Discover Online Savings Account Discover Online Savings Account
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Discover Online Savings Account Review

Sign up for Discover Online Savings Account
Rating:
Bottom Line:
Decent APY for low balance savings accounts and competitive CD rates makes Discover a well-rounded service

Full Review:
With an APY of 1.20%, Discover offers one of the highest yielding online savings accounts in the entire industry. While Discover has historically had one of the highest APYs in online banking, it was only until the beginning of last year that the rate has increased even more, as many banks have been recovering from falling rates.

Key Features

Discover is an FDIC insured institution. A Discover Savings Account requires no balance to maintain and there is no minimum amount needed to open an account. Interest compounds daily and is added to the principle balance the day the deposit is received.

Discover has also been acknowledged and celebrated for its high APYs and accessibility to customers. The bank does not have any recurring or standard banking fees, however, there are specific services that are offered for a transaction fee. These services include: return of a deposited item ($15 per item), excessive withdraw fees ($15 per item, after six transitions in a given month), stop payment order for six months ($15) and insufficient funds for a requested transition ($30, once daily not per transaction).

Access and Ease of Use

Discover offers mobile and app-based banking, online banking (available in mobile and desktop versions) and telephone banking. While Discover's site supports mobile for all phones, it lacks apps for the Windows and Blackberry platforms. So far, only Android and iPhone have dedicated mobile apps. Discover's web page allows for you to check account history, transfer funds and set up bill pay. In addition, the option to send messages to the bank's support center or view helpful tips is always within the display. Mobile banking shares the same features, and also allows the ability to deposit a check by taking a picture with your device. An additional feature called Quick View shows you a snapshot summary of basic account information without having to log in. You can also use Touch ID technology to log in with your thumbprint on supporting devices.

Discover has 24/7 phone support, as well as online message based support from 8 a.m. to 11 p.m. ET. Phone support can be used to speak to representatives about a wide range of topics, including technical issues you may have using mobile or online services as well as concerns you have regarding your account. In addition, you can get account balances and other information about your account with its telebanking service.

Certificate of Deposit Offerings

Like most depository institutions, Discover offers Certificate of Deposit accounts that provide higher APY rates than those of its saving accounts. Discover's CDs are more flexible than others, as you can set the duration from anywhere between three months and 10 years. Because of the flexibility of the CDs and its high APYs, this is one of Discover's most competitive features for saving. The APY ranges from 0.35% on the low end to 2.35% at 10 years. While Discover's APYs are high, it is important to note that other direct banks have slightly higher APYs when comparing certain terms intervals. For example, Everbank's five-year CD beats Discover's 10-year one substantially.

Bank Standing

In addition to being FDIC insured up to $250,000, Discover's total asset value ($91 billion) put it 28th among the top 50 largest banks in the U.S. Discover is not a BBB accredited institution, but it was given a rating of B- by the Bureau.

Conclusion

Discover has solid offerings and is one of the best direct branchless banks available, however, it comes out third in most areas when compared to other branchless banks we review. Save for its Certificate of Deposit options, Discover doesn't outcompete the APYs offered for other banks on the list. Given that Discover's most competitive APYs are CDs, rather than savings accounts, customers looking for both high APYs and more flexible access to their money might not find Discover as appealing as other banks.

Sign up for Discover Online Savings Account | Compare to Other Savings Accounts

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Service Details

APY:1.20%
Monthly Fees:None
Minimum
Balance
to
Maintain:
$0
Minimum to Open Account:$0
Maximum Withdrawals Per Month:6
Deposit and Withdrawal Methods:Electronic transfer, wire, check

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