Frequently Asked Questions
Money Market Accounts
What is the minimum balance for Discover Bank Money Market Accounts?
An initial deposit of $2,500 is required to open a Discover Bank Money Market Account. A minimum average daily balance of $2,500 must be maintained in order to avoid fees.
What fees are associated with my Discover Bank Money Market Account?
Fees are assessed for certain special services, outlined below, and for accounts with an average daily balance below the minimum of $2,500.
Fee Schedule for Discover Bank Money Market Accounts
| Copy of Statement, Check, Deposit Item | $5.00 | |
| Stop Payment (per request) | $15.00 | |
| Outgoing Domestic Wire | $20.00 | |
| Outgoing International Wire | $40.00 | |
| Incoming Domestic Wire | $10.001 | |
| Incoming International Wire | $15.001 | |
| Returned Item | $35.002 | |
| Excessive Withdrawal (per item) | $15.00 | |
| Minimum Balance (average daily balance below $2,500) | $10.00 | |
| Returned Deposit Item | $15.00 | |
| Check Reorder (initial order free) | $5.00 | |
| Emergency Counter Check (per item) | $5.00 | |
| Withdrawal by Official Bank Check (per check) | $5.00 | |
| Account Closure (within 90 days of opening) | $20.00 | |
| Collection Item | $10.00 | |
| Foreign Check Conversion | At Cost | |
| Priority Mail | $20.00 | |
| Deposit by Phone | $10.00 | |
| Debit Replacement Card | $5.00 | |
| 1 Waived for Account opening. | ||
| 2 For residents of West Virginia, the fee is $15.00. | ||
How can I access funds from my Discover Bank Money Market Account?
There are several ways to access your Discover Bank Money Market Account funds:- Use your Discover Bank Debit Card at any ATM with the Discover Network Acceptance Mark or the Pulse logo
- Use your Discover Bank Debit Card to pay for purchases wherever Discover Card is accepted
- Write checks from your account
- Use Online Banking to transfer funds from your Discover Bank Money Market Account to your other Discover Bank or non-Discover Bank accounts
- Link your Discover Card to your Discover Bank Money Market Account
When will I receive my Discover Bank Money Market Account statements?
Discover Bank Money Market Account statements are mailed on the 20th of each month.
When is interest credited to my Discover Bank Money Market Account?
Interest is compounded daily and credited monthly.
What is APY and why is it used?
"APY" stands for "annual percentage yield." The annual percentage yield measures the total amount of interest paid on an account based on the interest rate and the frequency of compounding.
Can I withdraw interest from my Discover Bank Money Market Account every month and still receive the quoted APY?
No. APY takes into account the effects of compounding; therefore, in order to receive the quoted APY the interest earned must remain in the account.
When can I access my initial deposit funds?
If made by electronic funds transfer, initial deposit funds will be available approximately 5 business days after the funds are received. If made by check, initial deposit funds will be available approximately 10 business days after the check is received.
What are the transaction limitations for Discover Bank Money Market Account?
You may make up to 6 preauthorized withdrawals from your Money Market Account per statement cycle, including automatic or telephone transfers. Three of these may be made by check, draft, debit card, or similar order made by the depositor and payable to third parties.
For further information on permitted withdrawals, see Section 17(b) of your Account Agreement.
Is there overdraft protection on the Discover Bank Debit Card?
No. Transactions that exceed the available balance in your account may be declined.
How is interest on my Discover Bank Money Market Account calculated?
We use the "average-daily-balance" method to calculate interest on your account. Using this method, we apply a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period.
Interest begins to accrue on the business day of your deposit. It is compounded on a daily basis and credited to your account on a monthly basis.
CD Accounts
Back to topHow do I receive the interest from my Discover Bank CD Account?
You can either allow the interest earned to remain in your account and therefore increase the balance of your CD, or you can have the interest transferred to your Discover Bank Money Market Account or to another bank account.
What happens to my account when my CD matures?
Discover Bank will notify you approximately 3 weeks before your CD matures to offer you a variety of renewal options. For your convenience, if you don’t respond, your CD will automatically renew for the same term at the current rate. If you do not want your CD to automatically renew, you should notify us as least 10 calendar days prior to maturity. Simply call us at 1-800-347-7000 (TDD 1-800-347-7454) and indicate whether you wish to:
- Add funds
- Withdraw funds
- Transfer funds to your Discover Bank Money Market Account or other accounts for free
- Change the term of your CD upon maturity
We also provide a 9 calendar–day grace period after your CD's maturity date, during which you can make changes to your account, such as adding or withdrawing funds or opting not to renew, without paying an early withdrawal penalty.
What fees are associated with my Discover Bank CD Account?
Fees are assessed for special services and for early withdrawal, as outlined below.
Fee Schedule for CD Accounts
| Copy of Statement, Check, Deposit Item | $5.00 | |
| Outgoing Domestic Wire | $20.00 | |
| Outgoing International Wire | $40.00 | |
| Incoming Domestic Wire | $10.001 | |
| Incoming International Wire | $15.001 | |
| Foreign Check Conversion | At Cost | |
| Priority Mail | $20.00 | |
| 1 Waived for Account opening. | ||
Early Withdrawal Fees for CD Accounts
| Term | Fee for early withdrawal |
|---|---|
| Less than 1 year | 3 months simple interest on the amount withdrawn |
| 1 year up to and including 5 years | 6 months simple interest on the amount withdrawn. |
| Greater than 5 years | 9 months simple interest on the amount withdrawn |
When will I receive my Discover Bank CD statements?
CD statements are printed annually; you can expect to receive your statement in January.
How often is interest credited to my Discover Bank CD Account?
Interest is compounded daily and credited monthly.
What is APY and why is it used?
"APY" stands for "annual percentage yield." The annual percentage yield measures the total amount of interest paid on an Account based on the interest rate and the frequency of compounding.
Can I withdraw interest from my Discover Bank CD Account every month and still receive the quoted APY?
No. APY takes into account the effects of compounding, therefore in order to receive the quoted APY the interest earned must remain in the account.
What is the minimum balance for Discover Bank CD Accounts?
A deposit of $2500 or more is required to open a Discover Bank CD Account.
What are the transaction limitations for Discover Bank CD Accounts?
The following transaction limitations apply to Discover Bank CD Accounts:- After your account is opened, you may not make additional deposits until maturity. Additional deposits may be made during the grace period following maturity.
- Posted interest may be withdrawn from your account at any time.
- Withdrawals of all or part of your Issue Amount are subject to an early withdrawal fee except at maturity date. See list of Early Withdrawal Fees for CD Accounts above for details.
IRA Accounts
Back to topWhat is the minimum balance requirement for Discover Bank IRA Accounts?
A deposit of $2,500 or more is required to open a Discover Bank IRA Account.
How can I decide which type of IRA is the best choice for me?
There are many types of IRAs available. Discover Bank offers both Traditional and Roth IRAs. When choosing which type of IRA to open, you should consider factors such as your taxable income, age, and family status. Your financial advisor or tax professional can help you determine which type of IRA is best suited to your needs.
Can I have more than one IRA?
Yes, you can have multiple IRAs; however your total contribution can't be more than the maximum contribution allowed for that year. Multiple IRAs can be with the same or different financial institutions.
Can I contribute to both a Traditional and a Roth IRA?
Yes, your annual contribution can be divided between both types of IRAs as long as you meet the eligibility requirements for each type of IRA. You should consult a financial advisor or tax professional for specific advice.
Can I designate a beneficiary for my IRA?
Yes, in fact, all Discover Bank IRA Accountholders are recommended to designate at least one beneficiary by completing a beneficiary form.
What information do I need to provide about my beneficiaries?
You will need to provide the name, address, date of birth and Social Security Number for each beneficiary and describe their relationship to you (i.e. parent/child, spouse). If you choose to designate more than one beneficiary, you must indicate the distribution percentage for each. If you are married, by default your spouse will be designated as your primary beneficiary, unless you and your spouse indicate otherwise on the beneficiary form.
What is a Rollover IRA?
A Rollover IRA, sometimes referred to as a "conduit IRA," is a type of IRA into which funds from another qualified retirement plan may be deposited without incurring tax penalties. A Rollover IRA contains only the funds that have been rolled over; no other contributions are permitted. Assets in the Rollover IRA are not counted towards yearly IRA contribution limits. To open a Rollover IRA please apply online. For further information, please call Customer Service at 1-800-347-7000 (TDD 1-800-347-7454), 8am – 11pm ET, Mon.-Fri. and 8am – 4:30pm ET, Sat.
When will I receive my Discover Bank IRA statements?
Discover Bank IRA statements are printed annually, just like our CD statements. You can expect to receive your IRA statement in early January.
Am I allowed to borrow funds or withdraw from my IRA?
Loans may not be taken from IRAs. There are certain limited circumstances when you may withdraw before age 59½ from either a Traditional or Roth IRA without penalty. You should consult a tax professional or financial advisor for specific advice related to this transaction.
What is the difference between a transfer and a rollover?
Both transfers and rollovers are ways to move funds from one retirement account to another.
- With a transfer, funds are moved directly from one IRA (or other type of retirement account) into another by the financial institution(s) where the accounts are held. Because the funds are never handled by the customer, the transaction is not considered a distribution. There are no limitations on the number of transfers a customer may make.
- With a rollover, funds from one IRA or other retirement plan are distributed to the customer. It is then up to the customer to deposit the funds into another IRA or other retirement account within 60 days, in order to avoid tax consequences. Only one rollover is permitted per 12 month period.
To rollover or transfer IRA funds, please initiate your request online. For further information, please call Customer Service at 1-800-347-7000 (TDD 1-800-347-7454), 8am – 11pm ET, Mon.-Fri. and 8am – 4:30pm ET, Sat.
Is there a limit to how often I can rollover funds?
You are permitted to make one rollover in a 12 month period.
Is there a limit on the amount of money I can rollover?
No, you can rollover as much money as you’d like.
Can I transfer funds from my employer’s retirement plan into an IRA?
Yes, funds can be transferred into an IRA from any qualified retirement account. You should consult your financial advisor or tax professional for specific advice related to this transaction.
Can a Traditional IRA be converted to a Roth IRA?
Yes, a Traditional IRA can be converted to a Roth IRA as a rollover contribution. You should contact your financial advisor or tax professional for specific advice related to this transaction.
What are the benefits of making a conversion from a Traditional IRA to a Roth IRA?
A Roth IRA provides the following potential benefits not offered by a Traditional IRA:
- Contributions can be made at any age, even after age 70½
- There is no minimum distribution requirement
- Once the plan has been open for at least 5 years, distributions are not subject to taxation or government penalties
Are there any disadvantages to converting from a Traditional IRA to a Roth IRA?
Converting from a Traditional IRA to a Roth IRA may have some tax implications. You should discuss this with your financial advisor or tax professional prior to conversion.
How much of my IRA contribution is tax deductible?
Your financial advisor or tax professional can help you determine how much of your IRA contribution is tax deductible.
How are my IRA transactions reported to the IRS?
Form 5498 will be mailed to you and to the IRS by May 31st. The form reports the contributions made during the previous tax year.
Form 1099-R will be mailed to you and to the IRS by January 31st. The form is used to report IRA distributions for the previous calendar year.
I need more tax help, where should I go?
The Internal Revenue Service Web site, www.irs.gov, is a good starting point. You can also contact the IRS by phone at 1-800-829-1040.
Debit Card
Back to topWhich of my Discover Bank Accounts can I access with my Discover Bank Debit Card?
You can access your Discover Bank Money Market Accounts.
From which ATM locations can I access my funds?
You can access your funds via any ATM with the Discover Network Acceptance Mark or the Pulse logo. Use our ATM locator to find the ATM closest to you.
Is there a limit to the amount of funds I can withdraw with my Discover Bank Debit Card?
Yes. You may withdraw on a daily basis the lesser of $500.00 or the account balance using your Discover Bank Debit Card. Withdrawals count towards the transaction limitations for Money Market Accounts outlined above.
Is there overdraft protection on the Discover Bank Debit Card?
No. Transactions that exceed the available balance in your account may be declined.
Can I link multiple accounts to the Discover Bank Debit Card?
Yes. You can link up to 4 accounts to your Discover Bank Debit Card.
Can I transfer funds between accounts via the Discover Bank Debit Card?
Yes. You may transfer funds between accounts that are linked to your Discover Bank Debit Card at ATMs that offer that option.
Can I shop online with my Discover Bank Debit Card?
Yes. You can use your Discover Bank Debit Card to pay for purchases wherever Discover Card is accepted.
Where can I use my Discover Bank Debit Card?
You can use your Discover Bank Debit Card to pay for purchases wherever Discover Card is accepted. You can use it to access funds at any ATM with the Discover Network Acceptance Mark or the Pulse Logo. Use our ATM locator to find the ATM closest to you.
How do I set a PIN for my Discover Bank Debit Card?
Your initial PIN will be generated by our systems and sent to you by mail after your new Discover Bank Debit Card is ordered. Once you receive your system generated PIN, you can change the PIN following the instructions that will be provided to you.
Online Banking
Back to topIf your question is not answered here, call 1-877-409-0274 for Online Banking Technical Support.
What do I need in order to sign up for Online Banking?
You can sign up for Online Banking approximately 3 business days after your account is funded. You'll need to provide your Discover Bank Money Market or CD Account number (only one account number is required even if you have multiple accounts). It takes less than 5 minutes to sign up.
What are the guidelines for creating my User ID for Online Banking?
You should choose a User ID that you can easily remember. A User ID is case sensitive. It must be 8-20 letters characters long and consist of both letters and numbers. It may not contain spaces. It's a good idea to avoid dictionary words, family or pet names, your birthday, your anniversary or your social security number.
I just opened my account, why am I not able to sign up for Online Banking?
You can sign up for Online Banking approximately 3 business days after your account is funded. If you continue to experience difficulties, please contact Online Banking Technical Support at: 1-877-409-0274.
I just signed up for Online Banking, where is my password?
Once you submit the Online Banking Sign Up form, a temporary password will be sent to the email address you provided. You can log in to your account with your User ID and temporary password. Once you have logged in, you can change your password on the "Services" tab.
My account is jointly owned, can we both sign up for Online Banking?
Yes, all account owners can sign up for Online Banking. Each owner must sign up individually.
I have more than one account with Discover Bank, can I access all of my accounts with Online Banking?
Yes, once you sign up for Online Banking you can access all of your Discover Bank Accounts online. You only need to provide one of your account numbers in order to sign up.
When I try to login to Online Banking I receive this error message "You have entered an invalid User ID or Password. Please try again." What should I do?
This error message indicates that the User ID or Password you entered does not match the User ID and Password recorded by our system. If you know your Username, you can reset your Password by clicking the "Forgot Password" link in the Online Banking Access area (at the top left corner of every page on the Web site.)
To retrieve your User ID, call Online Banking Technical Support, available 24/7, at: 1-877-409-0274.
How can I change my User ID and/or Password?
Log into Online Banking and go to the "Services" tab to update your User ID and/or Password.
I forgot my password for Online Banking, what should I do?
If you know your User ID, you can reset your password by clicking the "Forgot Password" link in the Online Banking Access area (at the top left corner of every page on the Web site). You will be guided through the steps for resetting your password.
If you do not know your User ID, you can retrieve it by calling Online Banking Technical Support, available 24/7, at: 1-877-409-0274.
Are there any rules for selecting a new password?
Your password must be 6-32 characters long and can contain any combination of letters and numbers (no "special" characters or spaces). As an added security measure, your User ID and Password cannot be the same.
How many months of account activity can I view online?
You can view up to 6 months of activity online for your Discover Bank Money Market Accounts and CDs.
How do I export my financial information to Money or Quicken?
Log in to Online Banking, select the account for which you wish to export information, select "Money" or "Quicken" from the drop down menu, and click "export data." More detailed information on exporting data can be found under the "Help" menu once you've logged in to Online Banking.
Which browsers are recommended for accessing Online Banking?
We recommend that you use one of the following browsers.
Windows:- Firefox: 2.0+
- Internet Explorer: 6.0+
- Firefox: 1.5+
- Safari 2.0+
‡ On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009.
