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.

Discover Bank
Member FDIC

Online Savings Account - Earn 0.40% APY

  • No fees
  • No minimum opening deposit
  • No minimum balance required

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 Cashback Debit 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 Cashback Debit 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:

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 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.

Expires 12/15/2021
Discover Bank
Member FDIC

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.

Expires 12/15/2021

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.

Axos Bank
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

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.

CIT Bank
Member FDIC

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

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.

Ally Bank

Online Savings Account - 0.50% APY

$0 minimum opening deposit. No minimum balance requirement. No fees to open or maintain 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 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.

Expires 12/15/2021
Chase
Member FDIC

Chase Total Checking® - $225 Bonus

Expires 1/19/2022
  • 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.
  • Overdraft Services - no fee if you're overdrawn by $50 or less at the end of the business day*
  • *We charge a $34 Insufficient Funds Fee per item during our nightly processing beginning with the first item that overdraws your account balance by more than $50 (maximum of 3 fees per business day, up to $102).
Citibank

Citi Priority Account - Up to $1,500 Cash Bonus

Expires 1/4/2022
  • 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
Member FDIC

CIT Bank Money Market Account - 0.45% APY

  • 0.45% APY
  • $100 minimum opening deposit
  • No monthly maintenance fee
HSBC Bank
Member FDIC

HSBC Premier Checking - $450 Welcome Deposit

Expires 1/5/2022
  • Get a $450 Welcome Deposit for eligible new customers who open a new HSBC Premier checking account and complete the following qualifying activities.
  • Open your new HSBC Premier checking account online by January 5, 2022; and
  • Make recurring monthly Qualifying Direct Deposits totaling at least $5,000 from a third party to your HSBC Premier checking account(s) for 3 consecutive calendar months from the second full calendar month after account opening.
  • You will automatically receive the $450 Welcome Deposit in your new HSBC Premier checking account approximately eight weeks after completing all qualifying activities. It's that simple.
  • Deposit products are offered in the U.S. by HSBC Bank USA, N.A. Member FDIC.

Donna Tang is the head of purpose and audience 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. In addition, Discover offers cashback checking. There are no fees for checking and savings accounts.

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