A division of Discover Financial Services—the company best-known for its pioneering cashback credit card—Discover Online Banking began offering accounts in 2013. Virtually, a digital institution, it operates online, through its app and via a vast network of more than 60,000 ATMs.
- Pros & Cons
- Company Overview
- Cash-back bonus on debit card purchases
- No fees
- Large ATM network
- Only one brick-and-mortar branch
- High minimum CD deposit
- Year Founded 1911
- Official Website www.discover.com
- Banking Products Offered Savings, checking, CDs, MMA
- Customer Support 24/7 Phone: 1-800-347-7000
Pros Explained
- Cash-back bonus on debit card purchases. Cash back on credit cards is pretty standard, but Discover rather uniquely offers a 1% cash-back bonus on anything you buy with your debit card, up to $3,000 in purchases a month. You could potentially earn up to $360 annually.
- No fees. Discover Bank's checking account boasts no fees—no monthly minimum fees or fees for insufficient funds. Plus, you won’t get dinged with a charge for returned items, or should you close your account.
- Large ATM network. The Discover debit card is accepted at 415,000 ATMs in the U.S overall. Account-holders can make withdrawals at no charge at some 60,000 ATMs belonging to the Allpoint and MoneyPass networks. Using a machine outside these networks might incur a surcharge imposed by the third-party ATM owner. Discover itself, however, never charges a fee for ATM use.
Cons Explained
- One brick-and-mortar location. True to its name, Discover Online Banking has but one actual branch, in Greenwood, Delaware. So if you like face-to-face contact, this isn't the institution for you.
- High minimum CD deposits. While Discover Bank's interest rates for its certificate of deposit stack up nicely against the competition's, you'll need at least $2,500 to get started. Other online banks allow you to open a CD with as little as $500 or $1,000.
What Is Discover Online Banking Best For?
should be a good fit for those seeking a digital bank that offers a suite of different services. It might be a particularly good fit for those who:- Prefer paperless, digital transactions
- Hate paying fees
- Typically use their debit card for day-to-day transactions
- Prefer to bank with an established "name" financial institution
What Does Discover Online Banking Offer?
As you might expect from the banking division of a major financial services company, Discover Bank offers an array of products and services:- Checking account
- Savings account
- Money market account
- Certificates of Deposit
- IRAs
Discover Checking Account
A major feature of the Discover Checking Account is its cash-back debit card. The 1% cash-back reward strictly applies to purchases, though. ATM transactions, money orders, loan payments made with your debit card, and payments using peer-to-peer platforms aren’t eligible for cash-back rewards. Besides cash-back on your cards, there are no monthly maintenance fees, insufficient funds, or a fee for returned items or stop payment orders. There’s no minimum to open an account, and there’s no monthly minimum balance to keep the account open. Other perks include free checks.Discover Savings Account
Like the checking account, Discover Savings Account doesn't require any minimum to open or maintain the account. As of March 2024, the annual percentage yield (APY) is 4.25%, which is higher than the average national savings rate of 0.46%.
Discover Bank’s no-fees features apply here too: The account is free of no monthly maintenance or insufficient funds charges.Discover Money Market Account
While there’s no ongoing minimum required to maintain a Discover Money Market account, you’ll need at least $2,500 minimum to open it. There are two interest rates: If your balance is less than $100,000, you’ll earn an APY of 4.00%. If it’s more than $100,000, you’ll get a slight bump of 4.05%.
Once opened, the account generates no monthly maintenance fees, no fees for insufficient funds, or if you make more than six withdrawals or transfers in a given month.Discover Certificate of Deposit (CD)
Discover’s high-yield certificates of deposit (CD) give you the option of tucking away a sum of money for a set amount of time. CDs usually earn a higher interest rate than a standard savings or checking account. And the longer your term, the more you can earn. The minimum amount for an opening deposit is $2,500. Discover’s high-yield CDs range from three months to 10 years, and the interest rates are as follows:
Discover Bank CD Rates | |
---|---|
Term | APY |
3 Months | 2.00% |
6 Months | 4.25% |
9 Months | 4.25% |
12 Months | 4.70% |
18 Months | 4.40% |
24 Months | 4.00% |
30 Months | 3.75% |
36 Months | 3.75% |
48 Months | 3.75% |
60 Months | 3.75% |
7 Years | 3.75% |
10 Years | 3.75% |
Discover Bank CD Early Withdrawal Penalties | |
---|---|
Term | Early Withdrawal Fee |
Less than 1 year | 3 months simple interest |
1 year to less than 4 years | 6 months simple interest |
4 years to less than 5 years | 9 months simple interest |
5 years to less than 7 years | 18 months simple interest |
7 years to less than 10 years | 24 months simple interest |
Discover IRAs
Discover offers both an Individual Retirement Account CD and an IRA Savings Account. The IRA CD requires a $2,500 minimum and offers APYs comparable to those of the regular CDs. The IRA Savings has no minimum and currently offers a 4.25% APY. The retirement accounts can be either traditional or Roth IRAs.
Discover Credit Cards
Cash-Back Cards
- Discover it Cash Back
- Discover it Chrome
- Discover it Chrome for Students
- NHL Discover it
General Travel Rewards Cards
Secured Credit Cards
Other Financial Services Offered by Discover
- Home equity loans
- Refinanced mortgages
- Personal loans
- Student loans
- Debt consolidation
Discover Bank Customer Service
Discover Online Banking offers 24/7 customer phone support, 365 days a year at 1-800-347-2683 —with reps based entirely in the U.S., as the company likes to emphasize. You can also reach out to customer support by chat. And like most banks, you can deposit a check and access your banking information and financial transactions through its mobile app.According to the J.D. Power 2022 U.S. Credit Card Satisfaction Study, among credit card issuers, Discover has the second highest ranking with a score of 841. And per the J.D. Power 2022 U.S. Banking Mobile App Satisfaction Study, Discover also ranked in first place in online credit card satisfaction.
In 2012, Discover Financial Services paid out $200 million to 3.5 million customers for deceptive practices—such as enrolling clients in products like its payment protection plans, without their permission. Discover also paid a civil fine of $7 million both to the Consumer Financial Protection Bureau's (CFPB) Civil Penalty Fund and to the U.S. Treasury.