Updated January 11, 2024

Is Discover Savings Worth It

Read more about Discover Bank
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Is your money secure in a high-yield Discover® savings account? Get your answers now.

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.[1]

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.[2] 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.

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 account 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 Platinum Savings
CIT Bank's Platinum Savings account has competitive rates and no monthly fees. There's a $100 minimum deposit to open the account but in order to receive top-tier APY, you need to maintain a $5,000 daily balance.

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.

References

  1. ^ Discover Bank. FAQ: Deposits & Withdrawals, Retrieved 03/28/2024
  2. ^ Discover Bank. FAQ: Is there a service charge for sending a wire transfer?, Retrieved 03/28/2024
Discover Bank
Member FDIC

Discover® Online Savings - $200 Cash Bonus

Expires 9/12/2024

To qualify for Bonus: Apply for your first Discover Online Savings Account, enter Offer Code CY624 at application, 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. Qualifying deposit(s) may consist of multiple deposits and must post to Account within 45 days of account open date. Maximum bonus eligibility is $200.

What to know: Offer not valid for existing or prior Discover savings customers, including co-branded, or affinity accounts. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of the account qualifying for the bonus. Bonus is subject to tax reporting. Offer ends 09/12/2024, 11:59 PM ET. Offer may be modified or withdrawn without notice. See advertiser website for full details.

Chase
Member FDIC

Chase Total Checking® - $300 Bonus

Expires 7/24/2024
  • New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account with qualifying activities
  • Access to more than 15,000 Chase ATMs and more than 4,700 branches
  • Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
  • JPMorgan Chase Bank, N.A. Member FDIC
  • 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 fees 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*
Bank of America
Member FDIC

Bank of America Advantage Banking - $200 Bonus Offer

Expires 9/30/2024
  • The $200 bonus offer is an online only offer and must be opened through the Bank of America promotional page.
  • The offer is for new checking customers only.
  • Offer expires 9/30/2024.
  • To qualify, open a new eligible Bank of America Advantage Banking account through the promotional page and set up and receive qualifying direct deposits totaling $2,000 or more into that new eligible account within 90 days of account opening. Bank of America Advantage SafeBalance Banking® for Family Banking accounts are not eligible for this offer.
  • Once all requirements are met, Bank of America will attempt to pay bonus within 60 days.
  • Additional terms and conditions apply. See offer page for more details.
  • Bank of America, N.A. Member FDIC.
CIT Bank
Member FDIC

CIT Bank Platinum Savings - 5.00% APY

  • 5.00% APY with a balance of $5,000 or more
  • 0.25% APY with a balance of less than $5,000
  • $100 minimum opening deposit
  • No monthly maintenance fee
  • Member FDIC
Bluevine

Free Business Checking - Up to 2.0% APY

  • 2.0% APY on your balance up to $250,000 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. In addition, Discover offers cashback checking. There are no fees for checking and savings accounts.

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