Discover is known for its flexible credit cards and limited fees. Still, it offers a robust online savings account that pays customers much higher rates than traditional banks.
It may feel odd to handle your banking online, but when you earn high-interest rates and don’t pay any fees, it’s something you can get used to quickly!
In this article, we will cover a Discover® Online Savings Account review so you can see all the benefits of opening one.
Discover® Online Savings Account: 4.30% APY
The Discover online savings account makes saving much easier with its high Annual Percentage Yield (APY) and easy-to-use online interface.
If you’re comfortable banking online, you can earn more interest and save on fees because Discover doesn’t charge any for its account.
You don’t have to worry about meeting a minimum balance requirement or even if you make too many withdrawals. They don’t charge fees or reduce your APY for not meeting minimum balance requirements.
Discover® Online Savings Account: Features
Understanding the Discover online savings account features can help determine if it’s right for you.
The account offers many benefits that make saving easy while allowing you to earn higher APYs than most traditional banks offer.
Competitive Interest Rates and APY: 4.30% APY
Discover offers competitive interest rates to help your savings grow faster.
Currently, it’s one of the highest APYs provided by online banks, making it competitive with other online banks and higher than traditional brick-and-mortar banks.
At Discover® Bank, interest is compounded daily and paid monthly. This means you earn interest every day the money is in the account, but the bank pays the interest to your account monthly.
Minimum Balance Requirements
One of the most attractive benefits of the Discover online savings account is that there are no minimum balance requirements.
You can open an account with as little money as you want, but of course, the more you save, the more interest you’ll earn.
However, you don’t have to worry about meeting a specific balance.
Brick-and-mortar banks have high overhead costs, so they often charge fees for their services, including monthly maintenance fees.
With Discover, you don’t have to worry about any fees. There’s no minimum balance required to waive monthly maintenance fees; they don’t charge one.
- Stop payment
- Excessive withdrawal
- Bank check fees
- Returned deposit
- Account closure
- Insufficient funds
Convenient Online Access
Discover® Bank members can access their accounts online 24/7.
This allows you to balance your bank account whenever you want rather than waiting for standard banking hours.
The Discover mobile app is user-friendly and a great way to manage your savings account funds. You can view all your bank details on the app and conduct bank transactions just like you could from a computer.
This means you always have your banking with you and can conduct transactions as needed 24/7.
Discover® Bank is very transparent with how they stack up against its competitors.
On their website, you can compare the rates and fees offered by traditional banks to see the benefit of saving with Discover.
You can also play with the numbers on their savings calculator to see how much interest you’d earn.
This can be helpful to keep you motivated to save, seeing how much your savings will add up to over time as interest accumulates.
FDIC Insurance Coverage
When determining the best online bank for your savings goals, you should always look for an FDIC-insured bank. This is the only way to protect your money.
When a bank is a member of the FDIC, it means your deposits are insured up to $250,000 per depositor. However, if you have a joint account, your funds are protected up to $500,000.
Customer Service and Support
One of the most significant factors in choosing an online bank is the level of customer service provided.
At Discover® Bank, customer service representatives are available 24/7. You don’t have to wait for regular banking hours to have your questions answered.
Pros and Cons
All bank accounts have pros and cons that you should consider when choosing the one that suits your financial needs the most.
- High APY
- Interest compounds daily
- No fees
- No minimum balance
- No ATM card with the account
- It can be difficult to access funds
- No brick-and-mortar locations
How Do I Access My Money From the Discover Online Saving Account?
Accessing your funds from the Discover online savings account requires a few steps since they don’t offer an ATM card to access your funds.
To Deposit Funds
- Make a mobile deposit using the Discover app
- Electronically transfer funds from an external account
- Set up direct deposit
- Mail in a check
- Send a wire transfer
To Withdraw Funds
- Write a check and cash it at another bank where you hold an account
- Electronically transfer funds to an external account
- Send a wire transfer
Open a Discover® Online Savings Account
Opening a Discover online savings account in a few simple steps is easy.
You can open the account online by accessing your existing Discover log-in if you have one or create a new one.
If you prefer help from a representative, you can call 1-800-347-7000, 24/7, to talk to a representative.
Alternatives to the Discover® Online Savings Account
The Discover online savings account is one option for a high-yield savings account.
It’s a good idea to compare your options from other banks to see which suits your needs the best, or you may decide to have multiple savings accounts.
Some of the top high-yield savings account alternatives include:
American Express High-Yield Savings Account
American Express offers a similar high-yield savings account that currently pays a comparable high yild. Like Discover, AMEX doesn’t have a minimum balance requirement or charge monthly fees. They also offer 24/7 customer service.
Capital One 360 Performance Savings
Capital One 360 also offers a high-yield savings account that pays a similar APY as Discover. Like Discover and AMEX, Capital One doesn’t have a minimum balance requirement and doesn’t charge any fees. You can transfer money between Capital One accounts to access funds or send money to external accounts as needed.
Frequently Asked Questions
Who Is the Discover Online Savings Account Best For?
If you’re looking for a bank that’s well-known but offers higher APYs than traditional brick-and-mortar banks, the Discover® Online Savings Account is for you. Like any bank, the APYs fluctuate with Discover, but they generally offer APYs near the higher end of what online banks offer. Before opening an account, ensure you understand Discover has no brick-and-mortar branches to deposit or withdraw funds.
Is Your Money Safe With Discover Online Savings Account?
Discover® Bank uses bank-level security to protect your personal and financial information. They encrypt all information shared online to reduce the risk of hackers accessing your information. Discover® Bank is also an FDIC member, so all funds deposited are insured up to the maximum allowed by law.
Is the Discover Online Savings Account Any Good?
If you’re looking for a safe place to put money you don’t want to spend, a Discover online savings account can help with a healthy interest rate. You don’t have to know anything about investing or worry about fees. It takes only a few seconds to open an account, and you can begin earning interest immediately, whether your opening balance is large or small.