Discover Bank
Fees
Our Rating
Current Promotion
APY Savings
Discover Bank is a full-service online bank
Discovery has more than 50,000 ATMs available to customers than most banks or credit unions. This provides a large portion of the convenience factor for Discover Banking.
You can access your Discover accounts through this application and use their mobile check deposit by taking a photo with your phone or tablet. That makes Discover a great choice if you're looking for an online bank.
Discover Bank can be a perfect fit if:
- You want access to a variety of credit card options
- You prefer an online bank (and higher savings rates)
- You need a first class customer service
- High APY on savings account and CDs
- No monthly fees, overdraft fees or minimum balances
- Top notch customer service
- Great Digital Experience
- No physical locations
- No reimbursement for out-of-network ATM fees
- No Cash Deposit
Which Discover products are inflation proof?
Although Discover offers a respectable selection of products, they are not particularly inflation-proof. The lending products are the only exception to this rule. You can get fixed-rate personal loans and mortgages to assist you deal with rising inflation and interest rates.
You don't have to worry about your monthly payments rising in line with all of your other household expenses when increased inflation takes hold because you can lock in your rate for the life of your loan term. Until your debt is paid off, your monthly payments won't change.
Does Discover offer a free checking account?
There are no minimum balance requirements and no monthly maintenance fees for Discover's checking account. Even if you have inadequate funds or a deposit item is returned, there are no fees.
Additionally, you will receive 1% cash back on all debit card purchases, which makes it a highly appealing choice for people looking for the greatest value checking account.
Is Discover can fall for recession?
A well-known brand with a lengthy history is Discover. Over the years, the bank has endured difficult financial circumstances. Discover was able to repay these funds by 2010 even after the financial crisis of 2007–2008, when the bank received $1.2 billion in federal bailout funding.
Naturally, Discover is also FDIC insured, so even if the bank experiences financial difficulties, you can be confident that your deposits up to $250,000 are protected by federal insurance.
Can you invest in gold products via Discover?
It is not feasible to purchase or invest in gold items through Discover because it does not have an investing division. If investing is something you're interested in, you might want to think about using a brokerage or another bank with an integrated platform for investment services.
Can I open a Joing Account with Discover?
You can open a joint account with Discover. The bank permits joint ownership of the majority of account types, however to add an account, both parties must authenticate their identity and personal information.
You can also add an additional user to your current Discover account. Online or by calling the Discover customer service hotline, you can do this.
Discover Bank Review
Banking Services | Credit Options | ||
|---|---|---|---|
Savings Accounts | Mortgage | ||
Checking Accounts | Government Mortgage | ||
CDs | Credit Cards | ||
Money Market Account | Debit Card | ||
Investing Capabilities | Personal Loans |
Discover Savings Account
APY Savings
Minimum Deposit
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Fees
Discover Savings Account
APY Savings
Minimum Deposit
Promotion
Fees
Discover Banking also offers competitive rates for their savings accounts, making it one of the highest-yield saving accounts. These rates are highly competitive and benefit the customer exclusively.
Discover savings accounts earn 3.70% APY. Your interest compounds daily and pays out monthly.
Another added benefit of opening a savings account with Discover Banking is there are no fees associated with online savings accounts, or minimum balance requirement.
The mobile app is easy to use when you want to deposit a check; you can quickly transfer and view your financial status.
Discover Checking Account
Fees
Minimum Deposit
Promotion
APY Checking
Discover Checking Account
Fees
Minimum Deposit
Promotion
APY Checking
Discover Checking Accounts offer unique offerings for your banking needs.
Its checking accounts allow you to earn cashback rewards. You earn one percent cash back on up to $3,000 in debit card purchases monthly.
There are no fees for your account maintenance, ordering checks, In-network ATM use, online bill pay, or replacement debit cards. Discover checking accounts also have no minimum balance requirements or activity requirements.
It is simple to deposit paper checks as well. Discover uses a mobile app where you can easily track your spending, move your money, and deposit paper checks.
Overall, Discover offers one of the industry's best options for checking accounts in the industry. You should consider opening an all-online checking account and enjoy the many services and flexible options available.
Discover Bank CDs
APY Range
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Discover Bank CDs
APY Range
Minimum Deposit
Terms
Fees
Discover Bank offers one style of CD that requires a minimum deposit of $2,500. Once you meet this minimum requirement, the amount you deposit has no impact on the CD’s interest rate.
There is a wide selection you can choose from to set up your CD.
Discover Bank's CD rates are highly competitive when compared to other banks. Discover Bank offers a wide variety you can choose from. There are no fees throughout the term you decide on your CD.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
3 Months | 2.00% | 3 months interest |
6 Months | 3.70% | 3 months interest |
9 Months | 3.80% | 3 months interest |
12 Months | 4.00% | 6 months interest |
18 Months | 4.00%
| 6 months interest |
24 Months | 4.10% | 6 months interest |
30 Months | 3.50% | 6 months interest |
36 Months | 3.50% | 6 months interest |
48 Months | 3.50% | 9 months interest |
60 Months | 3.50% | 18 months interest |
120 Months | 3.50% | 24 months interest |
CDs are protected, unlike stocks, which is a great relief to you wanting to grow your finances safely. Another value of having a CD is a fixed interest. This offers you excellent short and long terms that will increase your financial portfolio with no additional risks.
Credit Cards
When it comes to credit cards, Discover began as a credit card company and has since expanded its banking services. As a result, it stands to reason that Discover credit cards would offer a diverse range of options.
All Discover cards provide rewards up to 5% (with the Discover Cash Back card), but there are also tiered reward cards, such as the Gas & Restaurant card and a Travel card that offers miles.
Card | Rewards | Bonus | Annual Fee | Best For |
| Discover It Cash Back | 1-5%
5% cashback on up to $1,500 in rotating category purchases each quarter when you activate the bonus category (then 1%), as well 1% percent cash back on all other purchases
| Cashback Match
All cash back earned at the end of the first 12 months is matched.
| $0 | Cash Back Rewards |
|---|---|---|---|---|---|
| Discover it® Chrome Gas & Restaurants | 1-2%
2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% cash back on all your other purchases
| Match Bonus
Discover matches all cash back you earn at the end of your first year
| $0 | Low Spenders |
| Discover it® Miles | 1.5X
unlimited 1.5x miles for every dollar spent on all purchases
| Discover Match®
Discover matches your first year miles automatically.
| $0 | Travel Rewards |
| Discover it® Student Chrome | 1-2%
2% cashback at gas and restaurants (up to $1,000 every quarter) and 1% on groceries and other student related products
| Match Bonus
Discover will match all cash back earned at the end of your first year
| $0 | College Students |
| Discover it® Secured | 1-2%
2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and unlimited 1% cash back on all other purchases
| Cashback Match™
Discover will match all the cash back you’ve earned at the end of your first year.
| $0 | Building Credit |
Discover also has a secured credit card that allows you to build credit while earning rewards. Students can also earn rewards using the Student Cash Back Student Cash Back, and Student Chrome cards.
These cards are especially appealing because they all offer Unlimited Cashback Match. Discover will match your first year's cashback dollar for dollar with no minimum spend or maximum rewards.
Mortgage & Loan Options
Discover offers home equity loans up to $200,000 and mortgage refinancing. To expedite the process, you can apply online or over the phone. What distinguishes this bank is that there are no closing costs, including application fees, origination fees, or appraisal fees.
Discover aims to design its personal loans around you, offering various mortgage options. There are flexible repayment terms available, and you can lock in your rate to ensure that your monthly payments do not change.
With a Discover loan, there are no origination fees. In addition to a personal loan, Discover offers student loans and varied student loan refinancing options.
Customer Experience
Discover provides customer service that is available 24 hours a day, seven days a week. This means that if you have any queries or questions, or if you have a banking emergency, you can contact the support team right away.
According to the J.D. Power 2023 U.S. digital banking satisfaction study, Discover bank gets very high customer satisfaction and ranked 2 out of 10 banks, higher than banks such as Ally, Amex and Capital One.
Discover has simple websites that allow you to explore products and the help center for various financial topics.
Discover's has a rating of 4.9/5 on Apple's App Store and 4.6/5 on Google Play.
Discover Bank | |
|---|---|
App Rating (iOS)
| 4.9 |
App Rating (Android) | 4.6 |
BBB Rating (A-F) | A+ |
Contect Options | phone |
Availability | 24/7 |
How to Open a Checking Account Online With Discover
If you're not sure how to open a Discover account, this is the right place for you. Visit the Discover Bank homepage and click “Open an account.”
Next, fill in your personal information, such as your names and SSN, then click “Continue.”
Next, fill in your contact info, such as your address, city, state and zip code.
Next, indicate if it the account is going to be an individual or a joint one, then click “continue.” The next page requires your funding info; fill in the necessary details and click “Continue.”
Next, go through the three disclosures provided and lastly, click “Agree and submit.”
Discover Bank FAQs
What promotion does Discover offer?
As of now, Discover offers $150 or $200 bonus offer on its personal savings account. There is a minimum deposit of $15,000 or $25,000 within 30 days.
Is Discover Bank trustworthy?
Yes, Discover is a well regarded brand and it is FDIC insured. So, your funds up to $250,000 per depositor is protected by the federal government in case of bank failure.
Additionally, Discover takes your personal data security seriously. Discover uses state of the art encryption standards to protect both your data and transactions.
Is Discover Bank a good bank overall?
Discover Bank offers competitive rates with a variety of perks including ATM access cash back rewards and no monthly fees on both savings and checking accounts.
You can earn solid rates on your savings and there is the option for overdraft facilities. So, unless you really prefer access to physical branches, you are likely to find Discover a solid option.
Which is better: Discover Bank or Chase?
Although Chase is one of the biggest banks in the USA, with over 4,700 branches, Discover Bank has a reputation for superior customer service. Discover provides access to 24/7 customer support if you have any queries or issues. Also, Discover offers better rates when it comes to savings and CDs.
Discover Bank and Chase have a variety of banking products; there are no service fees with Discover. Discover has a massive fee-free ATM network with over 60,000 machines. So, unless there is a specific Chase product that appeals to you, you are likely to find Discover Bank a better option.
Is Discover checking better than Chime?
Both Discover and Chime offer fee-free banking with a variety of products. However, Chime does have daily spending and withdrawal limits and no overdraft protection.
The main advantage of Chime banking is its Pay Friends feature. This allows you to send money to others instantly. You only need the name, phone number, or email to transfer up to $2,000 per month.
So, if you frequently send funds to family or friends, you may find Chime a better option.
Is Capital One 360 better than Discover Checking?
One of the main benefits of Capital One Bank is the high deposit rates for its savings accounts and CDs. But, Discover Bank also has some of the highest rates on the market.
Discover also offers 24/7 customer support, cashback checking, but no interest checking accounts. On the other hand, Capital One 360 has no account minimums and some overdraft protection options.
On our banking reviews, both banks have the same rating of 4.5 stars out of 5.
Is Ally Bank better than Discover Bank?
Ally Bank offers a complete line of banking products, including savings, checking, and CD accounts. Discover Bank offers similar products with comparable interest rates. Either bank is a good option if you want to keep all your accounts with the same institution.
Ally and Discover offer online banking services, but the main benefit of Ally Bank is its user-friendly interface. You can access classic banking features, but the Ally Assist app has a voice-enabled, built-in banking expert. This can help you to manage your accounts, and the Ally banking platform is also compatible with Amazon Alexa.
Which is better: Barclays Bank or Discover Bank?
Like Barclays Savings, Discover offers online banking with no monthly fees or minimum account balances. However, Discover offersprovides both savings and checking accounts with money market accounts. You can open and manage your accounts online and enjoy competitive insurance rates.
While the rates are comparable, if you are looking for a full-service bank where you can have both checking and saving accounts, you will find Discover a better option. However, if you don’t need a checking account, you may find Barclays products and rates interesting.
Is Citibank better than Discover Bank?
While Citibank offers a variety of accounts with low opening required amounts, Discover has no monthly fees or required balances. However, Discover does have fewer account choices, with only personal deposit accounts available.
Another key difference is that Discover offers competitive rates across all accounts. In contrast, the competitive rates with Citibank have requirements you need to meet to access them, which are lower anyway. So, which one is best will depend on your priorities.
If you prefer access to a wider variety of banking products, you’ll likely choose Citibank, but this will come at the cost of requirements to access the more competitive rates.
How We Rated Discover Bank : Review Methodology
The Smart Investor team extensively reviewed hundreds of banks and credit unions. We assessed them based on four main categories, each with specific features:
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Diversity of Products and Their Attractiveness (40%): We extensively analyzed the breadth and appeal of each bank's product offerings, including savings accounts, checking accounts, loans, investment options, and more. Higher ratings were assigned to banks with a diverse range of products that are attractive in terms of interest rates, fees, terms, and additional features. This category provides insights into the variety and value of the bank's offerings, crucial for meeting customers' diverse financial needs.
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Account Features (30%): This category delves into the features and benefits accompanying each bank's accounts. We scrutinized factors such as promotions, deposit and withdrawal options, ATM accessibility, online and mobile banking functionalities, as well as additional perks like overdraft protection and rewards programs. Banks offering comprehensive and convenient features received higher ratings, reflecting the overall value of their accounts to customers.
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Customer Experience (20%): A positive customer experience is paramount in banking, so we evaluated each bank's performance in this area. This included assessing the ease of account opening, quality of customer service, availability of support channels, and overall user satisfaction. Ratings were based on factors such as responsiveness, efficiency, and the bank's commitment to meeting customer needs, ensuring a seamless and satisfactory banking experience.
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Bank Reputation (10%): The reputation of a bank is a critical consideration for customers. We examined factors such as financial stability, regulatory compliance, and public perception to determine each institution's overall trustworthiness and reliability. Higher ratings were awarded to banks with strong reputations, reflecting their credibility and ability to inspire confidence among customers.
By considering these categories, individuals can make informed decisions that align with their financial needs and preferences, ensuring they choose a bank that offers competitive products, excellent features, a positive customer experience, and a solid reputation.
Discover Bank Compared to Competing Banks
Axos Bank is still committed to providing a “100% digital” experience, as evidenced by the absence of branches. When there are no branches, customers benefit from higher rates of return on financial products. Axos Bank is also a full-service bank, providing individuals and businesses with deposit accounts and loans.
Discover Bank, while not a full-service bank, is part of the Discover Group, which provides a wide range of loan products. If you have a Discover Bank account, you will be in their system if you ever need a loan or a credit card. With the exception of Delaware, Discover Bank does not have bank branches.
Read Full Comparison: Axos vs Discover: Which Bank Account Is Better?
SoFi has developed a respectable banking product line. Aside from its hybrid savings and checking account, it also offers mortgages, loans, and investment products. The only thing missing from the offering is a traditional savings account and CDs.
Since its inception as a credit card provider, Discover has come a long way. Of course, credit cards are available, but you can also get home loans, personal loans, and a variety of checking and savings products such as retirement accounts, CDs, and money market accounts.
Read Full Comparison: SoFi Money vs Discover: Which Online Banking Suits You Best?
Discover began as a credit card company and has since expanded into banking services. As a result, it stands to reason that Discover would offer a diverse range of credit cards. Discover offers a simpler checking account. There are no account fees or minimum deposits, and you can earn 0.40 percent.
Citi offers home loans, personal loans, lines of credit, wealth management options, and investments, as well as everyday and premium banking services. This exemplifies Citi's viability as a viable alternative to the traditional high-street bank.
Read Full Comparison: Discover vs Citi: Compare Banking Options
Discover Bank is a full-service online bank as well as a provider of payment services. Discover can be used for banking and retirement planning by individuals. Discover is best known for its credit cards with rewards, but it also provides personal, student, and home equity loans.
American Express is one of the world's most well-known credit card brand names. Customers can get a personal banking solution from American Express National Bank, which offers online savings and CD options. Personal savings accounts have a high potential yield. They do not, however, provide as many products as Discover Bank does.
Read Full Comparison: Discover vs American Express: Which Bank Account Is Better?
The CIT Bank eChecking account pays 0.10 percent to 0.25 percent interest. The account also has almost no fees. Only if you have a stopped payment, a returned item, or want to make a wire transfer will you be charged a fee. There is also free ATM access, with up to $30 in ATM fee reimbursements per month if you incur fees when using another bank's machine.
While Discover's checking account does not pay interest, you can earn 1% cash back on debit card purchases. There are no fees, as with eChecking. If you need a replacement debit card, have insufficient funds, or have a deposit returned, you will not be charged a fee.
Read Full Comparison: CIT Bank vs Discover: Which Bank Account Wins?
Discover is a completely online bank, so there are no local branches where customers can go for banking services. Customers can get in touch with Discovery via customer service, which is available 24 hours a day, seven days a week. You can log in to your account in a number of ways. All accounts are accessible online.
Ally offers a much broader range of traditional banking products. In addition to checking, savings, and CD accounts, there are investment and retirement products, mortgages, auto loans, and personal loans available.
Read Full Comparison: Discover vs Ally: Which Bank Wins?
The Discover checking account is more traditional. While the account does not pay interest, you can earn 1% cash back on debit card purchases. There are also no fees if you require a replacement debit card, have a deposit item returned, or have insufficient funds in your account.
Chase offers a wide range of banking products, including savings accounts, checking accounts, home loans, home equity options, auto loans, and a wide range of credit cards. In addition, Chase's customer service system is quite extensive.
Read Full Comparison: Discover vs Chase: Which Bank Account Suits You Best?
Discover Bank is a full-service online bank as well as a provider of payment services. Discover can be used for banking and retirement planning by individuals. Discover is best known for its credit cards with rewards, but it also provides personal, student, and home equity loans.
Capital One began as a credit card company, but it has grown to offer a diverse range of traditional banking services over the years. In addition to credit cards, it offers checking and savings accounts, loan refinancing, auto finance, and children's accounts. As a result, Capital One is more appealing to those seeking a traditional banking experience.
Read Full Comparison: Discover vs Capital One: Which Bank Account Wins?
Since its inception as a credit card provider, Discover has come a long way.Of course, credit cards are available, but you can also get home loans, personal loans, and a variety of checking and savings products such as retirement accounts, CDs, and money market accounts.
Bank of America offers a far more comprehensive range of banking services. There are numerous credit card options, as well as various savings and checking accounts.
Bank of America also provides mortgages, auto loans, and investments. This makes switching from a traditional bank much easier because you won't have to compromise on your banking products.
Read Full Comparison: Discover vs Bank of America: Compare Bank
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Compare Discover Savings
The Discover Online Savings and the Capital One 360 Performance Savings rates are similar. Compare account features, benefits and drawbacks.
Discover Online Savings Account vs Capital One 360 Performance Savings: Compare Side By Side
Discover and American Express offer competitive savings rates and no monthly fees. Compare account features, benefits, and drawbacks.
Discover Online Savings Account vs. American Express High Yield Savings Account
Discover and Ally offer online only savings accounts with several benefits, tools and sometimes even promotions. Here's our full comparison: Ally Bank Savings Account vs Discover Online Savings Account
There is no competition when it comes to savings rates – Discover wins Chase clearly. However, each of them has its own benefits and tools.
Chase Savings vs Discover Online Savings Account: Compare Side By Side
PNC offers higher savings rate than Discover, but the states are very limited. Here's our full savings account comparison: Discover Online Savings Account vs. PNC Standard Savings
Compare Discover Certificate Of Deposit (CDs)
You can get competitive rates with both Ally and Discover CDs. Compare rates, minimum deposits, and early withdrawal penalties.
Discover the best CD rates Marcus and Discover offer with our comprehensive comparison, including early withdrawal penalty.
Discover and Capital One offer high CD rates on all terms. However, for each term there is a different winner – here's a full comparison: Synchrony CDs vs. Discover CDs
Synchrony Bank offers better CD rates than Discover for most terms. Compare CD rates, minimum deposit, and early withdrawal fees.
