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Discover Bank Review 2024

Updated April 29, 2024
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At a glance

4.6
Rating: 4.6 stars out of 5
Bankrate Score
Caret Down

CDs

Rating: 4.1 stars out of 5

Checking

Rating: 5 stars out of 5

Savings

Rating: 4.4 stars out of 5

MMA

Rating: 4.5 stars out of 5

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.

Highlights

  • High APY
  • 24/7 Customer Service
  • No Monthly Fees
Sponsored offers
Info

These are sponsored offers rated highly by us for competitive rates, fees, and minimums.

Bank logo
Member FDIC
Checking Account
0.00
%
APY
APY
Info
As of 7/19/2024
Rating: 5 stars out of 5
$0
Min. balance for APY
View offer Arrow Right
Bank logo
Member FDIC
Savings Account
4.25
%
APY
APY
Info
As of 7/19/2024
Rating: 4.4 stars out of 5
$0
Min. balance for APY
View offer Arrow Right
Promoted offer:
Bank logo
Member FDIC.
Savings Account
5.25
%
APY
APY
Info
As of 7/19/2024
Rating: 5 stars out of 5
$0
Min. balance for APY
View offer Arrow Right
Promoted offer: No fees. Easy deposits and quick withdrawals.

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

  • Checkmark

    Discover doesn’t charge fees on any of its deposit products.

  • Checkmark

    The CDs, savings and money market accounts all pay competitive rates.

  • Checkmark

    The bank offers a highly rated cash-back checking account.

  • Checkmark

    Discover® Bank’s Cashback Debit account has a service that may help get your personal information off of certain websites.

Cons

  • The $2,500 minimum deposit for CDs and the money market account is steep.

  • Discover’s outgoing wire transfer fee is higher than what some other banks charge.

  • Discover maintains only one branch, so it’s not ideal for those who wish to bank in person.

Discover Logo

We want to know what you think about Discover Bank

Do you have experience with Discover Bank? Let us know your thoughts.

Discover® Bank banking products

4.4
/5
Rating: 4.4 stars out of 5
See methodology Compare savings rates
SCORE BREAKDOWN
APY offering:
4.25%
Rating: 4 stars out of 5
4/5
Info
Minimum balance for APY:
$0.00
Rating: 5 stars out of 5
5/5
Info
Monthly service fee:
$0.00
Rating: 5 stars out of 5
5/5
Info
Minimum balance to avoid fee:
$0.00
Rating: 5 stars out of 5
5/5
Info
Access to funds:
Good
Rating: 4 stars out of 5
4/5
Info
FEATURES
Invest Rate
4.25% APY
Info
Loan
$0 minimum deposit to open

Discover® Bank savings overview

The Discover® Online Savings Account offers a competitive yield. There's no minimum deposit required to open an account and no minimum balance requirement. The account doesn’t charge a monthly service fee either.

Account holders won't get access to an ATM card, but Discover® Bank offers free official bank checks and expedited delivery for them.

Pros

  • Checkmark

    The savings account pays a competitive yield.

  • Checkmark

    There’s no minimum opening deposit or balance requirements.

  • Checkmark

    There’s no monthly service fee.

Cons

  • An ATM card isn’t available for Discover® Bank's online savings account.

  • There are higher annual percentage yields (APYs) available at other online banks.

  • See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

    Discover® Bank
    APY
    APY
    Info
    National average APY
    How do we get this data?
    Info
Compare Offer
Sponsored Offer
Info

This is a sponsored offer rated 4 stars or higher for competitive rate, fees, and minimums.

Bank logo
Member FDIC
Savings Account
4.25
%
APY
APY
Info
As of 7/19/2024
Rating: 4.4 stars out of 5
Info
$0
Min balance for APY
Promoted offer:

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.

Lightbulb

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."

Featured customer reviews

The consumer reviews posted on Bankrate.com ("Bankrate") are individual, subjective opinions of reviewers, and not of Bankrate. Bankrate does not endorse any of the opinions expressed by reviewers or any responses to reviews. Bankrate cannot guarantee or verify the accuracy of the opinions shared by individual reviewers. Some reviews may be edited for length and clarity.

DaLoubie
Jan 1, 2024
SoFi vs Discover Savings Account
I really like Discover as a company and their products. Their app is really friendly to use and has everything that you need to do. Customer service is very good compared to other banks. The biggest thing is there’s very little wait time. I once had to call them about a minor issue that I had, got transferred 2-3 times to the correct department and all were picked up within minutes.
via Reddit
Fubbalicious
Nov 1, 2023
KeyBank vs Discover Bank?
I've used Discover Bank and as far as online banks, it's fine though nothing great or bad either. Their telephone support is US based and good and is available 24/7. The pros with Discover: 1% cashback debit, good phone support and decent high-yield interest. Cons: less merchant acceptance of Discover debit, long transfer times, no ATM fee reimbursement and no physical branches.
via Reddit

Our editor's take

Not only is Discover’s mobile app highly rated, the bank took first place in overall satisfaction in J.D. Power’s 2023 Direct Banking Satisfaction Study. While wait times may vary when contacting support, high customer satisfaction indicates most people have a good experience getting help from Discover Bank. 

Choosing the right bank for you will depend on what accounts you’re interested in and your personal situation. While Discover offers stellar deposit accounts, if you value being able to bank in person, it may not be the right fit for you, since Discover doesn’t have branches. 

About Discover Bank

Discover Bank offers certificates of deposit (CDs), a money market account, a high-yield savings account, a checking account, loans and retirement accounts. 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

Compare different account types offered by Discover Bank. Annual percentage yields (APYs) shown were updated between July 12, 2024 and July 18, 2024.

Selected bank
Discover Bank savings account
Discover Bank Logo
Member FDIC
Bankrate score
Rating: 4.4 stars out of 5
4.4
Info
Most comparable
American Express National Bank savings account
American Express National Bank Logo
Member FDIC
Bankrate score
Rating: 4.4 stars out of 5
4.4
Info
Read review
Search for or select a bank:
Caret Down
Bankrate score
Info
Read review
APY
Info
4.25% 4.25%
Minimum balance for APY
$0.00 $1.00
Estimated earnings
Info
$2,125 $2,125
Discover Bank’s Online Savings Account offers a top-notch yield. There isn’t a minimum opening deposit or minimum balance requirement, and customers won’t pay a monthly fee for the account. American Express National Bank offers a competitive yield on its High Yield Savings Account. The account doesn’t require a minimum opening deposit. The account also doesn’t have a monthly service fee or minimum balance requirements to worry about.
  • Discover’s savings account offers a high yield on all balances.
  • There is no monthly maintenance fee.
  • There is no minimum deposit required to open an account.
  • American Express features 24/7 customer support.
  • The bank lets you make automatic deposits into your savings account.
    N/A
  • The Online Savings Account doesn’t offer ATM access.
  • Some online banks offer a higher yield.
    N/A
APY offering:
4.25%
4/5
Info
Minimum balance for APY:
$0.00
5/5
Info
Monthly service fee:
$0.00
5/5
Info
Minimum balance to avoid fee:
$0.00
5/5
Info
Access to funds:
Good
4/5
Info
APY offering:
4.25%
4/5
Info
Minimum balance for APY:
$1.00
5/5
Info
Monthly service fee:
$0.00
5/5
Info
Minimum balance to avoid fee:
$0.00
5/5
Info
Access to funds:
Good
4/5
Info
Info
Info
Info
Info
Info
Bankrate does not currently track additional product details for this bank.

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

With so many financial institutions to choose from, it can be hard to know who to trust. Bankrate’s ever-growing list of bank and credit union reviews is updated regularly. Our editorial team analyzes and reviews each institution across deposit products such as savings accounts, checking accounts, certificates of deposit (CDs) and money market accounts (MMAs). Banks are rated by important factors such as offered interest rates, fees, minimum balance requirements, access to funds and more.

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.