Our verdict
The Discover Online Savings Account is one of the few savings accounts from major banks that offers a more than competitive 4.30% APY, which is 10x higher than the national average. It works well paired with the Discover® Cashback Checking account, which allows you to earn cash back on purchases and deposit those savings directly into your savings account automatically. But like with most online accounts, you can't deposit cash directly into this savings account, so you'll need to turn to direct deposits or transfers.Best for: Consumers who want a strong APY from an established and trusted major bank.
Pros
- Strong 4.30% APY
- No monthly fee
- No minimum opening deposit
Cons
- One brick-and-mortar branch
- No cash deposits
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?
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
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?
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
Is there a fee for closing an account if I need to take out my money?
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
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?
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