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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.
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Discover® Online Savings
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.
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.
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Account | APY | Minimum Deposit |
---|---|---|
Discover® Online Savings | 4.25% | $0 |
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.
Below, we go over the top perks of the Discover® Online Savings account -- as well as what could be improved.
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.
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.
Discover doesn't have physical branches. However, it does give you several options for deposits and withdrawals.
Here are your choices for depositing money into your Discover® Online Savings account:
When you need to withdraw money from your Discover® Online Savings account, you have these options:
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.
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
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.
At The Motley Fool Ascent, we rate savings accounts on a five-star scale (1 = poor, 5 = best). We evaluate all savings accounts across four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum requirements, and perks that really make a difference -- think ATM access, linked checking accounts, or even branch access.
Our scores are weighted as:
Learn more about how The Motley Fool Ascent rates bank accounts.
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.
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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, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.