Discover® Online Savings Account review
- Annual Percentage Yield (APY)
-
3.75%
- Fee
- $0
- Minimum deposit to open
- $0
Our verdict
An online account that earns an APY that’s nearly 5x higher than the national average.
The Discover® Online Savings Account is one of the few savings accounts from a major bank that offers a very competitive 3.75% APY, which is nearly 5x higher than the national average.(1) It pairs well with the Discover Cashback Checking account, which allows you to earn cash back on purchases and automatically deposit those savings directly into your savings account. However, as with most online accounts, you can't deposit cash directly into this savings account, so you'll need to rely on direct deposits or transfers.
Best for: Those who want a high APY from an established and trusted major bank.
Pros
-
High 3.75% APY
-
$0 monthly fee and $0 opening deposit
-
Pair with Discover Cashback Debit
-
No balance requirements for APY
Cons
-
One brick-and-mortar branch
-
No cash deposits
Who is Discover Savings best for?
If you’re comfortable with online banking, the Discover Online Savings Account is worth checking out. It has no opening deposit requirements, no fees and offers a high APY.
Additionally, if you’re already a Discover customer, you can pair this account with its checking accounts and even transfer cashback earnings from your checking to your savings account.
What we like about the Discover Online Savings Account
The high 3.75% APY on this account makes it a competitive option compared to the best savings accounts on the market. With no monthly fees or opening deposit required, it’s both affordable and accessible. There are also no excessive transaction fees, overdraft fees or account closure fees.
Modern perks and pairings
Discover is integrated with Zelle. Customers with a checking, savings or money market account that’s at least 90 days old can send or receive peer-to-peer transactions with no fees on Discover’s end.
The bank also supports mobile check deposits, and you can mail a check payable to yourself directly to Discover Bank to have it cashed.
Another feature of the account is the ability to pair it with Discover® Cashback Debit, which offers 1% cash back on debit purchases. You can choose to have your cashback earnings credited to your checking account or automatically deposited into your savings account.
Where it falls short
There are no major drawbacks to the Discover Online Savings Account if you’re proficient with online banking.
The main limitations stem from Discover being an online bank. Since you can’t deposit cash, you’ll need to rely on direct deposits, online transfers, mobile check deposits or mail to add funds to your account.
Also, there’s just one physical Discover branch in the entire US, located in Riverwoods, Illinois.
Compare Discover Online Savings Account to other top accounts
Compare Discover’s account to other top options.
What is the Finder Score?
The Finder Score crunches over 250 savings accounts from hundreds of financial institutions. It takes into account the product's interest rate, fees, opening deposit and features - this gives you a simple score out of 10.
To provide a Score, Finder’s banking experts analyze hundreds of savings accounts against FDIC-reported national averages as a baseline. Accounts with rates well over the national average are scored the highest, while accounts with rates well below are scored low.
Customer experience
Discover Bank holds the highest Better Business Bureau (BBB) rating of A+, which is based on its responsiveness to customer reviews and complaints. Compared to other banks of its size, it has an average number of customer complaints.
Most of Discover’s negative reviews are common banking grievances, such as deposits not going through, frozen accounts, troubles resolving fraudulent charges or issues with loans and credit cards. The trend continues on Trustpilot, where the majority are negative and users call out similar banking issues as those on the BBB.
On Reddit, most users speak highly of Discover, with the most common theme being a consistently great customer experience. Many users explicitly state that Discover’s US-based customer service is outstanding, knowledgeable and helpful. Additionally, others praise the cashback debit and credit cards and the ease of signing up, while many more say they’ve been with the bank for years with no real issues.
| BBB accredited | Yes |
|---|---|
| BBB rating | A+ |
| BBB customer reviews | 1.21 out of 5 stars, based on 364 customer reviews |
| Trustpilot score | 1.7 out of 5 stars, based on 266 customer reviews |
| Apple App Store Score | 4.9 out of 5 stars, based on 4,400,000 customer reviews |
| Google Play Score | 4.5 out of 5 stars, based on 291,000 customer reviews |
| Customer reviews verified as of | 14 October 2024 |
Savings account ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
We analyze top savings accounts and rate them one to five stars based on factors that are most important to you. These factors include: interest rates, monthly fees, minimum deposits, customer service and account features.
Bethany Finder
Editor, Banking
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Jeni Finder
April 19, 2019
Hi IG,
Thank you for getting in touch with Finder.
Interest is compounded daily, credited monthly, and calculated on a 365-day basis for interest-bearing accounts. No limit on how much you wish to withdraw from this account however you will be charged an excessive withdrawal fee of $15 if you make more than 6 withdrawals in a calendar month. Funds in Discover Bank Accounts are insured by the Federal Deposit Insurance Corporation (FDIC) to the maximum allowed by law. Please contact Discover directly if you need more info on opening an account with them.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
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Laurie
April 01, 2019
If I open an account with $15000 and receive the bonus and something happens where I need the money and withdraw some, would I lose the bonus?
johnbasanes Finder
April 01, 2019
Hi Laurie,
Thank you for reaching out to Finder.
No you do not lose the 2.10% APY as this is the interest being earned for the account. When you need to withdraw money, the account allows you to do this via 3 methods:
Send an online transfer to an external bank account.
Request an official bank check.
Wire transfer.
Please note that the principal that is to be calculated after the withdrawal will be smaller thus the interest smaller as well. Hope this helps!
Cheers,
Reggie
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Kara
January 03, 2019
Is there a fee for closing an account if I need to take out my money?
Jhezelyn Finder
January 04, 2019
Hi Kara,
Thank you for your comment.
There is no fee for closing your Discover Online Savings Account and for taking out the money.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn
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Clinton
August 31, 2018
I tried creating a discover account I filled out the necessary information needed but I haven’t been approved I was told it would be reviewed. How long can I wait?
joelmarcelo
August 31, 2018
Hi Clinton,
Thanks for leaving a question on finder.
Typically, approval is within 3 to 5 business days. If it takes longer than that, you can contact Discover bank directly to follow up and find out what could be causing the delay.
Cheers,
Joel
IG
April 17, 2019
Regarding online savings that offers 2.10% APY and $0 monthly fees, is there a dollar limit on withdrawals? Is there a fee to withdraw money from the account? Is there a fee to close an account? Is interest paid as it accrues, annually or other? Is money deposited into the account insured in the event the online account is hacked or somehow stolen?
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