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

Banking Review

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 

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.

2.00 (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 9/9/19, 11:59 PM ET, online or by phone. Enter Offer Code COW819 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 9/23/19, 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 10/7/19. 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 COW819. 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
Pros
Up to $200 bonus
No minimums or fees
Great customer support
Competitive interest rates
Free transfers between internal/external accounts
Cons
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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Jude
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Jude

I have been with ING/ Capital One since 2006. However, their foot dragging on POD options ( the possible date as of this morning is now “ the end of summer”) and better rates for other online savings banks has had me calling to get information from other banks. My interaction with the Discover representative this a.m. was confusing. She was lovely, but her language skills made our interaction challenging. My unanswered or misunderstood questions are the following: (1). Can I open more than one savings account at Discover the way I could at Capital One? (2) Will end of… Read more »

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?