Discover Bank began as Greenwood Trust as the issuing bank of Discover Card back in 1985. Discover Card was unveiled by Sears, who at the time was a part of Dean Witter Reynolds Organization. Discover Card’s introduction was Sears’ attempt at diversification of its customer services portfolio.
Discover Bank Card
Discover Card was greeted with great enthusiasm because it was unlike its rivals MasterCard and Visa. Discover Card did not charge an annual fee and allowed customers the ability to have a higher credit limit. Sears plan to bring one-stop-shopping to customers for their financial needs ultimately failed because many retailers refused to accept the Discover Card feeling it would boost Sears’ competitive edge.
In 1993, Sears sold off its financial business portfolio. Greenwood Trust along with Discover Card would be apart of Dean Witter financial services. Another merger would take place with Morgan Stanley in 1997. Eventually, in 2000, Greenwood Trust changed their name to Discover Bank. Morgan Stanley, in 2007, spun Discover off into its own entity and the company is now known as Discover Financial Services.
Discover Bank Today
Today, Discover Financial Services is a multi-billion dollar company that currently includes Discover Bank, Discover Card, Discover Network, PULSE, and Diners Club International. As part of this conglomerate, at the end of 2009 Discover Bank managed over $25 billion in customer deposits. Discover Financial Services is led by its Chairman and Chief Executive Officer, David W. Nelms. Discover Bank is led by its President, Christina Favilla. Discover Bank is the primary issuer of Discover Card which is one of the leading credit cards in the United States.
Discover Bank has one branch located in Greenwood, Delaware and ATM access at any location that a Discover Card is accepted across the United States. Discover Bank offers various different types of accounts that include online savings, money market, certificates of deposit, and individual retirement account certificate of deposits.
Discover Bank’s Other Services
Discover Bank’s online savings accounts allow customers to open an account by enrolling online. Their savings accounts are managed by accessing the Discover Bank’s website. Discover Bank’s savings accounts allow customers to make free online money transfers and automatic transfers from any checking or savings account. They also have customer service available 24 hours a day 7 days a week to answer any questions or concerns.
Discover Bank money market accounts work in much the same way as the savings accounts. Customers enroll online and this is how they maintain access to their account. Customers can also access their money market account through ATM, check, or Discover Debit Card. This account allows customers to transfer money online with no fee.
Discover Bank’s Certificates of Deposit
Certificates of Deposit with Discover Bank offer the same features as traditional banks. Their rates are just as competitive and you have the option of choosing terms anywhere from 3 months to 10 years. As with their other accounts, you enroll and access your account online.
Discover Bank offers Traditional and Roth IRA CDs. Customers open the IRA CD online in three steps. Management and access of the account is online. Customer service is available either online or through Discover Bank” toll free number. All of Discover Banks’ products are purported to be insured by the Federal Deposit Insurance Corporation, better known as the FDIC. As always it is critical to seek professional independent financial advice before making investment decisions.