Discover Bank cut the rate on its Online Savings Account to 1.35% APY (was 1.60%). This account had been a rate leader, but this cut puts them into the average zone. Existing customers appear to be grandfathered with the 1.60% for now at least.
One bright spot is that Discover is making a major upgrade to their online banking system. I received an overview of it last Friday. I'll have more about this in a full blog post. MyBankTracker
already has a review of it. I have more details about this savings account in my Discover Bank review