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Discover Online Savings Account review

Peter Carleton

Last updated: 22 January 2020

Take advantage of a high-interest online savings account with a 1.70% APY, no fees and more.

finder.com’s rating: 4.6 / 5.0

★★★★★

Discover does more than just offer credit cards. Its savings accounts offer daily compounded interest, no fees and no account minimum. But if you prefer to do your banking in a brick-and-mortar location, you won’t find that with Discover Bank.

1.70%

APY

Fee

Minimum deposit to open

Details

Features

APY	1.70%
Fee	$0
Minimum deposit to open	$0
Minimum balance to earn interest	$0
Interest compounding	Daily
Monthly transaction limit	6
Fee per transaction over the limit	$0
	More Info

Expert review

Review by

Peter Carleton

peter.carleton@findercrew.com

Peter Carleton is a writer that covers banking and investing, breaking down what you need to know about where you put your money. When Peter's not thinking about cutting-edge banking apps and robo-advisors, he runs a creative agency and spends his spare time cooking or reading.

Expert review

Discover’s high-interest savings account offers an easy way to save with competitive interest rates, on-the-go transactions, no minimum account requirements or no monthly fees. As long as you’re comfortable keeping your banking transactions online, it’s a viable option.

What are the benefits of the Discover Online Savings Account?

Discover’s high-interest savings account offers several key benefits in addition to solid fraud and liability protections, standard FDIC insurance up to $250,000 and 24/7 US-based customer service.

High APY. Its 1.70% APY is significantly higher than you’ll find with competitors — sometimes as low as 0.01% APY.
No minimum opening deposit. Some banks require $100 or more to open an account, but you can open a Discover Online Savings Account Account with any amount.
No monthly fee. You won’t pay a monthly account fee with Discover.
Daily compounded interest. Discover compounds your interest daily, rather than monthly, earning you more money.
Online signup and management. Open this savings account completely online. You’ll make all transactions, deposits and monitor and manage your account on its website or mobile app.
Auto Redemption. With the Discover Cashback Debit checking account, this program automatically deposits your cashback bonus into your savings account monthly.

What’s the difference between in interest rate and APY?

Your interest rate is the simple interest you’re paid on an account or an investment over a year. For example, if you’ve invested $1,000 into an account with 1% interest, you’ll earn $10 on that investment at the end of a year.

An APY is the monthly compounded interest rate over a year — the interest you earn on your interest. The APY is the total of that interest if the account is untouched for a year.

What should I look out for?

Discover’s rates and terms are better than what you’ll find at a traditional bank. But’s here’s what you should be aware of before signing up.

Multiple fees. You could pay $30 for an outgoing wire transfer or $15 to stop a payment.
One brick-and-mortar branch. Discover is an online bank with only one storefront in Riverwoods, Illinois, so the only way to withdraw funds is at ATMs. Find one using the ATM locator online or through Discover Mobile, but be aware that not all ATMs are free or even open 24/7.
Limited deposits options. The only ways to deposit money are from direct deposits, online transfer, mobile check deposits or mail. You can’t deposit cash or traveler’s checks.

Compare with other savings accounts

Name	Interest rate (APY)	Fee	Minimum deposit to open
American Express® Personal Savings High Yield Savings	1.70%	$0	$0	Enjoy no monthly fees and a competitive APY with this online-only savings account. Accounts offered by American Express National Bank, Member FDIC.	Go to site View details	Compare	loading Fetching your data...
Barclays Online Savings	1.70%	$0	$0	Earn 20x the national savings account average with no fees or minimums.	Go to site View details	Compare	loading Fetching your data...
BBVA Money Market	1.50%	$15 per month (can be waived)	$25	Earn one of the highest annual percentage yields (APYs) if you live in one of 42 eligible states, and access your money by ATM, check or bill pay.	Go to site View details	Compare	loading Fetching your data...
UFB Direct High Yield Savings	1.90%	$0	$100	Earn a competitive rate with a balance higher than $10,000.	Go to site View details	Compare	loading Fetching your data...
CIT Bank Savings Builder High Yield Savings Account	1.80%	$0	$100	A super-high interest rate if you're in the habit of saving at least $100 per month or have $25K in the bank.	Go to site View details	Compare	loading Fetching your data...
Radius Bank High-Yield Savings	1.65%	$0	$100	A free high-interest savings account with a $100 minimum deposit to open	Go to site View details	Compare	loading Fetching your data...
Chase Savings	0.01%	$5 per month (can be waived)	$0	Get 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. Or get $350 when you open both a Chase Savings and Chase Total Checking account. Available online nationwide except in Alaska, Hawaii and Puerto Rico.	Go to site View details	Compare	loading Fetching your data...

Compare up to 4 providers

How do I open an account?

1. Go to Discover Bank’s website.
2. Choose Open an Account and select the savings product.
3. It only takes four steps to fill out your information, and you can apply for multiple products at the same time.

Eligibility requirements

To apply for an account with Discover you must:

Be a US citizen.
Be at least 18 years old.
Have a valid Social Security number or taxpayer ID.
Have a physical US address.

What do I need to open an account?

Provide Discover with the following information:

Name.
Date of birth.
Address.
Social Security number or tax identification number.
Employment information.

How do I deposit or withdraw my money?

Deposit:

Online transfer from an external bank account.
Direct deposit
Mobile phone
By mail by sending a check with your name and account number on the memo line to the following address:

Discover Bank

PO Box 30417

Salt Lake City, UT 84130

Withdraw:

Send an online transfer to an external bank account.
Request an official bank check.
Wire transfer.

How do I get in touch with customer service?

There are a few ways to reach Discover Bank customer service:

By phone: 800-347-7000
Online: Log in to your account to use the secure message center or live chat
Facebook: Discover
Twitter: @Discover
By mail:

Discover Bank

PO Box 30416

Salt Lake City, UT 84130

What other banking services does Discover provide?

In addition to its high-interest savings account, Discover offers several other banking and investment products that include:

Discover Cashback Debit. Discover’s checking account rewards you with up to $3,000 in debit card purchases each month, no monthly maintenance fees and unlimited online transfers.
Discover Money Market. Earn up to 1.6% APY with a balance of $100,000. Anything less and you’ll earn 1.55%. Maintain a $2,500 balance to avoid paying a maintenance fee.
Discover CDs. Discover offers flexible terms of three months to 10 years with rates of 0.35% to 2.2%, depending on the term.
IRA CDs. Choose between a traditional or Roth IRA CD and enjoy interest rates of 0.35% to 3.10% with fixed terms that range from three months to 10 years.

Common questions about Discover Bank

Online banks are increasing in popularity as the public demands more flexible ways to bank. Discover Bank is online only, which means it doesn’t offer brick-and-mortar branches to visit. All your bank transactions are online either through the bank’s website or mobile app. With reduced overhead, online banks are typically able to offer customers more competitive interest rates and reduced fees.
Yes. Online banks, much like traditional financial institutions, proactively protect your data. But here are a few ways you can further safeguard your information:
- Use only the official site and mobile app created by your bank. If you receive an offer or email from a third-party sender, don’t click the links, provide your personal details or download suspicious applications.
- Use antivirus software. Download a reputable antivirus software for your computer and your phone to ensure that your devices are free of malware.
- Only use trusted networks. Never log in to your accounts on a public network. Instead, choose only secured networks you know and trust.
Regardless of which bank or account you choose, all savings accounts are limited to six transactions per month. This is because of Regulation D, which is a requirement set by the Federal Reserve. The following transactions count towards your monthly limit:
- ACH transfer
- Wire transfers
- Phone transfers
- Online transfers
- Online bill payments
- Transfers to repay loans at Discover Bank

Savings account ratings

★★★★★ — Excellent

★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

We analyze top savings accounts and rate them one to five stars based on factors that are most important to you. These factors include: interest rates, monthly fees, minimum deposits, customer service and account features.

Read the full methodology of how we rate savings accounts.

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8 Comments

IG
April 17, 2019

Regarding online savings that offers 2.10% APY and $0 monthly fees, is there a dollar limit on withdrawals? Is there a fee to withdraw money from the account? Is there a fee to close an account? Is interest paid as it accrues, annually or other? Is money deposited into the account insured in the event the online account is hacked or somehow stolen?

Reply
- finder Customer Care
  
  Jeni
  April 19, 2019
  
  Hi IG,
  
  Thank you for getting in touch with Finder.
  
  Interest is compounded daily, credited monthly, and calculated on a 365-day basis for interest-bearing accounts. No limit on how much you wish to withdraw from this account however you will be charged an excessive withdrawal fee of $15 if you make more than 6 withdrawals in a calendar month. Funds in Discover Bank Accounts are insured by the Federal Deposit Insurance Corporation (FDIC) to the maximum allowed by law. Please contact Discover directly if you need more info on opening an account with them.
  
  I hope this helps.
  
  Thank you and have a wonderful day!
  
  Cheers,
  Jeni
  
  Reply
Laurie
April 1, 2019

If I open an account with $15000 and receive the bonus and something happens where I need the money and withdraw some, would I lose the bonus?

Reply
- finder Customer Care
  
  johnbasanes
  April 2, 2019
  
  Hi Laurie,
  
  Thank you for reaching out to Finder.
  
  No you do not lose the 2.10% APY as this is the interest being earned for the account. When you need to withdraw money, the account allows you to do this via 3 methods:
  
  Send an online transfer to an external bank account.
  Request an official bank check.
  Wire transfer.
  
  Please note that the principal that is to be calculated after the withdrawal will be smaller thus the interest smaller as well. Hope this helps!
  
  Cheers,
  Reggie
  
  Reply
Kara
January 3, 2019

Is there a fee for closing an account if I need to take out my money?

Reply
- finder Customer Care
  
  Jhez
  January 4, 2019
  
  Hi Kara,
  
  Thank you for your comment.
  
  There is no fee for closing your Discover Online Savings Account and for taking out the money.
  
  Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
  
  Regards,
  Jhezelyn
  
  Reply
Clinton
September 1, 2018

I tried creating a discover account I filled out the necessary information needed but I haven’t been approved I was told it would be reviewed. How long can I wait?

Reply
- joelmarcelo
  September 1, 2018
  
  Hi Clinton,
  
  Thanks for leaving a question on finder.
  
  Typically, approval is within 3 to 5 business days. If it takes longer than that, you can contact Discover bank directly to follow up and find out what could be causing the delay.
  
  Cheers,
  Joel
  
  Reply

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