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Discover Bank Review: A Clear Winner With High Rates and Low Fees

Many or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

Discover Bank does its best to help you grow your savings, no matter which account you use. It doesn’t bog you down with costly fees or require high balances to earn its competitive APYs. Instead, it focuses on providing great customer service and useful accounts with no surprises. Get all the details with our Discover Bank review below.

Best For: High interest rates and no fees

Discover Bank

Rating image, 4.50 out of 5 stars.
Info Icon Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
4.50/5
Bottom Line

Discover offers competitive interest rates and skips several common fees charged by most brick-and-mortar and even many online banks. It also offers some unique accounts, like its cash back checking account and CDs with terms up to 10 years. Plus, the bank has a strong reputation for excellent customer service and one of the among the best mobile apps for an online bank.

Pros
  • Few account fees
  • Competitive APYs
  • Rare account types
  • Great customer service
Cons
  • Somewhat high minimum deposit on CDs
  • No interest-bearing checking account

Discover Bank savings account review

If you're looking for a safe place to keep your emergency fund, Discover Bank's savings account might be what you're looking for.

Discover Bank Online Savings Account

The Discover Online Savings Account comes with a competitive 2.15% APY that is consistently among the best. This account doesn't include a debit card or check-writing capabilities like the Discover money market account, but it does include online and mobile account management tools, including mobile check deposit.

The account doesn't have a minimum balance requirement, and Discover prides itself on its no-fee policy. You won't pay anything to own this account, nor will you pay other common bank fees, like stop payment fees, insufficient funds fees, or excessive withdrawal fees.

Compare savings accounts

Check out our list of the best savings accounts to see how the Discover Online Savings Account stacks up against its competition. We've included some of our top picks below.

Rates as of Sept. 30, 2022
Offer
 
 
 
Account
Rating
Rating image, 4.00 out of 5 stars.
Info Icon Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
4.00/5
Rating image, 4.00 out of 5 stars.
Info Icon Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
4.00/5
Rating image, 4.50 out of 5 stars.
Info Icon Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
4.50/5
APY 2.15% 2.00% 2.70%
Min. to earn APY $0 $1 $100
Next Steps

Discover Bank CD accounts

CDs offer higher rates than savings accounts, but don't allow for convenient withdrawals. If you're looking for a CD with a high rate and flexible terms, the Discover CD rates are a high-yielding option.

Discover High Yield CDs

The terms on Discover's High Yield CDs range from three months to 10 years. It's rare to see CD terms longer than five years, so Discover is worth considering if you're interested in CDs or building a CD ladder with longer terms. Rates vary depending on term length, but they are generally competitive.

The biggest downside to Discover's CDs is that they have a higher minimum deposit than competitors' best CDs. This could make it cost-prohibitive for people with smaller balances to open Discover CDs, particularly those who want to do a CD ladder because the minimum requirement applies to each CD you open.

Compare CD rates

Discover Bank isn't the only option for high-yield CDs. Below, you can compare Discover to some of our other top picks for CDs:

Rates as of Sept. 28, 2022
Lender
Account
1 yr. apy
2 yr. apy
3 yr. apy
4 yr. apy
5 yr. apy
Min. deposit
Early Withdrawal Penalty
Next Steps
Logo for Discover High Yield CD
Member, FDIC
3.00%
3.10%
3.15%
3.20%
3.30%
$2,500
Yes
Logo for Marcus by Goldman Sachs High Yield CD
Member, FDIC
Marcus by Goldman Sachs High Yield CD
3.00%
3.10%
3.15%
3.20%
3.30%
$500
Yes
Logo for CIT Bank CD
Member, FDIC
0.30%
0.40%
0.40%
0.50%
0.50%
$1,000
Yes

Discover Bank checking accounts review

Because savings accounts and CDs don't offer convenient access to your money, it's important to keep some funds in a checking account. Below, we'll go over how Discover Bank's checking account stacks up against the competition.

Discover Bank Cashback Debit

Discover's Cashback Debit account is an interesting departure from traditional interest-bearing checking accounts. There are no rewards for having large sums in your account, but you'll earn cash back on every debit card purchase up to a certain amount of monthly spending, just like you would with a cash back credit card. This could make this account more valuable than a typical interest-bearing checking account for those who use their debit cards frequently.

The account has no monthly maintenance fee and charges few other fees. Discover partners with a nationwide ATM network to give its customers access to over 60,000 fee-free ATMs using the included debit card and the account also includes check-writing capabilities and online and mobile account management tools.

Compare checking accounts

Discover isn't the only bank with an attractive checking account. If you'd like to shop around, get started with our expert-compiled list of best checking accounts.

Discover Bank customer service and experience

Discover Bank earned the second-highest rating in the latest J.D. Power Direct Banking Satisfaction Study and an A+ rating with the Better Business Bureau. Only a handful of banks receive ratings this high, indicating that most customers are happy with the quality of Discover's service.

This isn't to say the bank hasn't received its fair share of complaints. As a large financial institution, this is inevitable. But the fact that it maintains such high ratings anyway is a good sign that it is able to resolve most issues promptly.

Discover Bank relationship benefits

Relationship benefits, including maintenance fee waivers and higher APYs on deposit accounts, are a common way for brick-and-mortar banks to draw in new customers, but they're less common among online banks like Discover Bank because they rarely charge maintenance fees and offer high APYs already.

Discover offers its best rates to all of its customers and doesn't require them to open multiple accounts or keep a certain amount in the bank to earn the highest APY, so it's a great fit for those with smaller balances who still want to earn competitive rates.

Alternatives to Discover Bank

Capital One Bank

Capital One is another credit card issuer that's gotten into personal banking, and it's also received favorable reviews from customers. Both banks offer high APYs on deposit accounts and charge minimal fees. A key difference between the two is that Capital One offers a conventional interest-bearing checking account, which may better suit customers who rarely use their debit cards.

Ally Bank

Ally Bank is a highly rated online bank that offers a comprehensive suite of banking products ideal for those who want to manage their money all in one place. Because it has no branches, it's able to offer high APYs on its accounts and charge no monthly maintenance fees. Customers interested in rarer types of CDs will likely find that Ally suits them better, and the bank offers an interest-bearing checking account as well.

Want one more? Check out The Ascent's KeyBank review to see if it's the right platform for you.

Is Discover Bank right for you?

Discover Bank is right for you if:

  • You want a high interest rate and few fees.
  • You are interested in CDs with terms exceeding five years.
  • You frequently use your debit card and want to be rewarded for that.

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