Discover Bank is offering a small account opening bonus. It's only $25, but it's easy to qualify for it. If you're going to open a Discover Bank account, you might want to take advantage of it.
Discover Bank has set up a promotions page at DiscoverBank.com/BuildUp2. The offer code is BuildUp2. To qualify for the bonus, a minimum $10,000 deposit must be received by 1/15/2013. The offer is good on any Discover Bank account excluding IRA CDs and CDs of 9 months or less. It's scheduled to last through 12/15/2012. Below is a copy of the offer's small print:
The $25 offer is valid through 12/15/12. Limit one offer per customer. Offer good on any Discover Bank account (excluding IRA CDs and CDs of 9 months or less). Individual and Joint accounts only. To receive the cash offer, Offer Code BuildUp2 must be used when applying and a minimum deposit of $10,000 in new funds must be received by 1/15/13. At least $10,000 must remain in the account until 1/15/13. The $25 will be credited to your Discover Bank account 6 to 8 weeks after 1/15/13. Cash offer is considered interest income and will be reported on IRA Form 1099-INT. Offer may be withdrawn at any time without notice.
Hat tip to the reader who emailed me news of this offer.
AAA members used to be able to get an extra 5 basis points on all Discover Bank products. However, this bonus rate now only applies to a few of the CDs. Discover Bank also has agreements with other organizations including American Association of Individual Investors (AAII) and BJ's Wholesale Club. AAII members still get a 5bps rate bonus on all products. I have more details about these offers in my last Discover Bank CD review.
As I described in my CD review, Discover Bank is the only internet bank that's still offering a 2% APY CD. Unfortunately, this requires a 7-year term. Discover Bank's savings account rates have generally been inline with the other major internet banks. Its current rate of 0.80% is a little higher than ING DIRECT's Orange savings account rate (0.75%). However, it's quite a bit below of Ally Bank's savings account rate of 0.95% (rates accurate as of 10/30/2012).
Discover Bank is one of the largest internet banks. It has over $71 billion in assets and over $41 billion in deposits. Its overall health score at EpBooks.us is 5 stars (out of 5) with a Texas ratio of 7.08% (excellent) based on June 2012 data. Please refer to our financial overview of Discover Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 5649).