Posted by William Charles on March 25, 2019
Savings Accounts

Published on March 25th, 2019 | by William Charles

47

Discover Sends Out Survey With Possible Discover Savings Replacement (Complete Savings Bonus Now)

Discover has just sent out a survey to some members asking how they would feel about changes to the high yield savings account that Discover currently offers. Basically the current account would be replaced with a new account that earns 1% APY (currently 2.05% APY). It would also features such as:

  1. 10% bonus on cash back when auto-transferred to savings account. I believe this is only from the Discover checking account that currently earns 1% cash back on debit card purchases capped at $3,000 in spend per month.
  2. Weekly savings transfer goals. Basically the ability to set a recurring transfer with a different amount each week. Discover considering offering a bonus for completing 52 weeks of transfers.

The 2.05% APY rate isn’t currently competitive with top tier rates, so it dropping down to 1% APY doesn’t really matter if you’re willing to chase rates or have an account that earns at a better rate. That being said the things they are trying to replace it with aren’t great either. If you haven’t already I’d complete the Discover savings bonus for an easy $150/$200 before they mess with that as well.

Hat tip to reader Will From Boston



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anne
anne

This is crazy!

Dan
Dan

Have no idea why I keep banking with them, but this change goes through and I will stop.

Steve

I keep a Discover bank account because it lets me ACH to/from Netspend accounts, which my other banks seem to have blocked.

Peter
Peter

Yes this. They put up with lots of random transfers each month. Also switching all my autotransfers would be a huge pain.

Eric
Eric

You are referring to the checking account, correct? I’m pretty sure all online savings accounts only allow 6 free transfers per statement.

Ann
Ann

Yes, all savings accounts are required by US law to limit you to no more than 6 withdrawals, with minor variations in how some banks interpret this. So to do “lots of” transfers he would be using a checking account for sure.

Eric
Eric

They used to require $25 per transfer. Is that no longer the case?

Steve

Yes, still $25 minimum.

Eric
Eric

So you send $25 to each of your prepaid accounts? I used to send $.01 with Santander but now send $1 with a different account.

Steve

yup

Dan
Dan

True dat

DCFan1911
DCFan1911

That would be insane for them to slash their APY like that; there would literally be no reason to keep the account. Their gimmicky extra features would require too much effort, which is the exact opposite of what people want when they place their money in a savings account. The whole point is to put your money there and let it grow. Seriously, Discover, if you do anything THIS insane, I’m done with you!

gli
gli

Discover Bank CS and such is amazing – they are my hub checking account. But this change to their savings from their current 2.10% and 2.15% savings account offerings is entirely non-competitive.

G
G

My experience is Ally is way way better than Discover as a hub

Burton
Burton

I’m a bonus away from opening Ally (missed the 1% bonus).

I’ve had CapOne forever but they stopped being competitive outside of CDs post ING, they only allow 3 linked external accounts, and their “improvements” over the past five years have all negatively impacted my experience.

Discover has been great to work with for the bonus but I already pulled most of my funds out and if they lower the rate that will be the excuse I need to close it.

Chris C
Chris C

The 1% bonus was also available to existing customers, so it’s possible that, if there is another bonus, it will be available to existing customers too.

TBonus
TBonus

Yes, Discover’s APY isn’t in the top tier, but it’s good enough for me when I consider their customer service and user-friendly site. If their APY slips even more than it is now, then I’ll definitely consider another account.

Satellite
Satellite

2.15% they have on their AAA savings is not bad. But no one will keep their savings at 1% unless they forgot about it (or 1% becomes the norm due to rates going down in general due to recession).

Andrew
Andrew

I would be extremely disappointed if this change were to go through. This is a huge devaluation if it does. I would be okay if they offered two savings option- this and what they currently have.

Brandon
Brandon

So I guess I’ll hope they hold off for 3 months. Just have to wait for the Goldman Sachs bonus to come through.

PoorChurner
PoorChurner

If they slash the rate like that I’m leaving them. I like Discover but removal of CC benefits and now possibly the savings changes is making them garbage.

Alex
Alex

I’d definitely close both checking and savings accounts. I actually just moved some of my money back to their savings, because while not providing the best rate, it did provide instant transfer to their checking, which is a nice feature. Having 1% savings rate will definitely be the end of me having my account there.

Mr G
Mr G

I really like Discover but this change would force me to close the savings account for sure.

Julie
Julie

Did the bonus but was letting the monies sit to collect some interest funds so guess I’ll be closing that account

Frito Pendejo
Frito Pendejo

Meh. They are a great ACH hub. No account limit like Ally has.

And like DoC says, they are already not competitive so it doesn’t make sense to be storing money there for any longer than it takes to ACH in/out.

Jay
Jay

Whats the account quantity limit for Ally if you don’t mind sharing? I was lead to believe there was no limit.

Trevor
Trevor

I think it’s $150k/day and $600k/month.

Millennial Outrage

20 linked accounts IIRC

Christine
Christine

Like many others Discover is my hub account, though it doesn’t have the best interest rate, I really like the convenience it provides. If they slash the interest rate to 1% I will definitely have no choice but leave.

Ahwleung
Ahwleung

Hopefully people in the survey respond negatively. It makes sense too, people generally google search “best savings account” and pick the one with the highest %, and not “which savings account to use when I want to jump through a bunch of hoops in order to gain a marginally better return that I’d have to literally pull out a calculator in order to calculate the benefit”

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