Discover is probably best known for its cash-back credit card, but Discover® Bank also offers a savings account that pays a competitive interest rate. The high interest rate plus the promise of no fees make the Discover® Online Savings Account one of the best high-yield savings accounts.
Annual percentage yields (APYs) and account details are accurate as of May 1, 2024.
What Is the Discover® Bank Savings Rate?
The Discover® Bank Online Savings Account pays 4.25% APY. This interest rate is promoted by the bank as over five times the national savings average. While you may be able to find a slightly higher rate elsewhere, Discover’s rate is competitive with the best online savings accounts and well above the current national average savings interest rate of 0.46% as of April 15, 2024.
Some banks require you to have a certain balance to get the best interest rates and some may only apply interest to a portion of your balance. The Discover® Savings Account interest rate applies to your entire account balance, with no requirements and no tiers, so you’ll earn the same interest rate on every cent in your account.
How To Open a Discover® Savings Account?
If you decide to open a Discover savings account, the process is simple. Just go to the Discover High Yield Savings account landing page and select “Open an Account.” If you’re already a Discover credit card holder or savings account customer, you can log in to your account to populate some fields on the application.
Provide the required information, including your name, address and identity details. Then read the account disclosures and make your initial deposit. But don’t worry if you don’t have an initial deposit—there’s no minimum initial deposit to open a Discover savings account.
If you prefer to open your savings account over the phone, you can do that by calling Discover. The bank’s customer service phone number is 800-347-7000. Customer service representatives are available 24/7.
How To Withdraw Money From Discover Savings
You can withdraw money from your Discover savings account in five ways:
- Online transfer to another Discover bank account
- Online transfer to an external bank account
- Domestic wire transfer
- International wire transfer
- Request an official bank check
Online transfers are likely the most common way you’ll get money from your Discover savings account, as they are free and provide an easy way to transfer funds to a domestic bank account. The downside to online transfers is they may be limited to six per month. Discover is not currently enforcing this transaction limitation but may in the future.
If you need to transfer money quickly or send money internationally, you can use a wire transfer to withdraw money from your Discover savings account. There’s no limit to the number of wire transfers you can initiate out of your account, but Discover does charge $30 for each outgoing wire transfer.
Finally, you can request an official bank check from Discover. There are no limits to the number of official bank checks you can have mailed to you.
If you’re looking to get cash from your Discover Savings account, the easiest and fastest way is to transfer money directly from your savings account into a checking account and then withdraw money from an ATM or point of purchase.
Is Discover Savings Account a Good Choice?
Whether a Discover savings account is a good choice for you depends on your personal banking needs. But, for most people, Discover has a compelling savings account offering.
As mentioned above, Discover pays competitive interest rates on savings account deposits with no interest rate tiers, minimum balances or hoops to jump through. While the Discover savings account interest rates aren’t the absolute highest interest rates you can get, they are well above national averages.
Discover is also a good choice for your savings account if you’re looking to avoid fees. The bank doesn’t charge any account-related fees, so that means no minimum balance fees, no monthly maintenance fees, no transaction fees and no overdraft fees. The bank does charge a $30 outgoing wire transfer fee, but for most customers, online (non-wire) transfers will be sufficient.
One possible downside to banking with Discover is that it’s not a full-service bank with physical branch locations. While Discover does offer a checking account, a handful of credit cards, mortgage loans, personal loans and auto loans, you might not be able to fulfill all your banking needs with Discover. If you prefer to bank in person or need services like cashier’s checks or a safe deposit box, you may need to look for these at another bank.
How Many Discover Savings Accounts Can I Have
There’s no limit to the number of Discover savings accounts you can hold. If you prefer to keep your money segmented into separate accounts for budgeting or other purposes, go ahead and open multiple accounts. Having more than one Discover savings account can also be useful if you frequently withdraw money from your savings accounts, as each account has its own monthly withdrawal limit.
Just remember the FDIC insurance limits of $250,000 per institution per ownership category apply, so if you exceed that amount across all of your accounts, the excess amount may not be insured.
How Do I Close My Discover Savings Account?
The easiest way to close your Discover savings account is to call Discover’s 24/7 customer service line at 800-347-7000. Discover doesn’t currently offer a way to close accounts online.
Alternatively, you may submit an account closure request in writing. Discover’s mailing address is Discover Bank, PO Box 30416, Salt Lake City, UT 84130.
Bottom Line
The Discover Online Savings Account is a good choice if you’re looking for a savings account that pays a high APY and you don’t need to access a physical branch bank. The Discover Bank savings rate is competitive with some of the best rates offered by national banks, and the promise of no fees ensures your interest earnings won’t be eaten up by account fees.
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