Discover Online Savings Account Review
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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- No minimum opening deposit
- No monthly fee
- No minimum balance required to waive monthly fee
Online Savings Account - Earn 2.10% APY
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.
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.
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).
- No minimum opening deposit
- No monthly fee
- No minimum balance required to waive monthly fee
Online Savings Account - Earn 2.10% APY
Discover Online Savings - $150 Cash Bonus
Apply for your first Discover Online Savings Account by 7/1/19, 11:59 PM ET, online or by phone. Enter Offer Code CD619 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 7/15/19, 11:59 PM ET. Maximum bonus eligibility is $200.
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 7/29/19. 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.
Discover Online Savings - $200 Cash Bonus
Apply for your first Discover Online Savings Account by 7/1/19, 11:59 PM ET, online or by phone. Enter Offer Code CD619 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 7/15/19, 11:59 PM ET. Maximum bonus eligibility is $200.
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 7/29/19. 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.
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.
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.
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:
- 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 (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.
- 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
How it Compares
- Earn 2.30% APY on all balance tiers
- No monthly maintenance fee
- Minimum balance to earn APY is $1
- Member FDIC
- Earn 2.45% APY on balances of $10,000 and above
- Member FDIC
HSBC Direct Savings - 2.30% APY
UFB High Yield Savings - Earn up to 2.45% APY
Bottom Line
Discover Bank's online savings account offers no monthly 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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