I’m a member of AAA, paying once a year for benefits like roadside service, travel assistance, and in some cases, discounts. AAA members can now earn a higher interest rate at Discover Bank than non-members. Currently, the rate for AAA members is 5 basis points (0.05 percentage points) higher than the standard Discover Bank online savings interest rate.
A difference of 0.05 in the annual percentage yield (APY) isn’t exactly what I would call significant. It is a benefit, though, and AAA members who are looking to open a high yield savings account should know about it before they shop around. For AAA members, like me, who already have a Discover Bank Online Savings Account without the higher rate, the benefit is not available. I cannot convert my Discover Bank account to the higher-rate account available to AAA members. This is only available for AAA members who open a new account.
If you find this AAA benefit worthwhile, you must open a new account using this AAA link and transfer funds from your old Discover Bank account to the new one. For me, this is not worth the effort. For a typical balance of $1,000, the additional 0.05 percentage points amount to $0.50 over the course of a year. The yearly cost of basic AAA membership in my area is $65.50. I would need a balance of $131,000 in my Discover Bank account to make this jump worthwhile, assuming I was not taking advantage of any other AAA benefits.
Updated March 9, 2011 and originally published March 8, 2011. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.