Discover Online Savings Account review
Take advantage of a high-interest online savings account with a 1.90% 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
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 1.90% 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’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.
- Employment information.
How do I deposit or withdraw my money?
- 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 1.9% 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 3.05%, 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
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