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

Banking Review
Share on facebook
Facebook
Share on twitter
Twitter
Share on email
Email
Share on print
Print

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 the Discover 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 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 4/1/19, online or by phone. Enter Offer Code COW319 when applying. Deposit a total of $15,000 to earn a $150 Bonus or deposit a total of $25,000 to earn a $200 Bonus by 4/15/19. 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 4/29/19. 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.

That concludes my Discover Savings Account Review. Remember, you can earn up to a $200 bonus when opening a new Discover Savings Account using promotional code COW319. Please see the advertiser website for full details.

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.

Share on facebook
Facebook
Share on twitter
Twitter
Share on email
Email
Share on print
Print

99
Leave a Reply

avatar
47 Comment threads
52 Thread replies
7 Followers
 
Most reacted comment
Hottest comment thread
54 Comment authors
JackySethGaiusJudeSamuel Recent comment authors

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Matilda
Guest
Matilda

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

Maria
Guest
Maria

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

Al
Guest
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
Guest
Ave

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

Wynona A.
Guest
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
Guest
Lynne

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

Mia
Guest
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
Guest
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
Guest
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
Guest
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
Guest
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
Guest
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
Guest
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
Guest
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
Guest
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 ?

Daisy
Guest
Daisy

It’s a plesaure to find someone who can think so clearly