Discover is best known for its rewards credit cards, but that’s just a portion of its business. It’s a full-service online bank, as well as a payment services company. Discover offers banking and retirement solutions for individuals. Discover is also a lender, with personal, student and home equity loans available.
Because they are strictly an online bank, Discover doesn’t have local branches that customers can visit in person for banking needs. That doesn’t mean they aren’t accessible, though. Discover is known for its superb customer service, which is available 24 hours a day.
Here’s our review of Discover Bank and its personal banking options to see why it made our list of the Best Online Banks 2021. Discover also earns a spot on our Best Checking Accounts (best for cash back) and Best Online Savings Accounts (best for avoiding fees).
Account details and annual percentage yields (APYs) are accurate as of November 19, 2021.
Checking (Cashback Debit)*
Discover checking account are somewhat unusual in the banking world. That’s because—similar to many of its credit card offerings—Discover discover card loan login accounts earn cash back rewards. With the Discover Cashback Debit account, customers can earn 1% cash back on up to $3,000 in debit card purchases every month.
If you maxed out the $3,000 monthly limit, you would earn $30 cash back every month. Over a year, you would earn $360 cash back just by using your debit card for purchases. If you only spent $2,000 in debit card purchases monthly, that’s still $240 cash back over a year.
Another feature that Discover is known for with its checking accounts is not charging fees. There are no fees for account maintenance, ordering checks, in-network ATM use, online bill pay or replacement debit cards. Discover Cashback Debit accounts have no minimum balance requirements or activity requirements.
Discover Bank offers an online savings account with competitive rates that are five times higher than the national average. Discover savings accounts earn 0.40% APY. With $10,000 in your savings account, you would earn over $40 from interest annually. Interest compounds daily and pays out monthly.
There are no fees associated with online savings accounts through Discover. There’s also no minimum balance requirement. Compare that to Bank of America’s Advantage Savings account, which requires a $500 minimum balance to waive its $8 monthly fees.
Money market accounts take the earning power of a savings account and also give access to checking features for a more versatile account. The Discover Bank money market account provides customers with ATM access, a debit card and check-writing capabilities.
Convenience isn’t the only high point for Discover’s money market accounts. These accounts offer high earning potential. Account balances under $100,000 earn 0.30% APY. Balances of $100,000 and higher earn 0.35% APY. An account balance of $20,000 saved for five years will earn $60 in the first year and $302 over five years of saving.
Discover’s money market accounts have no fees and no minimum balance requirements. Money market accounts allow you to earn more interest than you would with a traditional checking account.
Discover Bank certificates of deposit (CDs) are versatile high-yield accounts that offer guaranteed returns for customers. Discover CD terms range from three months to 10 years, depending on your needs.
Discover offers competitive returns on its CDs that are a bit lower than the best CD rates on the market. Here’s a look at the interest-earning potential of Discover’s CD accounts at different term lengths with an initial deposit of $15,000:
Discover offers a total of 12 CD term lengths. In addition to the five CDs shown above, Discover offers term lengths of six months, nine months, 18 months, 24 months, 30 months, four years and seven years.
CD accounts through Discover have a $2,500 minimum deposit. If for some reason you need to access your funds before they reach maturity, you can withdraw them, but you’ll have to pay a penalty. The early withdrawal penalty will depend on the specific length of the CD term. The penalty on a CD with a term under one year is three months’ simple interest.
Opening a CD account is generally considered to be a safe investment because you have FDIC insurance and a guaranteed return, no matter what the market does. Your CD rate is locked in for your term length. The longer your CD term, the higher the rate you’ll receive. You also can create a CD ladder, using Discover CDs with different maturity dates, to build in some flexibility specific to when you withdraw funds.
Another option available through Discover is IRA CDs. Customers can choose between Roth IRA CDs and Traditional IRA CDs, depending on their needs. Roth IRA CDs:
- Are funded with after-tax dollars
- Contributions aren’t tax-deductible
- Earnings are tax-free
- Contributions can be withdrawn at any time without IRS penalty
Traditional IRA CDs are set up differently. Traditional IRA CDs:
- Are funded with pre-tax money
- Have tax-deferred earnings
- Contributions can be tax-deductible up to specific limits
- Funds can’t be withdrawn without a penalty until age 59½
IRA CDs through Discover can be funded with money from other retirement accounts. Customers also can transfer an IRA from another financial institution into a Discover IRA CD.
Discover’s IRA CD terms range from three months to 10 years and they pay similar APYs to Discover’s regular CDs. Discover IRA CDs can be opened with as little as $2,500.
Access on the Go
Discover customers can access their accounts in several ways. Accounts are always accessible online.
Discover Mobile is the bank’s highly discover card loan login mobile app, available on iOS (4.9 stars out of 5 on the App Store) and Android (4.6 stars on Google Play). Not only can you access all of your Discover accounts through the app, but you also can take advantage of mobile check deposit by taking a photo with your phone or tablet.
Convenience is a huge aspect of Discover’s discover card loan login app. You can easily log into your account through touch ID. iPhone users also can log in through face ID. People using the app discover card loan login enable Quick View, which allows you to see your account balances without actually logging into your account. Discover ATMs can be located through the mobile app as well.
Discover has more than 60,000 ATMs available to customers. All of the ATMs in its network are fee-free ATMs. You may get charged a fee by other banks when using an out-of-network ATM.
Another nice feature is access to Zelle, a digital payment network. Discover and Zelle have partnered up, allowing customers to connect bank accounts to the service easily. Zelle lets you send and receive money between almost every U.S.-based bank account. There are no fees charged for this service.
- 1% cash back on up to $3,000 per month of debit card purchases
- No monthly fees, overdraft fees or minimum balances
- Online bill pay feature
- 60,000+ fee-free ATMs
- U.S.-based customer service available 24/7 365 days a year
- Highly rated mobile app
- Competitive APYs on savings accounts and CDs
- IRA CDs available for retirement investments
- Diverse range of accounts for different financial needs: checking, savings, CDs, credit cards, personal loans
- No physical locations
- No auto loans
- No reimbursement for out-of-network ATM fees
How Discover Bank Stacks Up
Discover hits a home run with its online banking services. They offer competitive rates on most accounts while having no minimum balances or fees. Checking accounts earn 1% cash back, are chase banks open on presidents day isn’t very common in the banking world.
Discover stands by its accounts and discover card loan login offers comparisons to other banks on its website so you can see the differences. Its transparency is great to see. Flexibility is one of Discover’s best traits, evident across all of its banking products.
If the thought of online-only banking scares you, then Discover Bank isn’t the best option for your next bank account. Customers who are okay without a local bank branch should take advantage of high-yield earning with Discover Bank.
Frequently Asked Questions (FAQs)
Does Discover offer any loans?
Yes. Besides its personal banking products, Discover also offers personal loans, student loans and home equity loans.
Personal loans can be taken out through Discover for up to $35,000. The loans have fixed interest rates and can be repaid over a time period ranging from 36 months to 84 months. Those with established credit will qualify for lower APRs than those with an average to poor credit profile. There are no origination fees or other loan fees so long as you pay on time.
Discover student loans cover up to 100% of school costs. Students also can earn a discount for getting good grades. Student loans carry either a variable or fixed interest rate. The specific APR will vary, depending on the creditworthiness of the applicant.
Flexible home equity loans are available through Discover, with terms ranging from 10 years to 30 years. Home equity loan amounts range from $35,000 to $200,000. These loans carry a fixed APR, which will vary based on loan amount and creditworthiness factors.
Is Discover Bank FDIC insured?
Yes, Discover Bank is FDIC insured (FDIC# 5649). The federal government protects your money up to $250,000 per depositor, for each account ownership category, in the event of a bank failure.
Discover Bank takes account security seriously. They do this through the use of fraud monitoring, fraud protection, SSL encryption, bill pay protection, and other security measures. Discover customers will never be held responsible for unauthorized banking transactions.
How good a deal is the Discover 1% cash back debit card?
Discover Bank is one of the few banks that still offers significant cash back rewards for debit card purchases. You can earn 1% cash back on up to $3,000 in debit card purchases each month.
Cash back can be redeemed as an automatic monthly deposit into your Online Savings account, transferred to a Discover Credit Card Cashback Bonus Account or deposited into your Cashback Debit account, Online Savings account or Money Market account. Rewards do not expire so long as your account is kept in good standing.