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Discover Bank Review 2024

Updated January 2, 2024
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On This Page

At a glance

4.7
Rating: 4.7 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: 4.9 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. 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
Compare offers
Info
Bank logo
Member FDIC
Savings Account
4.35
%
APY
APY
Info
As of 3/4/2024
Rating: 4.9 stars out of 5
$1
Min. balance for APY
View offer Arrow Right
Promoted offer:
Bank logo
Member FDIC.
Savings Account
5.25
%
APY
APY
Info
As of 3/4/2024
$0
Min. balance for APY
View offer Arrow Right
Promoted offer: No fees. Easy deposits and quick withdrawals.
Bank logo
Member FDIC
Savings Account
5.15
%
APY
APY
Info
As of 3/4/2024
Rating: 5 stars out of 5
$0
Min. balance for APY
View offer Arrow Right
Promoted offer:

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® Bank banking products

4.9
/5
Rating: 4.9 stars out of 5
See methodology Compare savings rates

SCORE BREAKDOWN

APY offering:
4.30%
Rating: 5 stars out of 5
5/5
Info
Minimum balance to earn interest:
$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
4.30% 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
Info
Bank logo
Member FDIC
Savings Account
4.35
%
APY
APY
Info
As of 3/4/2024
Rating: 4.9 stars out of 5
Info
$1
Min balance for APY
View offer Arrow Right
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."

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

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.