Discover Money Market Interest Rates: September 2024
Written by
Taylor Milam-Samuel
Edited by
Emily Gadd
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Discover’s Money Market account is a solid option for savers with a high account balance. You’ll earn APY for balances over $100,000 and APY on smaller amounts.
The money market account from Discover comes with useful perks like no fees and free access to over 60,000 ATMs. But you can’t visit a physical location and must maintain a large balance to earn the highest rate.
Pros and Cons
Here’s what to consider as you decide whether Discover’s Money Market account is the right fit.
Pros
- No account-related fees
- No minimum balance requirement
- Fee-free access to over 60,000 ATMs
Cons
- No physical branch locations
- Must maintain a $100,000 balance to earn the highest rate
- Rates are competitive but not the highest
Discover Money Market Interest Rates Overview
Discover offers one money market account. It is FDIC-insured, and opening it requires no minimum deposit. Here are the current Discover Money Market rates.
| Discover Money Market Account | APY |
|---|---|
| Balance under $100,000 | |
| Balances over $100,000 |
Discover rewards savers with high balances by offering an extra 0.05% APY for accounts over $100,000. But regardless of your account balance, both rates are much higher than the national average of 0.64% APY.
Most banks are offering higher-than-normal interest rates for savings accounts due to high inflation levels. When inflation increases, rates for savings accounts increase. The reverse is also true–APY rates decrease as inflation decreases.
Discover Money Market Account Features
Discover’s Money Market account doesn’t have fees. You won’t pay any charges for:
- Monthly maintenance
- Insufficient funds
- Account closures
- Excessive withdrawals
Some banks advertise that accounts are free, but you must meet specific requirements, like maintaining a minimum balance or making a certain number of monthly withdrawals. The Discover Money Market account has no stipulations to avoid fees because the account doesn’t have any fees to avoid.
You don’t need to deposit a minimum amount to open the account. Plus, there’s no balance requirement. Discover also makes it easy to access your money. You can:
- Withdraw funds at over 60,000 fee-free ATMs
- Request a complimentary debit card
- Write checks
How Do the Interest Rates for Discover Money Market Accounts Compare to Other Banks?
Discover’s Money Market account interest rates are much higher than the national average of 0.64%. Even though rates are excellent, you can still find higher rates at other banks. For example, Ally Bank offers APY and Virtual Bank offers APY for money market accounts.
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How to Decide on the Best Money Market Account
It might be worth shopping around for the highest rate before choosing Discover. But it depends on what you’re looking for in an account. Some accounts with higher APY rates have fees or come from credit unions with strict eligibility requirements.
You might also consider a high-yield savings account, which offers some of the same benefits as a money market. The primary difference is that you can’t write checks or withdraw money using a debit card.
How to Open a Money Market Account at Discover
Once you’re ready to open a Discover Money Market account, complete the following steps. The process is straightforward and completely digital. Here’s how to open an account.
- Provide identifying information: Once you start the application, you must provide basic information like your address, full name, and Social Security number. It’s a short form that only takes a few minutes to complete.
- Make a deposit: You need to make a deposit to your new account. The deposit can be any amount. If you’re not ready to make it when you apply, you can return and add the money later.
- Check for email confirmation: Discover will email you to confirm your account. Make sure you get the information and complete any final steps. After that, your account is open.
If you get stuck or need extra assistance, you can call the customer support team at 1-800-347-7000. Representatives are available 24 hours a day, seven days a week.
Final Take
Discover’s Money Market account stands out as a top pick for savers who want no fees, competitive APY rates, and easy access to their money. You can find higher rates with other banks, but there might be other tradeoffs, like fees and complex applications. Discover’s Money Market account is an excellent option for savers comfortable with an online-only bank.
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