Banking » Reviews » Discover Bank Review 2023 – Decent Online Only Bank With Competitive Rates
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Discover Bank Review 2023 – Decent Online Only Bank With Competitive Rates

Discover Bank is a premium online banking service that offers competitive rates on their accounts with no minimum balances or fees.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor, which helps consumers make better financial decisions.  Silvermann’s areas of expertise include investing, banking, and credit cards. Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more. Aside from being a finance expert, his background includes working as a business and financial analyst. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor, which helps consumers make better financial decisions.  Silvermann’s areas of expertise include investing, banking, and credit cards. Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more. Aside from being a finance expert, his background includes working as a business and financial analyst. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

Discover Bank

discover logo
discover logo

Discover Bank

Fees

$0

Minimum Deposit

$0

Current Promotion

Up to $360 Get 1% of spending. Monthly debit Purchases of $3,000 in purchases per month needed to get the maximum.

APY Savings

3.30%

Discover Bank is a full-service online bank and payment services company.  Discover offers both banking and retirement solutions for individuals.  Discover is best known for its rewards credit cards, and personal, student, and home equity loans are also available. 

Discover is a strictly online bank. Therefore, there is no local branch can customers visit in person for banking needs.  However, Discover rates are quite high and it is accessible to customers through customer service, which is available 24 hours daily.   

Discover uses a mobile app that is available on both iOS and Android.  You can access all of 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.

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 easily access your account and update your finances without the hassles of traveling to a physical location.

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

3.30%

Minimum Deposit

$0

Promotion

$150 – $200 Minimum deposit of $15,000 / $25,000 needed. Expired on 03/15/2023

Fees

$0

Discover Savings Account

APY Savings

3.30%

Minimum Deposit

$0

Promotion

$150 – $200 Minimum deposit of $15,000 / $25,000 needed. Expired on 03/15/2023

Fees

$0

Discover Banking also offers competitive offers for their savings accounts.  The rates are premium because they are about five times higher than the national average.  These rates are highly competitive and benefit the customer exclusively.   Discover savings accounts earn 3.30% 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.  There is also no minimum balance requirement.  This start contrast is directly related to Bank of America's Advantage Savings account, which requires a minimum of $500 to waive their monthly fee.  

This is an excellent example of why the Discover Banking savings account is a great option to build and grow your finances. The mobile app is easy to use when you want to deposit a check; you can quickly transfer and view your financial status.  This is an incredibly user-friendly system that comes highly recommended.

Checking Account

Discover Checking Account

Fees

$0

Minimum Deposit

$0

Promotion

Up to $360 Get 1% of spending. Monthly debit Purchases of $3,000 in purchases per month needed to get the maximum.

APY Checking

0% (1% cash back on up to $3,000 in debit card purchases each month)

Discover Checking Account

Fees

$0

Minimum Deposit

$0

Promotion

Up to $360 Get 1% of spending. Monthly debit Purchases of $3,000 in purchases per month needed to get the maximum.

APY Checking

0% (1% cash back on up to $3,000 in debit card purchases each month)

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.  It's a great feature, but keep in mind other banks may offer interest rates on your balance. The American express checking account, for example, offers 0.60% APY on your checking account balance, as of January 2023. 

 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.  This primarily benefits the customer by eliminating excessive fees while incorporating incentives to open an account.

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

1.50% – 4.25%

Minimum Deposit

$2,500

Terms

3 months to 10 years

Fees

$0

Discover Bank CDs

APY Range

1.50% – 4.25%

Minimum Deposit

$2,500

Terms

3 months to 10 years

Fees

$0

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.  Discover Bank makes sure your CD is safely secured within its system.  You do not have to fear that your CD will negatively impact a market dip or crash.

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.

CD Term
APY
Early Withdrawal Penalty
3 Months
1.50%
3 months interest
6 Months
2.75%
3 months interest
9 Months
2.85%
3 months interest
12 Months
4.15%
6 months interest
18 Months
4.25%
6 months interest
24 Months
4.30%
6 months interest
30 Months
4.30%
6 months interest
36 Months
4.35%
6 months interest
48 Months
4.35%
9 months interest
60 Months
4.40%
18 months interest
120 Months
4.40%
24 months interest

Money Market Account

A money market account takes your earning power from your savings account and gives you access to your checking features for an increased versatile account.  Discover offers money market accounts that provide you with ATM access, debit card, and check-writing capabilities.

When using your money market accounts, you can rely upon the highly effective and convenient service Discover Bank provides.  There is high earning potential within the Discover banking system. 

Overall, Discover’s money market accounts have no fees and no minimum balance requirements.  This allows you to earn more interest than a traditional checking account, making this an excellent opportunity to grow and expand your financial portfolio without taking too big a risk. 

Discover prioritizes your need and desire to expand and grow your financial interests.  It is essential to use the best and safest option. 

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.

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 would offer a diverse range of credit cards.

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.

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 and 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 cash back dollar for dollar with no minimum spend or maximum rewards.

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.

Discover has simple websites that allow you to explore products and the help center for various financial topics. Even if you are unfamiliar with which banking services are best for you, this provides an excellent user experience. 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

Bottom Line: Should You Consider Discover Bank?

Discover Bank is a premium online banking service that offers competitive rates on their accounts with no minimum balances or fees.  With your checking accounts, you can earn one percent cash back, which is a rarity in the banking industry.

Discover banking prioritizes its accounts by offering comparisons to other banks, providing absolute transparency, and maintaining flexibility.  Because of the user-friendly banking products, you can safely use their services without fearing the security of your account.

Discover Bank online bank is an excellent example of a company that offers services for adults with a busy schedule while offering reliable software you can use without concern.  This is a high-yield earning offer you should take advantage of through Discover Bank.

Discover Bank is a safe option for anyone looking to grow their financial portfolio in a safe way, where their money is secure and will grow.  Discover Bank is an excellent opportunity to secure your finances and looks forward.

How to Open a Checking Account Online With Discover

Step 1:

If you're not sure Discover Bank_Homepage

Step 2: 

Next, fill in your personal information, such as your names, and SSN, then click “Continue.”

Discover Bank_Homepage

Step 3: 

Next, fill in your contact info, such as your address, city, state and zip code.

Discover Bank_Homepage

Step 4: 

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.”

Discover Bank_Homepage

Step 5: 

Next, go through the three disclosures provided and lastly, click “Agree and submit.”

Discover Bank FAQs

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.

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.

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.

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.

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.

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.

While Capital One 360 offers competitive rates for its savings accounts, Discover Bank has some of the highest rates on the market. Although there are some minimum deposit requirements, you won’t need to pay service fees.

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.  So, unless you are looking to open up a savings account with a lump sum, you may find Capital One 360 a better choice.

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 Ally online banking platform is more user-friendly. You can access classic banking features, but there is a voice-enabled, built-in banking expert with the Ally Assist app. This can help you to manage your accounts, and the Ally banking platform is also compatible with Amazon Alexa.

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.

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.

Online Bank Alternatives

sofi logo
discover logo
ally bank
APY Savings The annual percentage yield (APY) is a percentage that represents the amount of money or interest earned on your savings account over the course of a year. The APY factored in compound interest. A savings calculator can help you quickly determine how much you'll earn with a given APY.
3.75%
3.30%
3.30%
Checking Account Fee The monthly fee on checking account
$0
$0
$0
Checking Minimum Deposit
$0
$0
$0
Mobile App Rating
4.8/5 on iOS, 4.2/5 on Android
4.9/5 on iOS, 4.7/5 on Android
4.7/5 on iOS, 4.1/5 on Android
BBB Rating
A+
A+
C

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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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Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor, which helps consumers make better financial decisions.  Silvermann's areas of expertise include investing, banking, and credit cards. Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more. Aside from being a finance expert, his background includes working as a business and financial analyst. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.
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The product offers that appear on this site are from companies from which this website receives compensation.