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.

Online Savings Account - Earn 0.60% APY
Click Here to Get Deal
• No fees
• No minimum opening deposit
• No minimum balance required

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
  
• Cashback Checking
  
• 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

Discover Savings Account offers 0.60% APY, which is higher than many competitor banks. There are no fees and no balance requirements. It also offers excellent 24/7 live customer service. Discover is a great choice if you're looking for a free online savings account.

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 as much as 5X 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). 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.

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 transaction, you can handle your banking from home (or wherever you are).

Online Savings Account - Earn 0.60% APY
Click Here to Get Deal
• No fees
• No minimum opening deposit
• No minimum balance required

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.

Online Checking Account - Earn Cash Back
• 1% cash back on up to $3,000 in debit card purchases each month
• No fees
• Access to over 60,000 no-fee ATMs in the U.S.

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.

Chase Savings℠
Click Here to Get Coupon
• 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 4,900 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.
• 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 Discover savings account, 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 (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

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.

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 Savings Builder - Earn 0.55% APY
Learn More
Earn up to 0.55% APY. Here's how it works: Maintain a minimum balance of $25k OR make at least a $100 minimum deposit every month. Member FDIC

Betterment Cash Reserve - Earn up to 0.40% APY
Start Saving
• 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

Chase Savings℠
Get Coupon
• 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 4,900 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.
• Open your account online now.
• Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.

Bottom Line

Discover Bank's online savings account has no monthly fees and offers one of the highest interest rates in the industry. It's a great choice if you're comfortable with banking online.