Discover Online Savings Account review
Take advantage of a high-interest online savings account with a 1.15% 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.
Minimum deposit to open
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.
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.
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 1.15% 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
How do I open a Discover savings account?
- Go to Discover Bank’s website and click All Products.
- Select Online Banking and click on Online Savings Account.
- Choose Open an Account and select whether you’re a new or returning customer.
- Enter your personal information and click Continue.
- Follow the prompts to set up your account, make your opening deposit and read over the account disclosure.
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:
- Date of birth
- Social Security number or tax identification number
- Employment information
How do I deposit or withdraw my money?
Here are all the ways you can access money in your Discover Savings account:
- 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:
PO Box 30417
Salt Lake City, UT 84130
- 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:
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 1.05% APY with a balance of $100,000. Anything less and you’ll earn 0.99%. 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 1.4%, depending on the term.
- IRA CDs. Choose between a traditional or Roth IRA CD and enjoy interest rates of 0.35% to 1.4% with fixed terms that range from three months to 10 years.
Common questions about Discover Bank
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