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Discover® Online Savings Review: High APY and No Fees

Review Updated
Kailey Hagen
Matt Frankel, CFP®
By: Kailey Hagen and Matt Frankel, CFP®

Our Banking Experts

Eric McWhinnie
Check IconFact Checked Eric McWhinnie
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 our experts’ opinions aren’t 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 might be for you if: You're interested in a high-yield savings account with few fees and a competitive APY. The bank also has exceptional customer reviews and user-friendly mobile tools. Check out our full Discover® Online Savings account review below to decide if it's right for you.

Ratings Methodology
Rates as of May 20, 2024

Discover® Online Savings

Member FDIC.
Rating image, 4.00 out of 5 stars.
4.00/5 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, 4.00 out of 5 stars.
4.00/5 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
APY
4.25%
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.

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
up to 4.60%
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!
5.00% APY for balances of $5,000 or more
Rate info Circle with letter I in it. 5.00% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000 for max APY
N/A
5.25%
Rate info Circle with letter I in it. To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.
Min. to earn: $0
N/A

Full Discover® Online Savings review

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

Discover® Online Savings interest rate

Account APY Minimum Deposit
Discover® Online Savings 4.25% $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 beginner 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.

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.

We tried it: Our team's firsthand experience

Here at The Ascent, 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 firsthand experience:

"I chose Discover® Online Savings first and foremost because of its high APY. However, I am also a Discover Credit Card & 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."

–Ethan Mellin, Senior Performance Marketing Manager here at The Ascent, a Motley Fool service

What the Discover® Online Savings platform looks like:

Screenshot of the Discover Online Savings platform

Discover Online Savings platform. Image source: Ethan Mellin

User reviews

Discover claimed the top spot in J.D. Power's most recent U.S. Direct Banking Satisfaction Study. It also has an A+ rating with the Better Business Bureau and a number of glowing reviews from customers online.

Top perks

4.25% 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, 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 upon technology to facilitate transactions normally handled face to face at a bank. Savers can access details for all their Discover accounts, view account activity, electronically deposit checks, and transfer money.

FDIC insured: Just like a traditional bank, Discover is a member of the FDIC, which means that 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.

Keep reading about Discover:

Our savings account methodology

At The Motley Fool Ascent, 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%
  • Brand and reputation: 20%
  • Fees and minimums: 15%
  • Other perks: 15%

Learn more about how The Motley Fool Ascent rates bank accounts.

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, plus 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.

Our Banking Experts

Kailey Hagen
By: Kailey Hagen

Writer

Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. 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.

Matt Frankel, CFP®
By: 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 The Ascent 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 ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, 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.

Eric McWhinnie
Check IconFact Checked 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.