Discover Bank Review

Discover Bank’s Online Savings account has a lot to offer customers seeking a simple savings system with a competitive interest rate. Interest is compounded daily.With this bank account, you won’t be charged a fee for insufficient funds, account closures, excessive withdrawals or monthly maintenance. There is a $30 charge for outgoing wire transfers. The good news? You might not be impacted by this fee, as most people use the more-commonplace ACH transfer system to move their money.

One downside: The account doesn’t come with a debit card, so if you want to access your funds, you can’t use an ATM. You can access your money by transferring it to another account, presumably one with a debit card, or request an official bank check.

Discover’s fine-tuned mobile app allows you access to your account with an easy-to-use interface. Discover is a member of the Federal Deposit Insurance Corporation (FDIC), like most banks, so your funds are protected with FDIC insurance.

If you want a savings account but you need an easier way to access your cash, too, Discover Bank’s Money Market account is very similar to its flagship savings account. You will need $2,500 to open one, which may not be accessible to everyone.You can make six withdrawals monthly via a money market check or debit card (both tools come with the account). Similar to Discover’s Online Savings account, there are few fees. If you lose your card or your checks, Discover will expedite replacements to you at no charge.

You can also open an individual retirement account (IRA) savings account with Discover Bank, which does not call for a minimum deposit and its APY is set at 3.30%, like its regular online savings account. You can open this account as a traditional IRA or Roth IRA.

By locking in a rate, you guarantee a return on your investment, and you won’t pay any fees during the length of your account. Laddering your CDs combined with the bank’s strong rates (up to 3.50% depending on the term) can give you a little access to cash while you continue to save.

Each Discover Bank CD calls for a minimum deposit of $2,500. Like most CD accounts, you will have to pay penalties if you withdraw money from your CD before its term is up. This charge could be up to two years of simple interest at Discover Bank.

CDs work best if you fund them and then forget them while they earn interest. Discover Bank makes this easy because they offer such a wide range of terms.

As our Discover Bank review mentions, this online entity makes it easy to bank from a mobile device and open an account online. Current customers give kudos to its mobile and web-based technology. You can access your account anywhere at any time (live customer rep support is 24/7/365), and its sprawling network of over 60,000 free ATMs means you don’t have to pay to access your cash.

Discover Bank’s higher-than-average returns on savings, money market accounts and CDs may make up for the downside of its lack of brick-and-mortar banks (unless you live near Greenwood, Del.). However, its lack of a checking account for new customers (as of late 2022) is a downside for those looking for a full suite of banking products or wanting to make debit card purchases.

Like many other financial institutions, Discover also offers loan products such as personal loans, school loans and home loans like refinance loans and home equity loans. If you are looking for a home loan product, both of Discover’s options allow you to tap into valuable equity in your home for cash with fixed interest rates, no origination fees and no closing costs.

Discover is nationally recognized for its gold-star customer service, strongly rated mobile app and competitive rates — in 2022, it was ranked the second-best online bank in the U.S., according to a survey by J.D. Power. These are all reasons why Discover could provide you with a variety of personal finance products and services while providing the customer support you need any time of the day or night.