Discover Bank Online Savings Account Review + $200 Bonus

September 21, 2017

Several years ago, Vanessa and I opened a credit card with Discover Bank. The excellent customer service and rewards led me to research Discover’s other banking products, including the Discover Bank Online Savings Account. At the time, we were earning very little interest from the existing bank, which is why Discover’s lack of fees and competitive interest rates convinced us to open the savings account.

As a reminder, a savings account is best suited for short-term financial needs. The money is readily available for withdrawal, but you might lose purchasing power due to inflation.

If you are looking to build wealth, you should consider investing in other financial assets (such as stocks and bonds) which have outperformed cash accounts over long periods of time. If you’re looking for a place to start, please see my Wealthfront Review.

Discover Bank Online Savings Account Review

Discover Bank offers several different banking, loan, and credit card products, including the popular Discover It® Card. 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 are no account balance requirements and no monthly maintenance fees.

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.

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 

24/7 (U.S. based) Customer Support: Our interactions with Discover customer support have been pleasant. Most agents are kind, helpful, and speak English well.

1.15% (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.

$200 Account Bonus: Discover is offering Cash Cow readers up to $200* with qualifying deposits using promo code COW817.

*To get your Bonus: Apply for your first Discover Online Savings Account by 10/2/17. Enter Offer Code COW817 when applying. Deposit a total of at least $15,000 into your account by 10/16/17 to earn a $150 Bonus, or deposit a total of at least $20,000 into your account by 10/16/17 to earn a $200 Bonus. Maximum bonus eligibility is $200 per account.

What to know: Offer not valid for existing or prior Discover savings customers. Account must be open when the bonus is credited. Bonus will be credited to the account by 10/31/17. 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 2-step process which can be completed online in about 15 minutes.

  1. Enter your personal information and choose between an individual or joint account. Federal regulations require all financial institutions, including Discover, to verify personal information before opening an account in your name. After instantly verifying your information, you will electronically sign your application.
  2. Fund your new Discover Bank account via ACH electronic transfer from another checking account, wire transfer, or check deposit.

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.

That concludes my Discover Savings Account Review. If you are interested, you can open your account at Discover Bank Online. Be sure to include promo code COW817 to secure your bonus when applying.

Discover Bank Online Savings Account Review + $200 Bonus
Summary
Quality customer service, solid interest rates, and overall ease of use have made the Discover Online Savings Account our top choice in the high yield savings category.
Features8.8
Total Cost9.4
Ease of Use9.5
Customer Support9.4
Strengths
Up to $200 Bonus
No minimums or fees
Great customer support
Competitive interest rates
Weaknesses
None
9.3
Overall
Related Articles

Leave a Reply

64 Comments on "Discover Bank Online Savings Account Review + $200 Bonus"

avatar
Steve
Steve

Quick Question, how long does the 20K need to be with them to get the $200?

Matilda
Matilda

Hello have a ?
What’s the difference between opening a long time saving account online or going in person into the bank?

Maria
Maria

Hello – Can I open a Discover Savings Account for my kids ?

Al
Al

For Discover HYSA, is there a limit on the amount per withdrawal? I am planning on setting up a rainy day account and am wondering if I would be able to pull all the money out of it, without any penalty, if I have to.

Thanks for writing this, it helps a lot in making a decision!

Ave
Ave

I love Discover Bank. I have savings account with them. Excellent customer service and having 1.01% APY is great!

Wynona A.
Wynona A.

planning to open a high yield savings account and kind of torn with AMEX and Discover now. I’m just worried, since money is online, how are we sure that money is secure? Thanks!

Lynne
Lynne

Jacob,
Do checks come with the Discover Savings Account? If so, are there any fees associated with them?
Thanks.
Lynne

Mia
Mia

I’ve been with Discover for 30 years, huge fan.

Unless I missed it I don’t see one topic covered that was an issue (re: limits for deposits/withdrawals) after recently opening a savings account with Discover. I’m not able to deposit the amount I’d like without waiting until the next month to do so. That’s a long wait. Here’s a copy of the rules from Discover’s site:

“Incoming limit is $250,000 per 30-day rolling period for each Account Center registered owner, per Account”

Would you open separate savings accounts at Discover to get around the limitations?

JJ
JJ

Hi Jacob, thanks for the greet info and delivering it with clarity! Can you please confirm the best /cheapest way to transfer money out of my Discover savings account to my checking account? I think you said Discover does not charge a fee, but am not sure if there is a way to do it so my other bank (Wells) also won’t charge a fee. To date, I have only deposited checks via mobile banking in my Discover account, which is super easy and fast. Thank you’

Kirk
Kirk

One down side is there is a $5000 max limit with their mobile deposit and $25,000 max limit over any 30 day period. It is cumbersome if you need to deposit a big check. Compare that with Ally Bank at $50K/$250K limits.

Bonbon
Bonbon

Great review! Do you know if there is a usually a fee to do ACH transfers from bank to bank? ie. BofA to Discover?

NIck
NIck

The section in your blog about Discover’s fees, “Discover does impose a maximum limit of 6 money transfers per statement cycle. If you go over that amount, there is a fee.” makes it sound as if this is not the case with other banks. The limit of 6 withdrawals per calendar month is a federal law applying to all savings accounts, imposed some years ago. You will not find any savings account at any bank that does not have a similar fee.

Nick
Nick

Help, I am trying to make a decision between Amex and Discover online saving accounts. Just a college student trying to set up an emergency fund when I need it with good rates. Read both of your reviews on both companies, just want some feedback.

bob
bob

if we have a joint account, does that means FDIC insurance will cover $500k since each account holder will be covered by $250k?

Small Fry
Small Fry

I use the Discover It Card myself, along with Discover Bank. I find it to be the simplest way to save money, and have my credit card, savings, and checking account all on the same web site.. I find Discover card is accepted almost everywhere in the United States, I was over in Puerto Rico and I was able to use it over there too.

Daniela tavarez
Daniela tavarez

If I open a savings account through Discover and then the current interest rates raise would I get the new one Interest rate added to my account ?

1 2 3
wpDiscuz