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Take advantage of a high-interest online savings account with a
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.
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.
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
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.
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.
Fee for exceeding transactions. Federal regulations limit your monthly withdrawals to six, and Discover charges $0 every time you go over that limit.
Multiple fees. You could pay $30 for an outgoing wire transfer, $0 for insufficient funds or $15 to stop a payment, among other fees.
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
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.
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:
Date of birth.
Social Security number or tax identification number.
How do I deposit or withdraw my money?
Online transfer from an external bank account.
By mail by sending a check with your name and account number on the memo line to the following address:
PO Box 30417
Salt Lake City, UT 84130
Send an online transfer to an external bank account.
Request an official bank check.
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
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 1.9% APY with a balance of $100,000. Anything less and you’ll earn 1.85%. 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 2.3%, 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.
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.
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:
Online bill payments
Transfers to repay loans at Discover Bank
You can log in to your account on the Discover website or through the Discover mobile app. Either method will allow you to manage your accounts, send or cancel transfers and more.
Yes. You can enroll by logging into your account and selecting Overdraft Protection under Accounts, which brings you to the Overdraft Protection enrollment page.
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