Discover Bank Adds New $150 or $200 Savings Bonuses

POSTED ON FRIDAY, AUGUST 25, 2017 BY Ken Tumin

Deal Summary: $150 or $200 bonus when opening a new Online Savings account.

Availability: Nationwide (internet bank)

Discover Bank has been offering bonuses on new Online Savings accounts for several years, but the latest bonus is definitely the best one so far: a $150 or $200 bonus when opening a new Online Savings account by October 2, 2017. To put these new bonuses in perspective, as recently as this past April, the bonus was $100; in early 2013, a $10k minimum deposit only earned a $25 bonus.

APY	MIN	MAX	INSTITUTION	PRODUCT	DETAILS
1.20%	-	-	Discover Bank	Online Savings

Accounts mentioned in this post. Rates as of October 22, 2017.

Bonus Requirements

Open an Online Savings account by October 2, 2017 at this promo page.
Use offer code S817 when applying.
$150 bonus – fund with at least $15k by October 16, 2017.
$200 bonus – fund with at least $20k by October 16, 2017.
Maximum bonus is $200 per account.
Not available to existing or previous Discover savings customer.
Account must be opened when bonus is credited.
Bonus will be credited by October 31, 2017.

In my last Discover Bank bonus blog post, I included comments from DA reader, 767, about his experience in applying for a bonus. I believe it’s a worthwhile read.

Thought I'd share my hassle free and quick $100 earning experience. I opened my account online on 3/1 using promo code SAVE117D3 but had to call them for verification, I presume because I have a security freeze on my credit file.

I verified my information with the US based customer service rep and proceeded to set up online external transfers. I verified the trial deposits and transferred $15k in to my new Discover account which showed up on 3/3. Like all new bank accounts, there was a security hold. On 3/8, the $100 posted and the funds became available for transfer out.

As I see no requirement to keep all $15k on deposit, I plan to transfer out most of it but keep the account open for the time being.

Availability

Headquartered in Greenwood, Delaware, Discover Bank is an internet bank with no brick-and-mortar branches. To qualify to open an account of any kind with Discover Bank,

Each Account Owner must be a U.S. citizen, U.S. Resident Aliens or other U.S.
person at least 18 years old and have a valid taxpayer ID and physical U.S. address.

Applying for either the $150 or $200 Online Savings account bonus must done online, using code S817. Since this bonus is only available to customers who do not have (or ever had) a Discover Bank Online Savings or Money Market account, funding the new Online Savings account must be from an external bank account.

You can send us a check or transfer funds from an existing bank account.

Bank Overview

Discover Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 6.61% (excellent) based on March 31, 2017 data. In the past year, Discover Bank has increased its total non-brokered deposits by $4.85 billion, an excellent annual growth rate of 15.74%. Please refer to our financial overview of Discover Bank (FDIC Certificate # 5649) for more details.

As one of the largest financial services firm in the country, Discover Bank traces its roots back to the Greenwood Trust Company, which was established in 1911. Discover Bank came into being following the purchase of the Greenwood Trust Company in 2000. Today, Discover Bank has assets in excess of $93.6 billion and more than 415,000 ATMs spread across the United States.

How the Bonuses Compare

Assuming an Online Savings account is opened with the required minimum deposit of $15k, and is kept opened for the required one month to ensure the bonus being awarded:

$15k for 30 days in Discover Bank’s Online Savings = $150 bonus + $14.30 interest
$15k for 30 days in a savings account earning 1.40%* = $17.39 interest

Assuming an Online Savings account is opened with the required minimum deposit of $20k, and is kept opened for the required one month to ensure the bonus being awarded:

$20k for 30 days in Discover Bank’s Online Savings = $200 bonus + $19.07 interest
$20k for 30 days in a savings account earning 1.40%* = $23.18 interest

*1.40% is currently the best nationally available savings account rate.

As you can see, the value of the bonuses clearly exceeds the additional interest that could be earned in a top savings account.

The above rates are accurate as of 8/25/2017.

Other Bank Promotions and Bonuses

Not eligible for Discover Bank’s Online Savings bonus? Check out my latest bank and credit union bonus blog posts to find other promotions. In addition, DepositAccounts.com readers and I also post often on bonuses in the Bank Promotions Forum.

rhutnik | Aug 26, 2017 | Comment #1

Can you call/apply online to open this account on 10/1 or 10/2, then transfer in $15k or $20k so it arrives in the account by 10/16, then wait for the bonus to be credited on 10/31 or before? Just asking because if there is money tied up, it can be hard to let the $20k just sit in there for a month.

gregk | Aug 26, 2017 | Comment #2

Why is it "hard to let the $20k just sit in there for a month"? Interest earned for that period would be only $4.11 less than the best yielding alternative savings account. Where would you put the money otherwise?

rhutnik | Aug 26, 2017 | Comment #3

I'm a student with a large financial burden coming up for the start of school. Just curious about the shortest possible time to leave money in here. Most funds are tied up in the Ally No Penalty CDs and the Navy Fed 5 month 3% CD, not much is totally liquid to move around into this Discover account.

gregk | Aug 27, 2017 | Comment #5

In fact, there is no requirement to keep the initial deposit in the account until the bonus is paid (Ken suggests there is, but it's not true). As soon as the funds become available you could transfer them out (before Oct.31) and still receive the bonus.

rhutnik | Aug 27, 2017 | Comment #6

How do you figure?

Deal with it | Aug 27, 2017 | Comment #7

I agree. I see no requirement to keep money in the acct .....only that the acct be open when bonus is credited. Better hurry if you want this.....they can change rules any time.

gregk | Aug 27, 2017 | Comment #10

Requirements to receive the bonus are:

1) Open the account

2) Make the initial deposit

3) Have the account open when the bonus is paid.

I would call Discover Bank to confirm this.
They will.

gregk | Aug 27, 2017 | Comment #11

That said, there's processing and hold times to get funds in and out. You probably couldn't do it in less than 2 weeks.

??? | Aug 27, 2017 | Comment #13

you make my point

gregk | Aug 27, 2017 | Comment #14

Which was what?

I don't see a previous post by you here.

Comments

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24 Comments.

Banker | Aug 27, 2017 | Comment #4

"Headquartered in Greenwood, Delaware, Discover Bank is an internet bank with no brick-and-mortar branches." Wrong. They have a brick-and-mortar branch in Greenwood.

#8 - This comment has been removed for violating our comment policy.

Att | Aug 27, 2017 | Comment #9

Years ago I was a discover bank customer so according to the post I do not qualify.

cdinvestor | Aug 28, 2017 | Comment #15

I had a Discover Card years ago but never a bank account. Does this count me out?

Att | Aug 28, 2017 | Comment #16

According to Ken in the post if you had a prior savings account you are not eligible. I doubt a credit card would disqualify you. You can always call them

RJM | Sep 6, 2017 | Comment #18

I signed up for their cashback checking for a $50 bonus and got it. Ive had a Discover Card for about 30 years prior. My $50 was late but I got it. And then got another one I think by mistake.

Later I got something for transferring in a large amount. That may have been to the savings which I had opened but didn't have much money in. If I recall, the wording just said transfer it in, it didn't say I had to leave it there for 30 days. A rep later expressly told me I didn't. I don't think it was $200. Maybe $100?

RJM | Sep 6, 2017 | Comment #17

Here is a Mint promo code I got.
Nevermind that I already have 2 savings accounts that Mint should know about.
LOL

Earn 1.15% APY* with no monthly fees or minimum deposit. Plus, get up to a $200 bonus** when you open your first Discover Savings account by 10/02/17 and deposit at least $20,000 by 10/16/17! Use code MINT817.
Discover Bank, Member FDIC

Val | Sep 13, 2017 | Comment #19

FYI You CAN open this up by phone using the S817 code. Also I was told that the full amount of either 15k or 20k does need to be in the account until the bonus shows up at the end of October. Kudos to CS "Laurie" she was great!

love this blog | Sep 15, 2017 | Comment #20

To get $150 or $200 bonus, one has to enroll no later than September due to deposit limits on new accounts. From Discover mobile app: "If your oldest Discover bank has been open for less than 90 calendar days, you may deposit up to $5,000 per day, and up to $10,000 per rolling 30 day calendar period across all your accounts."

anonymous | Sep 30, 2017 | Comment #21

I think that may be a special limit for deposits made through the mobile app. I am seeing an incoming limit of $250,000 per rolling 30 day period in their regular account agreement posted on their website, without any mention of a dramatically lower limit for new accounts. In any case, it should be possible to mail in a check or push from an external account, I'd think.

Robb | Oct 5, 2017 | Comment #22

My $200 bonus posted today. Was thinking I would need to hold until 10/31 to get the bonus but it came in after a 30 day hold. Opened account Sept 1st.

Anon1234 | Oct 6, 2017 | Comment #24

Opened account 9/8, my $200 bonus posted effective 10/5.

Nothing | Oct 6, 2017 | Comment #25

Anon...regarding your forum post. All banks have a right of setoff...if you owe them money, they will pull from whatever account you have...even if IRA and if premature, you may pay big time.

Anon1234 | Oct 6, 2017 | Comment #26

I agree that all FIs have a right of setoff.

However, I am anon1234.

It was anon456 who posted in the forum complaining about PenFed credit cards and the rights of setoff. Your post may help him if you post in in the forum.

Anonymous | Oct 6, 2017 | Comment #23

For thise funding from an external account: be aware that they will automatically deduct the initial deposit money from the account the moment you verify your trial deposits, without in any way flagging that this is happening. If you assume (as is usual in my experience) that you need to go through a separate funding step, and you manually schedule a transfer, you will find the money has been double deducted from your funding account. The fine print in the application paperwork does say the deduction will happen after you verify your trial deposits but it also says the online interface will guide you through the final funding steps. It doesn't. It verifies your account and gives no hint that you are done, the money is going to be auto-pulled.