Overview: Discover Savings and American Express High-Yield Savings Account Review
Many credit card companies have used the growth of the online banking industy as an opportunity to expand their business and offer banking services.
Companies like Discover and American Express have begun offering personal bank accounts. Close competitors like these tend to offer very similar products, like the Discover savings account and the American Express high-yield savings account.
Our purpose is to present an impartial Discover and American Express high-yield savings review and comparison so that prospective customers can make the most informed choice between the two.
Many loyal customers have trusted these companies with their money for years. However, when new services are being offered, it may be an opportunity to step back and reconsider the options available.
Both companies come with advantages and disadvantages, and customers must decide which option is best for them. It is important to carefully consider:
- The benefits of each account
- The disadvantages of each account
- The process of opening each account
- How the two compare
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Because every customer’s needs are unique, it is important that they choose the best company for their personal circumstances and finances.
Online product reviews are easy to access and can hold helpful information; an American express savings account review is a good tool to consider.
Discover and American Express savings account reviews are a good way to closely examine what both companies have to offer and compare and contrast their services and shortcomings.
Discover Savings Account Review: Benefits
The Discover high-yield savings account is a personal savings account option with many selling points.
This is a banking option offered by the Discover company through their website. A Discover high-yield savings account gives customers peace of mind and convenience through easy-to-use online and mobile platforms.
The Discover bank interest rate is a huge benefit offered by this option. The annual percentage yield, or APY, rate for the Discover online savings account is five times higher than the national average for interest-bearing savings accounts.
As of October 13, 2016, the APY for the Discover savings account was a whopping 0.95%. It is important to keep in mind that this estimation is only based on accounts with a balance of $500, so the average is not universal.
Besides the high Discover bank interest rates, this savings option strives to offer simplicity. A Discover savings account does this by requiring no:
- Monthly maintenance fees
- Minimum monthly balance fees
- Costs for official bank checks
- Charges for expedited delivery for official bank checks
- Incoming wire transfer fees
Image from Discover
The Discover savings accounts also offer another level of convenience through their online services and mobile app.
Customers are able to easily access their Discover online savings account information whenever they choose. They are able to view their account activity and check their balance on either platform.
The Discover online savings account services allow customers to set up automatic transfers from outside accounts or move money out of savings as they wish. The app offers mobile check deposits, for added convenience.
Discover Savings Account Review: Limitations
Even though Discover online savings accounts have many advantages, they do have some limitations. Currently, Discover high-yield savings accounts offer exactly what they claim, high savings yields and high APY rates.
However, there is absolutely no guarantee that these rates will remain the same. Discover bank interest rates for these accounts are not locked in place and are subject to change at any time with no required notice.
Despite the fact that Discover savings accounts do not have minimum monthly balance fees, this does not mean that they are without minimum requirements. Discover high-yield savings accounts have a required minimum opening balance of $500.
This means that you do not need to have a certain amount of money in your account each month, but you cannot open an account with a starting balance of less than $500.
Relatedly, the Discover savings account boasts no hidden fees. However, this is no guarentee that customers will have no fees at all. Discover savings accounts can be subject to the following fees:
- $15 per deposited item returned
- $15 per instance of excessive withdrawals
- $15 for a stop payment order for six months
- $30 fee for insufficient funds, which can only be charged once a day
Discover savings accounts are also limited by federal online banking regulations. These regulations dictate that only a certain number of withdrawals and transfers can be conducted through online bank accounts during a billing period.
Discover savings accounts are limited to only six such actions per every 30-day billing cycle.
Discover Savings Account Review: Opening
Discover savings accounts can be opened online or over the phone. Opening an account is fast and simple with the customer service and security of the Discover Company. There are three basic steps to opening a Discover high-yield savings account online:
- You will need to select the type of account that you want and fill out your personal information on the online application. You can expect to be asked basic banking questions including but not limited to your name, Social Security number, email address, and mailing address.
- You will be required to fund your savings account with the minimum $500 opening balance. Your account can be funded with a transfer from another checking account or by a wire transfer.
- Finally, you must verify you information and sign your application with an electronic signature. You may have to answer a few security questions to verify your identity.
American Express High Yield Savings Review: Benefits
An American Express savings account is another option for an online savings account offered by a well-known company. American Express is a very well-known and trusted company, with a lot to offer.
The American Express high-yield savings account is very competitive and comes with a lot of advantages.
The American Express savings interest rate is very high when compared to traditional savings accounts. As of October 11, 2016, it has an APY of 0.9%. This is much higher than the national average APY, which was 0.06% in March of 2016. The interest on the American Express high-yield savings account is compounded daily and posted to each account on a monthly basis.
In addition to the high American Express savings interest rate, very few extra fees are attached to the accounts. There are no:
- Monthly minimum balance fees
- Monthly maintenance fees
- Limits to deposits or credits to accounts
Image from American Express
There are a few ways to move funds into an American Express high-yield savings account. First, funds can be transferred by linking an external checking or savings account to the American Express savings account. A link can be established online or by mailing a check associated with the account to the American Express Banking office in Utah.
If a customer would prefer to not link any external accounts, funds can still be transferred into an American Express high-yield savings account.
Money can be deposited by mailing physical checks to the American Express office in Salt Lake City, Utah. All checks that are payable to the account holder must be endorsed by the account holder and marked below with “for deposit only in account” followed by the account number.
An American Express high-yield savings account offers the convenience and ease of online banking. American Express high-yield savings can be accessed at any time either online or over the phone.
Customers can access their American Express savings account, review their balances, and check their finances at any time.
American Express High-Yield Savings Review: Disadvantages
Like most things, American Express high-yield savings accounts do not come without a price. American Express savings account reviews, written by customers and experts alike may sing high praise, but that does not mean that these accounts are without limitations.
It is important to understand the advantages and disadvantages in order to create an honest American Express savings review.
With that in mind, American Express high-yield savings accounts are designed to function only as private, personal savings accounts.
This means that these accounts can only be used by private individuals and cannot be used for official business. It also means that American Express high-yield savings accounts do not have ATM cards, debit cards, or checks provided with the account.
American Express savings interest rates are quite good, but they are variable, which means that can be subject to change. American Express savings interest rates are not guaranteed. This is important to keep in mind, but it does not mean that interest rates will plummet any time soon; online banks usually have much more competitive rates than traditional banks across the board.
As American Express high-yield savings accounts are an online banking option, they face special limitations. They are limited by federal regulations, and only six withdrawals or debits can be preformed online or over the phone per billing cycle. The following kinds of transactions are subject to limitations:
- ACH withdrawals and debits
- Wire withdrawals and debits
- Internal transfer debits
The following transactions are not subject to limitations:
- Official checks requested over the phone
- Deposits or credits to the account
American Express High-Yield Savings Review: Opening
It is impossible to take advantage of American Express high-yield savings without actually opening an account. First impressions of how pleasant and user-friendly an online bank will be are made during this process.
This is why it is very important to include the process involved in opening an account in honest American Express savings account reviews.
An American Express savings account can be opened online or over the phone. This process has four basic steps:
- To open an American Express savings account, you will need your Social Security number, date of birth, email and home addresses, a valid phone number, and account and routing numbers to complete your application.
- You will need to choose the type of account that you want and fill out the appropriate application.
- Once your application has been processed, you will get a confirmation, which can be in the form of an email, and a welcome kit through the mail.
- Last, you will need to fund your account by linking to your current bank account or by mailing a check to the American Express office in Utah. Interest begins to accrue as soon as your account has been funded.
American Express and Discover: A Comparison
A forthcoming American Express savings account review or Discover review must take into account that both companies have many features in common.
They both also have many differences that can make them appealing to different kinds of customers. These features do not necessarily make one better than the other, but they can make them a better choice for some customers.
American Express high-yield savings are impressive because of their interest rates. However, Discover bank interest rates are slightly higher as of this writing. The difference between the two may be marginal and inconsequential to some customers. Remember, both rates are subject to change, so it may not be wise to make a choice based on rates alone.
The American Express and Discover savings accounts both offer the convenience of 24-hour online access, but only Discover offers a mobile app. This makes it possible to quickly and easily deposit physical checks to a Discover savings account, which cannot be done as easily with American Express.
Some customers may feel very strongly about having access to a mobile app, while others may prefer to use a more traditional website. It is important to consider your own needs and preferences in this regard.
Neither the American Express high-yield savings account nor the Discover account have monthly minimum balance requirements or monthly maintenance fees. However, Discover does require a minimum opening balance of $500.
This may be an important factor for customers looking to open an account with lower funds.
A Discover or American Express savings review is, above all else, a tool for gathering information. It can help you, as a consumer, make an informed decision by presenting as much detail about a product as possible.
However, because personal finances are just that, personal, only you can know which is the best option for your needs.
Conclusion: Discover and American Express Savings Review and Comparison
High-yield savings accounts can be very useful for customers hoping to help their savings grow. High interest rates and low fees can streamline the process and keep the business of saving as simple as possible.
Choosing one high-yield account over another can be difficult, particularly because each company will do its best to advertise advantages and downplay disadvantages.
Keep some of our best pieces of information in mind:
- Discover offers slightly higher APR rates, but this is subject to change.
- American Express does not offer a mobile app for savings accounts.
- Discover requires a $500 minimum opening balance.
- Both savings accounts do no have monthly maintenance fees or monthly minimum balances.
- Both accounts can be opened online or over the phone.
A degree of impartiality is important for a Discover or American Express savings account review to be as effective as possible.
This is because it is impossible to account for each individual customer’s needs and preferences and because what makes a savings account more useful for one person may make it less useful for another.
A good review is a tool to help each customer gather the most pertinent pieces of information so that they can make a decision as quickly and easily as possible.
AdvisoryHQ (AHQ) Disclaimer: Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info. Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.