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Discover Online Savings Account review

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Take advantage of a high-interest online savings account with a 0.60% 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.

0.60%

APY

$0

Fee

$0

Minimum deposit to open

Details

APY0.60%
Fee$0
Minimum deposit to open$0
Minimum balance to earn interest$0
Interest compoundingDaily
Monthly transaction limit6
Fee per transaction over the limit$0
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More Info

Expert review

Peter Carleton

Review by


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. It’s best for those who are comfortable banking online. But you’ll want to keep looking if you regularly deposit cash.

How do I open a Discover Online Savings Account?

  1. Click Apply now.
  2. From Discover Bank’s website, click All Products.
  3. Select Online Banking and click on Online Savings Account.
  4. Choose Open an Account and select whether you’re a new or returning customer.
  5. Enter your personal information and click Continue.
  6. Follow the prompts to set up your account, make your opening deposit and read over the account disclosure.

Eligibility requirements

To apply for an account with Discover you’ll need to meet the following requirements:

  • US citizen
  • At least 18 years old
  • Valid Social Security number or taxpayer ID
  • 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

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 0.60% 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 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.

  • Miscellaneous fees. You could pay $30 for an outgoing wire transfer.
  • 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 Discover savings with other accounts

$
$
months
Name Product Interest rates (APY) Fee Minimum deposit to open Interest earned
American Express® High Yield Savings
0.60%
$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.
Axos Bank High Yield Savings
0.61%
$0
$250
No monthly maintenance fees. No minimum balance requirements. Interest compounded daily.
Aspiration Spend & Save Account

1.00% on $0 to $10,000 but you’ll need to be enrolled in Aspiration Plus and make at least $1,000 in debit card purchases a month
$0 per month or $7 per month for Aspiration Plus ($5.75 per month if you pay annually)
$10
Deposits are fossil fuel-free and insured by the FDIC. Enjoy a spend and save combo account with unlimited cash back rewards and a $100 bonus when you spend $1,000 in your first 60 days.
CIT Bank Money Market
0.60%
$0
$100
A savings account with a higher-than-average rate and minimal fees.
SoFi Money
0.25%
$0
$0
SoFi Money® is a cash management account that charges no account fees to save, spend, and earn cash back rewards when you spend on brands you love.
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Compare up to 4 providers

How do I deposit or withdraw my money?

Here are all the ways you can access money in your Discover Savings account:

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 0.5% APY with a balance of $100,000. Anything less and you’ll earn 0.45%.
  • Discover CDs. Discover offers flexible terms of three months to 10 years with rates of 0.25% to 0.8%, depending on the term.
  • IRA CDs. Choose between a traditional or Roth IRA CD and enjoy interest rates of 0.25% to 0.8% with fixed terms that range from three months to 10 years.

Common questions about 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

  1. Default Gravatar
    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?

    • Avatarfinder 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

  2. Default Gravatar
    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?

    • Avatarfinder 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

  3. Default Gravatar
    Kara
    January 3, 2019

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

    • Avatarfinder 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

  4. Default Gravatar
    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?

    • Default Gravatar
      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

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