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- Discover (Member FDIC) pays competitive rates on savings, CDs, and money market accounts.
- You'll earn 1% cash back when you swipe your debit card, on up to $3,000 in purchases each month.
- You can open a savings or checking account with no initial deposit, but Discover requires $2,500 to open a money market account or CD.
- Speak with a live customer service representative 24/7, either over the phone or via online chat.
- See Business Insider's picks for the best high-yield savings accounts »
Is Discover Bank a good match?
| You might like Discover if you… | You might not like Discover if you… |
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Discover Online Savings Account review
Discover Online Savings Account
The Discover Online Savings Account is a worthwhile option for a no-fee savings account. There's no monthly service charge and no insufficient funds charge. Discover pays a competitive rate on your savings account balance, and it doesn't require an initial deposit to open the account.
Discover Cashback Debit Account review
Discover Cashback Debit Account
It isn't very common to find a debit card that offers cash back rewards, but Discover lets you earn 1% cash back on up to $3,000 of purchases per month. There are also no monthly service fees with Discover. However, if you enroll in overdraft protection that links your checking to another Discover account, this can be a great low-cost checking account.
You have access to 60,000 ATM locations with Discover, but the bank doesn't reimburse any out-of-network ATM fees charged by ATM providers.
Discover CD review
Discover CD
Discover pays competitive rates on CDs, but depending on the term, you may be able to find higher elsewhere. You'll need $2,500 to open a Discover CD. While this is lower than some banks' requirements, plenty of online banks require significantly less.
Discover Money Market Account review
Discover Money Market Account
The Discover Money Market Account offers a relatively competitive rate on your savings, and it gives you easy access to your money with a debit card and paper checks. You'll need at least $2,500 to open an account, though. Discover has 60,000 free ATMs, but it doesn't reimburse any out-of-network fees charged by ATM providers.
Discover Bank features
Discover's website is easy to navigate, and its mobile app has received 4.6 out of 5 stars in the Google Play store and 4.8 stars in the Apple store.
Once you set up an online account, you can chat 24/7 with a live customer service representative. Discover also provides 24/7 customer service over the phone.
Discover offers a savings account, checking account, money market account, and CDs. You have access to a debit card with both the checking and money market account. You can use 60,000 ATMs for free, but unlike some competitors, Discover doesn't reimburse any fees charged by out-of-network ATM providers.
Your Discover Bank account is FDIC insured for up to $250,000, or up to $500,000 for a joint account.
How Discover Bank compares to similar banks
We've compared Discover to two other online banks: Capital One 360 and CIT Bank.
| Discover Bank | Capital One 360 | Ally |
Savings APY 0.60% APY | Savings APY 0.50% APY | Savings APY 0.60% APY |
Minimum deposits $2,500 for CDs and money market accounts | Minimum deposits $0 | Minimum deposits $0 |
| Open an account | Open an account | Open an account |
Discover review vs. Capital One 360 review
You might prefer Discover over Capital One for CDs. Discover's rates tend to be higher, and its terms go up to 10 years. However, Discover requires a $2,500 minimum deposit for CDs. If you don't have that much money on hand, then Capital One is the clear choice.
You also might prefer Discover if you want a rewards checking account. Capital One offers a good checking account that pays 0.10% APY, but it doesn't have cash back features.
Discover review vs. Ally review
You may prefer Ally if you can't afford Discover's minimum opening deposits. Neither bank has minimum deposits for savings or checking, but Discover requires $2,500 to open CDs and money market accounts. Ally doesn't have a minimum for any accounts.
You'll prefer Discover if you want a cash back checking account. When it comes to CDs, there's no clear winner — Discover has longer term lengths, but Ally offers more types of CDs. The better choice will come down to exactly what you want out of a CD.
This post was reviewed and updated on October 6, 2020.
Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.
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