In college, I maintained a student loan with Discover Bank and was pleased by the customer support and easy-to-navigate online interface. Then, shortly after getting married, Vanessa and I each opened a Discover It® Credit Card.
The excellent customer service and generous credit card rewards led me to research Discover’s banking product lineup, which resulted in us opening the Discover Cashback Checking Account and High-Yield Savings Account. At the time, we were earning very little interest at Bank of America, so switching our banking business to Discover was a no-brainer.
More than seven years have passed since opening our relationship with Discover, and I’m still very pleased with their banking and credit card products. In particular, I believe the Discover High-Yield Savings Account reviewed in this article to be one of the best online savings products available in 2020.
Discover Bank Online Savings Account Review
Discover Bank offers several different banking, loan, and credit card products. For a detailed comparison of these products, please see my Discover Bank Review.
The online savings account is one of Discover’s best products, offering their highest interest rate and a robust online interface that allows you to easily link other bank accounts. Furthermore, there is no minimum opening deposit, no account balance requirements, and no monthly maintenance fees. Discover is one of the few companies offering a full-featured savings account with no financial strings attached.
Discover makes it easy to connect all of your checking and savings accounts through your online dashboard, including any accounts held outside of Discover. This online dashboard makes it easy to push/pull money between accounts, and Discover charges no fees to initiate a transfer between internal or external accounts. Discover recently updated their system and most ACH transfers now complete within two business days.
All online savings accounts, including Discover, impose a maximum limit of six external transfers per statement cycle. You are allowed only six (6) transfers from your Discover savings account to any other bank account. The number of deposits into the Discover Savings Account are not restricted.
If you exceed six external transfers, you will be charged a fee. This transaction limit was created by recent Federal regulations and applies to all online savings accounts (not unique to Discover).
Discover Savings Account Features
The Discover Online Savings Account includes a number of different benefits and perks:
No Monthly Balance Requirements or Maintenance Fees
No Excessive Withdrawal, Stop Payment Order, or Insufficient Funds Fees
24/7 (U.S. based) Customer Support: Our interactions with Discover customer support have been pleasant as most agents are kind and helpful.
1.50 (APY) Current Interest Rate: Interest is compounded daily and credited monthly. This is a highly competitive rate compared to other accounts.
FDIC Insurance up to $250,000: If anything should go wrong with Discover Bank, the federal government insures each account up to $250,000 (per account owner).
Discover Mobile Banking App: Control everything from your smartphone or tablet. You can check your account balance, earned interest, recent account activity, and make transfers directly through the mobile app.
Auto-Saver Transfers: The Discover Savings Account allows you to create automatic transfers from any personal checking account into your savings account each month.
*Up to $200 Cash Bonus*
*To get your $150 or $200 Bonus: Apply for your first Discover Online Savings Account by 4/6/20, 11:59 PM ET, online or by phone. Enter Offer Code COW320 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted by 4/20/20, 11:59 PM ET. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded or affinity accounts provided by Discover. Account must be open when bonus is credited. Bonus will be credited to the account by 5/4/20. Bonus is considered interest and will be reported on IRS Form 1099-INT. Offer may be modified/withdrawn without notice.
Opening a Discover High-Yield Savings Account
Opening the Discover Bank Savings Account is a simple 4-step process which can be completed online in about 15 minutes.
Step 1) Visit the Discover Bank website and input your account information
Step 2) Choose between an individual or joint account and designate your account beneficiary.
Step 3) Fund your new Discover Bank account immediately (or at a later date) via ACH electronic transfer from another bank account, wire transfer, or mobile check deposit. You can also mail a physical check to Discover if desired.
Step 4) Verify your information and electronically sign your application and standard account agreements.
After completing the online application, you’ll be ready to begin using your account and earning interest. Discover will also send you a confirmation email and welcome kit in the mail.
The Cash Cow Conclusion
As I stated in the introduction, we have been very pleased with Discover’s products and will continue using their checking account, savings account, and credit cards for the foreseeable future. The savings account, in particular, has absolutely zero fees to worry about, includes quick (and free) transfers to other bank accounts, and always offers a nationally competitive interest rate.
In my opinion, the only reason to consider holding bank accounts outside of Discover is to maximize the amount of interest earned on your savings, which can be accomplished by combining Discover’s products with a few additional accounts.
Remember, you can earn up to a $200 bonus when opening a new Discover Savings Account using promotional code COW320. Please see the advertiser website for full details.
Let me know if you have any questions in the comment section below, and thank you for reading my Discover Savings Account Review.