Please ensure Javascript is enabled for purposes of website accessibility

This device is too small

If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.

Skip to main content

Discover® Online Savings Review: High APY and No Fees

Review Updated
Kailey Hagen
Matt Frankel, CFP®
By: Kailey Hagen and Matt Frankel, CFP®

Our Banking Experts

Ashley Maready
Check IconFact Checked Ashley Maready
Many or all of the products here are from our partners that compensate us. 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. APY = Annual Percentage Yield

The Discover® Online Savings account offers many of the perks Discover® Bank is known for, including few fees and excellent online and mobile banking tools. It also has a competitive APY. Read our full Discover® Online Savings account review to learn about all this account has to offer.

Show Best Offers Available in

Ratings Methodology
Rates as of Mar 18, 2024

Discover® Online Savings

Member FDIC.
Rating image, 4.75 out of 5 stars.
4.75/5 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
Rating image, 4.75 out of 5 stars.
4.75/5 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
APY
4.25%
Min. To Earn APY
$0
  • Competitive APY
  • No account fees
  • Limited-time $150 or $200 bonus.
  • Comfort of a well-known brand and reputation
  • 24/7 customer support
  • FDIC insured
  • No ATM access
  • No branch access; online only

Discover® Online Savings is a great pick for those who want a high APY and top-notch mobile app, but prefer to bank with a well-known brand. While it's not exactly the highest rate at every point in time, you can feel good that you’ll likely be earning a near-top-of-market rate for a while to come.


High-yield savings account comparison

We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.

Show Best Offers Available in

Account APY Promotion Next Steps
up to 4.60%
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
N/A
4.35%
Rate info Circle with letter I in it. 4.35% annual percentage yield as of March 18, 2024
Min. to earn: $1
N/A
5.05% APY for balances of $5,000 or more
Rate info Circle with letter I in it. 5.05% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000 for max APY
N/A

Discover® Online Savings interest rate

Account APY Minimum Deposit
Discover® Online Savings 4.25% $0
Data source: Discover.

You can find accounts offering a higher APY, but Discover's savings APY is definitely a competitor with the best accounts we've found. Plus, you can earn that APY with no minimum deposit, meaning even beginner savers can benefit.

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

4.25% APY: The Discover® Online Savings account's APY is among the best we've found from the top high-yield savings accounts.

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. Not only is there no monthly balance requirement, but there's no minimum opening deposit.

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. To get one, you'll have to open a Discover® Cashback Debit account in tandem with a savings account. This product allows transferring funds between accounts for ATM and debit transactions, and it earns 1% cash back on eligible debit purchases of up to $3,000 each month, earning you a possible $30 in cash back per month, and a maximum of $360 per year.

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® Cashback Debit account, you can quickly and easily access cash at any ATM in the bank's network.

Like most savings accounts, the number certain types of withdrawals customers can make from a Discover® Online Savings account is limited to six per month.

We tried it: Our team's firsthand experience

Here at The Ascent, we pride ourselves as real users of most of the products across our site. One of our Senior Performance Marketers, Ethan Mellin, uses the Discover® Online Savings account himself. Here's Ethan's firsthand experience:

"I chose Discover Online Savings first and foremost because of its high APY. However, I am also a Discover Credit Card & Checking account holder, so having everything in one easy-to-use mobile app makes it extremely easy to manage my finances. That being said, I've recently noticed other online savings accounts with slightly higher APYs."

–Ethan Mellin, Senior Performance Marketing Manager here at The Ascent, a Motley Fool service

What the Discover® Online Savings platform looks like:

Screenshot of the Discover Online Savings platform

Discover Online Savings platform. Image source: Ethan Mellin

The Discover® Online Savings 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 about, especially if you pair this account with a Discover® checking account.

Keep reading about Discover:

Our savings account methodology

At The Ascent, a Motley Fool Service, we rate savings accounts on a five-star scale (1 = poor, 5 = best). Our criteria? We dive deep into factors like APY, account minimums and fees, along with features that really make a difference -- think ATM access, linked checking accounts, or even branch access. We blend this with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best. Our aim is to maintain a balanced best-of list featuring top-scoring products from reputable brands offering competitive APYs and standout features.

FAQs

  • Yes, Discover® Bank is an FDIC member, which means that funds in accounts are insured, up to a maximum of $250,000 per person. Funds are completely safe in the event of bank failure, plus it's important to note that Discover is a well-capitalized and stable institution.

  • The Discover® Online Savings account is designed to be a fully online savings account. You can open an account online, make a deposit electronically or via check, and your money will start earning interest at the current APY. The Discover® Online Savings account is best used when paired with a checking account, either an external one or a Discover® Cashback Debit account.

Our Banking Experts