Vanessa and I have been Discover Bank customers for roughly seven years. We maintain several bank accounts and credit cards with Discover because the company continues to emphasize quality customer service while offering competitive products.
In addition to 24/7 customer support (based entirely in the U.S.A), Discover Bank offers competitive interest rates and generous rewards through a variety of products, including the Discover checking account, savings account, money market account, CDs, and credit cards.
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Discover Bank History
Since acquiring the Greenwood Trust Company in 1985, Discover has grown to be one of the largest financial firms in the country. Even with the continual growth, Discover’s dedication to customer service has earned the company numerous banking and customer satisfaction awards.
Earlier this year, consumers ranked Discover as the best bank for customer loyalty for the 21st consecutive year, according to independent research provided by Brand Keys, Inc. Furthermore, Discover ranked highest in customer satisfaction across all credit card companies according to independent research provided by J.D. Power.
Discover Bank functions as an internet bank with one retail branch located in Greenwood, Delaware. By eliminating the infrastructure and costs associated with physical locations, Discover’s product offerings and deposit rates are highly competitive. Although the bank lacks retail branches, Discover offers its customers access to over 750,000 ATMs worldwide through its Discover and PULSE ATM networks, including more than 400,000 ATMs across the United States.
As an internet bank, Discover’s web-based platform is exceptional. Through the online platform or smartphone application, customers can transfer funds between accounts, pay bills, deposit checks, redeem rewards, and monitor account balances. The user interface is well-designed, which makes navigation and account management very simple.
Also worth noting, all of Discover’s deposit account offerings are fully insured by the Federal Deposit Insurance Corporation (FDIC).
Discover Cashback Debit Checking Account
Discover offers an extremely competitive checking product, the Discover Cashback Debit Checking Account, which includes the following features:
- 1% cash back on up to $3,000 in debit card purchases each month.
- Link and make transfers between internal/external accounts for free.
- Free access to more than 60,000 (no-fee) ATMs across the United States.
- No account opening fees, monthly maintenance fees, or minimum balance requirements.
- Automatic Fee Forgiveness – Discover will refund your first Stop Payment or Insufficient Funds fee each calendar year, automatically.
- Free check orders at any time through your online account (with free shipping), plus free mobile check deposits through the smartphone application.
- Free Overdraft Protection – When you link a Discover Savings Account to your Cashback Checking account, Discover will automatically pull funds from your Savings Account to prevent your Checking Account from being overdrawn. All done automatically, in real-time, for free, without requiring a credit pull. This is a fantastic feature.
There are a few limitations you should be aware of:
- The account does not earn interest (but offers cash back as mentioned above)
- Only one physical branch location (the headquarter in Greenwood, Delaware)
When you open the Discover Cashback Checking and/or High-Yield Savings account (described below), Discover’s online account dashboard allows you to connect and manage all of your Discover accounts in one place. You can also connect an unlimited number of external accounts through this dashboard and transfer money between internal and external account for free.
For example, you might maintain a checking account with another bank if you prefer having access to a local branch. You can link your outside checking account to your Discover dashboard and push or pull money between internal/external accounts at any time, without paying a dime. As an added bonus, most transfers take less than two business days to complete.
Discover Disclosure: ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo® and PayPal™, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries.
Discover Bank High-Yield Savings Account
The Discover Savings Account is one of the best savings products on the market, offering the following features:
- No fees to open the account
- No minimum opening deposit
- No monthly maintenance fees
- No monthly balance requirements
- Competitive interest rate of 2.10% APY (compounded daily, credited monthly)
*Up to $200 Cash Bonus*
*To get your $150 or $200 Bonus: Apply for your first Discover Online Savings Account by 2/4/19, online or by phone. Enter Offer Code COW119 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 2/18/19. 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 3/4/19. Bonus is considered interest and will be reported on IRS Form 1099-INT. Offer may be modified/withdrawn without notice.
For a detailed discussion and a complete list of benefits, see my Discover High-Yield Savings Account Review.
Discover Bank Money Market Account
Discover’s Money Market Account is, in my opinion, the least valuable account offered by Discover. It functions much like the Discover Savings Account but offers less competitive interest rates.
- Balances under $100,000 earn 1.95% APY
- Balances over $100,000 earn 2.00% APY
Discover Bank Certificate of Deposit (CD)
Discover also offers a variety of CDs that pay interest monthly. Unlike a savings account, which allows you to withdraw your funds at any time, CDs require that your money remain deposited at Discover for a predetermined period of time. The interest rate on each CD varies by the length of required deposit, with longer time horizons offering a higher APY interest rate.
All Discover CDs require a $2,500 minimum opening deposit to establish the relationship. Here are the latest CD interest rates, broken down by the required length of deposit.
- 12-month CD: 2.65% APY
- 24-month CD: 2.70% APY
- 36-month CD: 2.75% APY
- 60-month CD: 3.00% APY
These are highly competitive rates when compared to other banks, but remember that you must maintain the CD until the stated maturity date. If you withdraw your money before the CD matures, there are early withdrawal penalties discussed on the bottom of this page.
Additionally, Discover allows you to hold any of their CDs within an IRA account, which shelters any interest income from taxation.
Discover Bank Credit Cards
In addition to banking products, Discover offers several outstanding credit cards that are also managed through Discover’s online dashboard.
The Discover It Credit Card is one of the best cash back cards available, offering a $50 signup bonus, 5% cash back on rotating quarterly categories, and 1% cash back on everything else (with no annual fee). Furthermore, Discover is offering a limited-time promotion to double all cash back earned in your first year of card membership.
New applicants who are approved using our unique referral link will automatically receive all of these offers (note, the direct application page will not explicitly show all of these bonus offers, but you can call or chat with Discover to verify. Dozens of people from the Cash Cow Community have been approved and every single person has received the $50 bonus + double cash back).
For a detailed discussion, please see my Discover It Credit Card Review.
Discover it® Miles
Instead of offering 5% cash back in rotating categories, The Discover It Miles offers 1.5% cash back on all purchases.
The Discover It Miles is included in the double cash back promotion, which means that 1.5% cash back becomes 3% in your first year of card ownership. Earning 3% on all purchases in the first year is outstanding, given this card has no annual fee.
Discover it® Secured
The Discover Secured credit card earns 2% cash back at restaurants & gas stations on up to $1,000 in combined purchases each quarter, plus 1% cash back on all other purchases. But perhaps more importantly, the secured card can be converted into one of the traditional Discover credit cards mentioned above after 8 months of responsible usage. To my knowledge, Discover is the only credit card issuer to allow this conversion.
Discover Bank Review Summary
Discover is one of the only banks offering 24/7 customer service via phone, email, or social media. Perhaps even more importantly, Discover has remained committed to providing 100% U.S. based support. If you need support for any reason, at any time, you can contact Discover and connect with an English speaking representative.
Beyond excellent customer service, Discover offers a strong lineup of deposit products and credit cards. Specifically, I’m impressed by the generous rewards, competitive interest rates, reasonable fee structure, and a robust online interface that allows you to move money between internal and external accounts (free of charge).
The combination of excellent support and features is difficult to find, which is why Vanessa and I continue choosing Discover for our banking and credit card needs.
That concludes my Discover Bank Review. Remember, you can earn up to a $200 bonus when opening a new Discover Savings Account using promotional code COW119. Please see the advertiser website for full details.