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Discover Bank's AAA Affiliated Money Market Account and CDs


AAA and Discover Bank have partnered to offer AAA members special rates on Discover Bank's deposit products. This replaces the AAA affiliated Bank of America accounts for new bank customers. The special AAA rates are not that great compared to the standard rates at Discover Bank. Most rates are just 5 basis points higher. One other AAA benefit is a lower minimum balance. For the AAA money market account, you earn some interest on balances below $2,500. However, there's a $10 monthly fee for balances under $1,500. For CDs, there's no minimum balance.

To view these AAA Discover Bank rates, start at AAA's financial services page and enter your zip code. You should then see a Discover Bank link on the right. Note, this Discover Bank AAA accounts don't seem to be available for all zip codes. I couldn't find them offered for a Texas zip code. These are available for at least Florida and Arkansas.

The current money market rates are fairly competitive. Below are the yields for both the standard Discover Bank account and the AAA version:

Balance Stnd APY AAA APY
$0-$2,499 0.00% 2.83%
$2,500-$4,999 3.04% 3.09%
$5,000-$9,999 3.35% 3.40%
$10,000-$24,999 3.87% 3.92%
$25,000-$49,999 3.92% 3.97%
$50,000+ 3.97% 4.02%

The CD rates are also decent with yields ranging from 3.30% APY to 4.18% APY. The most competitive rates are on the longer terms with a 4.18% APY for the 5-year term and 4.02% APY for the 4-year term.

These AAA Discover Bank accounts also have the same new account bonus that I reported on two weeks ago. Please refer to that post for bonus details and for more details on the money market account. In that previous post, a reader mentioned in the comments about his problems with Discover Bank's customer service. In his opinion the customer service "is often unavailable, and unreliable at best." If you've been a Discover Bank customer, your comments are appreciated.

Discover Bank is a member FDIC (Certificate # 5649).

Thanks to the reader who emailed me info on these new accounts.
Related Pages: money market accounts, CD rates

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  |     |   Comment #1
Available in AZ.

Also, Arizona Bank & Trust has a 6.01% APY rewards checking.
Sofa King Frustrated
  |     |   Comment #2
Thanks for the tip about Arizona Bank & Trust. (Need to check their balance cap, though.)

Still hoping Bank Guy will make a list of Rewards Checking banks or CU's that will take $100K.

Sofa King Too
  |     |   Comment #3
Just checked. Arizona Bank & Trust's Rewards Checking balance cap is a paltry $20,000! They should be ashamed of themselves. (Now I know why you are "Sofa King Frustrated!")
Banking Guy
  |     |   Comment #4
sofa king frustrated, I started labeling the reward checking accounts based on balances. So far I've labeled new ones since the start of this year. Unfortuantely, there hasn't been a single new reward checking account this year with a cap above $50K. Here's the list of those with caps over $25K to $50K:

Reward Checking Accounts with caps over $25K and up to $50K

Most of these have $50K caps.
Less Sofa King Frustrated
  |     |   Comment #5
Thank you, Bank Guy!!!

  |     |   Comment #6
Re Discover Bank Customer Service:
My mother had several CD's there at her death in July 2005. I tried the whole rest of 2005 to either cash them or take them out of her trust and put in my name. They put me through so many hoops that I finally gave up and they were the only part of her estate I could not change from her name by the end of 2005. So I would rate Discover Bank's customer service totally unacceptable and will not ever deal with them again.
  |     |   Comment #7
I was searching for better rates than my USAA money market. Came across AAA/Discover. Can't remember now which site I was on, but it said you get $25 to open new acct, min of $3000. Did it on-line but didn't get any kind of confirmation. Kind of strange. Got a statement a few weeks later, no mention of $25. Called and they said they weren't familiar with it! Off to a good start . . . You would think if you signed up with that on the page they would know about it. Now can't find it b/c not sure if I was on AAA, or some Discover site. Was a better rate than USAA.
  |     |   Comment #8
Discover Bank has a clause in their Account Agreement:
We can terminate your Account at any time for any reason."

So, if you think you've locked in a rate with one of their CDs, consider that they have the right to cancel your CD if they get up on the wrong side of the bed one morning.

Sadly AAA promotes an account with Discover Bank with exactly the same clause.
  |     |   Comment #9
Stay away from Discover Bank if customer service is what you are looking for. I am experiencing unbelievabls ineptness for some very simple things. Even their "supervisors" don't seem to be able to help... they listen, but they can't get anything accomplished.


Stay away from Discover Bank!!
  |     |   Comment #10
Have you had any problems with ALLY?  I am looking to get a higher CD rate  than what is  available locally.
  |     |   Comment #11
From a scale 1-10 where would you guys rate DISCOVER and ALLY in terms of rate per cds and customer service?
  |     |   Comment #12
Discover Bank customer service said my online  transfer deposit never made it to the account and the 3 Business Reply Mailings from the AAA office never reached them. They gave me my sisters account number over the phone.

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