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Discover® Bank (Member FDIC) is a strong online bank for online debit and credit cards. However, if you’d prefer to open an CD with a low minimum opening deposit, you might consider other options.
Discover Bank: Overall Rating
Discover Bank: Pros and Cons
About Discover Bank
Online-Only Banking Experience
Discover Bank offers online-only products and services. You won’t be able to visit a physical branch to open a bank account or speak to a banker in person, so you have to be content with a predominantly online and mobile banking experience.
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.
At Discover Bank, you’ll still be able to deposit cash at Walmart locations, but it might not be as convenient as heading to a branch from a national brick-and-mortar bank.
Your Discover Bank account is insured by the FDIC for up to $250,000 or up to $500,000 for a joint account.
What You Need to Know About Discover Banking
If you value more simplified banking, Discover Bank will appeal to you. It offers one checking account, one high-yield savings account, and one money market account. For CDs, you’ll be able to choose from traditional CDs or IRA CDs.
Other banks might have more checking and savings account options, but that can also make the fee structure complex.
You can also find both online banks and brick-and-mortar banks with specialty CDs, like no-penalty CDs or bump-up CDs. Discover doesn’t have any specialty CDs, so that may be a downside if this is important to you.
Discover Bank Digital Experience and App Usability
Discover’s mobile banking app is for banking, loan, and credit card customers. You can use the app to view your transaction history, make credit card and loan payments, redeem credit card rewards, make mobile check deposits, find ATMs, and send secure messages. These are standard mobile banking features that you’ll find among the best banks.
Discover’s website is easy to navigate, and its mobile app has received 4.5 out of 5 stars in the Google Play store and 4.9 stars in the Apple store.
Discover Bank Customer Support Availability and Satisfaction
You can chat 24/7 with a Discover Bank live customer service representative. Discover also provides 24/7 customer service over the phone.
According to the J.D. Power 2024 U.S. Direct Banking Satisfaction Study, Discover ranked below the segment average in overall customer satisfaction for checking account providers among online banks. That said, the same study also showed that the bank ranked 18 points above the segment average in overall customer satisfaction for savings account providers among online banks.
Discover Fees, Rates, and Financial Benefits
Understanding Discover’s Fee Structure
Similar to other online banks, Discover does not charge most common bank fees. When you get a bank account, you won’t have to worry about monthly service fees and insufficient funds fees. The bank also doesn’t charge for official bank checks, expedited delivery on replacement debit cards, or check reorders.
There is a $30 outgoing wire transfer fee, but there isn’t a fee for receiving a domestic or international wire transfer in U.S. dollars. If you receive an international wire transfer in a foreign currency, there’s a $20 currency exchange charge.
Discover Savings, Money Market, and CD Rates and How They Compare
Discover savings, money market, and CD rates are all more competitive than average bank account interest rates and similar to what you’d find at other national online banks like Ally or Capital One.
Some smaller financial institutions have more competitive interest rates on bank accounts. However, keep in mind that there are a couple of notable distinctions between banking with a local bank versus a national brand. For example, smaller banks tend to have fewer hours of customer support availability and weaker mobile apps.
Discover Trustworthiness and BBB Rating
Discover Bank has received an A+ rating from the Better Business Bureau. A strong BBB rating signifies the company is transparent in how it handles business, responds effectively to customer complaints, and is honest in its advertising.
Discover Bank has had one recent lawsuit. In 2024, Discover settled a class action lawsuit from DACA recipients. The lawsuit said that Discover unlawfully denied DACA recipients loans because of their immigration status. Discover will pay $979,500 as part of the settlement. Discover does not admit wrongdoing by settling, and it maintains that it complied with the law.
Discover Bank FAQs
Discover offers many services including bank accounts, credit cards, home loans, and personal loans. For banking, you’ll be able to get an online-only checking account, high-yield savings account, money market account, or CDs.
There are a few fees associated with Discover Bank accounts. If you use an out-of-network ATM, Discover won’t charge you a fee, but it won’t reimburse you if the outside provider charges you. Discover also charges a fee for sending outgoing wire transfers or receiving an international wire transfer in a foreign currency. Discover Bank accounts do not have monthly service fees and insufficient funds fees.
You can contact Discover Bank customer service by calling or sending a message through Discover mobile banking. Customer support is available 24/7.
The pros of banking with Discover Bank include strong mobile banking, competitive bank interest rates, and minimal common bank fees. The cons of banking with Discover Bank include no physical branch presence, no specialty CDs, and no brokerage accounts.
Discover Personal Bank Accounts Review
Discover Cashback Debit Account
Discover® Cashback Debit Account
Fees
no monthly service fee
Annual Percentage Yield (APY)
None
Minimum Opening Deposit
$0
- Earn up to 1% cash back on up to $3,000 in purchases per month (See website for details)
- No monthly service fee
- Over 60,000 in-network ATMs
- Get paid early with direct deposit through Early Pay
- Enroll in free overdraft protection
- Debit card can only be used in the US, Canada, Mexico, and the Caribbean
- Only 1 branch location
Product Details
- Earn 1% cash back on up on up to $3,000 per month in eligible debit card purchases (See website for details)
- 100% US-based customer service available 24/7
- No opening deposit or minimum account balance
- No monthly maintenance fees
- Over 60,000 in-network ATMs
- FDIC insured
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 on the Discover® Cashback Debit Account (see website for details). There are also no monthly service fees with Discover. If you enroll in overdraft protection that links your checking to another Discover account, so 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 Bank Online Savings Account
Discover® Online Savings Account
Fees
no monthly service fee
Annual Percentage Yield (APY)
4.25% (as of 3/14/24)
Minimum Opening Deposit
$0
- Competitive APY
- No monthly service fee
- No opening deposit
- No insufficient funds fee
- No excess withdrawal fee
- Only 1 branch location
- No debit card unless you open a checking account
Product Details
- No monthly balance requirements
- 100% US-based customer service available 24/7
- No hidden fees
- Interest compounded daily, paid monthly
- FDIC insured
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. The Discover savings rate is competitive, and it doesn’t require an initial deposit to open the account.
Discover CDs
Compare Discover CD Rates
Discover® CD
Annual Percentage Yield (APY)
2.00% to 5.10%
Minimum Opening Deposit
$2,500
- Terms up to 10 years
- Competitive APY
- $2,500 opening deposit
- High early withdrawal penalties for longer terms
- Doesn’t offer no-penalty CDs
- Only 1 branch location
Product Details
- Terms ranging from 3 months to 10 years
- Early withdrawal penalties ranging from 3 months to 24 months interest
- 100% US-based customer service available 24/7
- No hidden fees
- Interest compounded daily, paid monthly
- FDIC insured
Discover CDs offer a wider range of terms than many competitors — most offer terms up to 5 years, but Discover also has 7-year and 10-year terms. However, it doesn’t offer any unique types of CDs, like no-penalty CDs.
Discover pays competitive rates on CDs, but 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
Discover® Money Market Account
Fees
no monthly service fee
Annual Percentage Yield (APY)
4.00% to 4.05%
Minimum Opening Deposit
$0
- Competitive APY
- Paper checks and debit card
- No excess transactions fee
- 60,000 ATMS
- Need $100,000 to earn highest APY
- Only 1 branch location
- No out-of-network ATM fee reimbursements
- Debit card can only be used in the U.S., Canada, Mexico, and the Caribbean
Product Details
- No monthly maintenance fees
- Compounding interest to maximize your earnings
- 100% US-based customer service 24/7
- 60,000 ATMs nationwide
The Discover® Money Market Account gives you easy access to your money with a debit card and paper checks. You’ll earn 4.00% APY (Annual Percentage Yield) if you have an account balance under $100,000. If you have an account balance of $100,000 and over, the rate increases to 4.05% APY.
You can open an account with $0 opening deposit, making it a great choice if you don’t have a lot of money to open an account with. Discover has 60,000 free ATMs, but it doesn’t reimburse any out-of-network fees charged by ATM providers.
Discover Credit Cards Review
Discover offers an array of credit cards for different types of spenders, and Discover credit cards don’t charge annual fees.
- Discover it® Miles
- Discover it® Chrome
- Discover it® Cash Back
- Discover it® Student Chrome
- Discover it® Student Cash Back
- Discover it® Secured Credit Card
See Business Insider’s best Discover credit cards.
Discover Loans Review
Discover also has personal loans, and home loans.
How Discover Bank Compares
Discover Bank vs. Capital One Bank
If you’re searching for a variety of CD options, you might prefer Discover to Capital One Bank. Discover has CD terms up to 10 years.
If you don’t have a lot of money to deposit into a CD, Capital One may be more suitable. With Discover, you’ll need to deposit at least $2,500 into a CD. Capital One doesn’t require a minimum opening deposit, though.
Capital One Bank Review
Discover Bank vs. Ally Bank
Ally Bank might be a better choice for you if you want a savings account with buckets. Ally lets you use buckets to sort the money in your savings account into separate categories; Discover savings accounts don’t have this feature.
You might prefer Discover if you want a rewards checking account. Ally offers a good checking account, but it doesn’t have a cash-back debit card like Discover does.
Ally Bank Review
Is Discover Bank Right For You?
Discover Bank is best for people who find online banking convenient and are interested in fee-free bank accounts or a cash-back credit card.
It may not be right for you if you prefer in-person banking. You also may prefer a different online financial institution if you want other products and services, like specialty CDs, more checking account options, or brokerage accounts.
Why You Should Trust Us: How We Reviewed Discover Bank
For our Discover Bank review, we rate bank products and services using our editorial standards.
At Business Insider, we rate products on a scale from zero to five stars. For bank accounts we review different features for distinct types of bank accounts. For example, we’ll look at early withdrawal penalties and CD variety specifically for CDs. Meanwhile, for checking accounts, we’ll factor in the ATM network size and fees, as well as its overdraft protection options.
We’ll consider factors like annual fees and sign-up bonuses for credit cards, and term lengths for loans. In general, we also look at customer service and ethics.
Chime® Checking Account
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