Discover Bank Money Market Account

A money market account is an account that offers a higher APY than the average checking or savings account. Many financial institutions offer these accounts, including Discover Bank. Read on to learn more about opening a Discover Bank money market account. Like most every money market account, this one has a minimum deposit requirement for opening an account. You must open your money market account with Discover Bank with no less than $2500 and maintain a daily balance of $2500 to avoid penalties. As with any money market account, penalties charged can substantially reduce your returns.

If you need to access the money in your account, there are various ways you can do so. You may use your Discover Debit Card anywhere it is accepted, pay for purchases anywhere your card is accepted, writing checks from your money market account, linking your money market account to your Discover Card for easy ATM withdrawals and transferring money from your money market account to another account. You can also have your funds transfered by wire or via a cashier’s check at the bank. Although there are plenty of ways to access the money in your account, you want to leave the minimum balance, or preferably more, in the account to accumulate interest.

You will receive a statement from Discover Bank detailing your account towards the end of each month, as statements are mailed on the 20th. Although the interest is compounded daily, it is credited every month to your money market account. If you want to take advantage of a convenient option that is available, ask about the AutoSavers Plan. This plan transfers a specified amount of money on specified recurring dates automatically from another account into your Discover Bank money market account. Now let’s learn more about the all-important APY, which stands for annual percentage yield.

Annual percentage yield refers to the interest your account earns in one year based on both the frequency of compounding and the rate. As previously mentioned, interest is compounded daily which means more interest is earned. And, it is credited monthly. The more money you have in your money market account, the more compound interest it will earn, so it pays to make regular deposits and try not to make withdrawals. In order to get the APY that is quoted, funds must be left in the money market account for a minimum of one year.

After you open a Discover Bank money market account, your funds can be accessed within 10 days if necessary. Also, you are allowed six withdrawals per month before you are penalized. You should know that these accounts do not include overdraft protection. Overdraft protection is a feature some checking accounts come with but this money market account does not. However if you are using the money market account as an investment as it should be, overdrafts should not be a concern. A money market account is for accruing interest, whereas your checking account should be used for everyday purchases and expenses. Whether or not you can get overdraft protection on your checking account may depend on your credit, or the funds may come out of your linked savings account.

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