Ask Terry Questions Online Savings account at Discover —

Online Savings account at Discover —

By Terry Savage on June 17, 2018 | Chicken Money

Discover offers an Online Savings Account with APY at 1.60%, much higher than any bank. No fees, no opening deposit. It sounds too good to be true. Is it?

Terry Says

Yes, this is a legit deal, but it is not the BEST deal around! You could actually buy a one year Treasury note with a slightly higher yield (and pay no state taxes). Still it is a lot better than the bricks and mortar banks in most towns. So don’t hesitate as long as you are putting money into an FDIC-insured product. Also ask about liquidity — because when I searched this product online it says there is a $15 fee for “excessive withdrawals.” But it didn’t state clearly how frequently or how much you can withdraw!



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