May 20, 2019 5:00 PM PT

Discover Online Savings Account Review

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Discover Bank online savings account offers a high interest rates and no monthly fees. But is it the right place for your money? Read on to find out, plus the best way to open an account.

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Discover is an online bank owned by Discover Financial, the company behind the popular credit card. Though it doesn't have brick-and-mortar branch locations, Discover features the same types of accounts available at traditional banks, including:

  • Online Savings
  • Cashback Checking
  • Money Market
  • Certificates of Deposit (CD)

The online savings account offers one of the interest rates in the industry and a variety of money-saving features. Keep reading to learn more.

Shortcut: If you want a savings account with a high APY and no minimum or fees, see Discover's current offers.

Discover is FDIC insured, just like a traditional bank. In the unlikely event that the bank fails, the money in your accounts is insured up to $250,000.

Account Features

High APY
You'll earn as much as 5X more interest than the national average for savings accounts. The interest compounds daily and is credited to your account once a month.

No Minimums or Monthly Fees
Discover's savings account has no minimum opening deposit or monthly balance requirement. You'll also pay no fees for:

  • Official bank check (or delivery)
  • Expedited delivery for official bank checks
  • Incoming wire transfers
  • Excessive withdrawal fee
  • Stop payment order
  • Insufficient funds
  • Account closure

24-7 Customer Service
Representatives are available by phone to assist with your account (or to help you open a new one). Call 1-800-347-7000.

Auto-Saver Option
Schedule a regular transfer from a Discover checking into your savings account to take advantage of the high interest rate.

Mobile Banking App

Since Discover is an online bank, you'll need to handle your business from a home computer, laptop, or mobile device.

Discover's mobile app offers a user-friendly way to manage your account. It's available for Android and Apple devices.

Use it to:

  • Check balances
  • Transfer funds or set up automatic transfers
  • Track recent activity
  • Deposit a check using your cell phone camera

Keep reading to learn the benefits and drawbacks of Discover's online savings account.

Is Discover Bank Safe?
Discover uses state-of-the-art encryption to protect your transactions and data. When banking on your mobile device, you can set up a passcode to protect your account.

Additionally, Discover will require you to enter an identification code sent via text, email, or phone call for actions like:

  • Accessing your account from an unfamiliar device
  • Changing basic profile information

Why We Like Discover's Savings Account

Savings Potential
Between the high interest rate and generous welcome bonus for first time customers, Discover's online savings can boost your balance. And the lack of monthly fees means you won't lose money, either.

Easy Sign Up
Open an account online or call the customer line to get started (more on that below). Either way, starting your account should only take a few minutes. Note: Checking accounts cannot be opened over the phone.

All-Around Convenience
From free online bill pay to wire transfers to tracking transaction, you can handle your banking from home (or wherever you are).

    Discover Bank

    Online Savings Account - Earn 1.85% APY

    • No fees
    • No minimum opening deposit
    • No minimum balance required
    Discover Bank

    Discover Online Savings - $150 Cash Bonus

    To get your $150 or $200 Bonus offer: What to do: Apply for your first Discover Online Savings Account by 11/4/19, 11:59 PM ET, online or by phone. Enter Offer Code CY1019 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted by 11/18/19, 11:59 PM ET. Maximum bonus eligibility is $200.

    What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded or affinity accounts provided by Discover. Account must be open when bonus is credited. Bonus will be credited to the account by 12/2/19. Bonus is considered interest and will be reported on IRS Form 1099-INT. Offer may be modified/withdrawn without notice. See advertiser website for full details.

    Expires 11/4/2019
    Discover Bank

    Discover Online Savings - $200 Cash Bonus

    To get your $150 or $200 Bonus offer: What to do: Apply for your first Discover Online Savings Account by 11/4/19, 11:59 PM ET, online or by phone. Enter Offer Code CY1019 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted by 11/18/19, 11:59 PM ET. Maximum bonus eligibility is $200.

    What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded or affinity accounts provided by Discover. Account must be open when bonus is credited. Bonus will be credited to the account by 12/2/19. Bonus is considered interest and will be reported on IRS Form 1099-INT. Offer may be modified/withdrawn without notice. See advertiser website for full details.

    Expires 11/4/2019

Reasons to Look Elsewhere

Difficulty Withdrawing Funds
Discover's online savings account doesn't offer access to an ATM network for easy cash withdrawals. To take out money, you'll need to either send yourself a check/wire transfer OR move money to an external account.

Discover limits customers to six external transfers per statement cycle, as per federal law. You can make as many deposits into your savings account as you like, however.

No In-Person Banking
Discover doesn't have any brick-and-mortar branches. If you handle your business face-to-face, Discover's online savings account likely isn't for you.

    Chase

    Chase Savings℠

    • Enjoy a $150 bonus when you open a new Chase Savings℠ account, deposit a total of $10,000 or more in new money within 20 business days, and maintain a $10,000 balance for 90 days
    • Access to 16,000 Chase ATMs and nearly 5,000 branches
    • Link this account to your Chase checking account for Overdraft Protection.
    • Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
    • Apply online in minutes. Open your account online now.
    • Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.

Think Discover's savings account is right for you? Read on for a step-by-step guide to open an account today.

How to Open an Account

To open your savings account with Discover, follow these steps:

  1. Visit Discover Bank's Account Application page.

  2. Enter basic information including:
    • Name
    • Address
    • Birthdate
    • Social Security number

  3. Select the savings account option and choose either the individual or joint account.

  4. Fund your account now (if you wish). You can make a:

    • Automatic (ACH) or wire transfer from a different bank
    • Deposit a check through the mobile app
    • Mail a physical check

    Additionally, you can choose to fund your account at a later date.

  5. Verify your account information and e-sign your application.

Discover Bank will email a confirmation and send an introduction packet within several business days. Be sure to read it to learn more about your account features.

Discover customer service phone number: 1-800-347-7000

How to Deposit or Withdraw Money

Discover's Online Savings account doesn't come with an ATM card for convenience. Here are your options for depositing and withdrawing funds.

Depositing money:

  • Direct deposits of paychecks
  • Mobile deposit by taking photo of your check
  • Electronic transfers from other bank accounts
  • Mailed check

Withdrawing money:

  • Electronic transfer into another bank account
  • Wire transfer
  • Official check

How it Compares

    Chase

    Chase Total Checking® + Chase Savings℠

    • Enjoy up to $350 when you open a new Chase Total Checking® account with Direct Deposit and/or open a new Chase Savings℠ account, deposit $10,000 or more in new money and maintain a $10,000 balance for 90 days
    • Enjoy a $200 bonus when you open a new Chase Total Checking® account and set up direct deposit
    • Enjoy a $150 bonus when you open a new Chase Savings℠ account, deposit a total of $10,000 or more in new money within 20 days, and maintain a $10,000 balance for 90 days
    • Access to 16,000 Chase ATMs and nearly 5,000 branches
    • Apply online in minutes. Open your account online now.
    • Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
    • Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
    Betterment

    Betterment Everyday - Earn up to 2.04% APY

    • FDIC insurance covering up to $1,000,000 at program banks
    • Access cash in 1-2 business days
    • No minimum balance
    • No fees on balance
    • Unlimited withdrawals

Bottom Line

Discover Bank's online savings account offers no fees and one of the highest interest rates in the industry.

Disclaimer: Opinions expressed here are author's alone. Please support CreditDonkey on our mission to help you make savvy decisions. Our free online service is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content.

Disclaimer: This content was first published on May 20, 2019. Information including rates, fees, terms and benefits may vary, be out of date, or not applicable to you. Information is provided without warranty. Please check the bank's website for updated information.

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