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When it comes to savings, Discover's high-yield savings account is one of the leaders in its class. The Discover Online Savings account's low fees and ease of use are both must-have features, especially online. We'll cover these details and more in this in-depth Discover Online Savings account review.
Rates as
of Feb. 15, 2021
| Offer | Our Score | APY | Best For | Next Steps |
|---|---|---|---|---|
Discover Online Savings
Member, FDIC
|
Rating image, 4.5 out of 5 stars.
4.5 stars
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.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. |
APY: 0.40% | Best For: No monthly maintenance fee |
Full Discover Online Savings review
Below, we go over the top perks of the Discover Online Savings account -- as well as what could be improved.
Top perks
0.40% APY. The Discover Online Savings account's APY is one of the highest offered by top online savings accounts. All balances qualify for the same interest rate. This differs from some competing online savings accounts with tiered rates based on account balances.
No monthly balance requirement. Discover's high-yield savings account is broadly accessible to different account holders. This includes savers who don't keep large ongoing monthly balances.
No fees. You won't pay for a stop payment order, excessive withdrawal, insufficient funds, or monthly maintenance.
Mobile app. Discover has one of the best mobile apps of the online banks we reviewed. Mobile apps are crucial for an online savings account, where customers must rely upon technology to facilitate transactions normally handled face to face at a bank. Savers can access details for all their Discover accounts, view account activity, electronically deposit checks, and transfer money.
FDIC insured. Just like a traditional bank, Discover is a member of the FDIC, which means that your funds are protected, even in the unlikely event of bank failure. The FDIC covers up to $250,000 per depositor, per institution.
What could be improved
ATM card. The Discover Online Savings account doesn't provide an ATM or convenience card for withdrawals. However, the Discover Cashback Debit account can be opened in tandem with a savings account. It allows you to transfer funds between accounts for easy ATM and debit transactions. Plus, the account earns cash back on debit purchases each month.
How to access your money
Discover doesn't have physical branches. However, it does give you several options for deposits and withdrawals.
Deposit options
Here are your choices for depositing money into your Discover Online Savings account:
- Mobile deposit
- Online transfer
- Wire transfer
- Direct deposit
- Mailing in a check
Withdrawal options
When you need to withdraw money from your Discover Online Savings account, you have these options:
- Wire transfer
- Official bank checks
- Online transfers to external banks
- Transfer to other Discover accounts
If you transfer funds electronically to other Discover accounts, such as a Discover checking account, you can quickly and easily access cash at any ATM in the bank's network.
Online savings account comparison
The Discover Online Savings account has many appealing benefits, but it's not the best fit for everyone. Check out these other highly ranked online savings account options to see if one is a better choice for you. They also pay high rates and don't charge monthly maintenance fees.
Rates as of Feb. 15, 2021
The Discover Online Savings account is right for you if:
The Discover Online Savings account is a solid pick for anyone interested in earning a high APY while avoiding many common bank fees. As long as you're comfortable managing your finances online, you won't find much to complain, especially if you pair this account with a Discover checking account.
About the Author
Kailey has been writing about banks, credit cards, loans, and all things personal finance since 2012. She also writes for The Ascent's parent company, The Motley Fool. Her work has appeared on USA Today, CNN Money, Fox Business, and MSN Money. She's a graduate of the University of Wisconsin and happily lives in the woods of northern Wisconsin where she grew up.
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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. The Motley Fool has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.
