Discover® Bank
Discover® Bank Review: Checking, Savings and CDs
Discover® Bank offers excellent accounts and a massive free ATM network, and it does not charge monthly or overdraft fees.
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The bottom line:
Discover® Bank checking lets you earn cash back when you make qualifying debit card purchases each month, and it provides free access to a broad ATM network. The online bank also offers a strong high-yield savings account. But customers who prefer to bank in person won’t like that Discover has only one physical branch.
Best for: Customers who value competitive rates, checking perks and ATM access over branches, and might overdraft from time to time.
Editor’s note: On Feb. 19, 2024, Capital One announced plans to acquire Discover.
Pros
- No overdraft fees.
- No monthly fees.
- Competitive rates on savings accounts and CDs.
- Large, free, nationwide ATM network.
- No minimum opening deposits.
Cons
- Limited branch access.
Full review:
What the Nerds think
“Spending with a debit card can make it easier to stick to a budget and Discover® Bank Cashback Debit Checking makes it especially enticing to go this route. It can help you earn 1% cash back on up to $3,000 in debit card purchases each month and there are no fees or minimum requirements to worry about. If you want to deposit cash into your account, you can do that for free at Walmart.”
Ruth Sarreal, Banking Lead Content Management Specialist
Checking
Monthly fee
$0
Bonus
$360
Up to $360 per year. See website for details.
Discover’s Cashback Debit is a rewards checking account that lets you earn 1% cash back on up to $3,000 in debit card purchases each month. Plus, there’s no monthly service charge and no monthly balance requirement. Discover Cashback Debit offers access to over 60,000 fee-free ATMs and paychecks are available up to two days early with direct deposit.
Account holders can fund their account in a few ways: online transfer from a different bank, mobile check deposit, mailing a check to the bank or making a free cash deposit at Walmart.
Cashback Debit details from Discover: “Earn 1% cash back on up to $3,000 in debit card purchases each month. See Deposit Account Agreement for details on transaction eligibility, limitations and terms. Deposit Account Agreement can be found at https://www.discover.com/content/dam/dfs/online-banking/documents/NationalDepositAccountAgreement.pdf.”
Certificates of deposit
1-year APY
4.00%
3-year APY
3.50%
5-year APY
3.50%
Minimum deposit
$0
Savings
APY
3.75%
With $0 min. balance for APY
Bonus
$200
Requirements to qualify
Discover® Online Savings’ annual percentage yield compares favorably with the national average of 0.41%, and you won’t have to pay maintenance fees for this account. There are also no minimum balance requirements to earn interest.
Discover offers a $150 or $200 bonus for opening your first Discover® Online Savings Account (expires 03/13/2025). See below for more details, or see it on our list of best bank bonuses.
Online Savings Account details from Discover: “Advertised Online Savings Account APY is accurate as of 02/04/2025. Applies to personal accounts only. APY may change before or after the account is opened. No minimum deposit to open.”
Bonus offer details from Discover: “To qualify for Bonus: Apply for your first Discover® Online Savings Account, enter Offer Code NW924 at application, deposit into your Account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Qualifying deposit(s) may consist of multiple deposits and must post to Account within 45 days of account open date. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers, including co-branded, or affinity accounts. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of the account qualifying for the bonus. Bonus is subject to tax reporting. Offer ends 03/13/2025, 11:59 PM ET. Offer may be modified or withdrawn without notice. Due to new customer funding limits, you may wish to initiate fund transfers at your other institution.
Money market
APY
3.60%
With $0 min. balance for APY
Bonus
N/A
The Discover® Money Market Account earns a 3.60% APY for balances below $100,000 and a 3.65% APY for balances at that amount and higher. An MMA is a type of savings account typically with a higher minimum balance than a regular savings account, but Discover’s MMA has a $0 minimum opening balance requirement. After you open an account, there are no monthly service fees or minimum balance requirements. This MMA also offers check-writing privileges.
We did not factor this account into our rating of Discover® Bank because the savings account has a higher rate, so we considered the savings account instead. However, if you are in the market for an MMA — say, you want a savings account that also has check-writing privileges — this account is worth a look.
Customer experience
Discover offers a high-quality web experience and its mobile banking apps receive high ratings from customers, and representatives are available by phone all day, every day. You also can reach the bank through mail and social media.
There is a downside for those unwilling to let go of face-to-face banking: Unless you live near Greenwood, Delaware — where Discover® Bank has its only branch — you’ll need to do your banking online.
Overdraft fees
Like an increasing number of banks, Discover® Bank doesn’t charge a fee for overdrafts. If you don’t have enough money in your account to cover a purchase, and you’ve enabled overdraft protection, Discover will pull the money from your designated funding account. If you don’t have enough in your funding account or you haven’t enabled overdraft protection, the transaction will be declined, and you won’t be charged a fee.
Transfers from a linked account that cover your overdrafts are free. Other banks may charge for this service. Note that there is no option to have an overdraft line of credit.
How does Discover® Bank compare?
APY
3.75%
With $0 min. balance for APY
Bonus
$200
Requirements to qualify
APY
3.80%
With $0 min. balance for APY
Bonus
$300
Earn up to $300 with direct deposit. Terms apply.
Margarette Burnette
Margarette Burnette is a NerdWallet authority on savings. Her work has been featured
in USA Today and The Associated Press.