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The First National Bank of Long Island Review: Checking, Savings and Money Market 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.

The First National Bank of Long Island was first established as the The First National Bank of Glen Head in 1927, after many North Shore farmers and small business owners were having to travel about 30 miles from Glen Head, Long Island to New York City to do their banking.

Local residents came together to raise $50,000 in capital to open this first location, and its second branch eventually opened in Roslyn, N.Y. in 1956, followed by several more locations throughout Nassau and Suffolk counties on Long Island, as well as in Manhattan. In 1978, the bank officially changed its name to its current one, The First National Bank of Long Island.

Today, the bank offers a wide selection of personal deposit accounts, including checking, savings and money market accounts. Read on to learn if these accounts will fit your banking needs, and how they compare with the competition.

The First National Bank of Long Island checking account options

First Class Banking Package

A checking and savings package that offers various benefits.
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: $35
  • ATM fee: None; $1.75 for outside bank ATMs
  • ATM fee refund: None
  • Overdraft fee: $38

This package is a combination of a checking and savings account, which does have the ability to earn interest, though you will need to contact the bank to find out the rates.

It also comes with free standard personalized checks, unlimited check writing, free check images, free ATM withdrawals on both in-network and out-of-network ATMs when minimum balances are maintained (there’s no requirement for the checking account, but it’s $3,000 for the savings account), a debit card with the potential to earn shopping rewards and free travelers checks.

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Free Checking

A basic checking account with no monthly requirements or monthly fees.
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: None
  • ATM fee: None; $1.75 on outside bank ATMs
  • ATM fee refund: None
  • Overdraft fee: $38

This account does not have the ability to earn interest. However, it does come with a low opening deposit requirement, and no monthly service charges or minimum balance requirements. It also provides a free first order of 50 standard personalized checks, a debit card offering shopping rewards, unlimited check writing and free check images.

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Regular Checking

A non-interest earning checking account with minimal requirements.
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: $12; can be waived with minimum balance of $750
  • ATM fee: None; $1.75 on outside bank ATMS
  • ATM fee refund: None
  • Overdraft fee: $38
This checking account doesn’t have the ability to earn interest, and the minimum balance to avoid its monthly fee is pretty high for a checking account. It does, however, come with a free first order of standard personalized checks, unlimited check writing, free check images and a debit card with the potential to earn shopping rewards.

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Senior Checking

A checking account for customers age 60 or older.
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: $12; can be waived with minimum monthly balance of $250
  • ATM fee: None; $1.75 on outside bank ATMS
  • ATM fee refund: None
  • Overdraft fee: $38
This checking account is for bank customers age 60 or older and requires a direct deposit enrollment such as Social Security or pension benefits. While it doesn’t have the ability to earn interest, it has a low minimum balance requirement and offers a free first order of 50 standard personalized checks, unlimited check writing, free check images and a debit card with the potential to earn purchase rewards.

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Student Checking

A checking account with minimal requirements for students ages 13 to 23.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $5; can be waived with minimum monthly balance of $25
  • ATM fee: None; $1.75 on outside bank ATMs
  • ATM fee refund: None
  • Overdraft fee: $38

This non-interest bearing student account is available to students ages 13 to 23. Those ages 13 to 17 need to open the account jointly with a parent or guardian. The account holder will need to be sure to transfer the account’s funds to another account before his or her 24th birthday.

This account also requires the owner to receive statements electronically, Otherwise, the minimum opening deposit and balance requirement are extremely low, and the account comes with a free debit card with the potential to earn shopping rewards, a free first order of 50 personalized checks, unlimited check writing and free check images.

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Personal Advantage Checking

An interest-bearing checking account with a higher balance requirement
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: $20; can be waived with minimum monthly balance of $3,000
  • ATM fee: None; $1.75 on outside bank ATMs
  • ATM fee refund: None
  • Overdraft fee: $38

This interest-bearing checking account has many of the same benefits as the bank’s other checking accounts, though it has a pretty steep minimum balance requirement to avoid its monthly fee. You’ll need to contact the bank to obtain the current rate.

The account also offers 50 free checks, unlimited check writing, free check images and a debit card with the potential to earn rewards.

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Budget Checking

A basic checking account with minimal restrictions for basic needs.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $3; additional fee of $9 if you exceed 8 withdrawals in a month
  • ATM fee: None; $1.75 on outside bank ATMs
  • ATM fee refund: None
  • Overdraft fee: $38

This basic checking account has a low opening deposit and no minimum deposit requirement. It also comes with a low monthly fee, as well as an additional fee if you exceed eight withdrawals in a month, though that shouldn’t be too difficult to avoid. This account also comes with 50 free checks, and a debit card with the potential to earn rewards.

How to get The First National Bank of Long Island’s checking accounts

All of The First National Bank of Long Island’s checking accounts must be opened in person at a branch. Visit the website to find the location nearest you.

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How The First National Bank of Long Island’s checking accounts compare

The First National Bank of Long Island offers several checking accounts, many of which are able to earn interest, and many with minimal fees and requirements. However, to truly determine if one of these accounts is the best on for you, you should contact the bank to find out available rates and see if they truly stack up against those on our list of the best online checking accounts.

The First National Bank of Long Island savings account options

Platinum Savings

A savings account offering a premium rate in exchange for a very high balance requirement.
  • Minimum opening deposit: $150,000
  • Minimum balance to earn APY: $2,500
  • Monthly account maintenance fee: $10; can be waived with minimum monthly balance of $150,000
  • ATM fee: None; $1.75 on outside bank ATMs
  • ATM fee refund: None
  • Overdraft fee: $38

The First National Bank of Long Island advertises this account as being beneficial for affluent customers. It has a pretty steep minimum opening deposit requirement and minimum balance requirement to avoid the monthly fee. In comparison, its minimum balance to earn interest appears to be on the low end. Contact the bank to obtain current rate information.

As with all savings accounts, this one is subject to Federal Reserve Regulation D, which limits certain debits up to six per month.

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Personal Statement Savings

A basic savings account with no balance requirement to earn interest.
  • Minimum opening deposit: $50
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: $7.50; can be waived with minimum monthly balance of $500
  • ATM fee: None; $1.75 on outside bank ATMs
  • ATM fee refund: None
  • Overdraft fee: $38
This account boasts the ability to earn interest from the day of deposit to the day of withdrawal. It also has a low minimum deposit requirement and balance requirement to avoid its low monthly fee. While no set balance is required to earn interest, you’ll have to contact the bank to find out what the rates are. As with all savings accounts, this one is subject to Federal Reserve Regulation D, which limits certain debits up to six per month.

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K Savings

A savings account for kids under the age of 18.
  • Minimum opening deposit: $10
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $38

This account is a great option to teach kids and grandkids about good saving habits early in life. It’s available to those under age 18 and comes with a special interest rate for the first 90 days the account is open. From there, the more they save, the more interest they will earn, with up to a $15 credit every year. There is no minimum balance requirement to earn interest, and no monthly maintenance fee. You’ll need to contact the bank to obtain current rate information. Account holders have the choice of a passbook or statement savings account with unlimited access to in-branch withdrawals and free electronic statements. This account is opened as a Uniform Transfer to Minor account. It is subject to Federal Reserve Regulation D, which limits certain withdrawals and transfers up to six per month.

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Holiday Club

A savings account specifically meant for socking away funds for the holiday season.
  • Minimum opening deposit: None
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This account is meant specifically for saving up for the holidays. Interest is earned on all balances at the end of the holiday year, and there is no minimum opening deposit or monthly maintenance fee. You’ll need to call the bank to obtain current rate information. Account owners can set up an automatic transfer from their First National Bank of Long Island checking account.

This account comes with electronic statements and renews automatically every year, with the money credited back into your checking account at the end of the year. Account holders also have the option to set up a 50-week payment schedule, though a fee may apply if it is closed before the final payment. Contact a branch for more information about this. As with all savings accounts, this one is subject to Federal Reserve Regulation D, which limits certain withdrawals and transfers up to six per month.

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Gold Savings Passbook

Another interest-bearing savings account with a low balance requirement to earn the rate.
  • Minimum opening deposit: $50
  • Minimum balance to earn APY: $500
  • Monthly account maintenance fee: $7.50; can be waived with minimum monthly balance of $500.
  • ATM fee: None; $1.75 on outside bank ATMs
  • ATM fee refund: None
  • Overdraft fee: $38

This traditional passbook savings account earns interest from the day of deposit to the day of withdrawal. It has a low minimum opening deposit and a minimal balance requirement to earn interest and avoid the money fee. Contact the bank to obtain current rate information. It is also subject to Federal Reserve Regulation D, which limits certain withdrawals and transfers to six per month.

How to get The First National Bank of Long Island’s savings accounts

The First National Bank of Long Island’s savings accounts must be opened in person at a branch. Visit the website to find one near you.

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How The First National Bank of Long Island’s savings accounts compare

Just like with its checking accounts, The First National Bank of Long Island offers and array of savings accounts, most of them with low requirements and monthly fees. All of them have the ability to earn interest, though you’ll have to contact the bank to find out what the rates are. Once you have those rates, you’ll want to be sure to compare them with our list of the best online savings accounts to help determine if you’re truly choosing the best product for your savings goals.

The First National Bank of Long Island money market account option

Personal Money Market Savings

The bank’s Statement Savings account, but with a money market rate.
  • Minimum opening deposit: $50
  • Minimum balance to earn APY: $3,000
  • Monthly account maintenance fee: $35; can be waived with minimum monthly balance of $1,000
  • ATM fee: None; $1.75 on outside bank ATMs
  • ATM fee refund: None
  • Overdraft fee: $38

As with a few of the bank’s savings account, this one boasts having a money market rate — as it should, since it’s a money market account by name. It also has a low opening deposit requirement, and fairly low balance requirements to earn interest and avoid incurring the monthly fee. Be sure to contact the bank to get current rate information. As a savings account, it is subject to Federal Reserve Regulation D, which limits certain debits up to six per month.

How to get The First National Bank of Long Island’s money market account

As with all of The First National Bank of Long Island’s personal account products, this one must be opened in person at a branch. Visit the website to find a location near you.

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How The First National Bank of Long Island’s money market account compares

As with all of The First National Bank of Long Island’s personal accounts, you’ll have to contact the bank to find out the available rate for this one. Once you have that information, you can determine if it compares with those on our list of the best money market account rates. Otherwise, this is your standard, run-of-the-mill money market account, though it has a low opening deposit requirement, and a fairly average balance requirement to earn interest.

Overall review of The First National Bank of Long Island’s banking products

It’s plain to see that The First National Bank of Long Island offers an abundance of checking and savings accounts, in addition to the one money market account. Having so many choices might appear to be overwhelming, especially if you don’t even know the available rates upfront.

Additionally, as the bank’s name implies, it caters specifically to Long Island residents, so you’ll want to be sure you live near one of its many branches, since you’ll have to visit one in person to open an account. It might not be worth all the effort, but be sure to research all rates for the type of account you’re looking for and making sure they stack up against the competition before settling on one of these accounts.

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.

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

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Discover Bank CD Rates Review

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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.

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An In-Depth Review of Discover’s Banking Products

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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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