Discover Bank Review 2024
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At a glance
CDs
Checking
Savings
MMA
About Bankrate Score
Overview
Discover Bank is a great option for consumers who want to manage their credit cards and bank accounts in one place. As an online-only bank without branches, consumers considering Discover should be comfortable banking solely online, though Discover provides a wide network of fee-free ATMs where you can get access to your cash. Of particular note is Discover’s cashback checking, which was named the overall best checking account in the 2023 Bankrate Awards.
Highlights
- High APY
- No Monthly Fees
- 24/7 Customer Service
Offers featured here have been sponsored by our partners, which impacts how, where, and in what order the products appear.
APY, or annual percentage yield, is the yearly return on a bank or investment account.
APY, or annual percentage yield, is the yearly return on a bank or investment account.
Bankrate Savings rating = 4.9/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
APY, or annual percentage yield, is the yearly return on a bank or investment account.
APY, or annual percentage yield, is the yearly return on a bank or investment account.
Bankrate CD rating = 4.9/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
APY, or annual percentage yield, is the yearly return on a bank or investment account.
APY, or annual percentage yield, is the yearly return on a bank or investment account.
Bankrate CD rating = 4.7/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Offers featured here have been sponsored by our partners, which impacts how, where, and in what order the products appear.
Overall
Discover Bank is an online institution within a financial services company offering various banking products, including deposit accounts, credit cards, personal loans and student loans. Discover’s deposit accounts, particularly its savings products, offer competitive rates without the monthly fees, making them highly accessible to just about anyone.
Pros
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Discover doesn’t charge fees on any of its deposit products.
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The CDs, savings and money market accounts all pay competitive rates.
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The bank offers a highly rated cash-back checking account.
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Discover® Bank’s Cashback Debit account has a service that may help get your personal information off of certain websites.
Cons
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The $2,500 minimum deposit for CDs and the money market account is steep.
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Discover’s outgoing wire transfer fee is higher than what some other banks charge.
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Discover maintains only one branch, so it’s not ideal for those who wish to bank in person.
Discover® Bank banking products
SCORE BREAKDOWN
FEATURES
APY, or annual percentage yield, is the yearly return on a bank or investment account. APY as of 3/19/2024
Discover® Bank savings overview
Account holders won't get access to an ATM card, but Discover® Bank offers free official bank checks and expedited delivery for them.
Pros
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The savings account pays a competitive yield.
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There’s no minimum opening deposit or balance requirements.
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There’s no monthly service fee.
Cons
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An ATM card isn’t available for Discover® Bank's online savings account.
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There are higher annual percentage yields (APYs) available at other online banks.
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See how rates for this account have changed over time. Interact with the trend lines to view APY by date.
Discover® BankAPYAPYNational average APYHow do we get this data?
Offers featured here have been sponsored by our partners, which impacts how, where, and in what order the products appear.
APY, or annual percentage yield, is the yearly return on a bank or investment account.
APY, or annual percentage yield, is the yearly return on a bank or investment account.
Bankrate Savings rating = 4.9/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Bank fees
Fee | Charged? | |
---|---|---|
Overdraft fee | None | |
Non-sufficient funds fee | None | |
Monthly maintenance fee | None | |
Out-of-network ATM fee | None | |
Excessive transaction fee | None |
Customer experience
Customer support
24/7 support is available. As an online-only bank, Discover doesn’t have physical branches you can visit, except for one office in Delaware. But Discover customers can call the bank anytime to get help, no matter the account. The bank also monitors transactions and contacts customers if it detects suspicious activity.
High customer satisfaction. Discover Bank took first place in overall satisfaction among online-only banks for both its savings products, according to J.D. Power’s 2023 Direct Banking Satisfaction Study. It ranked second for its checking account, which was named the overall best checking account as part of the 2023 Bankrate Awards.
Digital experience
Highly rated mobile app. Discover’s app has been reviewed by more than four million users, receiving high marks on both the Apple App and Google Play stores. The app makes it a breeze to see the specs of your account, according to a Bankrate staff member with a Discover account. “In just a few seconds, I can see my current balance, current APY, interest rate, interest YTD, scheduled transactions and the number of limited transactions used in the current month.” You can easily schedule and manage automatic payments, set alerts and even find tax documents.
Mobile app limitations. Discover’s app doesn’t have a savings calculator for existing customers, so if you want to calculate savings potential, you’ll have to head to the website. Moreover, searching for previous transactions can be frustrating, as searches are limited to time frame and amount.
Email alerts. One of Discover’s best features is its “check out your new APY” emails, which are sent to customers after an interest rate hike. “Discover keeps me updated on how its high-yield savings account is maximizing my savings potential with this transparency,” said a Bankrate staff member who uses the account personally.
Complaints
FDIC action. In July 2023, the Federal Deposit Insurance Corp. issued a consent order to Discover Financial Services, which addressed shortcomings in Discover Bank’s compliance management system in connection with consumer protection laws. While the FDIC didn’t issue a fine, Discover agreed to audit and improve its consumer compliance infrastructure.
Bankrate staff insights
"I’m perfectly happy with my Discover savings account because I appreciate a company that offers a strong app in terms of ease of use, transparency and functionality," said a Bankrate staff member with a Discover account. "The email reminders are helpful because they remind me to check in on my savings progress every month or so, which keeps my savings account (and progress) top of mind. However, Discover’s calculator limitations make it harder for me to confidently know how APY changes impact my savings plans, but its app makes it easy to adjust my transfers when needed."
About Discover Bank
Discover Bank offers certificates of deposit (CDs), a money market account and a high-yield savings account. It has also become one of the largest credit card issuers in the country.
The Discover card made its debut in the mid-1980s when Sears, Roebuck & Co. still offered financial services. Sears’ bank, the Greenwood Trust Co., was later renamed Discover Bank in 2000. It is headquartered in Greenwood, Delaware.
How Discover compares to other banks
Discover Bank vs. American Express National Bank
Both Discover Bank and American Express National Bank are online banks that offer competitive APYs and low fees. However, Discover offers a money market account that pays a competitive yield, while American Express does not offer a money market account. Discover also offers a wider range of CD terms than American Express.
Discover Bank FAQs
Review methodology
We assign a score to each type of account and its features, weigh them carefully based on importance to account holders and determine an overall score. Read our full review methodology.
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