Discover Bank Review 2019

Discover Bank Logo


Discover Bank is an online institution within a financial services company offering various products, including credit cards, personal loans and student loans.

Free Checking
No Minimum Balance
No Monthly Fees


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Bankrate's overall ratings for financial institutions comprise weighted averages up to five stars of five main categories: customer service, savings accounts, checking accounts, money market accounts (MMAs) and certificate of deposit (CDs).

The Bankrate editorial team compiles publicly-available company data as well as information from the government organizations like the Federal Deposit Insurance Corp. for our review of each financial institution. App ratings are obtained from iTunes and Google Play. The interest rates, branch densities, fee amounts and other data was collected in fourth quarter 2018 and first quarter 2019.

When a financial firm offers more than one checking, savings or MMA accounts, Bankrate reviews the account with the highest APY. Each bank is evaluated based on the 12-month certificate of deposit (CD) it offers.

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Top offer

Non-Interest Checking Account

About Discover Bank

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.

Discover has grown to become one of the largest credit card issuers in the country. As a retail bank, it offers CDs, checking and money market accounts and a high-yield savings account.

Discover Bank is a great option for consumers hoping to manage their credit cards and bank accounts in one place. You’re better off banking elsewhere, however, if you want wider access to bank branches or deposit accounts with higher yields.


  • Discover customers have access to a full suite of financial products and services.
  • Checking account offers cash back when its debit card is used for everyday purchases.
  • As a credit card issuer, the company consistently ranks high in customer satisfaction.
  • Account holders can pay credit card bills and check bank accounts through the same app and website.
  • No monthly fees for keeping any of the bank accounts open.


  • Yields are competitive but low compared with what other online banks offer.
  • Only a couple of brick-and-mortar branches are available.
  • No opportunity to earn interest through the checking account.

Discover Bank Services

CDs Rating


Discover Bank offers traditional CDs with terms ranging from three months to 10 years. The minimum deposit is $2,500. It’s easy to calculate on the bank's website how much interest you’ll earn based on your initial deposit. Early withdrawal penalties vary depending on the CD term. The penalty for CDs maturing in one to four years is six months of simple interest.


  • Interest is compounded daily.
  • The wide range of terms available makes it easy to ladder CDs.


  • Minimum deposit needed to open account is higher than it is at some online banks offering higher yields.
  • In addition to losing interest, the early withdrawal penalty could reduce the principal balance in a CD.
  • No CD specials or non-traditional products are offered.
  • The grace period for making a decision after your CD matures is nine days, rather than 10.

CDs available from other banks

2.10% APY
2.15% APY
2.15% APY
Checking Rating


The Discover Cashback Debit account is a good option for those who don’t want to jump through a lot of hoops to avoid fees. There’s no minimum deposit required to open an account and no minimum balance to avoid monthly fees. The account is not interest-bearing, but Discover Bank offsets that by offering cash back on up to $3,000 in debit card purchases each month. This is currently the only checking option offered by Discover Bank.


  • No monthly maintenance fee.
  • 1 percent cash back on up to $3,000 in debit card purchases each month.
  • Account can be opened online.
  • No fee charged by Discover to use out-of-network ATMs.


  • The account is not interest-bearing.
  • It may take up to two business days to access mobile check deposits greater than $200.

Discover Bank Checking

0.00 % APY
Non-Interest Checking

Checking accounts available from other banks

Savings Rating


The Discover Online Savings Account offers a competitive yield that’s 20 times the national average. There's no minimum deposit required to open an account and no minimum balance required to waive a monthly maintenance fee. Account holders won't get access to an ATM card, but Discover Bank does offer free official bank checks and expedited delivery for official bank checks.


  • The same APY applies to all balances.
  • No deposit is needed when applying for an account.
  • No fees for official bank checks or excessive withdrawals and no insufficient fund fee.
  • There's no maintenance fee.


  • An ATM card isn’t available for Discover Bank's online savings account.
  • There are higher savings APYs available at other banks.

Savings accounts available from other banks

MMAs Rating


In addition to its online savings account, Discover Bank offers a money market account. A debit card is available in addition to free checks. Both your initial order and any check reorders are free of charge. It's also possible to get a free official check and free expedited delivery of that official bank check. Super savers benefit the most from the bank's money market account. They earn a higher yield than account holders with low balances.


  • Money market account has check-writing privileges.
  • No minimum balance fee.
  • The debit card can be used for ATM withdrawals.
  • No charge to use an ATM outside of its network of 60,000+ ATMs.


  • You need a balance of more than $100,000 in order to earn the top APY.
  • $2,500 minimum deposit needed to open an account, higher than it is at some online banks with higher yields.

MMAs available from other banks

Bank Experience Rating


Discover Bank ranks high in almost all customer experience categories. Here, you will have access to more than 60,000 free ATMs nationwide and a mobile app earning positive scores in the App Store and Google Play. The app lets you deposit checks, pay your bills and find out account information without logging in, among other things. While it operates only two branches, you can reach bank representatives 24/7 via phone.

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