Discover Bank Online Savings Account Review

Banking Review

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 at Bank of America, which is why Discover’s lack of fees and competitive interest rates convinced us to open a new savings account.

As a reminder, a savings account is best suited for short-term financial needs. The money is readily available for withdrawal, but the interest paid will be less than what you can obtain with other asset classes. 

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 is no minimum opening depositno account balance requirements, and no monthly maintenance fees. Discover is one of the few companies offering a 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 many 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 

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.

1.55% (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.

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.

Discover Bank Online Savings Account Review
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 Cost10
Ease of Use9.6
Interest Rate8.7
Customer Support9.6
Strengths
No minimums or fees
Great customer support
Competitive interest rates
Free transfers between internal/external accounts
Weaknesses
None
9.3
Overall

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89 Comments on "Discover Bank Online Savings Account Review"

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Samuel
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Samuel

I opened a checking account, can I call customer service to help me add saving to it?

michelle
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michelle

Is there a fee to transfer to a chase checking account? or do I link it as a external and do a ACH transfer?

Lourdes Alvarez
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Lourdes Alvarez

Do they pull your credit when you apply?

Chuck
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Chuck

If I open a Discover savings account, would I have the option of receiving a monthly check paying my interest earned directly to me?

Tom
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Tom

I was curious as to whether you could deposit money, collect the $200 bonus, and then move your money to a different bank.

I’m sure you can, I guess my question is more in relation to how long might you have to wait to keep the $200 promotion.

I opened an account 3 weeks ago. Was given the promotional $200. Now my old bank offers a higher APY than Discover.

Pat
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Pat

How long does transfers from other bank accounts into discover Savings take

Andrej
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Andrej

If I needed to get cash out, let’s say 5k, how would i go about doing so (that does not take multiple days) since there are no physical locations?

Gary
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Gary

How much does discover charge to trNsfer money from savings to another bank

RH
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RH

Do you get a debit card with this account? (I understand you can only withdraw 6x a month)

Joe
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Joe

Hi, In a previous Discover Card article there was a code to submit to get bonus money, but now the present article does not provide the code. Can you please provide the code if it is still valid, thanks! Joe

Tanus C
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Tanus C
I applied the Discover savings account on Oct 27 using the promotional code. (The promotional code stated that account needed to be opened by Oct 31.) For an unknown reason, my application was selected for the manual review verification. a Discover bank’s representative contacted me for verification on Nov 2 and the application was approved on Nov 2. The Discover representative that approved my application told me that the promotional code still applied to my situation,. i.e., even though the application was approved on Nov 2 , the online application was submitted before Oct 31. I was assured that if… Read more »
Char
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Char

I am interested in the Discover Savings Account and the only thing I cant seem to find easily is, are their ATM fees with this card for using nonDiscover ATMs?

Ted
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Ted

If my account balance drops below $2500 for 3 consecutive months, am I charge a fee? If so, how much?

Steve
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Steve

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