Updated September 9, 2023

Is Discover Bank a Good and Real Bank?

Read more about Discover Bank
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Looking for a safe bank with great rates? This analysis of Discover Bank reveals all - is it legit? Find out now.

Is Discover Bank a Real Bank?

If you're considering an account from Discover Bank, rest assured that it is a legitimate bank.

Discover Bank is a full-service online bank that offers checking, savings, and retirement accounts. They also offer a selection of popular credit cards, home equity loans, student loans, and personal loans.

Discover doesn't need to maintain brick-and-mortar locations. So, it is able to pass along those savings to the customer. It offers higher deposit interest rates and it doesn't charge any fees.

There's only one Discover Bank branch located in Delaware, where the bank is based. But customers can withdraw cash at more than 60,000 fee-free ATMs nationwide.

Is Discover Bank Safe?

Discover Bank is safe and insured by the FDIC. This protects up to $250,000 of your deposits in case the bank ever fails.

Discover has multiple layers of security to keep your account safe:

  • SSL encryption protects your sensitive information online and in the app.
  • Two-factor authentication verifies your identity when you sign in from an unfamiliar device. Also, when you need to change your profile information.

The bank also monitors your account for fraud. And they will alert you of any suspicious activity.

Discover Bank Accounts

Discover offers a range of different deposit accounts with competitive rates. Here's a closer look at what Discover has to offer:

Discover Cashback Debit
This checking account lets you earn 1% cashback on up to $3,000 in debit card purchases monthly. See website for details

The account offers early direct deposits. So, you can get your paycheck up to 2 days earlier. But the best part is that there really are no monthly fees or other banking fees.

The account comes with a debit card. And you can withdraw money at fee-free ATMs.

Compare Checking Account Offers

Discover Online Savings
Discover offers a high-yield savings account. With an interest rate more than 5x the national average. This account is great for building up an emergency fund. Even just stashing money you don't need right away.

There are no fees and no minimum deposit to open the account.

With the higher interest rate and zero fees, you'll be able to grow your balance faster than you would at a traditional bank.

Find out more about Discover savings accounts

Savings Calculator

Money Market Account
This account is sort of like a hybrid between a checking account and a savings account. It offers more flexibility for your savings. Your balance earns interest like a regular savings account. But you can access your money with a debit card and checks.

Keep in mind that, money market accounts are limited to 6 withdrawals per month.

Compare Money Market Rates

Certificate of Deposit
Discover Bank offers very competitive rates for its CDs. The term lengths range from 3 months to 10 years. The longer the term, the higher the interest rate you can earn. One downside is there is a $2,500 minimum deposit to open a CD with Discover.

If you need to withdraw your money before the CD matures, you will have to pay a penalty.

Compare CD Rates

Roth and Traditional IRAs
Discover offers IRA CDs and IRA Savings accounts. Both these accounts are available either as a Roth IRA or traditional IRA.

These accounts have the same interest rates as the regular CDs and savings accounts. The only difference is that these accounts are specifically for retirement savings.

Can You Deposit Cash at Discover Bank?

Online banking can be convenient, but not when it comes to depositing cash. Discover does not accept cash deposits. Although you get access to ATMs—you can only withdraw cash.

To deposit cash to your Discover account, you'll have to deposit to a different bank account first. Once the money is in the other account, you can make an electronic transfer.

Discover does let you deposit checks. You can use the Discover app to make a mobile check deposit.[1]

Bottom Line: Is Discover Bank Good?

If you're looking for a bank that offers highly competitive rates, Discover is one of the best options. Online banks in general offer great rates and low fees.

Discover has done away with fees completely.

The biggest drawback to a Discover Bank account is that you can't deposit cash. If you frequently need to deposit cash, this might not be the right bank for you. But if you usually do all your banking online anyway, the transition to Discover Bank is a breeze.


  1. ^ Discover. Mobile Check Deposit Service, Retrieved 5/26/22
Discover Bank
Member FDIC

Discover Online Savings - $200 Cash Bonus

Expires 12/14/2023

To get your $150 or $200 Bonus: What to do: Apply for your first Discover Online Savings Account, online, in the Discover App or by phone. Enter Offer Code CY923 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 to account within 30 days of account open date. 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. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 12/14/2023, 11:59 PM ET. Offer may be modified or withdrawn without notice. See advertiser website for full details.

Member FDIC

Chase Total Checking® - $200 Bonus

Expires 10/18/2023
  • New Chase checking customers enjoy a $200 bonus when you open a Chase Total Checking® account and set up direct deposit
  • Access to more than 15,000 Chase ATMs and more than 4,700 branches
  • Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
  • JPMorgan Chase Bank, N.A. Member FDIC
  • Open your account online now
  • Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
  • Chase Overdraft Assist℠ - no overdraft fees if you're overdrawn by $50 or less at the end of the business day or if you're overdrawn by more than $50 and bring your account balance to overdrawn by $50 or less at the end of the next business day*
Bank of America
Member FDIC

Bank of America Business Advantage Checking Account - $200 Bonus Offer

Expires 12/31/2023
Earn a cash bonus in three steps:
  1. Open a new eligible business checking account by December 31, 2023
  2. Make Qualifying Deposits* of $5,000 or more in new money within 30 days of opening the new eligible business checking account
  3. Maintain an average balance of $5,000 for the next 60 days (day 31-90) during the maintenance period**
*Qualifying Deposits are deposits of new money, which is money not currently or previously held in any account at Bank of America or Merrill
**The maintenance period begins thirty-one (31) days after account opening and ends ninety (90) calendar days after account opening.
Member FDIC

Citi Priority - Earn up to $2,000 Cash Bonus

Expires 1/9/2024
  • Earn up to $2,000 when you open a new eligible Citi checking account and enroll in the offer the same day
  • New to Relationship customers can choose their Relationship Tier.
  • Within 20 days of opening, deposit the minimum amount of new-to-Citibank funds.
  • Maintain a minimum balance for 60 consecutive calendar days from the 21st day.
  • If your balance falls to a lower Balance Level at any point during the maintenance period, the bonus changes.
  • Bonus will be paid within 30 days after you successfully complete all required activities.
  • Restrictions apply.
CIT Bank
Member FDIC

CIT Bank Platinum Savings - 5.05% APY

  • 5.05% APY with a balance of $5,000 or more
  • 0.25% APY with a balance of less than $5,000
  • $100 minimum opening deposit
  • No monthly maintenance fee
  • Member FDIC

Donna Tang is a content associate at CreditDonkey, a bank comparison and reviews website. Write to Donna Tang at donna.tang@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website 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. You do not have to use our links, but you help support CreditDonkey if you do.

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About Discover Bank

Discover Bank offers some of the highest interest rates for its savings account.

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