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 1.60% APY
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• 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 has a 1.60% APY, which is one of the best savings account interest rates on the market. It's safe (FDIC insured), charges no monthly fees and has excellent customer service. 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.

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
Between the high interest rate and generous welcome bonus for first time customers, the Discover online savings account 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).

Discover Online Savings - $200 Cash Bonus
To get your $150 or $200 Bonus offer: What to do: Apply for your first Discover Online Savings Account by 3/2/20, 11:59 PM ET, online or by phone. Enter Offer Code CY220 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 3/16/20, 11:59 PM ET. 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. Account must be open when bonus is credited. Bonus will be credited to the account by 3/30/20. 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.
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Expires 3/2/2020

Discover Online Savings - $150 Cash Bonus
To get your $150 or $200 Bonus offer: What to do: Apply for your first Discover Online Savings Account by 3/2/20, 11:59 PM ET, online or by phone. Enter Offer Code CY220 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 3/16/20, 11:59 PM ET. 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. Account must be open when bonus is credited. Bonus will be credited to the account by 3/30/20. 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.
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Expires 3/2/2020

Online Savings Account - Earn 1.60% APY
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℠
• 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.
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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 1.75% APY
Earn up to 1.75% APY. Here's how it works: Maintain a minimum balance of $25k OR make at least a $100 minimum deposit every month. Member FDIC
See Terms

Chase Total Checking® + Chase Savings℠
• Enjoy up to $350 when you open a new Chase Total Checking® account with Direct Deposit and/or open a new Chase Savings℠ account, deposit $10,000 or more in new money and maintain a $10,000 balance for 90 days
• Enjoy a $200 bonus when you open a new Chase Total Checking® account and set up direct deposit
• 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 days, and maintain a $10,000 balance for 90 days
• Access to 16,000 Chase ATMs and nearly 4,900 branches
• Open your account online now.
• Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
• Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
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Betterment Everyday - Earn up to 1.83% APY
• 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
Start Saving

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.