Discover Bank Online Savings Account

Discover Bank is offering an online savings account that has a very competitive annual percentage yield (APY). The current APY as of October 19, 2009 is 1.85 percent, a lot higher than the current national average rate for a savings account.

The minimum opening deposit for the online savings account is $500. Interest is compounded on a daily basis and credited to your account on a monthly basis. The 1.85% APY takes APY takes into account the effect of compounding, interest receiving interest. If you withdrawal any interest earned on the savings account the APY will be lower.

Discover Bank also offers an “AutoSavers” plan which will help you saving more money by having a scheduled repeating transfer of money from a checking account or savings account to your discover online savings account.

Accounts are FDIC insured up to $250,000. As with all savings accounts you are limited to six withdrawals per billing cycle.