I started using Discover Bank when the interest rates on CDs at my local banks started to fall to ridiculous lows. The rates on CDs at Discover Bank were among the highest in the country. I have built a ladder of CDs over the last couple of years and every time one comes up for renewal I check the local banks and Discover has remained better than my local banks. I have also started an online savings account. Discover gives me a very good interest rate on my savings, in fact this rate is higher then my local bank's CD rates. I was hesitant to put my money in an online bank, but after 5 years with money in Discover Bank I an fairly confident my money is safe.
Discover Bank offers several products, such as savings accounts and money market accounts, which I have utilized. I was originally drawn to the favorable rates offered on these products. For instance, Discover's savings account offers a .8% interest rate, which is significantly higher than other banks I had researched. Their high rates are the primary reason I became a customer.
The web interface is efficient and easy to use. It provides a number of features and allows you to manage your account online in various ways. The user interface is clear and appealing, and it also allows access to other Discover products, such as your credit card account.
Customer Service has been reasonably helpful when I have needed them. They are not the quickest to respond, but are pleasant and helpful when needed. The major drawback I have found with Discover Bank is the length of time it takes to transfer funds to or from external accounts. It often takes in excess of 3-4 days for a transfer or deposit to clear. If you often need cash quickly, you may want to consider other options. However, if you are not pressed for time, this is a minor inconvenience.
In all, Discover Bank has been beneficial for me. I am satisfied with their products and services and would recommend them to friends and family. Overall, the pros outweigh the cons and they provide a positive customer experience.
When I was moving to another city, I used IP relay service to call Discover (as a hard hearing person, IP relay was the only communication method for me with Discover) and required a change to my address. Suddenly Discover representative hanged up and then locked my account. As a consequence, I could not make a payment to my Discover More card online.
I immediately contacted their security department to verify my identity. They wanted to call back and continue the verification process. I explained to them that I couldn’t hear sound so for our communication to work, I have to proactively call them through IP Relay. The representative insisted that their record showed they had spoken to the cardholder so they would still go ahead and call back. That was an obvious lie on a deaf person who couldn’t talk verbally through phone.
The second time I called and informed them about my deaf situation, instead of offering an alternative solution, Discover just hanged up disrespectfully. During that time my schedule was very stressful, so I had to sacrifice some goal and time to find out other methods to pay the card.
Compared to Amex who handled my request respectfully and smoothly, Discover customer service is unprofessional. To make the matter worse, they are absolutely rude and lack the heart to help customers.
I have had numerous CDs amounting to a substantial amount of money with Discover and only in the last 6 months have things gotten really bad with them. I have contacted customer service several times and gotten perfunctory replies that did not address any of my concerns. They have NO customer service. They lie about this in all of their ads and promotions and also lie about having "great" rates. I sense that there are some real problems with this bank and it may be that they just don't want to deal with consumers any longer, at least in the CD market. So I will NEVER buy another CD from them and strongly urge anyone reading this stay away from this bank. BTW, I had to give one star because there was no option for to give no stars.
Was about to open a savings account online but then read on the web how they have a minimum withdrawal restriction. I confirmed it by calling them. It's a $50k/month withdrawal. You can ask them to cut you a check or wire more than the 50k for a fee, tho. I think that's ridiculous.]
I gave it 3 stars, because maybe the account is fine and for those who withdraw less than 50k it might be fine. I just don't like the principle of how we are giving them money to loan out and yet when we need it, we are stuck with a withdrawal limit or fee.
Discoverbank is not a good online solution! The website is down more often that not - it seems like they perform 'system maintenance' every weekend. If you ever want to do any online banking over the weekend you mise well forget about it. Originally I had etrade who was acquired and taken over by discover bank - it has been downhill ever since. I will be looking for a new online savings account option, this has happened one time too many. I bank online with other companies all the time and I have never experience the amount of downtime as this company - if they wanted to get into online banking then they should actually make it work - either that or state hours of operation on their home page.
I have opened 12 CD accounts with Discover over the past 2 years. Each one requires a signature be mailed back. The first 11--no problem. Today I noticed a debit on my most recent CD. I called and was told they never received the signature card so I am subject to backup withholding. I explained that I mailed the signature card back the same day I received it and reminded the CSR that I have had multiple accounts showing that I am not subject to backup withholding. It was like talking to a brick.
Bottom line--they may have decent rates but if you open a new account make sure to double-check that the signature card got back to them.
I should have seen the warning signs. When I first opened the account in August 2011, Discover tried to pull the initial deposit amount ($9,000) THREE TIMES from my other bank, resulting in multiple overdraft charges of $105. When I asked my bank about this, they told me that I needed to get refunded from Discover and of course Discover told me otherwise. So basically I had to fight with both banks and then eventually closed off my original bank account (since their service was worse than Discover's). What a mistake.
Things were going well with Discover as I had a regular deposit in place. But after unacceptable delays in money transfers and having to wait almost a week for each transaction to occur, I decided to pull out from Discover and open a HSBC bank account that only takes 3 days per transfer. As I was pulling out all my money, of course Discover did what they do the best-they repeatedly tried to "transfer" money into my other account multiple times, resulting in $35 overdraft fees. When I called Discover to ask how on earth this multiple pull happened, they explained that I logged on and transferred the money multiple times myself (they even got a tech person at Discover to verify this!). This was the most insane excuse I have ever heard. And all of this mysterious 'transfer' that I requested all occurred after I emptied out my account. When I asked them "why would I try to make transfers from an empty account?", they were like, "I can see that this doesn't make sense and there must have been a mistake". So I asked for a refund for the $35 fee they charged but they told me that was impossible.
I realized that this is how Discover penalizes people who empty out their accounts--they falsely charge you with fees based on a fake transfer that their system creates. This is the most unbelievable experience I have ever had with a bank. I truly believe that Discover bank is committing a crime through their fraudulent practices.
I have a few accounts with Discover Bank and have been banking with them on-line for a few years. The on-line services are very easy to use and I have had no glitches whatsoever. Rates are usually better than my local banks.
American Express Bank (similar rates as Discover Bank) - you initiate an external transfer and the money is in your account the next day.
Discover Bank - you initiate an external transfer and it takes a week to get the money out.
Discover also limits your withdrawals to 100K PER MONTH. Usually you have limitations like this per day...but per month? Useless! If you reach the 100K limit when transferring money TO Discover, then a phone call to them can have them override the restriction. But to get $ out, they say they have to follow the rules. The only exception to that is if you close your account - which is kind of odd since that lets you transfer 100K out without any problems.
Although this started out as a great experience turned into a bad one given the two issues recently faced...American Express Bank is the way to go when compared to Discover.
There was some confusion with some transfers between Discover and Chase where I believe I was incorrectly charged fees.
Chase quickly refunded their fee without admitting any fault, making this customer happy with Chase.
Discover didn't do the same.
Discover bank says: "Get preferred member rates on 12, 24 and 60 month CDs and IRA CDs."
However, all the rates are the exactly same for non-AAA members.
I have had a money market account at Discover Bank for over ten years. The rate has always been higher than any of my local banks. Of course, today, that does not mean a whole lot.
As far as fast service, this is something that I discovered (no pun intended) several years ago. Say I wanted to deposit $250 in my money market account. If I did online banking at my local institution and transfered the money, it took almost ten calendar days for the deposit to show up in my Discover account. If I MAILED a check, I have seen it posted to my account in a few as THREE days. Discover obviously posts a deposit the day it is received. Electronic = 10 days, snail-mail = 3 days...Hmmm...probably something with my local bank. That is why they are used for paying bills and nothing else.
Because of this I called Discover and asked if it was possible to get more deposit slips and postage paid envelopes so that I could keep a regular savings schedule. In a couple weeks I received an entire book of deposit slips (not blank, but with my name and account number) along with a stack of postage paid envelopes.
Opened up an online account . A dozen phone reps said the money never made it to the account. I was not able to speak with a supervisor. The one phone rep said to fax papers to them-which I did.Another said to call someone long distance(not tollfree)-which I did. I was told the money left my old bank and never made it to Discover Bank.I also used online customer service - never responded. I was told the money was GONE!AAA was no help initially, but 6 months later offered to help.I complained to the FTC and FDIC. I found out 4 weeks later the money was in an acoount.I also opened an account via U.S. mail. it took weeks. I spoke to several post offices and Discover Bank reps on the phone before the account was opened. It is too much time, effort and money to get an account opened.
Opening an online savings account with Discover Bank is a mistake. I found out the hard way. They are a day or two slow in transferring money out. That hurt a little but one can live with that. There are several other minor things that are troublesome, including horrible customer service. One can live with some of these things, as long as my money is fine. The big issue came when I transferred everything out of the account on the 24th of the month. I was stunned when I didn’t get any interest for the month, 24 days in. They told me that I forfeited that when I transferred everything out. AWFUL.
I never thought I'd say this but American Express (http://personalsavings.americanexpress.com/) is much better. Money transfers on time, better rates, plus, they do not steal your interest money. ING isn't bad either although their rates are a tad lower. At least, they do not confiscate your money. I have learned from experience, I hope no one else suffers my fate.
In early 2012, I moved my money from my ING to Discover Bank because of the better rates. Setting up the account with Discover Bank was a pain, and transfering money was extremely slow. Now that ING has the same rates, I moved my money back into the ING. Discover Bank's customer service was also terrible. Stay away.
I am a regular customer of this bank it provides allot of services and very comfortable lone conditions. I Have a current saving account in this bank and I am very happy with it as it gives a very attractive profit package. I have a credit card also with very easy return conditions. I will recommend others to have an account in this bank. I love it.
October 2008. I opened more than one. It was straight forward and efficient. I think I had to sign some forms via snail mail, but it did not hold up the process at all. The start date for the CDs was the moment I was online. I believe I had the money PULLED from one of the, then, high interest savings accounts.
I have had a few questions over time, that I handled via the logged in messaging method. That has been problem free.
My only drawback: I am a Discover customer in four ways...
-(2 logins) separate credit card accounts
-(1 login)multiple CDs
-(1 login)Savings customer (thanks to E-trade)
...and I have to have completely separate logins for these. They are not connected. Cannot be connected. I've asked. Not available.
I've still got a long wait before the CDs mature (unless DISCOVER is taken over/bought/bailed out, etc), so I am unable to comment on how easy it is to handle the money at maturity. I hope it is problem free.
So far, so good.
Been with Discover Bank since it opened with $$$$$ in a preferred savings account. Since the great recession started, they have always and steadily decreased and ratcheded down thier rates, but always gave the preferred and 'charter' members 0.05% more than the advertised rate. This stopped on 5/31/13. If you research you will find that there are at least 4 other online banks that offer the same or greater interest than Discover which has recently been the highest with the 0.05% kicker. We are no longer doing business with Discover Bank.
I recently opened a savings account with Discover. This was my first attempt at using an online savings account and I wanted to wait until until I received the signature card from the bank before funding the account. When I didn't receive the card after about 10 days I called and verified my address and they said they would send out another card. It's been over six weeks and I still haven't received either letter so I let the account close out. How can I trust a bank with my money when they can't even send me a letter?
I've had a Discover Card credit card for years and thought the overall product and service great. Based on that, I figured that Discover Bank bank accounts would also good. Big mistake! Banking with Discover Bank sucks.
Yes, the rates are good. Yes, they pay (bribe) you to use their Discover Checking. Yes, account setup is really easy. And yes their online banking is good. But when you get to things that really matter in the day to day management of your account, Discover Bank bites the big one.
There are but two ways to get funds into your Discover Bank accounts. One way is using their remote deposit app. A lot of banks these days have remote deposit and the concept is great. Leave it to Discover Bank, though to screw it up. The idea of an online bank is to give you more convenience for the disadvantage of not having branches nearby. Where the vast majority of online banks follow the Federal Reserve regulations for check clearing, Discover Bank files not. They like to hold all checks -- no matter how small -- for nine working days. Nine business days means for two weeks you have no access to those funds. This isn't just for new accounts either. Customers for years still get their funds held.
The second way to get money into your account is via ACH (Fedwire) from your bank. You go to your other bank and tell them to push money into your Discover Bank account. Fedwire is fast and funds are guaranteed so there is zero risk to the receiving bank. Fedwire transactions are also carried out in realtime so it is fast. Except when dealing with Discover Bank. If you tell your bank to ACH money from your account to, for example, your credit union and to Chase on Friday morning, by early Saturday morning those funds are sitting in your account at Chase and your credit union and available for use. Now, if you had sent money to Discover Bank, you wouldn't see those funds until Tuesday morning. Nothing convenient -- or ethical -- about that.
Remember Discover Bank's decent online banking? Well, don't get your hopes up. Their online banking is down for maintenance all the time. Discover Bank's online banking is down for maintenance (scheduled and unscheduled) about 50 complete days per year. Chase, the bank everybody loves to hate, hasn't been down 50 days in the past ten years.
It isn't worth the extra 10 basis points in interest you get from Discover Bank considering how inept and Stone Age they are.
My only complaint is that it takes at least a week for an ACH to fully transfer. The money will be gone from my third-party account in a day or two (transfer initiated at Discover), but it seems to take at least 5 business days for it to fully deliver.
Customer service for me has always been top notch, although I'm a pretty low-maintenance customer.
Pluses: Good APY, 24hr customer service
Minuses: VERY SLOW transfers compare to other banks. They would withdraw money from your external account, and for the next 3 business days they can use them without paying you an interest. After that, they will appear under your balance. Transfer LIMIT is 50K a month. It's 30 days until you can withdraw more than 50K. 10 business days hold on your deposits for the first 6 month. In comparison, some banks can transfer money within one business day, no transfer limit and hold on deposits only 6 business days.
Advise: shop around and don't let this slightly higher APY limit access to your money when you need them.
The early withdrawal penalty is 6 months (see http://www.discoverbank.com/cd-faq.html), so for example, if you need to withdraw at 18 months, you would still earn close to 2%.