Discover Bank Rates Increased
savings rates were already very competitive. With the recent increase, the bank's rates are now in the top 5 online savings rates available.
Discover Bank, which has a motto of "Everything you want from a bank, without ever setting foot in one," offers many variable deposit products with tiered interest rates. Some banks offer tiered rates when you make a larger deposit.
Most banks offer regular account rates and jumbo account rates. Usually to earn the "jumbo" rate, you need to deposit more than $100,000 into an account. Discover Bank offers regular and jumbo rates but also offers an addition three tiered rates. The savings account and money market account required deposit amounts for the three tiered rates are $10,000, $25,000 and $50,000.
Discover Bank Rates
Right now, Discover Bank's rates are the same regardless of the deposit amount. The only interest rate that is different is the bank's jumbo money market account rate. The jumbo MMA rate is 5 basis points higher than all the other MMA rates.
Another point to make, deposit rates are moving higher in 2018 and probably in 2019. Therefore, it makes sense to invest in variable rate deposit accounts instead of investing in a certificate of deposit account. CD accounts have fixed rates for the entire CD term, the opposite is true for savings accounts and money market accounts which have rates that can fluctuate. In conclusion, it makes sense not to lock into a fixed rate right now, ride the interest wave higher as rates move higher.
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