Unlock the Best Savings Accounts of 2024: Your Ultimate Review!

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The personal finance experts compared the Discover® Online Savings Account with the best high-yield savings accounts and found it to be a solid choice.

While Discover Bank® (Member FDIC) boasts a more attractive savings rate than many traditional banks, there are even higher rates offered by other online banking options.

Thanks to lower overhead compared to brick-and-mortar banks, the best online banks often deliver better rates and lower fees to their customers—and Discover is no exception. However, you might find more competitive rates at smaller online banks and credit unions.

Discover Savings Accounts Overview

Discover offers a standout savings option: the Discover® Online Savings Account. This high-yield savings account provides rates that outshine many traditional banks, plus there’s no minimum deposit or monthly service fee required.

Additionally, Discover offers specialized savings options like certificates of deposit and a money market account.

Discover Savings Account Rate

Discover Bank (Member FDIC) operates out of Chicago and offers a robust online banking experience. The current Discover® Online Savings Account boasts an impressive interest rate of 3.75% APY (as of 12/18/24)—well above the national average for savings accounts.

There’s no monthly service fee, no minimum deposit, and you’ll enjoy the same interest rate no matter how much you have saved.

How Discover Savings Accounts Work

Setting Up Your Discover Savings Account

Discover operates as an online bank, which means you won’t find physical branches. Opening an account is a breeze; you can do it through their website or app, or by calling customer service. You’ll need to provide some personal details—like your name, Social Security number, and address—to get started. With everything in order, you could be set up in minutes!

Earnings with Discover Savings Account

Discover offers an enticing interest rate, currently at 3.75% APY (as of 12/18/24), which is significantly higher than what many traditional banks provide.

If you’re already a Discover credit card holder and prefer to keep your financial products all under one roof, this could be an excellent choice for you. However, if your priority is maximizing your interest rate, you might want to explore other high-yield options available.

Discover Savings Account Fees and Charges

The Discover® Online Savings Account is maintenance-free, with no monthly fees. Plus, it doesn’t require a minimum deposit or charge for insufficient funds—ideal for anyone looking to avoid unnecessary fees.

The only fee associated with Discover is a $30 charge for outgoing wire transfers. Incoming wire transfers are free, whether they’re domestic or international.

User Experience and Accessibility

Mobile App Features

Access your Discover® Online Savings Account seamlessly through the user-friendly website or their well-rated mobile app available on Google Play and the Apple App Store.

Online Banking Experience

Since Discover is primarily online, you’ll often be banking via computer. The website allows you to check your balance, locate nearby ATMs, and even engage in live chat for customer service assistance. If in-person banking is your preference, you may want to consider a different bank.

Customer Service and Support

Discover boasts round-the-clock customer service. You can reach them via phone or send messages through their website or app. However, keep in mind that, as an online bank, there are no branch locations for face-to-face assistance.

Discover Savings Account Security

Your finances are secure with Discover, as it is FDIC-insured. This means your money is protected in the event of a bank failure, up to $250,000 per depositor, per account type. Discover also employs SSL encryption to safeguard your personal data and continuously monitors your account for any suspicious activity.

Pros and Cons of Discover Savings Account

Pros

• Attractive interest rate, compounded daily
• No monthly service fees
• Zero minimum deposit requirements
• Early direct deposit access
• 24/7 customer service in the U.S.
• Outstanding online and mobile banking tools

Cons

• No physical branches for in-person banking
• $30 fee for outgoing wire transfers

Is a Discover Savings Account Right For You?

If you’re looking for a high-yield savings account that offers competitive interest rates and low fees, the Discover® Online Savings Account checks all the boxes with a 3.75% APY and zero account fees. New savers will appreciate the $0 minimum opening deposit, allowing you to get started without any barriers.

If you prefer to bank in person or are solely focused on achieving the highest possible interest rate, this may not be the ideal option for you.

Discover Savings Account Alternatives

Discover Online Savings vs. American Express® High Yield Savings Account

The American Express® High Yield Savings Account (Member FDIC) currently offers 3.80% APY (as of 12/17/24).

Both Discover and American Express do not charge monthly service fees, excess transaction fees, or require minimum opening deposits. They also both provide customer support 24/7, highly-rated mobile apps, and a variety of banking products, including checking accounts, CDs, credit cards, and personal loans.

A key difference lies in mobile check deposit capabilities: American Express allows for greater flexibility with limits than Discover, which has adjustable limits for new customers. If flexibility with mobile deposits is important to you, American Express might be the better choice. Otherwise, both accounts present appealing rates and fees.

Discover Online Savings vs. Capital One 360 Performance Savings

Capital One 360 offers a suite of banking products, including a savings account with a 3.80% APY (as of 12/06/24). While Capital One has physical branches in some locations, Discover operates entirely online.

Both accounts feature no monthly maintenance fees or overdraft fees, a $0 minimum opening deposit, and no conditions to earn the stated APY. Discover stands out with 24/7 customer service, whereas Capital One provides support only seven days a week from 8 a.m. to 11 p.m. ET.

Deciding between the two may hinge on your need for in-person banking or your preference for consistent customer support availability.

Why You Should Trust Us: Review Process

We evaluate banks on a five-star scale, with five being the most favorable. For our Discover® Online Savings Account review, we utilized a comprehensive methodology that takes into account minimum opening deposits, fees, interest rates, customer support, app ratings, and the bank’s ethical practices and security measures.

We assign a weighted average to our ratings, focusing more on factors like interest rates and fees, which have a more profound impact on your overall banking experience.

FAQs about Discover Savings Rates