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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Online Savings Account - Earn 0.40% APY
- 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 0.40% 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.
Is Discover Bank Safe?
Your deposits with Discover Bank is safe and protected by FDIC insurance (FDIC #5649). FDIC insures your deposits up to $250,000.
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 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: What to do: Apply for your first Discover Online Savings Account, online or by phone. Enter Offer Code CY21 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 30 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 12/15/21, 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 or by phone. Enter Offer Code CY21 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 30 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 12/15/21, 11:59 PM ET. Offer may be modified or withdrawn without notice. See advertiser website for full details.
Online Savings Account - Earn 0.40% 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.
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.
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 Savings Builder - 0.40% APY
Earn up to 0.40% APY. Here's how it works: Maintain a minimum balance of $25k OR make at least a $100 minimum deposit every month. Member FDIC
High Yield Savings
- 0.61% APY on balance < $25,000
- 0.25% APY on balance $25K-$100K
- 0.15% APY on balance > $100K
- No minimum balance requirements
- No fees to open or maintain account
- Free ATM card upon request
- FDIC Insured
High Yield Savings - 0.55% APY
- 0.55% APY
- $100 minimum opening deposit
- No monthly service fees
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.
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
Online Savings Account - Earn 0.40% 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 or by phone. Enter Offer Code CY21 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 30 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 12/15/21, 11:59 PM ET. Offer may be modified or withdrawn without notice. See advertiser website for full details.
Chase Total Checking® - $225 Bonus
- New Chase checking customers enjoy a $225 bonus when you open a new Chase Total Checking® account and set up direct deposit
- Access to 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.
Citi Priority Account - Up to $1,500 Cash Bonus
- Earn up to $1,500 cash bonus when you open a new account with required activities
- Open a new eligible checking account in the Citi Priority Account during the offer period 10/5/21-1/4/22
- Within 20 days of opening, deposit $50,000 in New-To Citibank funds between the new checking and savings accounts
- Maintain a minimum balance of $50,000 in the checking account for an additional 60 consecutive calendar days from the 21st day
- After all required activities are met, the cash bonus will be deposited to your account within 90 calendar days
CIT Bank Money Market Account - 0.45% APY
- 0.45% APY
- $100 minimum opening deposit
- No monthly maintenance fee
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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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