Discover® Bank vs. American Express® National Bank: Which Bank Is Right for You?

Bottom line: American Express® National Bank (Member FDIC) and Discover® Bank have a lot of features in common, but ultimately, Discover is open to customers without a Discover credit card account, while Amex could be a better fit for current Amex card holders.

Here's a closer look at your account options for both Discover and American Express® National Bank.

Savings accounts

Starting off with savings accounts, Discover® Online Savings and American Express® High Yield Savings are both great all-around options. American Express® High Yield Savings has a slightly higher annual percentage yield (APY) than Discover, but the differences between these two accounts is scant.

Neither charges you fees, and you don't need a minimum deposit to open either account. Interest compounds daily and is paid out to you monthly. And both banks are FDIC insured.

Checking accounts

If you're a heavy debit card user, Discover pulls ahead in this breakdown with its Discover® Cashback Debit account. You can earn 1% cash back on up to $3,000 in purchases per month (that could amount to as much as $360 a year if you max this out). Discover has a network of more than 60,000 ATMs.

If you'd rather earn APY on your checking account instead, consider Amex -- the American Express Rewards Checking account offers 1.00%, on all balances, as of April 6, 2024. Plus, the account offers debit card users 1 Amex Membership Rewards point on every $2 worth of eligible purchases. And you can get cash out at more than 70,000 in-network ATMs. However, this account is not open to anyone who hasn't had an Amex card for at least three months.

CDs

Discover® Bank CDs are available for terms from three months to 10 years. The best APYs are available on terms from six to 18 months. Discover CDs aren't accessible for those who have less than $2,500 to deposit, however -- this is the required minimum.

American Express National Bank CDs have seven term lengths available, starting with 11 months and finishing at five years. You can open one with no minimum deposit and you won't be charged fees, either. The 11-month term is the best one available, and 12- and 24-months aren't bad either. But the longer term lengths are nothing to write home about.

Money market accounts

Of these two banks, only Discover offers a money market account. You need $2,500 to open a Discover® Money Market account, which is a pretty high bar to clear. Your APY depends on your balance -- you'll earn a slightly higher one if you've got $100,000 or more in the account.

The difference in APYs between these two isn't staggering -- both are online-only banks, so they both have the ability to offer customers more value in this area. Rates with both are fairly comparable -- you'll find a scant difference in APYs on savings accounts, and the most favorable terms for CDs are of the same length at both banks. If you want a longer term (say, three to 10 years), look to Discover for the better rates.

But Amex also pays an APY on its checking account -- this is definitely worth considering if you're eligible to open one, and you keep enough cash in checking to make it worthwhile.

Both of these banks are known for solid customer service. You can reach both by phone 24/7, and Amex has an online chat function, too. As far as rankings go, both banks made a solid showing in the 2023 J.D. Power U.S. Direct Banking Satisfaction Study.

Discover was ranked second overall, and took second place for checking account providers (it makes sense that Amex wouldn't be in a top spot here; its checking account isn't open to all). American Express® National Bank took third place for savings providers, however. If you anticipate needing occasional help from a human representative, you can't go wrong with either choice here -- just remember it won't be in-person help, since these are online banks.

Discover's mobile app is widely praised for neat features like "Quick View" -- users can view their balances without logging in, making it easier to keep tabs on cash. You can use the app to send money around between accounts and deposit checks. Plus, it works with Zelle. iOS users are fans, and give it a whopping 4.9 out of 5. Android users rate it pretty highly, too -- 4.5 out of 5.

American Express® National Bank's mobile app also boasts decent ratings, but those from iOS users are higher than Android (4.9 vs. 3.9). When there's a disparity like this, it often means operating-system-specific issues. Amex is better known for cards than traditional banking, so reviews tend to focus on that. But you can still find basic bank app functions like check deposit and being able to transfer cash between accounts.

If you've got a Discover or Amex card, you're likely already familiar with the stellar customer service and long reputation of both of these banks. That said, they have a lot more in common than not, so digging into the nitty-gritty of both should help you choose.

If you don't already have an Amex card, you won't be eligible to use it for your most basic banking needs -- a checking account. And if you're hoping to open CDs or a money market, Discover's high minimum deposit requirement could be a deterrent. Ultimately, you can't really go wrong picking either option here.

Our bank and credit union methodology

Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

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