Our Discover Bank Ratings
We award Discover 4.5 out of 5 stars overall, with the bank scoring well for its checking and savings accounts – especially their features and competitive APYs. Discover loses points for its less-than-stellar certificate of deposit (CD) returns.
While other online-only bank competitors such as SoFi and Ally Bank offer higher returns on their checking and savings accounts, Discover comes out ahead for offering a wider range of deposit accounts, including CDs and money market accounts (MMAs), and its excellent customer service.
Here’s how the company scores in each of our review categories:
| Overall Rating | 4.5 |
| Banking experience and access | 4.3 |
| Checking | 4.8 |
| Savings | 4.6 |
| CDs | 4.1 |
| Money market accounts | 4.4 |
Overview of Discover Bank
Discover started as a credit card offering of Sears, Roebuck and Co. almost forty years ago before eventually spinning off as its own entity, Discover Financial Services, in 2007. In 2013, Discover premiered its “Cashback Checking” accounts and added home equity loans later that year.
Today, Discover is an online bank providing financial products across the country through its website and mobile app. Discover is known for its cash-back offerings and its 24/7, U.S.-based customer service team whose members consistently get high marks across the board for their knowledge and helpfulness. The bank’s deposits are insured by the Federal Deposit Insurance Corp. (FDIC).
Who Is Discover Bank Best For?
Discover could be a good choice for someone who prizes great customer service and is comfortable with an online-only bank. If you’re a Discover credit card holder, Discover’s deposit accounts might be a natural choice. Discover’s accounts don’t charge maintenance or overdraft fees and they have cash-back rewards and other perks. While Discover doesn’t offer the highest APYs of our recommended online banks, its high-yield savings account rates are more than nine times the national average.
Discover Bank Accounts
Discover offers one of the widest ranges of deposit products of an online bank — encompassing checking, savings, CD and MMA accounts. None of these accounts charge maintenance or overdraft fees, which is common for online banks, although CDs and MMAs require a relatively high $2,500 minimum deposit to open. Discover also has IRA accounts (traditional or Roth) for its savings and CD products, with the same rates it offers for non-retirement accounts.
| Discover Bank Account | APY* | Minimum Opening Deposit | Minimum Account Balance |
| Discover Cashback Debit Checking | 0% | $0 | $0 |
| Online Savings | 4.25% | $0 | $0 |
| IRA Savings | 4.25% | $0 | $0 |
| CD | 2.00% to 4.70% | $2,500 | $0 |
| IRA CD | 2.00% to 4.70% | $2,500 | $0 |
| Money Market | 4.00% for balances less than $100,000 4.05% for balances of $100,000 or more | $2,500 | $0 |
Discover Checking Account
Our Checking Star Rating: 4.8 of 5
| Discover Checking Account | APY* | Minimum Opening Deposit | Minimum Account Balance | Monthly Service Fee |
| Cashback Debit | 0% | $0 | $0 | $0 |
Discover Checking Account Overview
Discover’s checking account, called Cashback Debit, earns 1% cash back on all categories of debit card purchases, up to $3,000 per month. That equals $30 in cash back per month, an unusually generous perk.
Discover earns 4.8 of 5 stars in its checking category because it doesn’t charge almost any fees, offers numerous perks, has 60,000 fee-free ATMs, and provides money transfer through Zelle, a peer-to-peer digital payments platform.
However, there are no sign-on bonuses and just one checking account option. This account could be a good choice if you’re looking for a no-fee checking account with great perks and ample digital protection and you’re less concerned about interest or sign-on bonuses.
Pros and Cons
Pros
- You can deposit cash with no fees using your Discover debit card at any Walmart store.
- The bank offers fraud protection including a debit card freeze option and an online privacy protection scan through its mobile app.
- With a 1% cash back reward from all debit card purchases, you can earn up to $30 per month and $360 per year, which you can have automatically transferred to your savings account.
- Discover doesn’t charge any monthly maintenance fees, overdraft fees, check reorder fees or expedited debit card fees.
Cons
- There’s no sign-on bonus for opening a new checking account with Discover, while banks such as SoFi offer up to $300 for following its terms.
- Discover doesn’t offer an APY on its checking account, so your money won’t earn interest.
- If you need to wire money from your account, Discover charges a $30 service charge.
Discover Cashback Debit Account
This is Discover’s sole checking account, and it requires no minimum deposit to open the account and no minimum monthly balance. Discover doesn’t charge monthly maintenance or overdraft fees and also offers overdraft protection, so if your checking account balance drops below $0, Discover will transfer money from a linked savings account to cover the shortfall.
When you open your checking account, you’ll be sent a debit card that you can then use to earn 1% cash back on all debit card purchases, up to $30 per month.
Other perks include free checks and reorders and the ability to send and receive money with Zelle, a peer-to-peer digital payments platform. You can add cash to your account using your contactless debit card at no cost at any Walmart. The account offers fraud protection services including debit card freeze and online monitoring. You can also receive your direct deposits up to two days early with Discover’s “Early Pay” feature.
To deposit money into your checking account, you can transfer money from an external bank account, have your money directly deposited, deposit a check in the mobile app or mail a check in to Discover.
Discover Savings Accounts
Our Savings Star Rating: 4.6 of 5
| Discover Savings Account | APY* | Minimum Opening Deposit | Minimum Account Balance | Monthly Service Fee |
| Savings account | 4.25% | $0 | $0 | $0 |
| IRA Savings account | 4.25% | $0 | $0 | $0 |
Discover Savings Account Overview
Discover’s savings accounts earn 4.6 of 5 stars, gaining points for charging no fees and offering a competitive interest rate. Discover offers an APY of 4.25% for all its savings accounts. There’s a sign-on bonus available, though it’s not prominently displayed on the website. We only saw it offered through a Google search ad. Even though other online banks may offer higher rates, Discover’s perks make its savings accounts a strong option.
Pros and Cons
Pros
- You may earn up to a $200 bonus if you open a new savings account and meet deposit requirements.
- Discover doesn’t charge any monthly fees, including overdraft fees, fees for exceeding withdrawal limits, or stop-payment order fees.
- You can open a traditional or Roth retirement high-yield savings account to get tax-advantaged savings for retirement.
Cons
- Higher savings rates are available at other online banks.
- Discover doesn’t reimburse fees from out-of-network ATMs.
Discover Savings Account Options
High-Yield Online Savings Account
The Discover high-yield savings account offers a competitive APY of 4.25%. It’s not the best savings rate on the market, but it’s not bad. This account could be a good choice if you’re comfortable with an online-only bank and have other Discover accounts or a Discover credit card. It’s also solid if you’re looking for great customer service and are less interested in the highest interest rate.
There is no minimum balance requirement to open or maintain a savings account, and there are no maintenance or overdraft fees.
Interest on your account is compounded daily and paid out monthly. The “Early Pay” option is available if you choose to directly deposit your paycheck to your savings account, so you can access your funds up to two days early. If you have a linked Discover checking account and earn cash-back rewards, those rewards can be automatically transferred to your savings account to help you grow your balance.
To deposit money into your savings account, you can deposit a check in the mobile app, transfer money from an external bank account or another Discover account, have your money directly deposited or mail a check in to Discover.
Discover IRA Savings Account
Discover offers an IRA savings account with the same rate and perks as its regular savings account. This account might be a good option if you need a spot to store short- to medium-term retirement savings. While the IRA savings account offers a competitive interest rate for a savings account, your retirement savings will probably not grow as much in this account long-term as they would in an IRA that invests in index or mutual funds. Discover’s IRA savings account earns a 4.25% APY, while even a conservatively managed retirement portfolio has historically earned a roughly 6% annual return, according to investment management company Fidelity.
You can choose a traditional or Roth option, or both. You’re eligible to contribute to an IRA Savings account if you meet IRS income requirements.
In 2024, the maximum you can contribute to all of your IRA accounts is $7,000 (or $8,000 if you’re 50 or older).
Discover Savings Bonus
Discover is currently offering a bonus for new savings account customers. To earn the bonus, use the offer code GBPP324 when you apply for a new account. You can earn $150 if you deposit at least $15,000 into your new account within 45 days and $200 if you deposit at least $25,000 within 45 days. You may need to initiate these transfers through your other bank because of Discover’s new customer funding limits. The offer ends June 13, 2024.
Discover Bank CDs
Our CD Star Rating: 4.1 of 5
| Discover CD or IRA CD Term | APY* | Minimum Opening Deposit | Early Withdrawal Penalty |
| 3 months | 2.00% | $2,500 | 3 months’ simple interest |
| 6 months | 4.25% | $2,500 | 3 months’ simple interest |
| 9 months | 4.25% | $2,500 | 3 months’ simple interest |
| 1 year | 4.70% | $2,500 | 6 months’ simple interest |
| 18 months | 4.40% | $2,500 | 6 months’ simple interest |
| 24 months | 4.00% | $2,500 | 6 months’ simple interest |
| 30 months | 3.75% | $2,500 | 6 months’ simple interest |
| 3 years | 3.75% | $2,500 | 6 months’ simple interest |
| 4 years | 3.75% | $2,500 | 9 months’ simple interest |
| 5 years | 3.75% | $2,500 | 18 months’ simple interest |
| 7 years | 3.75% | $2,500 | 2 years’ simple interest |
| 10 years | 3.75% | $2,500 | 2 years’ simple interest |
Discover CD Overview
Discover offers a wide range of traditional fixed-rate and IRA CDs, with terms ranging from three months to 10 years and APYs from 2% to under 5%. The bank earns 4.1 out of 5 stars in the CD category, its lowest rating in our review – but still good.
Discover’s CDs gain points for their large range of terms but lose points for a high minimum deposit requirement. Discover’s highest APY, which is close to 5%, is almost three times the national average and earns it a spot on our list of the best CD rates.
Pros and Cons
Pros
- Discover offers seven- and 10-year CD terms, which aren’t common among other banks.
- CDs are available for both traditional and Roth IRAs.
Cons
- Discover doesn’t offer any CDs above 5.00% APY.
- All CDs require at least $2,500 to open.
Discover CD
Discover offers 12 fixed-rate certificates of deposit with terms from three months to 10 years. A Discover CD might be right for you if you have other Discover accounts and want to keep all of them together. Discover also has some of the longest-term CDs in the industry. If you want to open a seven- or 10-year CD, Discover is one of few banks to offer them.
To open a CD, you’ll need a minimum deposit of $2,500. You can fund your CD when you set up the account from another Discover or an external account. You can also fund your CD later, through internal or external transfers, by mailing a check or by making a wire transfer.
Interest is compounded daily and paid out monthly. You can transfer your interest to another Discover account, but if you withdraw any principal, you’ll pay an early withdrawal penalty of three to 24 months of interest, depending on the term.
IRA CD
Discover’s IRA CDs are offered with the same rates and terms as non-retirement CDs, in either traditional or Roth options. You can contribute up to $7,000 (up to $8,000 if you’re 50 or older) as long as you meet IRS income requirements.
However, if you won’t need your money for several years or decades more, you’ll probably have much better returns if you invest in stock and bond index funds.
Discover Money Market Account (MMA)
Our Money Market Star Rating: 4.4 of 5
| Discover Money Market Account | APY* | Minimum Opening Deposit | Minimum Account Balance | Monthly Service Fee |
| Money Market account | 4.00% for balances less than $100,000 4.05% for balances of $100,000 or more | $2,500 | $0 | $0 |
Discover Money Market Account Overview
The Discover Money Market account earns 4.4 of 5 stars for its competitive APY and lack of fees, although it loses points for its high minimum deposit requirement of $2,500. There are no fees for this account, and Discover isn’t currently enforcing monthly limits on the number of withdrawals you can make, according to the bank.
Pros and Cons
Pros
- There are no monthly maintenance fees, overdraft fees, standard bank checks or replacement debit card fees.
- There is no monthly minimum balance for this account.
- You can link another Discover account to pull from if you overdraft your money market account.
Cons
- There’s a $2,500 minimum balance to set up the money market account.
- You can earn a higher APY by using Discover’s savings account, although it doesn’t have check-writing options.
Discover Money Market Account
The Discover money market account combines the features of a high-yield savings account and a checking account. This account is best for someone who maintains a higher checking balance because of higher monthly spending, but would like to earn a better APY while still being able to pay bills and write checks from the account.
The money market account pays 4.00% APY, or slightly better, depending on your balance. Balances of $100,000 or more earn 4.05% APY. The account offers check-writing with free standard bank checks, direct deposit and “Early Pay” benefits that allow you to access your direct deposits up to two days early. This account has no maintenance fee, overdraft fees or excessive withdrawal fees and there are no limits on the number of monthly transactions.
You’ll be charged $30 for each outgoing wire transfer and may be charged out-of-network ATM fees by other financial institutions.
To fund your MMA, you can complete an internal or external bank transfer, set up a direct deposit or deposit a check in the mobile app. You can also mail a check in to Discover, but travelers checks aren’t accepted.
Discover Bank Fees
Discover charges virtually no fees for its deposit accounts, including no monthly maintenance fees, overdraft fees, returned item fees, excessive transaction fees, check fees, stop payment orders or expedited delivery fees.
The one exception is its outgoing wire fee, which is $30. And Discover does not reimburse out-of-network ATM fees, so although the bank doesn’t charge you to use an out-of-network ATM, the other financial institution might.
| Discover Bank Fee | Cost |
| Outgoing wire fee | $30 |
Discover Customer Experience
Customer Service
Discover ranked highest in customer satisfaction for savings providers and second highest for checking providers in the J.D. Power 2023 U.S. Direct Banking Satisfaction Study. The study ranked online or branchless banks with federal banking charters in areas such as customer service, level of trust and managing money via the mobile app and website.
A MarketWatch Guides reviewer who banks with Discover appreciated that customer service agents were open to feedback about how to make Discover better. “My representative asked if there was anything another bank did better that she could include in a report to her supervisor,” he said.
Reputation
Discover has an A+ rating from the Better Business Bureau (BBB). Discover’s parent company, Discover Financial Services, is accredited by the BBB. Discover is also rated 4 of 5 stars with BauerFinancial, an independent bank rating service.
In 2015, Discover was fined $18.5 million by the Consumer Financial Protection Bureau (CFPB) for denying customers information needed for income tax benefits and overstating minimum payment amounts on student loan payments. In 2020, Discover was again ordered by the CFPB to pay $10 million in consumer payouts and $25 million in a civil penalty for violating the 2015 order. In a statement at the time, Discover said its board had appointed an “independent special committee” to investigate its compliance practices.
Discover Mobile App
Discover’s mobile app has an average of 4.9 of 5 stars in the Apple App Store out of over 4.4 million reviews, and a 4.5 of 5 stars on average in the Google Play store with more than 289,000 reviews. Reviewers praised Discover’s customer service and the app’s credit card features.
Discover vs. Other Top Banks
Discover is an online-only bank with no physical branches that offers checking, savings, CD and money market accounts. It receives a higher rating than large banks with thousands of branches primarily because it doesn’t charge fees, offers great perks and has a large ATM network. Below we’ve compared Discover to Ally, another large online-only bank, as well as the two largest banks in the country, Bank of America and Chase.
Discover stands out for its 24/7 customer service, wide variety of account types and competitive rates for its savings and money market accounts. If you prefer to bank in-person, though, Discover isn’t the bank for you.
| Discover | Ally Bank | Bank of America | Chase | |
| Our rating | 4.5 | 4.5 | 4 | 4 |
| Number of branch locations | 0 | 0 | 3,900 | 4,700 |
| Number of ATM locations | 60,000 | 43,000 | 15,000 | 16,000 |
| Available deposit products | Checking, savings, CDs, MMAs | Checking, savings, CDs, MMAs | Checking, savings, CDs | Checking, savings, CDs |
| No-fee checking account option?* | Yes | Yes | Yes | Yes |
Discover vs. Ally
Ally is a larger bank than Discover, with $186 billion in assets compared to Discover’s $149 billion, according to the Federal Reserve. Both banks are online-only and both offer checking, savings, CD and money market accounts. Ally and Discover offer very similar interest rates for their savings accounts, but Ally’s checking account is interest-bearing, while Discover’s isn’t.
Ally also reimburses customers up to $10 for out-of-network ATM fees. Discover has higher overall CD rates than Ally, although Ally offers specialty CDs such as a rate-bump and no-penalty CD. Ally also offers a higher APY for its money market account; 4.20% versus Discover’s 4.00%.
Discover vs. Bank of America
The country’s second-largest bank has almost 4,000 physical branches, but Discover has a much larger ATM network of 60,000, compared with Bank of America’s 15,000. Discover beats Bank of America in interest rates and perks in its checking, savings and CD categories, although one Bank of America seven-month CD APY does beat Discover’s highest rate. Bank of America does not offer a money market account. Where Bank of America comes out ahead is its multiple checking account options, one for teens and one that pays a small amount of interest.
Discover vs. Chase
Chase, the largest bank in the U.S., has 4,700 physical branches. However, Discover’s ATM network is over four times larger (Chase has 15,000 ATMs) and it offers a money market account, unlike Chase. Discover does not charge monthly maintenance and overdraft fees where Chase does, and Discover has better interest rates in every banking category than Chase.
See how Discover stands out in our roundups of the best financial institutions and deposit products available today:
Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
*Data accurate at time of publication
