Written by Ali Cybulski, Published on 6/14/2024
Discover® Bank, a federally insured institution owned and operated by Discover Financial Services, offers online and mobile banking for a suite of deposit products. The bank has a checking account, savings account and money market account as well as a certificate of deposit (CD) and individual retirement accounts (IRAs).
The online bank promotes no monthly fees on any account and no insufficient funds or overdraft fees on checking, savings and money market accounts. In addition, customer service is available 24/7 at 800-347-7000.
A Discover Cashback Debit account earns 1% cash back on up to $3,000 in debit card purchases monthly. The account comes with access to more than 60,000 no-fee ATMs and fee-free overdraft protection. Other perks: You can get your paycheck up to two days early when you enroll in direct deposit, and you won’t pay for check reorders or expedited delivery of a replacement debit card.
The bank’s high-yield Online Savings Account earns an annual percentage yield (APY) of 4.25% as of June 7, 2024, and requires no minimum deposit. You won’t be charged for stop payments, returned items or excessive withdrawals.
A Money Market Account earns 4.00% APY for balances of less than $100,000 and 4.05% APY for balances of $100,000 or more as of June 7, 2024. The account features no minimum opening deposit and no fees for online bill pay or standard checks, returned items, excessive withdrawals and insufficient funds.
CDs come in terms from three months to 10 years, with a minimum initial opening deposit of $2,500. The 12-month CD earns a 4.70% APY as of June 7, 2024. Keep in mind that all CDs have early withdrawal penalties based on term length if you need to access your cash early.
Discover Bank also offers IRA CDs with terms from three months to 10 years and a minimum initial deposit of $2,500. Choose from traditional or Roth IRAs, or you can have both. Early withdrawal penalties apply, and the penalty depends on your CD’s term.
Discover Bank pros and cons
Pros:
• Cash back on debit card purchases
• Competitive rates
• No fees on deposit products
Cons:
• Steep $2,500 minimum to open CDs
• No branches for in-person service
• Limited account options
I've had a Discover Card for more than a decade, and I've always appreciated their intuitive website and safety monitoring of customer accounts. So, I recently funded a CD with them, which was quick and easy. I like Discover!
Grabbed $250K worth of 4.4% APY 10 year on 1/18/23. Sleep like a baby!
Discover Bank just made a nasty change to their Bill Pay. A new rule prohibits scheduling a payment for more than the current balance in my checking account. I have always entered bill payments as soon as I get a bill, scheduling them for the due date, and transferred money out of savings a day or 2 before to cover them. Now I have to either transfer the funds into checking when I get the bills (losing interest), or wait until a couple of days before the due date and hope that I remember to schedule the payment and that nothing prevents me from accessing my account. I've been happy with Discover for 3 years, but this bone-headed change cramps my style & really irritates me.
I opened a Discover online savings account to take advantage of the high interest rate. Opening the account was very smooth. As this is my first time trying an exclusively online bank, I tried to transfer little bit of money back to my main bank account (Wells Fargo). It seems instead of doing it through routing and account numbers, it uses a 3rd party service MX (with its own list of terms and conditions) to verify the external account, and requires you to log into your external bank account with the corresponding username and password. I didn't like the idea of somebody else using my credentials for another bank so I tried to use Zelle. It seems you cannot use Zelle for the first 90 days. I would not have opened this account, had I been aware of these two issues.
Overall | |
---|---|
FDIC Certificate # | 5649 |
Year Established | 1911 |
Employees | 14218 |
Primary Regulator | FDIC |
Profit Margin | |
---|---|
Return on Assets - YTD | 1.11% |
Return on Equity - YTD | 12.9% |
Annual Interest Income | $5.1B |
Assets and Liabilities | ||
---|---|---|
Assets | Q1 2024vs Q1 2023 | $150.3B$130.8B |
Loans | Q1 2024vs Q1 2023 | $117.3B$105B |
Deposits | Q1 2024vs Q1 2023 | $113.9B$98.49B |
Equity Capital | Q1 2024vs Q1 2023 | $13B$11.72B |
Loan Loss Allowance | Q1 2024vs Q1 2023 | $9.26B$7.69B |
Unbacked Noncurrent Loans | Q1 2024vs Q1 2023 | $2.29B$1.49B |
Real Estate Owned | Q1 2024vs Q1 2023 | $403K$0 |
Always verify rates and promotions with the bank or credit union. We are not Discover®; we are a rate comparison website and cannot provide official rates or promotions.
* The APY shown varies based on the deposit amount. Expand the listing to see APYs for other deposit amounts.
APY | MIN | MAX | ACCOUNT NAME | VIEW DETAILS |
---|---|---|---|---|
4.25% | $0 | - | Online Savings Account | |
4.25% | $0 | - | IRA Savings |
APY | MIN | MAX | ACCOUNT NAME | VIEW DETAILS | |
---|---|---|---|---|---|
4.05%* | $100k* | - | Money Market Account | ||
OTHER TIERS: 4.00% → $0 - $100k |
Discover® is an Internet only bank and does not have branch locations. Its headquarters is located at 502 E. Market St. - Greenwood, DE 19950