Discover Bank functions as an Internet bank with no retail branches. In addition to its trademark credit card offerings, it features a range of depository banking and loan products. Discover’s deposit rates are usually competitive with other Internet banks on Savings, Checking, Money Market, CD, and IRA CD accounts because of the lack of infrastructure costs associated with physical locations and branches.
Discover Bank offers checking, savings, CD, and Money Market accounts on its depository banking side. It offers three different types of personal checking accounts and one business checking account. Its personal checking accounts feature an interest-bearing account, a standard checking account, and a 55+ account. It offers a competitive online savings account that usually offers one of the top interest rates in the depository banking market. It offers Certificates of Deposit for terms ranging from 3 months to 10 years, which can be funded online from any existing bank account. It also offers a Money Market account that pays interest at rates similar to its savings account offerings.
Discover offers multiple web-based platforms to its customers that facilitate easy account management. Through the Discover smartphone app, customers can transfer funds, pay bills, deposit checks, and monitor account balances. Discover online banking offers a sophisticated platform through which customers can manage their accounts and get help from online banking specialists.
Discover Bank’s headquarters are located in Greenwood, Delaware, just blocks away from where it originally began as the Greenwood Trust Company. Since acquiring the Greenwood Trust Company in 1985, Discover has grown to be one of the largest financial services firms in the country. It provides its customers access to cash at over 750,000 ATMs worldwide through its Discover and PULSE ATM networks, including over 415,000 ATMs across the United States. The firm receives awards yearly for different aspects of its business from customer loyalty to workplace environment.
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9/18 - More Rate Cuts At Discover Bank
9/3 - Discover Bank Cuts Savings Account, Money Market And CD Rates
8/14 - Discover Savings Dips To .80%
7/25 - Discover Online Savings Is Now At 0.95%
6/12 - Discover Savings Falls To 1.05%
5/22 - Discover Savings Account Rate Falls again
5/14 - Rate Plunge At Discover Bank...1.25% Savings
3/18 - 2% APY 12 Month CD (rate has fallen)
3/12 - Savings, Money Market And CD Rate Cuts At Discover Bank
10/9 - Updated, Slightly More Friendly, Terms From Discover
9/5 - Discover Bank Cuts Savings & Money Market Account Rates
8/18 - Discover Savings Bonus
8/2 - Discover Bank Again Cuts Savings And Money Market Rates.
7/18 - Savings Rate Going Down?
6/21 - Discover Bank Eliminates Fees on Deposit Products
6/14 - Received Email Today For 12 Mo 2.5 APY CD Available. $2500 Min.
5/15 - Discover Bank’s Latest Online Savings Account Bonuses
1/11 - Discover Bank Raises Savings And Money Market Account Rates
1/2 - Discover Bank .05% Increase For Savings Account For AAA Members Again
11/14/18 - Discover Raises Money Market Rates And Online Savongs Rate
10/14/18 - Discover Now At 1.90%
10/3/18 - Discover Bank Bumps Up Online Savings And Money Market Accounts.
8/31/18 - Small Increase At Discover Bank On Savings Rates.
7/6/18 - Discover Bank Ups Online Savings, Money Market and CD Rates
7/6/18 - Rate Hike At Discover
6/14/18 - Savings Rate Hike At Discover
5/31/18 - Discover Bank Ups Online Savings And Money Market Rates
5/25/18 - Savings Rate Hike At Discover
5/17/18 - Small Rate Increases At Discover Bank
2/23/18 - More Discover Bank Rate Hikes - Savings Account, Money Market and CDs
2/23/18 - Rate Increases On Deposit Accounts At Discover Bank
2/22/18 - Discover Changes and Expands Availability of Cashback Checking
1/17/18 - Discover Bank Increases Rates - Savings Account, Money Market and CDs
1/17/18 - Discover Banks Raises Online Savings And Money Market Account Rates
12/7/17 - Discover Bank Increases Savings Account and Money Market Rates
12/7/17 - Discover Bank Raises Online Savings & Money Market Account Rates
11/1/17 - Discover Bank Savings Account $150/$200 Bonus
10/13/17 - Rate Increases At Discover Bank
8/25/17 - Discover Bank Adds New $150 or $200 Savings Bonuses
8/2/17 - Online Savings Account Rate Increase
6/9/17 - Discover Bank Ups Savings and MM Rates: Second Increase in Two Months
6/9/17 - Discover Again Raises Online Savings Account Rate
6/1/17 - Discover Bank Increases CD Rates
4/26/17 - Discover Bank Increases Savings Account Rate To 5-Year High
4/20/17 - Discover Bank Has $100 Bonus On New Online Savings
3/30/17 - Discover Bank Raises Several CD Rates
3/13/17 - Discover Bank Removes Minimum Deposit On Savings Account
12/26/15 - Discover Bank Boosts Long-Term CD Rates
10/21/15 - Cashback Checking $300 Bonus - Ends November 15, 2015
6/25/15 - Rate Increase For Online Savings Accounts
1/16/15 - Discover Bank's Cashback Checking and Bonus Available to Existing Customers
11/25/14 - Discover Bank Raises Rate On Online Savings & Money Market Accounts.
4/22/14 - Discover Bank Cash Back Checking Getting Worse
4/9/14 - Discover Bank Raises Long-Term CD Rates But Beware of Larger Penalties
1/8/14 - Discover Bank - Savings - Deposit Slips/Envelopes No Longer Available?
12/26/13 - Rate Hike On Savings
12/26/13 - Discover Bank Increases Online Savings Account Rate
10/8/13 - Discover Has Increased CD Rates
4/5/13 - Discover Bank’s Bonus for BJ’s Members and Other Affinity Group Perks
2/27/13 - $25 Bonus For Opening New Discover Bank Online Savings
2/25/13 - Discover Bank Adds Mobile Check Deposit
2/20/13 - Discover Bank Will Increase CD Early Withdrawal Penalties
2/19/13 - Change To Discover Bank Deposit Agreement Terms For CD Early Withdrawal
1/22/13 - Discover Bank's Cashback Checking Account To Be Launched Soon
10/30/12 - Small New-Account Bonus for Discover Bank CDs & Savings Account
9/27/12 - Discover Bank's Competitive Long-Term CD Rates
7/26/12 - Discover Offering Some Credit Card Customers Its Premium Savings Account
3/28/12 - BJs Gift Card $75
3/25/12 - Discover Plans To Add Mortgages, Checking Accounts
2/28/12 - More Rate Drops At Discover Bank
1/11/12 - Discover Bank Rate Drop
9/23/11 - Discover Veers Away From M&A
9/20/11 - Disover Bank Rate Drop
8/2/11 - A Rate Drop At Discover Bank
5/31/11 - Tips and Warnings When Closing a Discover Bank CD
4/21/11 - Bjs Member Bonus
4/13/11 - 1.20% AAA Online Savings
4/12/11 - Another Rate Drop At Discover
3/21/11 - The Best CD Rates and the Smallest Early Withdrawal Penalties
3/2/11 - Higher Rates for AAA Members at Discover Bank
2/1/11 - Discover Bank Savings Rate Drop (3672)
11/29/10 - Discover Bank Checking
10/26/10 - Discover Bank Savings Rate Drop
9/29/10 - Ally Bank to Offer IRA CDs - How It Might Compare to Discover Bank and PenFed
9/22/10 - Discover Bank Cuts CD Rates
9/6/10 - One Downside With Discover Bank - No CD Disclosure Available Online
8/15/10 - The Advantages of Discover Bank's Long-Term CDs
8/10/10 - Discover Bank's Premium Savings Account
7/30/10 - Discover Bank Savings Account and CD Review - Available Nationwide
3/14/10 - Discover More Card $75 Cashback Bonus
2/24/10 - Update on ETrade Bank and the Transfer of Customers' Savings Accounts
2/12/10 - Discover Bank's New Account Center with Improved Transfers
2/9/10 - ETrade Complete Savings Accounts to Become Discover Bank Online Savings Accounts
2/1/10 - Discover Bank's Savings Account Rate Cut and Other News
12/29/09 - Discover Bank's New Limited-Penalty-Free CD and its New Online Savings Account
12/19/09 - Discover Bank's CD Rates Up To 5.02%
7/29/09 - Discover Bank's CD Promotion for Discover Credit Card Customers
6/27/09 - Competitive CD Rates and a $50 Bonus at Discover Bank - Nationally Available
8/14/08 - Discover Bank Increases CD Rates - 5.28% 60-Month / 5.02% 48-Month
3/1/08 - New Account Bonus ($20-$100) at Discover Bank
2/25/08 - Discover Bank's AAA Affiliated Money Market Account and CDs
Good bank
I am very pleased with Discover Bank online. They have no fees and no deposit minimums as well. They don't charge silly fees for taking money out of the account. They also provide the added benefit of free checks. No other bank I've dealt with for a brick and mortar charges no fees for checks. When I need to call them for help they are always there 24/7 to answer my questions. They are reliable as well as they are well established. I also got an incentive to join the bank when I first opened up my account. They deposited money directly into my account just for opening up an account with them. I haven't had to deposit my check from work into the account just to not be charged fees. My brick and mortar bank does charge fees if you don't make so many deposits. This bank is hassle free and reliable. You can easily transfer money into and out of the account using the online system.
ACH Transfer Very Slow
An electronic transfer should appear at the receiving bank in one day or at the most two days. I made a transfer and was told the funds were withdrawn on the requested day but not to expect the receiving bank to receive the funds for four days. A phone call was just bank gibberish and never fully explained the delay so where exactly are these funds after they are withdrawn could not be rationally explained? I think I could walk faster and deliver the funds in person and this is called as EFT?
I dislike the trouble in changing banks but it as of this moment I'm considering a change.
Deposits Take 8 Days!?
So, I typically do not write reviews. However, I felt like this was necessary because it could save someone in the future. I deposited my funds on Jan 19, 2021, Jan 22nd funds are with drawn from my account Jan 24 I can see the funds in my Discover account however I am not able to use the funds until (expected date) Jan 27. as I’m writing this I’m not sure if I will be able to use my funds on Jan 27, but this is what Discover has told me I would be able too and previous comments only stated 5 day holding period but for the account to show “current balance” and “available” are two different things! So beware! If you are transferring funds and need access to said funds quickly then this is not the bank for you. I’m still on the fence bc this is a saving account for me but I’m worried what if I needed access to the funds within a short period of time would I have access???
Be Very Careful When Opening Cds With Discover Bank
I have had savings and CD accounts with Discover Bank for more 12 years. I usually didn't check the APY when opening a CD online with Discover Bank. I completely trust the APY shown to me when I selected number of month for CD.
On 3/11/2020, I opened a 24-month CD with Discover Bank. The 2.00% APR was shown to me when I selected 24-month CD from online CD application. 35K was withdrawn from my checking account on 3/12/2020. When I logged in Discover Bank website to verify the money was deposited into the CD, I noticed the APY was reduced to 1.75%. I would not open a 24-month CD with Discover Bank if I saw 1.75% APY at the time I opened the CD since American Express Bank still offered 24-month CD at 2.00% APR. I emailed Discover Bank to tell them about 2.00% APY at the time I submitted my CD application online. I got reply from K, and she told me the APY was changed on 3/10/2020. She also told me I was responsible for checking the APY before opening the CD. I told her it was not a big deal since the account was already opened and funded. I told her that Discover Bank should update APY on online CD application right away every time APY is changed. Otherwise, Discover Bank misleads the customers. It's too bad I have to keep this CD for 2 years, but on 3/15/2020 I opened a 24-month CD at 2.00% APY with American Express Bank. This happened before the Fed lowered the interest rate to 0.00% due to COVID-19 pandemic.
Therefore, if you plan to open a CD with Discover Bank, just double check the APY on Discover website instead of completely relying on APY shown to you on the online CD application. It's also good idea to do a scene capture of APY so you can show Discover Bank. Otherwise, Discover Bank employees will think you just want to make things up in order to get a better rate.
Updated 03/20/2020:
Discover Bank always sent me a letter after the CD was opened. On 03/20/2020 I just received a letter from Discover Bank. I opened the CD on 03/11/2020, but the letter indicated the CD was opened on 03/13/2020. They withdrawn money from my checking account on 03/12/2020, but they didn't open the CD until 03/13/2020. Discover Bank actually lowered the rates on 03/12/2020 according "User-submitted Promotions & Notices" below.
Data as of Q4 2020
Learn why bank health mattersHealth Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 5649 |
| Year Established | 1911 |
| Employees | 11382 |
| Primary Regulator | FDIC |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | 1.01% |
| Return on Equity - YTD | 11.72% |
| Annual Interest Income | $11.44B |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q4 2020vs Q4 2019 | $111.3B$112.4B |
| Loans | Q4 2020vs Q4 2019 | $82.22B$92.51B |
| Deposits | Q4 2020vs Q4 2019 | $79.66B$75.23B |
| Equity Capital | Q4 2020vs Q4 2019 | $10.19B$11.30B |
| Loan Loss Allowance | Q4 2020vs Q4 2019 | $8.23B$3.38B |
| Unbacked Noncurrent Loans | Q4 2020vs Q4 2019 | $979.7MM$1.28B |
| Real Estate Owned | Q4 2020vs Q4 2019 | $21.00K$103.00K |