Kevin has been writing and creating personal finance and travel content for over six years. He is the founder of the award-winning blog, Family Money Adventure, and host of the Family Money Adventure Show podcast. He has been quoted by publications l.
Kevin Payne Banking WriterKevin has been writing and creating personal finance and travel content for over six years. He is the founder of the award-winning blog, Family Money Adventure, and host of the Family Money Adventure Show podcast. He has been quoted by publications l.
Written By Kevin Payne Banking WriterKevin has been writing and creating personal finance and travel content for over six years. He is the founder of the award-winning blog, Family Money Adventure, and host of the Family Money Adventure Show podcast. He has been quoted by publications l.
Kevin Payne Banking WriterKevin has been writing and creating personal finance and travel content for over six years. He is the founder of the award-winning blog, Family Money Adventure, and host of the Family Money Adventure Show podcast. He has been quoted by publications l.
Banking Writer Elizabeth Aldrich Banking WriterWith eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel.
Elizabeth Aldrich Banking WriterWith eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel.
Elizabeth Aldrich Banking WriterWith eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel.
Elizabeth Aldrich Banking WriterWith eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel.
Updated: Aug 20, 2024, 11:44am
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Discover® is perhaps best known for its line of credit cards, but it’s also a full-service bank and payment services company. Founded in 1911, it’s grown into one of the largest financial institutions in the United States. While Discover® Bank does not have physical branches, banking customers can access their accounts through a network of more than 415,000 ATMs nationwide.
This Discover® Bank review focuses on personal banking products and services. All account details and annual percentage yields (APYs) are current as of August 20, 2024.
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
$30 Outgoing Wire Transfer Service Charge ATM Network Checking, savings, money market accounts, CDs, credit cards, loansWhy you can trust Forbes Advisor
Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the banking methodology for the ratings below.
Annual Percentage Yield
Earn 1% cash back on up to $3,000 in debit card purchases each month. See website for details.
Minimum Deposit Requirement
On Discover's WebsiteEarn 1% cash back on up to $3,000 in debit card purchases each month. See website for details.
Discover’s checking account is somewhat unusual in the banking world. That’s because—similar to many of Discover’s credit card offerings—the checking account earns cash-back rewards. With the Discover® Cashback Debit Checking account, customers can earn 1% cash back on up to $3,000 in debit card purchases each month. See website for details.
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 that pays a competitive 4.25% APY. Interest compounds daily and pays out monthly.
There are virtually no fees associated with the Discover® Bank Online Savings Account. There’s also no minimum balance requirement. Compare that to Bank of America Advantage Savings, 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® 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. It currently offers a 4.00% APY for balances under $100,000 and 4.05% APY for balances $100,000 and over.
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® Certificates of Deposit 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 $10,000:
120 Months See More See LessDiscover offers a total of 12 CD term lengths.
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:
Traditional IRA CDs are set up differently. Traditional IRA CDs:
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.
You might be interested in Discover Bank if you need a new checking account or savings account, but that’s not all it has. Discover also offers credit cards and loans.
Discover offers a number of credit cards that are designed to meet different financial needs and spending styles. Several of them rank among the best credit cards for earning rewards without charging high annual fees.
Here are the cards currently on offer:
Which are the best Discover credit cards? It depends on how you typically spend.
If most of your credit card purchases center on everyday spending, you might appreciate the Discover it® Cash Back. You can earn 5% cash back on everyday purchases at different places each quarter up to a quarterly maximum of $1,500 in spending when activated. Plus, earn unlimited 1% cash back on all other purchases – automatically.
Alternatively, if you primarily charge travel purchases, then Discover it® Miles could be the better choice. You can earn 1.5 miles per dollar on every purchase with a $0 annual fee.
Along with credit cards, Discover also offers a variety of lending products, including:
You can use Discover personal loans to consolidate debt, make home improvements or cover a large expense, such as a wedding. Discover offers student loans for individual borrowers and students who need the help of a cosigner to qualify.
If you own a home, you could use a Discover loan to tap into your equity or refinance into a new mortgage. With Discover home loans, you pay zero charges at closing, which is a plus you won’t always find at other lenders.
Discover customers can access their accounts in several ways. Accounts are always accessible online.
Discover Mobile is the bank’s highly rated mobile app, available on iOS and Android. Not only can you access all of your Discover accounts through the app, but you also can take advantage of mobile check deposits by taking a photo with your phone or tablet.
Convenience is a huge aspect of Discover’s mobile app. You can easily log into your account through touch ID. iPhone users also can log in through face ID. People using the app can 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.
Discover charges exceptionally few fees.
Monthly Maintenance Insufficient Funds Excess Withdrawals Overdraft Protection Transfer Official Checks Online Bill Pay Zelle Transfers Deposit Item Returned Stop Payment Account Closure Incoming Wire Transfers Outgoing Wire Transfers See More See LessWhile Discover credit cards have no annual fees, you can be charged a fee for late payments, returned payments, balance transfers and cash advances.
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, which isn’t very common in the banking world. See website for details. Here’s how it compares with other top online banks.
American Express offers online savings accounts, along with CDs, checking accounts, credit cards and loans. The American Express® High Yield Savings Account offers an Annual Percentage Yield (APY) that’s on par with what you’d get at Discover Bank. You can also open a rewards checking account to earn back a percentage of what you spend.
In terms of fees, Discover and American Express are similar. You won’t pay monthly maintenance fees, overdraft fees or insufficient funds fees at either bank. And you can open credit cards or charge cards with American Express.
So does Discover have an edge? Yes, with regard to loans and overall user experience. While American Express offers personal loans, you won’t find student loans or home loans. And compared to Discover Bank, the Amex website can be a bit more challenging to navigate.
Capital One 360 is a popular option for online banking if you’re looking for savings accounts, checking accounts or CDs. You can also open credit cards with Capital One, apply for an auto loan or get financing for your small business.
Savings account rates are comparable to the rates you could get at Discover, and there are no monthly maintenance fees or minimum balance requirements. One thing Capital One has that Discover Bank doesn’t is physical locations. You can manage your accounts at Capital One branches, cafes and ATMs.
Overall, Discover Bank offers more banking options for saving and spending. Capital One does have slightly more fee-free ATM locations.
Ally Bank offers a wide range of financial products and services, including checking and savings accounts, mortgage loans, retirement accounts, auto loans and personal loans. Savings account rates are similar to Discover, and you’ll pay no monthly maintenance fees to open a bank account with Ally.
One feature you’ll find at Ally but not Discover are automatic savings tools. You can grow your money on autopilot with recurring transfers, round-ups and Surprise Savings. With Surprise Savings, Ally analyzes your checking account activity to find funds you can transfer to savings without hindering your spending.
Like Discover, Ally doesn’t have physical branches. If you’re looking for ATMs, Discover offers a larger network of locations to choose from.
Forbes Advisor rates banks based on various factors, including their fees, interest rates and ATM networks, among other characteristics. We assign separate ratings to financial institutions and their individual products, such as checking accounts, savings accounts and certificates of deposit (CDs). We rate banks based on a scale of one to five stars, with one star as the poorest rating and five stars as the best.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.