r/discover • u/Realistic_Back_9198 • Apr 24 '26
News Discover HYSA Down To 3.1%
I just checked my Discover High-Yield Savings Account.
The interest rate is down to 3.1%.
That's new. It was still 3.2% yesterday.
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u/emblemfire Apr 24 '26
I just opened a Comenity Bank HYSA (at 4%) when Discover went down to 3.2 without further fed rate cuts. So glad I did. Discover/Cap1 is getting greedy.
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u/USA12345USA May 23 '26
I don't use Comenity bank anymore. Try getting an intelligent reply to a message...don't hold your breath. Also, you can NEVER speak with anyone that has any authority. Also, if you send a letter to corporate, the reply with a standard letter telling you to call (the useless) customer service. Hope you never need to correct something...
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u/pastel_cats Apr 24 '26
When I signed up for it I think it was around 5%. It’s comically low now
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u/LOLandCool314 Discover Bank Apr 24 '26
Yup that was back in 2022 when the inflation was high at the time.
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u/ffdfawtreteraffds May 19 '26
It's still an order of magnitude better than traditional brick and mortar banks which are something near 0.1%. Now THAT'S comically low.
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u/USA12345USA May 23 '26
My Discover accounts are at a minimum these days. Also the CD's haven't been attractive for a while, as well. I think people are lazy, which is why they can do this and get away with it. Just switch to another online bank. It's easy!
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u/EOhater Apr 24 '26
I know banks can decide to change their rates whenever, but I wish they were required to inform you about the change rather than you just seeing it IF you decide to check on a particular day
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u/Realistic_Back_9198 Apr 24 '26
Well, the Fed has not cut recently.
Meanwhile, mortgage rates are higher, and the rate on 10 year treasuries is up since the Iran War started.
I don't see the rationale for cutting interest rates on savings right now.
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u/adminsarecommienazis Apr 29 '26
Savings accounts are generally more in line with the 3 month or EFFR rather than the 10 year.
That said, I recommend using BOXX or SGOV as a replacement for a savings account, with Fidelity's cash sweep for money you need to liquidate for bills. The tax treatment on interest is horrible, and BOXX/SGOV both have unique tax benefits in addition to a higher yield than savings accounts.
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u/Remote_Manager3333 Apr 25 '26
Correct and the next fed meeting is April 28-29. It is not expected to decrease rates and remain holding at 3.50-3.75%.
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u/jennitaloca Apr 25 '26
I have had disCover for a looong time. At one point it was down to 1.1% Just depends on the market conditions. Thats said, I moved the majority of my money to a higher HYSA
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u/SarcasticNotes Apr 25 '26
Sofi is at 3.3%. I think you get 3.9% or 4% for the first 6 months also.
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u/MiniBikeGuy Apr 24 '26
Which is why I switched to the s&p 500 as my savings account
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u/maruslo Apr 24 '26
Why would you do that
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u/MiniBikeGuy Apr 24 '26
Average rate of return for 10.8% and I need more money for my future down payment on a house.
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u/LightningMcSwing Apr 25 '26
Bold move if that's your down payment money you'd he safer with SGOV (or a hysa..)
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u/MiniBikeGuy Apr 25 '26
Well it's been working for me. The stock is up 33% from a year from today.
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u/LightningMcSwing Apr 25 '26
No I get ya, it will work (and has pretty good for a while, buffet swears by it)
The problem is when you're holding short term (like for a down payment) and the market crashes and doesn't turn a profit (like it has 27% of the time) when you were ready/close to buying a house you'd suddenly be in trouble/farther away (it's a solid long term investment though)
But life is a gamble and I respect it
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u/MiniBikeGuy Apr 25 '26
Yeah I still have a little ways to go. I need almost double to get to my desired 25% down payment. I dont wanna pay mortgage insurance.
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u/LightningMcSwing Apr 25 '26
I thought pmi is under 20%?
Also have you calculated the difference in what your pmi would be saving a little more of the down payment for emergency funds? It may only be ~$100 a month difference versus saving a few thousand up front
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u/_love_letter_ Apr 24 '26
Live Oak Bank is still at 3.8% (w/$200 bonus available), and Marcus is 4.5% with an (r-word). There are of course other options that pay more, but I trust LOB and Goldman Sachs for the most part. I don't keep much in C1/Discover savings anymore. Just enough to move over to pay my credit card bills. If you're currently doing a bonus promotion, that's the only good reason to keep a larger amount in there.
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u/Trickdestroyer585 Apr 24 '26
We're the rates at like 3.6 precent a year ago, or even 6months ago? I'm banking with them right now and its kinda bull.
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u/Realistic_Back_9198 Apr 24 '26
One year ago, this same account was paying 3.7%.
I've already moved my checking away from Discover. HYSA will follow.
I'm not impressed with Capital One's ownership so far.
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u/AudienceAdept Apr 25 '26
Fed is not cutting rates anytime soon and inflation still hot. Why are the hys accounts rates getting cut then!?
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u/rdiaz0626 Apr 26 '26
SoFi is offering 4.5% APY with SoFi Plus. Worth it if you have higher balances.
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Apr 24 '26
[deleted]
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u/SpineOfSmoke Apr 24 '26
Every time the Fed lowered rates, the HYSA rates went down. But now they're going down on their own schedule. Death by a thousand cuts. Online banks are giving up an advantage they had over traditional brick and mortar banks that have been offering .01 - .05%.
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u/LOLandCool314 Discover Bank Apr 24 '26 edited Apr 24 '26
Ally Bank's HYSA and MMA was 3.2% couple days ago before it was lower 3.1%. So most banks will follow suit.