Updated April 12, 2023

Discover Bank Review

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Discover offers high interest rates on its online savings and CD accounts. But there are downsides. Here's what you need to know before you open an account.

Discover Bank
Discover Online Savings - $200 Cash Bonus

Overall Score






Money Market


Customer Service


Mobile App

5-point scale (the higher, the better)

Pros and Cons

  • High yield
  • No fees
  • 24/7 customer service
  • No interest checking
  • $2,500 minimum deposit for CDs

Bottom Line

Solid online bank with high APY rates and good customer service

Traditional savings accounts pay very little interest. If you want to earn a more impactful return on your savings, online banks often offer higher rates.

In this article, we will look at how you can use Discover's Online Savings Accounts and CDs to help grow your savings.

What is Discover Bank

Based in Greenwood, Delaware, Discover Bank is an online bank owned by Discover Financial, the company behind the Discover credit card.

It offers traditional banking products like checking, savings and CD accounts, plus a variety of loans including student and home-equity.

Customers can manage their finances through the bank's website or mobile app. They can also withdraw funds for free using the nationwide AllPoint ATM network. Additionally, Discover also operates one full-service location in Delaware.

Discover Bank has 24-7 customer support, including a dedicated line for fraud prevention.

Is Discover Safe? Discover is FDIC insured (FDIC Cert #5649). This means that if Discover defaults, the federal government guarantees the balance in your savings account, up to $250,000.

How It Works

Discover offers different deposit account types. They all work in different ways.

  • Discover Online Savings
    Offers a high yield savings rate of 4.35% APY. You are limited to the number of transfers and withdrawals a month. No fees and no minimum deposit.

  • Discover Money Market:
    Gives you more flexibility such as ATM withdrawals and check writing. But it requires a $2,500 minimum deposit.[1]

  • Discover CDs:
    Give you guaranteed returns when you deposit money for a set period of time. CDs have a minimum deposit of $2,500.[2] Some CDs offer a higher APY than savings accounts.

  • Discover Cashback Debit:
    Gives you cash back when you use your debit card. See website for details. No fees and no minimum deposit.

Online SavingsCashback CheckingCDs
Get StartedGet StartedGet Started
High yield savings account1% cashback on up to $3,000 in purchases each month. See website for detailsSome CDs can earn a higher APY than saving accounts
No minimum depositNo minimum deposit$2,500 minimum deposit

Now that we've covered the basics, let's get into the specifics.

Discover Bank Rates and Promotions

Is Discover Bank a real bank?
Yes, Discover is an online banking division of Discover Financial Services. It offers a range of banking products and services, including checking and savings accounts, credit cards, personal loans, and student loans. And it's insured by FDIC up to $250,000.

Online Investor Savings

Discover is an online bank, so they don't have many of the overhead costs that brick-and-mortar banks do. This allows Discover to offer no minimum deposit and a high APY on its Online Savings Account. Here are some additional details:

  • 4.35% APY
  • Daily compounding interest
  • Free online and mobile banking
  • FDIC insured

As with any savings account, you'll be limited to 6 withdrawals per month. This is a federally-imposed limitation.

If you need to withdraw money from your Discover savings account, you have a few options: internal Discover transfers, external transfers to another bank, wire transfers (a charge applies), and mailed checks.

Compare Savings Account Promotions

Certificate of Deposit (CD)

For CDs, you must deposit a fixed amount of money for a fixed amount of time.

There are a few key factors to consider when deciding on a CD: the term length, the minimum deposit, and the APY.

Here are your options:

  • Term CDs: 2.00% to 5.30% APY depending on terms. $2,500 minimum

  • IRA CDs: This option lets you save for retirement in Roth and Traditional IRA CDs and get tax benefits. Terms and APYs are similar to Discover's Term CDs.

    You can roll over money from an existing retirement account (like a 401k) or transfer an IRA to Discover.

Remember that withdrawing funds from a CD before the term has ended will incur a penalty. So make sure you really don't need your money for that period of time.

The penalty depends on your CD term. Here's how it breaks down:

<1 year3 months' interest on the amount withdrawn
1 to<4 years6 months' interest on the amount withdrawn
4 to <5 years9 months' interest on the amount withdrawn
5 to <7 years18 months' interest on the amount withdrawn
7 years and more24 months' interest on the amount withdrawn

Withdrawals from IRA CDs have a 10% tax penalty if you're under 59-1/2.

Cashback Checking

Cashback Debit Account: 1% cash back on up to $3,000 in debit card purchases each month. See website for details

Discover's checking account doesn't offer interest, but it does give cash back when you use its debit card. This is a unique perk not offered by most other checking accounts.

This checking account is as free as it can get. It has no monthly fee, no minimum balance requirement, and no overdraft fees.

Other features include:

  • No fee for online bill pay
  • No fee for check reorders
  • No fee for replacement debit card
  • Free ATM withdrawals at over 60,000 ATMs
  • Get paid up to 2 days early

The only fees you may encounter are for outgoing wire transfers and for using an ATM outside of Discover's network.

Money Market

Discover Money Market offers 4.20% APY under $100,000; 4.25% APY $100,000 or more. $2,500 minimum deposit.

The rate is higher than what many other banks offer. This is a good alternative to the Savings account if you want more flexibility in how you use your money.

The Money Market account allows you to write checks, pay bills, and make debit card purchases. However, federal regulation limits you to only 6 of these types of transactions per month. You can, however, make unlimited ATM withdrawals.

Other features include:

  • Deposit checks through Discover app
  • Online bill pay
  • Free debit card and checks
  • No fee ATM withdrawals at over 60,000 ATMs


Discover is an online bank, which means you can't just walk into a neighborhood branch to do business and ask questions.

Discover only has 2 physical locations in Delaware:

  • A full service bank at 502 E. Market Street, Greenwood, DE
  • An administration office at 12 Reads Way, New Castle, DE

However, if you need cash, you can withdraw cash surcharge-free at any of the 60,000+ Allpoint® or MoneyPass® ATMs. In the US, Allpoint® ATMs can be found in popular stores like Target, Costco, Speedway, Safeway, and drugstores.

Why We Like Discover

Here are a few things that we like about Discover's online savings accounts and CDs:

  • Low minimum deposits:
    If you have just started saving or want to set aside a small balance, Discover can be a great choice. Their Online Savings have no minimum balance requirements at all. Deposits for CDs are some of the lowest in the industry.

  • High rates:
    Discover's savings accounts offers higher APYs than traditional banks. This is great news for anyone looking to save, but can't pay the high minimum deposits that some other banks require. And if you have more to save, you can earn more on a CD.

  • No fees:
    Discover cuts out many fees that other banks profit from. For example, you will not be charged any account opening or maintenance fees.

  • Retirement options:
    If you're thinking about retirement planning, Discover offers IRA Savings and IRA CDs that can give you tax benefits.

Is Discover Bank a good bank?
Discover Bank offers excellent checking and savings accounts with no monthly fees, no minimum balances, and competitive APYs. It's a great option if you're looking for an online bank with high-yield savings.

Reasons You Might Skip Discover Savings

For all of Discover's advantages, there are some downsides that need to be considered:

  • No branch locations:
    In exchange for the high interest rate on your online savings account, you are required to do your Discover banking online or over the phone.

  • No ATM card:
    Discover Savings does not provide an ATM card for easy withdrawals. This could be a good thing so you're not tempted to spend your money. But if you like that convenience, look into their Money Market account instead. Or there are some other online savings accounts that come with an ATM card.

  • No Relationship Rewards:
    Some banks offer relationship bonuses if you do all your banking with them. If you move your savings balance to Discover from your current bank, you could miss out on some of these benefits. See if it's worth it before you move your funds.

Common Questions

If you're still interested, you probably have some questions. We'll clear up some of the basics here:

Should I open a CD or savings account?
If you can commit to not touching your funds for at least 1 year, you may be able to earn a higher interest rate with a CD versus a savings account. But if you need liquidity, a savings account gives you more flexibility to withdraw your savings when needed.

The decision comes down to how much you're looking to set aside, whether you'll need to access your savings, and your investment goals.

How can I deposit funds with Discover Bank?
For Discover's checking and savings accounts, there are a few ways to deposit funds:

  • Deposit checks on the mobile app
  • Transfer money from another bank account
  • Mail a check
  • Set up direct deposit to your new account

For Discover CDs, you can transfer from a Discover account or an external account, transfer by phone, or mail a check. For IRAs, you can rollover funds from an existing retirement account or fund it with new money.

Discover Other Services

Discover offers other services, including:

  • Personal loans: Get a personal loan up to $35,000. There are no origination fees. You'll get a fixed monthly payment and there is no pre-payment penalty.

  • Student loans: Cover up to 100% of college or graduate school costs. There are no application, origination, or late fees. Choose from fixed or variable rates. See our full review.

  • Home equity loans: Borrow from $35,000 up to $300,000, with terms from 10 - 30 years. There are no application or origination fees, and no cash required at closing.

What Experts Say

CreditDonkey assembled a panel of industry experts to answer readers' most pressing questions:

How it Compares

Bottom Line

If you're ready to start building your savings, Discover's Online Savings Accounts or CDs are worth considering.

Even if you only have $1 in savings, you can start earning interest in a high yield savings account. Or, if you have at least $2,500 set aside and aren't concerned about liquidity, you can earn an even greater return with a CD.

However, Discover may not have the absolute highest rates. So if you're looking for the best APY possible, make sure you compare to other online savings accounts.


Discover Bank
Member FDIC

Discover Online Savings - $200 Cash Bonus

Expires 12/14/2023

To get your $150 or $200 Bonus: What to do: Apply for your first Discover Online Savings Account, online, in the Discover App or by phone. Enter Offer Code CY923 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 to account within 30 days of account open date. 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. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 12/14/2023, 11:59 PM ET. Offer may be modified or withdrawn without notice. See advertiser website for full details.

Member FDIC

Chase Total Checking® - $200 Bonus

Expires 1/24/2024
  • New Chase checking customers enjoy a $200 bonus when you open a Chase Total Checking® account with qualifying activities
  • Access to more than 15,000 Chase ATMs and more than 4,700 branches
  • Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
  • JPMorgan Chase Bank, N.A. Member FDIC
  • Open your account online now
  • Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
  • Chase Overdraft Assist℠ - no overdraft fees if you're overdrawn by $50 or less at the end of the business day or if you're overdrawn by more than $50 and bring your account balance to overdrawn by $50 or less at the end of the next business day*
Bank of America
Member FDIC

Bank of America Business Advantage Checking Account - $200 Bonus Offer

Expires 12/31/2023
Earn a cash bonus in three steps:
  1. Open a new eligible business checking account by December 31, 2023
  2. Make Qualifying Deposits* of $5,000 or more in new money within 30 days of opening the new eligible business checking account
  3. Maintain an average balance of $5,000 for the next 60 days (day 31-90) during the maintenance period**
*Qualifying Deposits are deposits of new money, which is money not currently or previously held in any account at Bank of America or Merrill
**The maintenance period begins thirty-one (31) days after account opening and ends ninety (90) calendar days after account opening.
Member FDIC

Citi Priority - Earn up to $2,000 Cash Bonus

Expires 1/9/2024
  • Earn up to $2,000 when you open a new eligible Citi checking account and enroll in the offer the same day
  • New to Relationship customers can choose their Relationship Tier.
  • Within 20 days of opening, deposit the minimum amount of new-to-Citibank funds.
  • Maintain a minimum balance for 60 consecutive calendar days from the 21st day.
  • If your balance falls to a lower Balance Level at any point during the maintenance period, the bonus changes.
  • Bonus will be paid within 30 days after you successfully complete all required activities.
  • Restrictions apply.
CIT Bank
Member FDIC

CIT Bank Platinum Savings - 5.05% APY

  • 5.05% APY with a balance of $5,000 or more
  • 0.25% APY with a balance of less than $5,000
  • $100 minimum opening deposit
  • No monthly maintenance fee
  • Member FDIC

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Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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About Discover Bank

Discover Bank offers some of the highest interest rates for its savings account.

About CreditDonkey
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Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

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