Discover Bank Online Savings Account review October 2018 | finder.com

Discover Bank Online Savings Account review October 2018

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

Take advantage of a high-interest online savings account with a 1.80% APY, $0 monthly fees and more.

As more banks take their services exclusively online, customers benefit with convenient features like online deposits, transfers and account management. Customers also win with lower fees and higher interest.

Discover does more than just offer credit cards. Its savings accounts offer compounded monthly interest 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.

APY1.8%
Fee$0
Minimum deposit$0

What are the benefits of the Discover Bank 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 1.80% 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 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.

  • Fee for exceeding transactions. Federal regulations limit your monthly withdrawals to six, and Discover charges $15 every time you go over that limit.
  • Multiple fees. You could pay $30 for an outgoing wire transfer, $30 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.

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.
Discover Bank online application form image

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:

  • Cashback Debit account. Discover’s checking account rewards you with up to $360 cash back a year, no monthly maintenance fees and unlimited online transfers.
  • Money market account. Earn up to 1.70% APY with a balance of $100,000. Anything less and you’ll earn 1.65%. Maintain a $2,500 balance to avoid paying a maintenance fee.
  • CDs. Discover offers flexible terms of three months to 10 years with rates of 0.35% to 3.10%, 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.

Compare with other savings accounts

Name Product Fee Minimum deposit Minimum balance to earn interest APY
CIT Bank Savings Builder High Yield Savings Account
CIT Bank Savings Builder High Yield Savings Account
$0
$100
2.15%
A super-high interest rate if you're in the habit of saving at least $100 per month or have $25K in the bank.
$0
$1
$0
2.01%
Get one of the highest interest rates available without high balance requirements or fees.
$0
$0
$0
1.9%
Earn one of the highest interest rates without the fees.
$0
$0
$0
1.85%
The most common services and transactions are free with Ally Bank.
$15 per quarter
(can be waived)
$25
1.8%
Earn one of the highest interest rates if you have at least $10,000 in savings.
$0
$100
$0
1.55%
Earn a high interest rate with no monthly fees.

Compare up to 4 providers

Bottom line

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 for those looking to bank with mobility and.

Common questions about Discover Bank

Adrienne Fuller

Adrienne Fuller leads the publishing team at finder.com. She has one goal: to deliver the accurate and transparent information she wishes she had when she made some of life's important financial decisions. When she's not helping folks save money, she's hiking with her two Catahoulas around her home in San Diego.

Was this content helpful to you? No  Yes

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Privacy and Cookies Policy and Terms of Use.

2 Responses

  1. Default Gravatar
    ClintonSeptember 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?

    • finder Customer Care
      joelmarceloSeptember 1, 2018Staff

      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

Go to site