Discover increased interest rates

Welcome to another installment of what I’ve begun to call “Hunter’s Hunt for Better Banks.” Last week, I covered the high-yield savings account at American Express. Today, I’ll take you to another institution that you may know for its credit cards: Discover Bank.

While Discover has earned popularity among consumers for its cashback bonuses and other rewards for credit card spending, the bank also offers some great ways for you to put your savings to work in online savings, MMAs and CDs.

Here’s a glimpse into what the bank offers.

Online Savings: If you have $500, you can open a savings account with the bank and earn 1% interest. With many big banks offering just a few measly hundredths of a percentage point of interest, Discover’s full point of earnings potential gives savers a reason to cheer.

CDs: As you know, I also keep my eyes peeled for the best CD rates available nationwide, and Discover’s options are tough to beat. For customers who can lock their money away for the next decade and save for retirement, Discover’s 10-year IRA CD delivers a 2.5% APY, which easily trumps the majority of other risk-free investment opportunities right now. The bank also offers short-term CDs that range from 3-month terms to 5-year terms.

Money Market…

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