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 account

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

Online Savings Account - Earn 4.25% APY

  • No fees
  • No minimum opening deposit
  • No minimum balance required
Member FDIC

Chase Total Checking® - $300 Bonus

Expires 7/24/2024
  • New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account with qualifying activities
  • 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 Advantage Banking - $200 Bonus Offer

Expires 9/30/2024
  • The $200 bonus offer is an online only offer and must be opened through the Bank of America promotional page.
  • The offer is for new checking customers only.
  • Offer expires 9/30/2024.
  • To qualify, open a new eligible Bank of America Advantage Banking account through the promotional page and set up and receive qualifying direct deposits totaling $2,000 or more into that new eligible account within 90 days of account opening. Bank of America Advantage SafeBalance Banking® for Family Banking accounts are not eligible for this offer.
  • Once all requirements are met, Bank of America will attempt to pay bonus within 60 days.
  • Additional terms and conditions apply. See offer page for more details.
  • Bank of America, N.A. Member FDIC.
CIT Bank
Member FDIC

CIT Bank Platinum Savings - 5.00% APY

  • 5.00% 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

Free Business Checking - Up to 2.0% APY

  • 2.0% APY on your balance up to $250,000 for customers that meet monthly eligibility requirements
  • $0 minimum opening deposit
  • $0 monthly service fee
Banking services provided by Coastal Community Bank, 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. In addition, Discover offers cashback checking. There are no fees for checking and savings accounts.

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About CreditDonkey
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Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

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