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:
- 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.
- 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
what is the current best rate you guys are getting and what bank
thank you
I’m not a member but in doing research I see Redneck Bank is currently offering 2.50% on balances up to $50,000.
Redneck Bank Money Market. Had them since January 2018. 2.47%-2.5% I park my money and let it sit there.
If you don’t want to use a bank with a ridiculous name use All America for the same rate. It’s actually the same bank as Redneck and they have excellent CS.
https://www.doctorofcredit.com/high-interest-savings-to-get/
Discover Bank sucked. Little wonder they’re getting rid of it.
Don’t do it!!!!’
I’d close it just on principle and that’s something I never tend to do.
First nerfing all the CC benefits, now ruining their banking products? Just wow.
Although this is just a survey, I find Discover has really been set on nerfing their products over the past year. Their credits cards lost a bunch of benefits, there were rumors of removing/reducing the Cashback Match thing, and now they’re looking into reducing APY on bank products too?
And over the past year I find there’s been a major increase in ads trying to upsell me stuff. I keep getting ads from them both online and in the mail trying to sell me on some LifeLock-like identity protection services as well as personal loans.
Same. Been getting a lot of mail ads for Identity Protections, CDs, loans from Disco.
same here… all trash offers
They seem to be going the Citi route of nerfing benefits while trying to drive customers to products that charge fees. I wouldn’t be surprised if the next thing they started doing was pushing balance transfers on us…
1% and I’ll run, not walk, to replace the account with one with a bonus and higher rate. The only reason I keep it as my emergency fund is inertia. 1% difference is enough to make my go and not look back.
Like others, such a change would have me closing my savings account but I’d likely keep checking just for the 1% CB.
I didn’t get the survey but I hope they make the results public. (They won’t.)
Now that I think about it… I’d probably keep the account just for the extra 10% on the monthly cashback bonus… but then do a monthly transfer of that amount to my real savings account elsewhere.
What 10% bonus are you referring to?
This is terrible!
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”
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.