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We may think mostly of credit cards when we think of Discover®, but the popular card issuer is also a bank with a range of products, including the competitive Discover® Money Market account. While not the highest rates we've seen, you can get a solid APY with a reasonable minimum deposit. Plus, you can enjoy Discover's famously good customer service. Read our full Discover® Money Market account review for all the details.
Discover® Money Market
This account offers a competitive APY, especially given there are no monthly service fees, while still giving access to ATMs and checks. The minimum balance to open the account may be a little high for some folks, but you don't need to maintain a high balance to earn a good rate.
We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
A competitive APY: The biggest feature of the Discover® Money Market account that makes it worthwhile is the competitive APY (annual percentage yield). It's not as high as some of our other top money market accounts, but it's a very respectable 4.00%-4.05%.
No minimum balance to maintain your account: While you need to meet a minimum deposit to open your account, once established, you won't need to maintain a set balance just to keep your account open. You don't need to meet a minimum for a good APY, either, though the top tier rate does have a minimum threshold.
No monthly account fee: Normally, perks like ATM cards and check writing mean paying pesky checking account fees. Not with this account. There's no monthly account service fee. You also won't pay fees for standard checks, eligible ATM withdrawals, or replacement debit cards.
ATM access and paper checks: Money market accounts pair the best features of savings and checking accounts. For one thing, you get the high APY of a top savings account. Plus, you'll receive a debit card with ATM access. You even have the option to write paper checks.
Discover customer service: Every time someone comes out with a list of the best banks or credit card companies for customer service, Discover is usually ranked pretty high. For instance, they're usually first or second in the J.D. Power rankings. You deal with your bank regularly, so you want to choose a reliable one.
Opening balance requirement is high: You need to deposit at least $2,500 to open a Discover® Money Market account, which is fairly high and could put this account out of reach for some folks. On the plus side, once the account is open, you won't be penalized if your balance drops below $2,500.
A high balance required to earn best APY: The basic APY offered to all account holders is solid, but if you want the highest possible rate, you'll need to deposit and maintain a balance of at least $100,000. Needless to say, that is very high. Moreover, if you have that much money to deposit somewhere, this might not be the best use of it.
No bank branches for in-person banking: The main drawback to an online bank vs. brick-and-mortar banks is that you won't be able to visit a branch. So if in-person banking is important to you, you may need to look at alternative options.
Getting money into and out of your account is fairly simple, especially if you can transfer to or from another account.
Since Discover® Bank is an online bank, most of your deposit options are digital:
That last option is probably the most interesting on the list. Basically, if you have a contactless Discover® Bank debit card, you can take your card and some cash to any Walmart. Then, you simply ask a cashier to add the cash to your Discover® Bank account.
You have more withdrawal options than you do for deposits, including:
If you want cash in hand, your best option is probably to hit the ATM. Your debit card can be used at more than 60,000 in-network ATMs with no extra fees. Or, use your card at any ATM -- just watch out for those extra service fees.
A Discover® Money Market account is for folks who want checking account features, like check writing and/or ATM access, but still want a competitive APY. The minimum opening deposit requirement is fairly high, however, and you won't get the top rate unless you deposit $100,000 or more. But you do get to enjoy Discover's top-rated customer service, which may be of the most value to some.
At The Motley Fool Ascent, we evaluate money market accounts based on four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum balance requirements, and perks.
Our scores are weighted as:
Learn more about how The Motley Fool Ascent rates bank accounts.
A money market account essentially combines the best features of both checking and savings. You get the high interest rate of a savings account, plus the ATM and check-writing capabilities of a checking account.
No, there are no account opening or monthly service fees with a Discover® Money Market account.
If you want a competitive APY and no fees, the Discover® Money Market account can be worth opening. It doesn't have the highest rate we've seen, but Discover has famously good customer service.
Our Banking Experts
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