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Discover® Online Savings Review: High APY and No Fees

Review Updated
Kailey Hagen
Author: Kailey Hagen
Kailey Hagen
Kailey Hagen
Writer

Kailey Hagen has been writing about small businesses and finance for almost 10 years. Articles she's written for The Motley Fool have been syndicated to USA Today, MSN, and Yahoo! Finance. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.

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Matt Frankel, CFP®
Reviewer: Matt Frankel, CFP®
Matt Frankel, CFP®
Matt Frankel, CFP®
Writer, Analyst

Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for Motley Fool Money and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column for the Motley Fool ("Ask a Fool") that is syndicated in USA Today, and his work with Motley Fool Money has also been syndicated to MSN and Yahoo! Finance. He has been regularly featured on Fox Business and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.

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Eric McWhinnie
Fact Checked: Eric McWhinnie
Eric McWhinnie
Eric McWhinnie

Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.

The Discover® Online Savings account is one of our picks for 2024's best high-yield savings accounts. Our pick for the best savings account mobile app, this account combines a competitive APY, few fees, and user-friendly mobile tools.

Discover® Online Savings
Open Account for Discover® Online Savings

On Discover Bank's Secure Website.

Member FDIC.

Ratings Methodology
Rates as of Dec 20, 2024

Discover® Online Savings

Open Account for Discover® Online Savings

On Discover Bank's Secure Website.

Member FDIC.
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Open Account for Discover® Online Savings

On Discover Bank's Secure Website.

Limited-time offer
Earn up to $200 when you use offer code TMF924 on your first Discover Online Savings application. Circle with letter I in it. Apply for your first Discover Online Savings Account with offer code TMF924. Deposit $15,000 to earn $150 or $25,000 to earn $200. Deposits must post within 45 days. Offer ends March 13, 2025. See Discover’s website for full details.
APY
3.75%
Min. To Earn APY
$0
  • Competitive APY
  • No account fees
  • Comfort of a well-known brand and reputation
  • 24/7 customer support
  • FDIC insured
  • No ATM access
  • No branch access; online only

The Discover® Online Savings account promises customers an above-average interest rate and few limitations. Most people won't ever encounter fees with this account, and you won't have to worry about keeping track of your monthly withdrawals either.

Our ratings are determined by an editorially independent Ratings team. Here's more information about how we scored this product:

APY (50%)
Rating image, 5.00 out of 5 stars.
5.00/5
Brand & Reputation (20%)
Brand (20%)
Rating image, 5.00 out of 5 stars.
5.00/5
Account Features (15%)
Features (15%)
Rating image, 4.00 out of 5 stars.
4.00/5
Fees (15%)
Rating image, 5.00 out of 5 stars.
5.00/5

To qualify for Bonus: Apply for your first Discover Online Savings Account, enter Offer Code TMF924 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. For information on funding your Account, see FAQs on Discover.com/Bank.

  • At Motley Fool Money, we rate savings accounts on a five-star scale (1 =poor, 5 = best). We evaluate all savings accounts across four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum requirements, and perks that really make a difference -- think ATM access, linked checking accounts, or even branch access.

    Our scores are weighted as:

    • APY (50% of total star rating): Savings accounts with 5 stars have 10x the national average APY or greater, OR 6x to 9x the national average APY with $100+ welcome bonus.
    • Brand and reputation (20% of total star rating): Savings accounts with 5 stars come from institutions with long and stable histories with high levels of customer trust and satisfaction. These accounts are backed by significant industry awards and recognition. They also feature multiple customer support options, have a highly rated app with an average rating of 4.0 stars or higher between iOS and Google Play store ratings, and advanced safety features, like two-factor authentication.
    • Fees and minimums (15% of total star rating): Savings accounts with 5 stars have no account service fees, account closure fees, overdraft fees, or minimum balance fees. They also have no minimum requirements to earn the maximum APY.
    • Other perks (15% of total star rating): Our 5-star accounts offer most of the following features: ATM access through ATM or debit card, additional linked account integration, branch access, and relationship banking perks.

    Our aim is to maintain a balanced list featuring top-scoring products from reputable brands offering competitive APYs and standout features. Learn more about how Motley Fool Money rates bank accounts.

Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
3.80%
Rate info Circle with letter I in it. 3.80% annual percentage yield as of December 27, 2024. Terms apply.
Min. to earn: $0
N/A
Open Account for American Express® High Yield Savings

On American Express's Secure Website.

up to 4.00%²
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
3.80%
Rate info Circle with letter I in it. See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
N/A

We tried it: Our team's firsthand experience

Here at Motley Fool Money, we pride ourselves as real users of most of the products across our site. One of our Senior Performance Marketers, Ethan Mellin, uses the Discover® Online Savings account himself.

Here's Ethan's review:
Image of reviewer

I chose Discover® Online Savings first and foremost because of its high APY. However, I am also a Discover credit card and checking account holder, so having everything in one easy-to-use mobile app makes it extremely easy to manage my finances. That being said, I've recently noticed other online savings accounts with slightly higher APYs.

Full Discover® Online Savings review

Here's a closer look at what the Discover® Online Savings account has to offer.

Interest rate

Account APY Minimum Deposit
Discover® Online Savings 3.75% $0
Data source: Discover.

You can find accounts offering a higher APY, but Discover's savings APY is definitely a competitor with the best accounts we've found. Plus, you can earn that APY with no minimum deposit, meaning even beginning savers can benefit.

Fees

One of the best things about the Discover® Online Savings account is its lack of fees. Most customers won't ever encounter fees with this account, though those who want to send an outgoing wire transfer will pay a $30 service fee.

Minimum balance

The Discover® Online Savings account doesn't have a minimum balance requirement. You don't need to make an initial deposit when you open the account, and you can earn interest with as little as $0.01.

Withdrawal limit

Discover doesn't limit the number of withdrawals you can make from your savings account each month. Many other banks still limit their customers to a maximum of six monthly withdrawals.

Mobile app

The Discover Mobile app is available for iOS and Android devices. Both have ratings over 4.5 and have been downloaded millions of times.

We want to know what you think about Discover® Online Savings

Do you have first-hand knowledge of Discover® Online Savings? Share your thoughts with us and your fellow Motley Fool Money readers.

Discover® Online Savings
Write a Review
Discover® Online Savings
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Let us know what you think

Do you have any experience with this bank account? Let us know your thoughts.

Discover® Online Savings

The most helpful reviews focus on your experience with this product.

For privacy reasons, do not include your full name or email address.

I authorize Motley Fool Money to use my name and comments on their site without compensation or final approval from me, and I will not hold them liable for any errors or distortions. I acknowledge that Motley Fool Money may choose not to use my comments, or make edits, and I have not been promised any compensation for this testimonial. I confirm that granting this license does not conflict with any of my existing commitments.

How to access your money

Discover doesn't have physical branches. However, it does give you several options for deposits and withdrawals.

Deposit options

Here are your choices for depositing money into your Discover® Online Savings account:

  • Mobile deposit
  • Online transfer
  • Wire transfer
  • Direct deposit
  • Mailing in a check

Withdrawal options

When you need to withdraw money from your Discover® Online Savings account, you have these options:

  • Wire transfer
  • Official bank checks
  • Online transfers to external banks
  • Transfer to other Discover accounts

If you transfer funds electronically to other Discover accounts, such as a Discover® Cashback Debit account, you can quickly and easily access cash at any ATM in the bank's network.

What the Discover® Online Savings platform looks like:

Screenshot of the Discover Online Savings platform

Discover Online Savings platform. Image source: Ethan Mellin

Online user reviews

Discover fell just slightly below average in J.D. Power's most recent U.S. Direct Banking Satisfaction Study. However, it has an A+ rating with the Better Business Bureau and many of glowing reviews from customers online.

Top perks

3.75% APY: The Discover® Online Savings account's APY is among the best we've found from the top high-yield savings accounts.

No monthly balance requirement: Discover's high-yield savings account is broadly accessible to different account holders. This includes savers who don't keep large ongoing monthly balances. Not only is there no monthly balance requirement, but there's no minimum opening deposit.

No fees: You won't pay for a stop payment order, an excessive withdrawal, insufficient funds, or monthly maintenance.

Mobile app: Discover has one of the best mobile apps of the online banks we reviewed. Mobile apps are crucial for an online savings account, where customers must rely on technology to facilitate transactions normally handled in person at a bank. Savers can access details for all their Discover accounts, view account activity, electronically deposit checks, and transfer money, all within the app.

FDIC insured: Just like a traditional bank, Discover is a member of the FDIC, which means your funds are protected, even in the unlikely event of bank failure. The FDIC covers up to $250,000 per depositor, per institution.

What could be improved

ATM card: The Discover® Online Savings account doesn't provide an ATM or convenience card for withdrawals. To get one, you'll have to open a Discover® Cashback Debit account in tandem with a savings account.

This product allows transferring funds between accounts for ATM and debit transactions, and it earns 1% cash back on eligible debit purchases of up to $3,000 each month, earning you a possible $30 in cash back per month and a maximum of $360 per year.

Is the Discover® Online Savings account FDIC insured?

Yes, the Discover® Online Savings account is insured up to $250,000 per person. Those who open joint accounts get up to $500,000 of FDIC insurance. This is typical of all reputable U.S. banks.

The Discover® Online Savings is right for you if:

The Discover® Online Savings account is a solid pick for anyone interested in earning a high APY while avoiding many common bank fees. As long as you're comfortable managing your finances online, you won't find much to complain about, especially if you pair this account with a Discover® checking account.

Apply for Discover® Online Savings

Keep reading about Discover:

FAQs

  • Yes, Discover® Bank is an FDIC member, which means that funds in accounts are insured up to a maximum of $250,000 per person. Funds are completely safe in the event of bank failure. It's important to note that Discover is a well-capitalized and stable institution.

  • The Discover® Online Savings account is designed to be a fully online savings account. You can open an account online, make a deposit electronically or via check, and your money will start earning interest at the current APY. The Discover® Online Savings account is best used when paired with a checking account, either an external one or a Discover® Cashback Debit account.

  • You can do an electronic transfer to another Discover bank account or an external bank account. You can also do a wire transfer or request an official bank check.