Discover wants to be an online banking giant

Discover wants to be an online banking giant
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There’s a new sheriff in town offering great deals on banking from a very unlikely source.

If you’re familiar with online banking, you’ve probably heard of ING Direct, a bank that came out of nowhere to be one of the largest in America by doing everything online and being branchless. ING really hit the sweet spot with special deals on mortgages, rates on savings that are generally better than what others offer and free checking.

But people are scared now that ING has been sold to Capital One. So Discover hopes you’ll look at them as a worthy contender.

For years, Discover has offered savings accounts online. Now the financial service company is branching out to online checking accounts, savings, CDs and mortgages.

In particular, Discover wants to be a big player in the mortgage market. So really it’s like they’re following the ING business model, though they’d never fess up to that!

In general, online banking appeals to younger folks who don’t want branches or even to look at someone face-to-face when they do their finances. USAA Federal Savings Bank, which caters to the military community, was also a pioneer in online banking. But it was really ING who popularized the trend. Both went on to become two of largest banks in the country without having physical branches.

Discover is now following the same path and wants to grow in the online banking space. Give them a try if you’re looking to move your business from a traditional big bank.

Clark Howard About the author:
Clark Howard is a consumer expert whose goal is to help you keep more of the money you make. His national radio show and website show you ways to put more money in your pocket, with advice you can trust. More about Clark
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