CDs are virtually the same products as the regular certificates, and come with an additional 0.35% premium added to the rates if you enroll in direct deposit or e-statements.

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How Market USA Federal Credit Union’s IRA CD rates compare

Just like the regular certificates, these IRA certificates just don’t stack up to the ones on our list of the best IRA CDs available. If you’re saving for retirement, take the time to do your research to make sure you’re really getting the most out of the money you’re socking away. Consider one of the CDs on our list instead.

IRA savings account

APYMinimum Balance to Earn APY
0.15%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This is a standard IRA savings account, with a less-than-impressive interest rate. Like all savings accounts, this one’s subject to Federal Reserve Regulation D, which limits certain transfers and withdrawals to six per month.

How to get Market USA Federal Credit Union’s deposit accounts

To open any of Market USA Federal Credit Union’s accounts, customers must first open a Membership Savings account with a minimum deposit of $5, and $5 charity donation. Then, they can open any of its checking, savings, money market or certificate accounts online, over the phone, or in person at a branch.

The credit union’s IRAs can be opened online with the IRA Service Center, or over the phone or at a branch. You’ll need to provide information such as your address, phone, driver’s license and Social Security number.

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Overall review of Market USA Federal Credit Union’s banking products

We’ll be honest with you: the only real standout product at Market USA Federal Credit Union is its VIP Checking account, and that’s only if you qualify for the rewards tiers to earn its generous rates. Otherwise, none of its personal banking products have rates that stack up to or beat out the competition, even if they do have minimal monthly fees and balance requirements going for them.

These accounts aren’t the worst out there, but they’re not the best, either. Take the time to do your research to be able to reap the most benefits from the funds you’re putting away.

Advertiser Disclosure: The products that appear on this site may be 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 financial institutions or all products offered available in the marketplace.

Emilia Benton
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Emilia Benton is a writer at MagnifyMoney. You can email Emilia here

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Earning Interest, Reviews

Discover Bank CD Rates Review

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Discover Bank
Most people know Discover as a credit card company, but it also operates an online bank and offers some of the best rates and terms on checking and savings accounts and certificates of deposit (CDs).

Savings account bonus offer: Earn up to $200 on your first Discover savings account

As a bank, Discover offers some of the best products on the market. Currently, they’re offering a major deal on their online savings account, which currently earns 2.10% APY. If you apply for their savings account for the very first time by 06/03/19 and deposit a balance of at least $15,000 by 06/17/19, you can earn a $150 bonus. If you deposit a balance of at least $25,000 by the same date, you can earn a $200 bonus. Applying for the account is easy as you don’t need to go to a branch. The bonus will be credited to your account by 07/01/19. You can apply online or over the phone. Just be sure to enter or mention the promo code MM519 when you apply.

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If you’re looking for CDs in particular, Discover is currently considered to have some of the best CDs due to their customer service and digital tools.

Discover Bank CD rates

CD term

Annual Percentage Yield (APY)

3 months

0.35%

6 months

0.65%

9 months

0.70%

12 months

2.65%

18 months

2.65%

24 months

2.70%

30 months

2.70%

3 years

2.75%

4 years

2.80%

5 years

3.00%

7 years

3.05%

10 years

3.10%

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How do Discover Bank CD rates compare?

While Discover Bank CD rates aren’t always the highest available, they are consistently among the top offers across all terms. However, you may be able to find a similar or even better rate with a CD that has a lower minimum deposit than Discover’s $2,500 requirement. Currently, several nationwide banks offered a 12-month CD at a rate higher than Discover’s 12-month CD APY, while requiring a lower minimum deposit. For example, at the same time the above rates were available at Discover, there were 12-month CDs with rates as high as 2.70% APY with a lower minimum balance amount to earn the APY.

It’s always great to go for the highest interest rates possible, but keep your CD investing strategy in mind. If you’re investing in CDs using the ladder strategy, it might be easier to keep everything in one bank since you’ll be switching in and out of CDs frequently.

Discover also stands out from its competition in the CD space with its mobile app and 24/7 U.S.-based customer service. If you value such features, keep those particulars in mind when weighing Discover CD rates against others’.

What you need to know about Discover Bank’s CDs

Discover Bank is very transparent in terms of fine print. It’s not difficult to understand what’ll happen with your money after you invest it. We’ll cover the basics here about what you need to know to invest in Discover Bank’s CDs.

How to open a CD

It’s very simple to open up a CD with Discover Bank. Go to their CD webpage and click on the orange “Open an Account” button near the top right of the page. You can then choose which accounts you’d like to open. Select “CD,” choose a CD term and enter how much you’d like to deposit.

You’ll then need to complete the application by providing your name, address, date of birth, phone number, Social Security number, employment status and possibly even your driver’s license. Once your application is complete and accepted, you’ll need to fund the account.

How to fund the CD

You’ll need to fund it within 45 days of submitting your application, which you can do in one of three ways:

  • Transfer funds from another bank account over the phone. (You can only do this when you first fund your account.)
  • Transfer funds from another bank via online transfer.
  • Write a check to yourself and send it to the following address:Discover Bank
    P.O. Box 30417
    Salt Lake City, UT 84130

The minimum deposit amount for each of Discover Bank’s CDs is $2,500. Once you open a CD, you can’t deposit more money later, so it’s a good idea to make sure you have all the cash you want to invest before you open the account.

Withdrawing funds from the CD

When you want to withdraw money from your CD, the biggest thing to consider is whether that CD has matured yet, or finished its term.

If your CD has not matured, you’ve got options: You can take the interest out penalty-free at any time, or you can withdraw the principal (or the money you deposited) at any time as long as you pay an early-withdrawal penalty. This penalty varies depending on the original term of your CD:

  • less than one year: three months’ worth of simple interest
  • one year to less than four years: six months’ worth of simple interest
  • four years: nine months’ worth of simple interest
  • five years to less than seven years: 18 months’ worth of simple interest
  • seven years or longer: 24 months’ worth of simple interest

If your CD has finished its term, you can withdraw your money penalty-free, allow the CD to renew or roll it into a CD of a different term length. (More on that in a bit).

Earning interest on a Discover CD

Your CD will start earning interest on the same business day that you fund the account. The interest will be added to your account once each month, however.

When it comes to what to do with your interest, you have two options: The default option is to allow it to compound within the CD (meaning you’ll earn interest on that interest), or you can have it automatically deposited each month into another Discover bank account.

What happens once the CD matures?

You’ll get a heads-up notice about a month before your CD matures so you can decide what to do with the money. You have two main options: Either reinvest it into another CD (of the same term length or a different term length), or withdraw the money from the CD and put it into another account (such as a checking or savings account, or perhaps a CD at a different institution).

If you don’t let Discover know what you want to do with the maturing CD, the CD will automatically renew into another one of the same term length. You have a nine-day grace period after your CD automatically rolls over to make any changes or withdrawals penalty-free.

The bottom line

As far as big-name banks go, Discover offers great CD products. Wells Fargo, for example, only offers interest rates as high as 1.55% APY on a $5,000 deposit for a 58-month CD. Chase Bank offers even lower maximum rates — an abysmal 1.05% APY, and only if you can commit a minimum of $100,000 for 10 years.

If you’re the kind of person who likes to keep your finances in one place, Discover also has great credit cards, as well as competitive online savings and checking accounts. No matter how long you’re considering putting money in a CD, Discover is worth a look. Even if it doesn’t have the best available rate, it’s usually within several basis points of the top offerings and well above the average APY.

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Advertiser Disclosure: The products that appear on this site may be 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 financial institutions or all products offered available in the marketplace.

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

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An In-Depth Review of Discover’s Banking Products

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Year Established1911
Total Assets$108.0B

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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.

Savings account bonus offer: Earn up to $200 on your first Discover savings account

Discover Bank is offering a $150-$200 bonus. Here's how it works:
If you're able to deposit a balance of at least $15,000 by 06/17/19 in your first Discover Online Savings Account, you will receive a $150 bonus. If you're able to deposit a balance of at least $25,000, you will receive a $200 bonus. In order to qualify for the bonus, you'll have to apply for the savings account by 06/03/19 and your funds must be deposited by 06/17/19. On 07/01/19, the bonus will be credited to your account. You can easily get the bonus offer online by clicking on the Learn More button above or by calling Discover bank. Just be sure to enter or mention the promo code MM519. Discover's online savings account currently earns an APY of 2.10%.

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.

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Discover Bank’s Most Popular Accounts

APY

Account Type

Account Name

2.10%

Savings

Discover Bank Online Savings

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2.65%

CD Rates

Discover Bank 12 Month CD

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2.00%

Money Market

Discover Bank Money Market

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0.00%

Checking

Discover Bank Discover Cashback Debit

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Discover Online Savings account

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

APY

Minimum Balance Amount

2.10%

$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 2.10% 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. There is currently a bonus being offered if you apply for the savings account for the very first time by 06/03/19. If you meet qualifications by 06/17/19, you could receive the $150 or $200 bonus. Click the button below for full details.

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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 CD Rates

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

CD term

Annual Percentage Yield (APY)

3 months

0.35%

6 months

0.65%

9 months

0.70%

12 months

2.65%

18 months

2.65%

24 months

2.70%

30 months

2.70%

3 years

2.75%

4 years

2.80%

5 years

3.00%

7 years

3.05%

10 years

3.10%

  • 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 CashBack Debit account

Discover CashBack Debit 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: $30

The Discover CashBack Debit 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 Debit account, although you must request them.

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How Discover Bank’s checking account compares

The Discover CashBack Debit account 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

1.95%

Less than $100,000

2.00%

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

2.65%

18 Months

2.65%

24 Months

2.70%

30 Months

2.70%

3 Years

2.75%

4 Years

2.80%

5 Years

3.00%

7 Years

3.05%

10 Years

3.10%

  • 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 products that appear on this site may be 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 financial institutions or all products offered available in the marketplace.

Jackson Wise
Jackson Wise |

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

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