Discover Bank is offering a 2% APY online savings account with a minimum deposit of $500. There’s no minimum balance requirement or monthly fees on this account. As with most online bank accounts, you can only access your funds via ACH transfers.
Discover is also offering a 2.20% APY 1 year CD that let’s you withdraw the funds if you lose your job. This seems to be a popular enticement these days. The minimum deposit on the CD is $2,500. In order to make the penalty free early withdrawal you’ll have to lose your job for at least 30 days after opening the account.
AAA members can receive higher rates on CDs in certain areas. If you’re a member visit AAA’s finance page and they will let you know if you’re location qualifies you for a better deal with Discover.
If you want to withdraw but haven’t lost your job, the early withdrawal penalty is 6 months’ interest. The grace period is 9 days at the time of maturity.
Discover Bank has a strong 4 out of 5 star soundness rating from bankrate and is FDIC insured. If you’re using an account for retirement you can use our retirement savings calculator to figure out when you’ll end up banking.
The rate has now changed to 1.85% for the online savings. Right after I opened an account with them, too.