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Northpointe Bank Reviews: Savings, Checking, CD, Money Market and IRA Accounts

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 Established1999
Total Assets$0.8B
LEARN MORE on Northpointe Bank’s secure website
Northpointe Bank is a financial institution that got its start 19 years ago. The bank has several physical locations, but still serves customers from anywhere in the U.S. thanks to online banking. At first glance, Northpointe Bank no doubt shines where fees are concerned. There are fee-free checking, savings, money market and IRA savings accounts.The news isn’t as favorable when we looked at the annual yield on those accounts, which puts Northpointe at the middle of the pack when it comes to fee-free, high-interest bank accounts. Banks like Ally Bank, Bank of Internet USA and Synchrony Bank offer higher interest rates on checking and savings accounts with no fees. We’ll get into more detail on where the interest is lacking when we do an evaluation of each product.
Northpointe Bank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

2.05%

Savings

Northpointe Bank Ultimate Savings

1.35%

CD Rates

Northpointe Bank 12 - 17 Month CD

1.75%

CD Rates

Northpointe Bank 36 - 47 Month CD

2.55%

CD Rates

Northpointe Bank 60+ Month CD

All rates are current as of May 15, 2018.

Northpointe Bank savings account options

Ultimate Savings

The Ultimate Savings account has no monthly service fee or minimum deposit requirement.

APY

Minimum Balance Amount

1.12% APY

$0.01-$2,499.99

2.05% APY

$2,500-$99,999.99

1.12% APY

$100,000-$999,999,999

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fees: None
  • ATM fee refunds: None
  • Overdraft fees: $29

The Ultimate Savings account comes with online banking capabilities and offers a decent amount of interest on your savings. One thing the Ultimate Savings account does not come with is an ATM card. Northpointe Bank can give you a free ATM card if you ask for it, but you won’t get a fee reimbursement on the account if you get charged ATM fees from other banks. A lack of ATM refund fees isn’t such a deal breaker in this case. The savings account is intended for saving and not regular transactions. You should be depositing more money than you’re withdrawing at an ATM anyway.

Any transaction you make per month past six may incur a fee, which is standard for this type of account. Under Regulation D, the Federal Reserve sets guidelines for how many transactions financial institutions are allowed to offer you on accounts designated for saving.

Banks may dissuade you from making more than the allotted six transactions by charging a fee or downgrading your account from savings to checking. Be mindful of your transactions throughout the month so you can batch withdrawals and avoid the excessive transaction fee. They’ll charge $15 for excessive transactions.

Taking into consideration the transaction limit, you’ll benefit the most from the Northpointe Bank Ultimate Savings account if you plan to put away cash you won’t be moving often. For example, rainy-day savings that you rarely dip into can find a nice home in the Ultimate Savings account. On the other hand, a checking account is likely a better option if you need to transfer money in and out frequently.

You can complete the entire application for the Ultimate Savings account online. You’ll need to have basic information like your name, address and identifying documents, such as your driver’s license to move forward.

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Kid’s Savings

The Kid’s Savings account boasts a high interest rate, but can’t be opened online. Plan to call customer service or visit a physical location to open an account for your minor.

APY

Minimum Balance Amount

1.50% APY

Up to $1,000

1.11% APY

$1,000+

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fees: No card
  • ATM fee refunds: No card
  • Overdraft fees: $29

The Northpointe Bank Kid’s Savings account has a two-tier interest rate offer. This account for kids actually has the highest interest rate of their basic savings accounts. It does not come with an ATM card.

The same Federal Reserve Regulation D transaction rule applies here as with other savings accounts. Your child’s account will be charged a fee if you do over six outgoing transactions in a month.

Northpointe Bank Kid’s Savings accounts are for minors up to 18 years old.

The Kid’s Savings account is one of the accounts that you can’t set up online with Northpointe Bank. You must call to complete the application or visit a local branch.

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Health Savings Account (HSA)

A Health Savings Account is a savings account with tax benefits that people with a high-deductible health plan can use to stash away cash for health expenses.

APY

Minimum Balance Amount

0.50% APY

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fees: None
  • ATM fee refunds: None
  • Overdraft fees: $29

The benefit of opening an HSA for medical expenses is that contributions reduce your taxable income.

Tax benefits are a clear pro for this account. The Northpointe Bank Health Savings Account is interest-bearing as well — and free. An HSA debit card will be given to you, which makes it convenient to pay medical expenses whenever necessary.

There are some guidelines for this and any other HSA account. You can only sign up for the HSA if you have a high-deductible health plan (HDHP). According to the IRS, 2018 HDHP accounts are generally those that have a deductible of at least $1,350 for individuals and $2,700 for a family.

You can contribute up to $3,450 into an HSA for yourself and $6,850 for a family. Thankfully, this isn’t a use-it or lose-it situation. You can roll over your HSA money into another year. Be aware that they charge a steep $50 fee to transfer your HSA funds to an account with a different bank.

Anyone who qualifies for an HSA account should at least review what it has to offer. Making contributions now can come in handy when you hit retirement. You can use money contributed to the HSA account on qualified medical costs including premiums, medical services, equipment, transportation and long-term care.

Review IRS guidelines carefully before withdrawing cash from the HSA account. You can encounter tax penalties if you don’t use the account properly.

The Northpointe Bank Health Savings Account is one you can apply for online. You select the option to open an account at the top of the page. There’s a choice to select the Health Savings Account further into the application.

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How Northpointe Bank’s saving accounts compare

First in this review we took a look at all three of the Northpointe Bank savings accounts. The question now is, how do they stack up against the competition overall? The Kid’s Savings account is leading the pack with the highest interest rate.

The Ultimate Savings account for adults isn’t quite as “ultimate” as it could be. The bottom line is, you can get better rates on savings accounts elsewhere. There’s stiff competition when it comes to online-only savings accounts.

Northpointe Bank checking account options

Interest Checking

The Interest Checking account requires a pretty high balance to earn a so-so interest rate.

APY

Minimum Balance Amount

0.00% APY

Up to $2,499.99

0.15% APY

$2,500 - $24,999.99

0.25% APY

$25,000 - $99,999.99

0.30% APY

$100,000+

  • Minimum opening deposit: $2,500
  • Monthly account maintenance fee: $0
  • ATM fees: None
  • ATM fee refunds: Up to $15
  • Overdraft fees: $29

Northpointe Bank Interest Checking comes with online and mobile banking capabilities. The account also has a wide interest rate spread depending on your balance. You can look forward to getting reimbursed up to the monthly limit if you use ATMs from other financial institutions.

For other fees, the Interest Checking account has an overdraft fee ($29), which isn’t unusual for a checking account. Keep tabs on your balance, and you won’t run into much trouble here. One thing to remember for this and any other checking account is that financial institutions are prohibited from overdrafting your account unless they get your consent. They can get your consent by explaining the terms in the disclosure documents.

When you attempt to make a transaction that will overdraft your account, some banks will cover the balance and charge a fee. The overdraft is essentially a courtesy — the institution is covering the transaction for you because you didn’t have the cash. Northpointe mentions in their disclosure agreement that they may honor withdrawal requests at their discretion that will put you into overdraft and a fee can be assessed.

The alternative is that some banks will just decline the transaction resulting in no fee. Of course, the no-fee course of action is ideal. Northpointe also has an option where you can connect your checking to savings to avoid overdraft fees.

You must be able to maintain the daily balance necessary to earn interest from the Interest Checking account. You won’t earn interest otherwise, and your money should always be working for you when it’s sitting in an account.

You can apply online for this account right from their website. You’ll need to provide identifying documents, such as your government-issued ID.

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Free Checking

No fees or minimum balance required; no interest earned either.
  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $0
  • ATM fees: None
  • ATM fee refunds: Up to $15
  • Overdraft fees: $29

The Northpointe Bank Free Checking account is an all around free account. You even get ATM reimbursement up to a limit when you get charged from other banks.The lack of fees is great news. The lack of interest is where the news isn’t so great. There are just too many other online bank accounts at this point that offer you no fees with interest for you to go with this option.

The Free Checking account is also one of the many accounts that you can sign up for online through their website.

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How Northpointe Bank’s checking accounts compare

Northpointe Bank’s checking accounts overall leave much to be desired in interest. Competitors offer higher rates and require a lower minimum daily balances on checking accounts. The Interest Checking account which does offer interest makes you maintain a pretty high average daily balance to get any reward for being an account holder.

Northpointe Bank CD rates

Fixed Rate CDs

Northpointe Bank has fixed-rate, fixed-term CDs with decent interest rates, although not the highest around. The CD requires a high balance to earn APY, watch out for this piece of fine print.

Term

APY

7-91 Days

0.30% APY

92-182 Days

0.90% APY

6-11 Months

1.00% APY

12-17 Months

1.35% APY

17 Month CD Special

1.75% APY

18-23 Months

1.60% APY

24-29 Months

1.65% APY

30-35 Months

1.65% APY

36-47 Months

1.75% APY

37 Month CD Special

2.25% APY

48-59 Months

2.25% APY

60+ Months

2.55% APY

  • Minimum opening deposit: $1,000
  • Minimum balance to earn APY: $1,000
  • Early withdrawal penalty:
    • CD term 7 to 179 days — 30 days’ interest penalty
    • CD term 180 to 364 days — 60 days’ interest penalty
    • CD term 1 to 3 years — 90 days’ interest penalty
    • CD term 3 to 5 years — 180 days’ interest penalty
    • CD term 5 years or more — 365 days’ interest penalty

A CD or certificate of a deposit is a place to park your money for a set period where it earns fixed interest. After it matures, you have a certain amount of time to withdraw that money before the account renews. Pay close attention to the minimum balance to earn APY here; a much higher balance is required to earn APY than is necessary to simply open the account.

Always remember that a CD account is a place to put money that you don’t regularly need because the cost of early withdrawal can be pricey. There are pros and cons to locking into a fixed rate. You’re in the clear if rates should decrease. Your money will continue to earn the interest rate you signed up for initially. On the other hand, you’re stuck with your CD rate until the end of the term if APY increases.

You’ll get the most from their CD account the longer you keep it in. The short-term CD rates are nothing to write home about, and are probably not worth the hassle of opening. Take a closer look and you’ll see that currently, a regular Northpointe Bank Ultimate Savings account beats the Northpointe Bank CD rate until the 12-month mark.

There’s a link to apply for CDs online but the option may not be available when you’re asked to choose the type of account you want to open. In this case, you can just call them to open the account.

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How Northpointe Bank’s CD rates compare

The interest rates at Northpointe Bank being less than stellar is a common piece of feedback so far in this review. The CD rates are no different. Their rates are lower than the CD rates you can get from other financial institutions. Other accounts let you deposit a lower balance while still earning interest as well.

Northpointe Bank Money Market rates

Liquid Money Market account

The Liquid Money Market account doesn’t come with an ATM card, but you can purchase checks.

APY

Minimum Balance Amount

0.20% APY

Up to $2,499.99

0.25% APY

$2,500 - $24,999.99

0.40% APY

$25,000 - $99,999.99

0.50% APY

$100,000+

  • Minimum opening deposit: $1,000
  • Monthly account maintenance fee: $0
  • ATM fee: No Card
  • ATM fee refund: No Card
  • Overdraft fee: $29

If you’re looking for a money market account with an ATM card, this isn’t going to be your first choice. The account has no monthly maintenance fee though, which is a plus.

Keep in mind, there’s a limit to how many transactions you can make with this account as well. The limit is six transactions due to government regulations. Surpass six transactions and you’ll be charged a $15 fee per item. Take care to avoid this and you can enjoy this account with no fees.

The Liquid Money Market account may be a good place to put savings that you need to have easily accessible because you can use checks. Be mindful of the starting minimum balance required.

The Liquid Money Market account is another one offered by this bank that you can open online. You need to have the minimum deposit ready to get started.

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How Northpointe Bank’s Money Market account compares

Northpointe Bank’s Liquid Money Market account has an interest rate spread that’s not in line with competitors — it’s lower. Other money market accounts available also let you deposit less cash initially. If having an ATM card is important to you, then there are better options for you.

Northpointe Bank IRA accounts

IRA CD Rates

The IRA CD is a secure investment option to stash some retirement cash.

Term

APY

7-91 Days

0.30% APY

92-182 Days

0.90% APY

6-11 Months

1.00% APY

12-17 Months

1.35% APY

17 Month CD Special

1.75% APY

18-23 Months

1.60% APY

24-29 Months

1.65% APY

30-35 Months

1.65% APY

36-47 Months

1.75% APY

37 Month CD Special

2.25% APY

48-59 Months

2.25% APY

60+ Months

2.55% APY

  • Minimum opening deposit: $500 for fixed IRA CDs and $1,000 for IRA special CDs
  • Minimum balance to earn APY: $500 for fixed IRA CDs and $1,000 for IRA special CDs
  • Early withdrawal penalty:
    • CD term 7 to 179 days — 30 days’ interest penalty
    • CD term 180 to 364 days — 60 days’ interest penalty
    • CD term 1 to 3 years — 90 days’ interest penalty
    • CD term 3 to 5 years — 180 days’ interest penalty
    • CD term 5 years or more — 365 days’ interest penalty

Northpointe Bank’s IRA CDs offer a wide spread of interest rates that get higher the longer you keep money in the account. The minimum balance listed above to open the account is less than the balance required to earn APY. Be sure to put at minimum the balance necessary to earn APY. Withdrawing money from an IRA before you reach the age of 59 ½ can cost you a pretty penny in income tax and other penalties.

You must keep your money in the IRA CD account for the entire term to avoid a penalty from Northpointe Bank and the IRS. There is one exception for IRA early withdrawal penalties: You may catch a break if you have to withdraw money for hardship or medical expenses. Even with the possible loopholes for IRS related penalties, people who will benefit from the IRA CD the most are those who will leave the money in for the entire period. Keep in mind, the maximum you can deposit into an IRA for 2018 is $5,500 (or $6,500 if you’re 50 or older).

The IRA CD is a savings vehicle for retirement that earns a set amount of interest for an assigned period. An IRA CD may be the right addition to your retirement plan if you’re looking for a safe and predictable place to put your savings.

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How Northpointe Bank’s IRA CD rates compares

Most of Northpointe Bank’s products have lower interest rates than competitors. Again, the IRA CD account is no exception. Competitors offer comparably higher fixed interest rates for the shorter term IRA CDs. You can also find IRA CDs that let you earn better rates with a lower balance.

Liquid IRA Savings

A place with potential tax benefits to put your retirement savings. IRS penalties can apply if you withdraw early.

APY

Minimum Balance Amount

0.20%

Up to $2,499.99

0.25%

$2,500 - $24,999.99

0.40%

$25,000 - $99,999.99

0.50%

$100,000+

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: No Card
  • ATM fee refund: No Card
  • Overdraft fee: $29

The IRA Liquid Savings account is another place to put cash for retirement that comes with potential tax benefits.

The IRA CD we discussed above has fixed interest for a fixed term. The Liquid IRA Savings account does not have a fixed interest rate or term. The rate can change at any time. The Regulation D six transactions per month limit applies here as well. Go over six transactions per month and you’ll encounter a $15 fee per item.

Ultimately, money you contribute to an IRA is money you don’t plan to touch until retirement age to avoid penalties. Retirement could be years or even decades away for you. The interest rate on this account is pretty low if your money is going to be baking for quite a while. An IRA CD would probably be a better option to consider if you prefer to put some of your nest egg in a place that’s low risk.

The Liquid IRA Savings account is one that you can’t apply for online. You can call the bank to set up this account instead.

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Our overall review of Northpointe Bank

Northpointe Bank gets high marks with its lack of fees, the variety of account offerings and user experience. The lack of fees on most accounts is a highlight for a bank that happens to have several physical locations across the country. And if you’re not located near a branch, you can apply for many of the accounts online from your own home.The accounts that can’t be applied for online can be done over the phone. Someone who wants to be loyal to one bank will likely benefit the most from doing business with Northpointe since there are so many account types available. You can fulfill all of your banking needs in one place.

The interest rates are where Northpointe Bank doesn’t quite stack up against the competition. The highest rate for a basic savings account is offered to kids. There’s nothing remarkable about the adult account rates that should sway you to bank here instead of other online banks that also have no fees and top-notch online services.

Thanks to online banking, there are too many options for you to settle on just any old 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.

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor 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 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
Jackson Wise |

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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Member FDIC

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Member FDIC

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on Barclays’s secure website

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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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Earning Interest, Reviews

Discover Bank CD Rates Review

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.

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).

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

Discover Bank CD rates

CD term

Annual Percentage Yield (APY)

Minimum deposit amount

3 months

0.35%

$2,500

6 months

0.65%

$2,500

9 months

0.70%

$2,500

12 months

2.10%

$2,500

18 months

2.15%

$2,500

24 months

2.20%

$2,500

30 months

2.20%

$2,500

3 years

2.35%

$2,500

4 years

2.50%

$2,500

5 years

2.60%

$2,500

7 years

2.65%

$2,500

10 years

2.70%

$2,500

Rates as of 5/17/2018

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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. 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 2.25% 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, as the chart above indicates, $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 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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