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 Online Savings - $200 Cash Bonus | |||
Overall Score | 4.8 | ||
Savings | 4.5 | ||
Customer Service | 5.0 | ||
Mobile App | 5.0 | ||
Pros and Cons
- High APY
- No balance requirement
- No fees
- Online Only
Discover is an online bank owned by Discover Financial, the company behind the popular credit cards. Though it doesn't have brick-and-mortar branch locations, Discover offers the same types of bank accounts as traditional banks, including:
- Online Savings
- Money Market
- Certificates of Deposit (CD)
Discover savings account offers one of the highest interest rates among online banks 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 balance or monthly fees. See Discover's current offers.
Discover Savings Account Features
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Online Savings Account - Earn 3.30% APY
- No fees
- No minimum opening deposit
- No minimum balance required
Discover Savings Account offers 3.30% APY, which is a lot higher than the national average of 0.33%[1]. It has no fees and no minimum balance. Discover is a good choice if you're looking for an online savings account with a reputable bank.
But things like withdrawing money can be difficult, since Discover has no physical locations. Keep reading to find out if we think the account is worth it.
High APY
You'll earn over 12x more interest than the national average with the Discover online savings account. The interest compounds daily and is credited to your account once a month.
Compare Discover's APY to other savings account with this tool. You can see how much interest your money will earn annually.
No Balance Requirements
The Discover savings account has no minimum opening deposit or balance requirements.
No Monthly Fees
There is no monthly fees for maintaining the account. 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). Discover's customer service is 100% based in the US. Call 1-800-347-7000.
Auto-Saver Option
Schedule a regular transfer from a Discover checking into your Discover 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. The app offers a user-friendly way to manage your bank 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 the Discover savings account.
Is Discover Bank Safe?
Just like with brick-and-mortar banks, your money with Discover Bank is safe and protected by FDIC insurance (FDIC #5649). FDIC insures your deposits up to $250,000 in case Discover fails.
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, fingerprint, or Face ID to log into 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 Savings
Savings Potential
Discover online savings account's high interest rate can boost your balance. And the lack of service 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, opening 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 transactions, you can handle your banking from home (or wherever you are).
Discover Online Savings - $200 Cash Bonus
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 CY323 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 3/15/2023, 11:59 PM ET. Offer may be modified or withdrawn without notice. See advertiser website for full details.
Discover Online Savings - $150 Cash Bonus
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 CY323 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 3/15/2023, 11:59 PM ET. Offer may be modified or withdrawn without notice. See advertiser website for full details.
Online Savings Account - Earn 3.30% APY
- No fees
- No minimum opening deposit
- No minimum balance required
Discover Bank was one of the top three banks in terms of customer satisfaction, along with Charles Schwab and Ally Bank.
Reasons to Look Elsewhere
Difficulty Withdrawing Funds
Discover's online savings account doesn't come with a debit card for easy cash ATM withdrawals. To take out money, you'll need to either send yourself a check/wire transfer OR move money to an external account.
No In-Person Banking
Discover doesn't have any brick-and-mortar branches. If you handle your business face-to-face, Discover savings may not be for you.
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 Discover savings account, follow these steps:
- Visit Discover Bank's Account Application page.
- Enter basic information including:
- Name
- Address
- Birthdate
- Social Security number
- Name
- Select the savings account option and choose either the individual or joint account.
- Fund your account now (or at a later date, 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
- Automatic (ACH) or wire transfer from a different bank
- 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.
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
Customer Service
Discover's customer service reps are 100% US-based. Your calls won't be shuffled to overseas call centers. Reps are available 24/7 by phone and email. You will speak to an actual human when you call.
Overall, Discover receives high customer satisfaction ratings.
- To open an account by phone, call 1-800-347-7000
- For online banking technical support, call 1-800-290-9885
How it Compares
CIT Bank Savings Connect - 4.05% APY
- Earn 12x the national average
- $100 minimum opening deposit
- No monthly maintenance fee
Premier Savings - Up to 4.13% APY
- 4.13% APY when you have at least $1,000 balance
- No minimum opening deposit
- No monthly service fees
Current Savings with Interest - Up to 4% APY
- 4.00% APY on up to $6,000 balance if you receive and maintain a qualifying direct deposit of $200 or more in a rolling 35 day period. (Otherwise, 0.25% APY.)
- Simply add money to your Savings Pods and enable the Interest feature.
- Earn interest on up to 3 Savings Pods, up to $2,000 balance each.
- Interest accumulates daily.
FAQ
How many times can I withdraw from Discover savings account?
Savings accounts are limited to 6 withdrawals per month. However, Discover is currently not enforcing the monthly withdrawal limit. There is no excessive withdrawal fee if you go over the limit.
Can I have multiple Discover savings accounts?
Yes. There is no limit on how many Discover Online Savings Accounts you can open. So you can have a separate account for different savings goals.
Can I write checks from my Discover savings account?
You can only request an official bank check from your Discover savings account. They are free and there are no limits on the number of official bank checks you can get mailed.
Can I pay bills from Discover savings account?
No, the Discover savings account does not support bill pay. Savings accounts typically don't have bill pay because they're not meant for day-to-day activities.
How long does it take to transfer funds from Discover savings?
In general, funds will be available within 4 business days. ACH transfers made before 5pm ET will be initiated that same day. ACH transfers made after 5pm ET or on a non-business day will be initiated the next business day.
How old do you have to be to open a Discover bank account?
You need to be at least 18 years old to open a Discover bank account. For those younger than 18, you can open a joint account with an owner who is 18 or over.
Can a business open a Discover savings account?
Discover does not offer business accounts. But there's nothing stopping you from using it for your business savings, if you're a freelancer or sole proprietor.
For LLCs, you should have a dedicated business savings account to separate your finances.
Bottom Line: Is Discover Savings Worth It?
Discover Bank's online savings account is a great choice if you're looking for a savings account with no monthly fees and most importantly - a high interest rate to grow your money. Plus, Discover frequently has cash bonus offers, so that makes it even more worth it.
All of Discover's credit cards have:
- No annual fee
- No foreign transaction fee
- No late fee on your first late payment
- No overlimit fee
- No late payment penalty APR
References
- ^ FDIC. National Rates and Rate Caps as of November 21, 2022, Retrieved 11/26/2022
- ^ FDIC. BankFind: Discover Bank, Retrieved 11/26/2022
Online Savings Account - Earn 3.30% APY
- No fees
- No minimum opening deposit
- No minimum balance required
Discover Online Savings - $200 Cash Bonus
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 CY323 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 3/15/2023, 11:59 PM ET. Offer may be modified or withdrawn without notice. See advertiser website for full details.
Chase Total Checking® - $200 Bonus
- 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 16,000 Chase ATMs and more than 4,700 branches
- Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
- 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 fee 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*
*With Chase Overdraft Assist℠, we won't charge an Insufficient Funds Fee 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 you bring your account balance to overdrawn by $50 or less at the end of the next business day (you have until 11 PM ET (8 PM PT) to make a deposit or transfer). Chase Overdraft Assist does not require enrollment and comes with eligible Chase checking accounts.
Citi Priority Account - Earn up to $2,000 Cash Bonus
- Earn up to $2,000 cash bonus when you open a new eligible Citi Priority Checking Account with required activities
- 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 tier at any point during the maintenance period, the bonus changes.
- Bonus will be paid within 30 days after you successfully complete all required activities.
CIT Bank Savings Connect - 4.05% APY
- Earn 12x the national average
- $100 minimum opening deposit
- No monthly maintenance fee
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