Discover High-Yield Savings Account Review
Written by
Karen Doyle
Edited by
Susan Kim
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
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GOBankingRates Score
Discover Bank
-
APY
4.5
-
Perks
4.6
-
Fees
5.0
-
Customer Service
5.0
Pros
- Competitive APY of 4.10%
- No minimums or fees
- Can be used as overdraft protection
Cons
- Limit of six transactions per statement period applies to certain types of transfers and withdrawals
Discover Online Savings Account Overview
The Discover Online Savings account is a standard savings account that pays a very competitive rate of interest. It pays APY, which is much higher than what many national brick-and-mortar banks offer, and you don’t have to meet a minimum balance requirement to earn that rate. You can find slightly higher rates elsewhere, but some of the banks offering those don’t have as broad a product suite as Discover® Bank, Member FDIC.
Key Features
GOBankingRates considered the following features to determine the Discover Online Savings account’s 4.8-star rating.
APY
The Discover Online Savings account pays APY, which is a very good interest rate, particularly for an account with no minimum balance requirement and no fees.
Perks
The biggest perk of this account is the interest rate, but there are others. You’ll get access to the Discover app, which includes mobile check deposit, online bill pay and more. The app has ratings of 4.9 out of 5 stars on the App Store and 4.5 out of 5 stars on Google Play.
Additionally, you can set up overdraft protection from your savings account to use on your checking account, or vice versa.
Fees
You won’t pay any fees with a Discover Online Savings account. This includes monthly maintenance fees as well as fees for official bank checks, stop payment orders, deposited items that are returned, insufficient funds or even excessive withdrawals. Plus, you can use your savings account as overdraft protection for your Discover checking account — and there’s no fee for that either.
Customer Service
You can contact Discover customer service by phone anytime, day or night. Discover has a U.S.-based customer support network, so you can conveniently speak with a live person whenever necessary.
Other Features of the Discover Savings Account
Here’s a look at additional features you should consider before opening a savings account with Discover.
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No Minimum Balance Requirement
You do not have to maintain a minimum account balance to earn Discover’s high APY or avoid monthly maintenance fees. There is no minimum opening deposit requirement either.
FDIC Insured
Discover savings account funds are insured by the Federal Deposit Insurance Corp. up to the maximum allowed by law — $250,000 per depositor, per account ownership category.
Deposit Options
You can make deposits into a Discover savings account in any of the following ways:
- Set up direct deposit into the account
- Make mobile check deposits using the app
- Transfer money into the account from another Discover account or an account from another bank
- Mail a check and deposit slip to Discover
Withdrawal Options
The easiest way to withdraw money from a Discover savings account is to transfer funds to another Discover account or an external bank account. You can also wire money from the account or request an official bank check from Discover, which you can deposit into another account.
How the Discover Online Savings Account Stands Out
The Discover Online Savings account gives you a high interest rate, making it stand out from many other accounts. You’ll pay no monthly maintenance fees, and you’ll also pay no fees for official bank checks, insufficient funds and more. It’s also part of the Discover family of financial products, so you can do all your banking in one place.
Comparable High-Yield Savings Account Options
When shopping for a high-yield savings account, you want to look at several options so you can be sure you’re getting the right account for your needs. Here are some other high-yield savings account options to consider.
Salem Five Direct eOne Savings
At APY, Salem Five Direct’s eOne Savings account with no minimum balance and no maintenance fee, is a worthy competitor. Salem Five Direct also offers a checking account and CDs, but unlike Discover, it doesn’t offer credit cards or loans.
UFB Secure Savings
The UFB Secure Savings account from UFB Direct pays APY, with no monthly fees or minimums. Additionally, if you open both a UFB Freedom Checking account and a Secure Savings account and meet certain requirements, you can qualify for a higher APY of up to on your savings or money market account.
How To Apply
You can open a Discover Online Savings account online or by calling Discover customer service at 800-347-7000. You’ll need to provide your personal information, including your name, address, Social Security number and email address, among other details. If you’re transferring money from another account, you’ll need the information for that account.
Who the Discover Online Savings Account Is Best For
The Discover Online Savings account is a good choice if you’re looking for a high interest rate with no fees and you also like keeping all your accounts in one place.
Final Take
The Discover Online Savings account is a great choice if you want to earn a competitive rate of interest on your savings. You can also have your checking, credit card and retirement accounts at the same bank if you choose to do so.
Discover Savings Account FAQ
Here are the answers to some frequently asked questions about the Discover Online Savings account.- Is a Discover savings account safe?
- Discover provides several security features for keeping your account safe, including secure data encryption, proactive fraud monitoring, account alerts and more. Additionally, Discover savings account funds are insured by the FDIC up to the maximum the law allows.
- How much interest does a Discover savings account pay?
- Discover currently offers a 4.10% APY on its savings account.
- What is the minimum balance requirement for a Discover savings account?
- Discover has no minimum balance requirement for its savings account.
- Which bank pays 7% interest on savings accounts?
- Banks in the U.S. do not currently offer savings accounts with a 7.00% APY. Landmark Credit Union offers a checking account with a 7.50% APY on balances up to $500, but the APY applied to the remaining balance is only 0.06%. Digital Federal Credit Union offers a savings account with a 6.17% APY that applies to balances up to $1,000, with the remaining balance earning just 0.15%.
Andrea Norris contributed to the reporting for this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of May 9, 2024.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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