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Discover Bank Review

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by Lauren Perez Updated
Discover Bank

Discover offers some of the highest interest rates on bank accounts in the industry. Its savings accounts, money market accounts and certificates of deposit all earn at rates well above the national average. Perhaps more notable is the bank’s checking account, which earns 1% cash back on your debit card purchases. 

Discover also doesn’t charge any monthly service fees. The money market account does have a minimum balance requirement, however. If you fail to meet that amount, you’ll be charged a minimum balance fee. 

Products Offered

Product Key Details
Savings Accounts
  • Competitive interest rate
  • No minimum deposit requirement or monthly fee
Certificates of Deposit
  • Competitive interest rates
  • Terms from three months to 10 years 
Money Market Accounts
  • High minimum deposit requirement
  • Competitive interest rates on balance tiers
  • Minimum balance fee 
Checking Accounts
  • Earn 1% cashback on debit card purchases
  • No monthly fee or minimum deposit requirement 
IRAs
  • Mirrors Discover’s certificates of deposit
  • High minimum deposit requirement

Discover Bank Interest Rate Comparison

Discover Overview

Discover first entered the financial industry as a credit card introduced by Sears in 1985. Over time, Discover took on its own separate identity and began adding on more financial products. The bank says it strives to listen to its customers and create products that consumers can benefit from. 

The bank doesn’t have any physical branches. However, there are over 415,000 ATMs, including over 60,000 no-fee ATMs. 

Discover Account Features

A huge perk of banking with Discover is its lack of fees. The bank is transparent about what fees you may be charged. You won’t be charged for things like bank checks, incoming wire transfers and deposited items returned. You can face fees for excessive withdrawals, stop payments, insufficient funds and outgoing wires. 

Discover provides convenience with over 60,000 no-fee ATMs and free online and mobile banking. Online, you can transfer money, pay bills and simply check on your accounts. With mobile, you can also deposit checks on the go. 

Discover Online Savings Account

Key Features Details
Minimum Deposit $0
Access to Your Savings Account Online, mobile, over the phone and at ATMs.
Security FDIC insurance up to the maximum amount allowed by law. 
Fees None
Current Terms and Rates 1.65% APY

Discover’s Online Savings Account doesn’t come with many perks. However, its sky-high interest rate makes up for that. The account’s rate climbs well above the national average and most big banks’ rates. The account compounds interest daily and pays it monthly. 

You also get to keep your earnings since the account doesn’t charge fees for things like low balances, checks, incoming wire transfers or deposited items returned. You can face a $15 fee for each outgoing transaction that exceeds the six-transaction limit. You’ll also face fees for stop payment orders, insufficient funds and outgoing wire transfers. You have the option of using this savings account as overdraft protection for a checking account. There are no fees for overdraft protection services.

Discover Certificates of Deposit

Key Features Details
Minimum Deposit $2,500
Access to Your CD Online, mobile, and over the phone.
Security FDIC insurance up to the maximum amount allowed by law. 
Fees None, although you may face a penalty for early withdrawal.
Current Terms and Rates
  • 3 Month: 0.35% APY
  • 6 Month: 0.65% APY
  • 9 Month: 0.70% APY
  • 12 Month: 2.25% APY
  • 18 Month: 2.25% APY
  • 24 Month: 2.30% APY
  • 30 Month: 2.30% APY
  • 3 Year: 2.45% APY
  • 4 Year: 2.50% APY
  • 5 Year: 2.75% APY 
  • 7 Year: 2.80% APY
  • 10 Year: 2.85% APY

Certificates of deposit offer a more structured way to save. Instead of having the flexibility of making deposits and withdrawals at almost any time, certificates of deposit usually allow one deposit at opening. You then cannot touch the account until it reaches maturity, or the end of its term. Instead, CDs’ flexibility is tied to the term options a financial institution offers. Discover offers CD terms ranging from three months to 10 years. This allows you to save for both short-term and long-term goals. 

Discover does require a slightly high minimum deposit to open a CD. But, meeting this requirement can help boost your savings from the start, especially with interest compounded daily. Interest is credited to your account monthly. 

Discover Money Market Account

Key Features Details
Minimum Deposit $2,500
Access to Your Money Market Account Online, mobile, over the phone and at ATMs.
Security FDIC insurance up to the maximum amount allowed by law. 
Fees $10 fee if your account balance falls below $2,500 (after the third statement cycle)
Current Terms and Rates
  • Account balances below $100,000: 1.50% APY
  • Account balances of $100,000 and over: 1.55% APY

Having a money market account allows you to grow your money at interest rates similar to those found with savings accounts, while having the kind of access to your funds you’d get with a checking account. You can access the Discover Money Market Account with your Discover ATM or debit card or with checks. 

It’s important to note that you have to open this money market account with a relatively high deposit amount. Plus, you have to maintain this amount in your account, otherwise you’ll have to pay a $10 minimum balance fee. You can also use this account for overdraft protection, which doesn’t come at an extra cost. 

Discover Cashback Checking Account

Key Features Details
Minimum Deposit $0
Access to Your Money Market Account Online, mobile, over the phone and at ATMs.
Security FDIC insurance up to the maximum amount allowed by law. 
Fees None

Discover’s Cashback Checking account comes with a ton of perks. Most notably, you can earn 1% cash back on up to $3,000 in debit card purchases each month. So when you use your debit card to buy groceries or a movie ticket, you can receive 1% cash back on those purchases. 

As a checking account, you’ll have access to checks and a debit card. These should be available to you within 10 days of account opening. You can also reorder checks or debit cards at no extra fee. 

This account, like Discover’s other bank accounts, comes with very few fees. The bank also promises no hidden fees, so the only fees you may run into are for outgoing wires, deposited items returned, stop payments and insufficient funds. 

Discover IRA CDs

Key Features Details
Minimum Deposit $2,500
Access to Your Account Online, mobile, and over the phone.
Security FDIC insurance up to the maximum amount allowed by law. 
Fees None, although you may face a penalty for early withdrawal.
Current Terms and Rates
  • 3 Month: 0.35% APY
  • 6 Month: 0.65% APY
  • 9 Month: 0.70% APY
  • 12 Month: 2.25% APY
  • 18 Month: 2.25% APY
  • 24 Month: 2.30% APY
  • 30 Month: 2.30% APY
  • 3 Year: 2.45% APY
  • 4 Year: 2.50% APY
  • 5 Year: 2.75% APY 
  • 7 Year: 2.80% APY
  • 10 Year: 2.85% APY

Discover’s IRA CDs mirror the bank’s regular CDs. They require the same minimum deposit amount and charge the same fees. However, it’s important to remember that an IRA will carry contribution limits. 

The tax treatment of an IRA is different than a personal savings account. You may need to consult with a financial advisor or tax professional to ensure you’re treating you IRA CD according to the rules. 

You can open a Discover IRA CD as a Roth or traditional IRA. You can also make IRA rollovers and transfers with these accounts. Discover also provides 24/7 telephone help to give you step-by-step instructions while you apply to and manage your account.

Where Can I Find Discover?

You can find Discover online, on mobile, over the phone or at over 60,000 no-fee ATMs. The bank does not have any physical branches.

What Can You Do Online With Discover?

You can complete all your banking needs online with Discover, especially since the bank doesn’t have any physical branches to visit. You can browse its many offerings and tools online and locate its thousands of ATMs. If you find an account you like, you can open it online. 

Once you have an account, you can easily access that online by logging in with your user ID and password. Fingerprint and passcode security are added to your login if you want to access your account(s) on mobile. You can also deposit checks on mobile. 

How Do I Access My Money?

You can access your money wherever you can find Discover, whether that’s online, on mobile, over the phone or at an ATM. You can reach a Discover customer service representative 24/7 at 1-800-347-7000. If you want to access your account online, you can do so from any page on the bank’s website. Simply click the “Log In” button at the top right and enter your user ID and password. You can also use this login information on the bank’s mobile app or your phone’s internet browser. 

You can use your Discover ATM/debit card at over 415,000 ATMs. This includes over 60,000 no-fee ATMs in the Allpoint® or MoneyPass® networks.

How Can I Save More Money With a Discover Account?

Discover’s savings, CD, and money market accounts all carry competitive interest rates which can help you save more. Plus, only the money market account earns according to balance tiers, allowing all customers to take advantage of the high interest rates. The Discover checking account even earns cash back, a feature typically reserved for credit cards. 

In order to avoid the money market account’s $10 minimum balance fee, you will have to ensure you always have a balance of at least $2,500.

What’s the Process for Opening an Account With Discover?

To open a Discover account online, you need to click on the orange “Get Started” button for the account you’re interested in. You may also find a blue “Open an Account” button, which will take you to the same application. Once you’re there, you’ll need to provide your address, email and Social Security number. 

You’ll also need to fund the account at opening if there is a required deposit. This means you’ll need to provide banking information to fund your new account. Once that’s done, you’ll receive an email in your inbox and a welcome kit in the mail.

What’s the Catch? 

Despite being a big name in the financial world, Discover doesn’t have any physical branches you can visit in person. That means that if you really value in-person banking, you may want to find another bank. 

You may be caught off guard by the high minimum deposit requirements for the CDs and money market account. You have to maintain that balance in the money market account to avoid a minimum balance fee. This balance may not be achievable for everyone who wants to open an account.

Bottom Line

Discover offers only one option per account type, which limits customers’ pool of choices. However, the accounts all have high interest rates, making them extremely attractive options. With the exception of the bank’s money market account, you don’t have to worry about needing to maintain a certain account balance or meet specific requirements in order to avoid a monthly fee. Discover offers a great option for those who want to save at the highest rates and keep their accounts in one place. 

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