AAA Members Earn More Interest at Discover Bank

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Last updated on October 12, 2016 Views: 547 Comments: 7

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.

Potential Discover Bank customers should read this review before opening an account.

Article comments

7 comments
Anonymous says:

There are other savings that AAA offers that might make it worthwhile.
http://aaa.com/savings

Anonymous says:

They have a rate for AAA members, but if you already have a good
deal rate (a ‘premium’ online account) they are not going to give you an
ADDITIONAL .05%, alas.

Ceecee says:

Yep, I agree too. That amount would not encourage me to join. I have another towing plan that is cheaper, so I figure I’m more than saving that amount there.

skylog says:

in agreement with the other posters. the rate is already a little higher than some other banks are offering, and the small added bonus is nice, but there really is nothing that sets it apart from any of the other online banks. i am still waiting and looking for something to wow me, but i do not think that will be happening any time soon in this rate environment.

cubiclegeoff says:

It’s a better rate than most, especially with the added AAA piece, but still not high enough to make it worth it to switch over.

Anonymous says:

Interesting idea, but I agree, I wouldn’t do it either. There isn’t a big enough difference to make it worthwhile for me!

TakeitEZ says:

Yeah that measly interest increase is not a great incentive in my book.