November 4, 2021

Is Discover Savings Worth It

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Looking for a better place to keep your money safe? Find out if a Discover Online Savings Account is worth it for you.

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Is Discover Online Savings Account Worth It?

Traditional banks usually offer rock-bottom interest rates. That's not great if you want to grow your savings over time.

Instead, many people opt for an online savings account to get a higher APY and get the most out of their money.

The Discover Online Savings Account has no fees and offers a good APY compared to brick-and-mortar banks. Plus, you can open an account with no minimum balance requirement. It's a solid savings account, especially if you want to use Discover's other banking services.

Interest compounds daily and gets paid out monthly. You'll earn interest every day once you make your first deposit. Each month, those earnings will get credited to your savings account.

Is it safe to open a Discover savings account?
Discover Bank is FDIC-insured, so the money in your account is protected up to $250,000. Discover also offers a number of other tools and features to keep your account safe, like SSL technology, fraud monitoring, and enhanced account verification.

How to Access Your Money

Online bank accounts are only worth it if you're actually able to use your money when you need it. Find out how to access your money to see if Discover Online Savings is right for you.

Deposits
Although you can't deposit cash directly, there are a few ways to get money into your account:

  • Mobile check deposit
  • Online transfer from another bank account
  • Direct deposit
  • Mail a check to
    Discover Bank
    PO Box 30417
    Salt Lake City, UT 84130

Withdrawals
Here are your options for withdrawing money from your online savings account:

  • Online transfer to another bank account
  • Domestic wire transfer
  • International wire transfer
  • Official bank check
  • Transfer to Discover checking for ATM withdrawal

If you mainly deal with cash on a day-to-day basis, Discover Online Savings might not be worth it for you. Discover Bank offers plenty of ways to access your money, but like most online savings accounts, your cash options are limited.

The Discover Online Savings doesn't come with an ATM card. But you can transfer funds to a Discover checking account, which does come with an ATM card.

Why You Should Choose Discover Online Savings

Wide Range of Banking Products
Discover offers everything you might need from a bank, including no-fee checking accounts, CDs, credit cards, and loans. This makes it simple if you want to do all your banking in one place.

No Monthly Fees
Discover doesn't charge account fees. However, there is a $30 service fee for outgoing wire transfers. If you make frequent wire transfers, this can add up. But since you have lots of other withdrawal methods, this shouldn't be too much of an issue.

User-Friendly Mobile App
The highly rated Discover Mobile app gives you complete access to your account. With the app, you can view your balances, pay bills, use Zelle, find ATMs, and more.

Earn Decent Interest Rates
Let's be honest—interest rates are pretty low all across the board right now. This is because the Federal Reserve sets the rates. The benefit of going with an online savings accounts is that its interest rates will keep up with the Fed's rates if they increase in the future.

24/7 Customer Service
Online banks don't have in-person customer service. So it's even more important to consider customer service before you choose a bank. Discover has 24/7 customer service. You can call any time and get support for your account.

Discover Bank Customer Service
  • Phone: Available 24/7 at 1-800-347-7000
  • Chat: Available 24/7 on their website

Why You Should Look Elsewhere

Can't Deposit Cash
You can only deposit cash in a different bank account, then transfer it to your Discover savings account. If you get paid in cash or deal with cash on a daily basis, a traditional bank with physical branches and ATMs is probably a better choice.

No ATM Card
Discover Online Savings doesn't come with an ATM card for withdrawals. To get around this, you can open a Discover checking account. You'll be able to transfer your funds to the checking account and use its ATM card to withdraw cash.

Online-Only Banking
Discover has just a few physical locations, so you'll likely have to do everything online. Physical branches aren't absolutely necessary to do your banking. But it might take some getting used to if you usually visit your local branch to get in-person support.

Discover Online Savings Bonus

With the Discover Online Savings Account, you'll earn a higher interest rate than the national average. To jump-start your savings even more, be sure to check out the current Discover savings bonus.

Here are the details of their latest cash promotion:

How to Open a Discover Online Savings Account

Getting started with Discover Online Savings is simple. Here's all you need to open an account:

  1. Choose Online Savings Account on your application
  2. Fill out basic information like your name, address, and SSN
  3. Designate beneficiaries (optional)
  4. Fund the account (optional)
  5. Set up your login information

Because there's no minimum to open the account, you don't need to deposit any funds immediately. You can open an account now and fund your count later. But, you'll probably want to make a deposit as soon as possible so you can start earning interest.

Compare Other Savings Accounts

There are so many options for high-yield savings accounts. Check out these popular accounts to see which is worth it for you.

Axos Bank High Yield Savings
Axos offers a high-yield savings account with good interest rates. The minimum opening deposit is higher at $250, but there are no balance requirements after that. You can get a free ATM card for this account. It's a solid choice if you need to withdraw cash from your savings account.

CIT Bank Savings Builder
The CIT Savings Builder has competitive rates and no monthly fees. There's a $100 minimum deposit to open the account and it has a tiered interest structure.

Ally Bank Online Savings Account
Ally has a popular online savings account with competitive rates. It has good customer service and a user-friendly interface. Plus, there's no minimum deposit required to open an account.

Bottom Line

The Discover Online Savings Account can be worth it if you want an online-only banking experience. To figure out if it's right for you, ask yourself:

  • Do I need to deposit cash?
  • Do I want to visit a physical bank branch?
  • How often will I need to use an ATM?

Online banking isn't right for everyone. But if you're looking for a full-service bank that offers a high-yield savings account, it's worth checking out Discover Online Savings.

Discover Bank
Member FDIC

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 CY922 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 12/15/2022, 11:59 PM ET. Offer may be modified or withdrawn without notice. See advertiser website for full details.

Expires 12/15/2022
Chase
Member FDIC

Chase Total Checking® - $200 Bonus

Expires 1/25/2023
  • 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 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.

Citibank

Citi Priority Account - Earn up to $2,000 Cash Bonus

Expires 1/9/2023
  • 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
Member FDIC

CIT Bank Savings Connect - 2.70% APY

  • Earn 15x the national average
  • $100 minimum opening deposit
  • No monthly maintenance fee
Bluevine

Business Checking - Up to 1.5% APY

  • 1.5% APY on your balance up to $100,000 for customers that meet monthly eligibility requirements
  • $0 minimum opening deposit
  • $0 monthly service fee
Banking services provided by Coastal Community Bank, Member FDIC

Donna Tang is a content associate at CreditDonkey, a bank comparison and reviews website. Write to Donna Tang at donna.tang@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

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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About Discover Bank

Discover Bank offers some of the highest interest rates for its savings account.

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