Discover Bank High-Yield Savings Account Review + $200 Bonus

Banking Review
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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 2019.

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 depositno 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 

24/7 (U.S. based) Customer Support: Our interactions with Discover customer support have been pleasant as most agents are kind and helpful.

2.10% (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 7/1/19, 11:59 PM ET, online or by phone. Enter Offer Code COW619 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 7/15/19, 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 7/29/19. 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 COW619. 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.

Discover Bank High-Yield 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.
Features8.7
Ease of Use9.6
Fee Structure9.6
Interest Rates8.7
Customer Support9.6
Strengths
Up to $200 bonus
No minimums or fees
Great customer support
Competitive interest rates
Free transfers between internal/external accounts
Weaknesses
None
9.2
Overall

Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.

User Generated Content Disclosure: Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

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Ron
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Ron

I currently have the Amex online savings account. Any notable differences or quirks compared with the Discover online savings account?

Fei
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Fei

Thank you Jacob for sharing it; it’s really helpful. I wonder if the interest would be taxed and how much it would be. Thank you!

Jim
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Jim

Hi Jacob, your review and the comments were one of the reasons we gave Discover online savings a try. I read here and elsewhere than deposit times can be longer at Discover than at Amex, so we just tested that theory. We opened accounts with both, and set up ACH links both ways from our USAA checking to each account. On Tuesday morning at 7am, we initiated four transfers. A “push” to each savings accounts from checking, and a “pull” into each savings from checking. Results? the SAME! Both “pushes” initiated from our checking account arrived into Discover and Amex… Read more »

Shawn
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Shawn

I was curious about what you think of GE Capital Bank’s online savings account?

PS- The reviews you did of both Betterment and Wealthfront were very helpful when making a choice between the two. The pros, cons, and features that differentiated the services were very well structured and easy to read.

Jane Pierre
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Jane Pierre

I have a capital one 360 saving account. I can open another one with them but I was exploring for better options and stumbled upon your article. Should I close my 360 and open a discover saving? Or keep 360 and open discover. I do have a discover credit card. Please help. Thanks

Mystech
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Mystech

Thanks for the review, I think I’m going to switch to Discover’s Savings account. Perhaps a couple years ago Ally Bank deserved the praise and business, but they have plummeted in recent months. Their app is regularly down, their interest rate is almost half what it was and most recently, they punitively even locked me out of my own account for complaining about slow / non-existent customer support (1-2 days because THEY have the wrong identification information on file). Believe it, 15 minutes after I filed a complaint with them over their customer support, they changed my pin and locked… Read more »

Lavina
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Lavina

I agree. I have accounts at Discover and Ally. Customer service at Discover has been very helpful. Customer service at Ally has cost me money, and offered no recourse and no apology. Because of their poor service I will soon transfer all funds to Discover.

will
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will

I wanted to comment. Ally is a bunch of aholes.I had an angry well. i won’t describe her ethnicity, curse me out about only keeping minimum funds in each account and called it shady.They closed my accounts and sent me all my money

Jeremiah
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Jeremiah

What are your thoughts on My Savings Direct, which currently is offering around 1% for their online savings account. They also boast to have America’s highest rate consistently. Think they’re reputable enough, or safe enough to open an account and move money from say AmEx? Also, for a long time investor (Roth IRA and 401k for the past 10 years) but wanting to break into the stock market through stocks and bonds, would you suggest Betterment, the investment firm mentioned earlier? I very much enjoy investing, and am unsure if I should move towards something like Vanguard or Betterment. Thanks… Read more »

Tom
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Tom

I am interested in an account with POD (payable on death). I know American Express does but can’t find if Discover does. I have a ING and now Capitalone 360 does not so need to make a change.
Thanks

BN
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BN

Hi Jacob,
Thank you so much for your valuable article. I do have few clarifications,
> I have read that fund transfer(internal/external)is free. Does it mean that I can transfer money to my friend who has other bank account(ex: Chase)?
I have Bank of America checking account, but they charge fee for transferring money to other banks(ex: Chase).

> I am not familiar with APY. For example, If I maintain $5000 in Discover savings account, how much will I receive as interest at the end of month?

> Can we use Discover savings account Debit card in all stores(like WinCo, Food4Less)?

Thanks

Gary
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Gary

Thanks for the review! I was looking for an online savings when I ran across your blog. I called and opened an account with Discover, and I found your assessment to be quite true! They were great! It was refreshing!

Frank
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Frank

Greetings Jacob, First I must commend you for this blog. I link it to all my friends who ask about financial help. They want to start saving money now that there finely making it. But there scared of the old systems of investing that were used during the recession. (just as I am.) Now I just link them to your blog and tell them: Read this, it will take the fear of investing right out of you. So thanks! You pair financial expertise, with a modern tech embracing intellect. So cheers to you and your wife! But, I digress. My… Read more »

Andrew
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Andrew

Just recently found your site and think it’s great you are trying to help people in our generation to save for their retirement.

Nate@TheFrugalSoldier
Guest

Jacob,

Thanks for the review of Discover Online Savings Account. The interest rate that they offer is definitely the highest I have seen for a savings account. I also like the fact that their initial deposit requirement is pretty low, not to mention the fact you do not have to maintain a certain minimum balance. I will bookmark them because you can never have enough saving vehicles. Thanks

Kalen @ MoneyMiniBlog
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Kalen @ MoneyMiniBlog

Nice review! Well written.

I think I may try this, because I went to Aldi’s (a grocery store) yesterday and found out that they only take Discover…random, I know.

I already have a Visa, Mastercard and AmEx for rewards points, so I might as well get a Discover while I’m at it. lol

Brian
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Brian

Thanks for the great write up of Discover Bank. I really do like your reviews since they hit the high and low points without too much fluff. Out of pure laziness, I have pretty much stopped rate chasing and have stuck with CapitalOne360.