Discover Savings Review

Discover high-yield savings account is among the best in its online class. Its combination of a big bonus, high annual percentage yield (APY), focus on cutting fees, and ease of use are some factors we consider a must-have for online savings accounts. For these reasons, Discover Savings landed a spot as one of the best online savings accounts.

Rates as of Feb. 7, 2019
Offer APY Best For… Next Steps
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APY: 2.10% Best For: High APY and bonus Apply Now
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What I like about Discover Savings

Earn up to a $200 bonus -- Accountholders can earn one of two bonuses when using offer code FOOL219, applying by 3/4/19, and making a deposit by 3/18/19: Earn a $150 bonus when depositing at least $15,000 or earn a $200 bonus when depositing at least $25,000.

High APY -- The flat 2.10% APY is among the highest yields for online savings accounts. It's worth mentioning that all balances qualify for the same interest rate, whereas some competing online savings accounts offer tiered rates based on account balances.

No monthly balance requirement -- Discover's high-yield savings account is broadly accessible to different account holders, including savers who aren't maintaining large ongoing monthly balances. 

No monthly maintenance fees -- The account rightly doesn't charge a maintenance fee each month. 

First Fee Forgiveness -- The first eligible fee each calendar year is also automatically waived, with no action required by the customer. The following fees qualify: insufficient funds fee, stop payment fee, and excessive withdrawal fee. 

Mobile app -- Discover has one of the best mobile apps of the savings-account providers I cover: The iOS app is currently rated 4.8 out of 5 stars, and the Android version has 4.5 out of 5 stars. 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.

*To get your $150 or $200 Bonus offer: 

What to do: Apply for your first Discover Online Savings Account by 3/4/19, online or by phone. Enter Offer Code FOOL219 when applying. Deposit a total of $15,000 to earn a $150 Bonus or deposit a total of $25,000 to earn a $200 Bonus by 3/18/19. 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. Account must be open when bonus is credited. Bonus will be credited to the account by 4/1/19. Bonus is considered interest and will be reported on IRS Form 1099-INT. Offer may be modified/withdrawn without notice.

See advertiser website for full details.

What could be improved

Withdrawal limit fee -- Discover charges $15 per transaction once you exceed six qualifying withdrawals each month. Some competing banks waive this fee.

ATM card -- One limiting aspect of the account applies to withdrawals. Discover's Savings account does not provide an ATM or convenience card for withdrawals like the bank's other checking and money market accounts do. However, Discover does offer a cash back debit account that allows you to transfer funds between accounts for easy ATM and debit transactions. Plus, the account earns 1% cash back on up to $3,000 of debt purchases each month.

Funding options

Account holders have a standard set of options to deposit funds, including mobile check deposit, online transfer from Discover Bank account or external accounts, direct deposit, or mailing in a physical check.

Withdrawal options

Savers have several withdrawal options that should address most people's needs. The simplest may be setting up free electronic transfers between Discover and a brick-and-mortar bank, but outgoing wires are an option as well.

Online savings account comparison

Rates as of Feb. 7, 2019
Offer Discover Online Savings Member, FDIC
CIT Bank Savings Builder Member, FDIC
American Express Personal Savings Member, FDIC
Rating
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5.0 stars Info icon 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.
Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon = Best
Star Review Icon Star Review Icon Star Review Icon Star Review Icon = Excellent
Star Review Icon Star Review Icon Star Review Icon = Good
Star Review Icon Star Review Icon = Fair
Star Review Icon = Poor
Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon
5.0 stars Info icon 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.
Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon = Best
Star Review Icon Star Review Icon Star Review Icon Star Review Icon = Excellent
Star Review Icon Star Review Icon Star Review Icon = Good
Star Review Icon Star Review Icon = Fair
Star Review Icon = Poor
Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon
5.0 stars Info icon 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.
Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon = Best
Star Review Icon Star Review Icon Star Review Icon Star Review Icon = Excellent
Star Review Icon Star Review Icon Star Review Icon = Good
Star Review Icon Star Review Icon = Fair
Star Review Icon = Poor
APY

APY: 2.10%

APY: 2.45% (tiered)

APY: 2.10%

Best For…

Best For: High APY and bonus

Best For: High APY

Best For: High APY and no fees

Min. for APY

Min. for APY: $1

Min. for APY: $25k or $100 monthly deposit

Min. for APY: $1

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Final take

Beating your financial goals often comes down to generating a decent return while minimizing fees. Add in the fact that Discover offers both a big cash bonus and one of the better mobile apps on the market, and you can understand why I rank this high-yield savings account favorably. Discover Savings nails both, offering savers a competitive return on their funds and exceptionally low fees. Just be sure to keep an eye on the number of monthly withdrawals you make, as the over-limit fee is among the higher ones I've come across.