Editorial Review

Discover Bank Review: Checking, Savings and CDs

Discover Bank offers excellent accounts and a massive free ATM network, and it does not charge monthly or overdraft fees.

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Overall bank rating

Discover Bank

at Discover Bank,

Member, FDIC

  • Savings

    Savings

  • Checking

    Checking

  • CD rates

    CD rates

  • Banking experience

    Banking experience

  • Overdraft fees

    Overdraft fees

5.0

NerdWallet rating 

The bottom line: Discover Bank® checking lets you earn cash back when you make qualifying debit card purchases each month, and it also offers free access to a broad ATM network. And the online bank has a strong high-yield savings account. But customers who prefer to bank in person won’t like that Discover® has only one physical branch.

Pros

  • No monthly fees on checking and savings accounts.

  • 1% cash-back rewards checking account.

  • Solid rate on savings.

  • Large ATM network.

Cons

  • Only one physical branch location.

Full review

Best Savings Account

Discover Bank Online Savings

at Discover Bank,

Member, FDIC

5.0

NerdWallet rating 

at Discover Bank,

Member, FDIC

APY

1.15%

With $0 minimum balance

The Discover online savings account’s annual percentage yield compares favorably to the national average of 0.06%, and you won’t have to pay maintenance charges for this account. There are also no minimum balance requirements to earn interest.

Online Savings Account details from Discover: "Annual Percentage Yield (APY). Advertised Online Savings Account APY is accurate as of 5/21/2020. Applies to personal accounts only. APY may change before or after the account is opened. No minimum deposit to open."

Best Checking Account Overall, Best Checking Account With No Monthly Fee, Best Bank for Overdraft Fee Avoidance

Discover Bank Cashback Debit

Discover Bank Cashback Debit

5.0

NerdWallet rating 
Monthly Fee

$0

Discover’s Cashback Debit is a rewards checking account that lets you earn 1% cash back for certain debit card transactions, on up to $3,000 in purchases each month. It’s rare to find a rewards checking account with no monthly service charge. Discover Cashback Debit offers this benefit, along with no monthly balance requirement and access to over 60,000 fee-free ATMs.

»Looking for more checking account options? Check our NerdWallet's Best Checking Accounts

There is a downside for those unwilling to let go of face-to-face banking: Unless you live near Greenwood, Delaware — where Discover Bank has its only branch — you’ll need to do your banking online.

Cashback Debit details from Discover: "ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, peer-to-peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo® and PayPal™, which also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries."

See Discover's website for more details.

Discover Bank CD

Discover Bank CD

5.0

NerdWallet rating 
1-year APY

1.01%

3-year APY

1.15%

5-year APY

1.25%

Minimum Deposit

$2,500

Discover Bank offers strong CDs with a broad range of term lengths.

CD details from Discover: “Annual Percentage Yield (APY) is accurate as of 5/29/2020, is subject to change without notice, and will be determined and fixed for the term at funding. Applies to personal accounts only. A penalty may be charged for early withdrawal. Minimum deposit to open is $2,500."

Banking experience

4.5

NerdWallet rating 

Discover’s mobile banking apps receive high ratings from customers, and representatives are available by phone every day. You also can reach the bank through mail and social media.

Overdraft fees

4.5

NerdWallet rating 

Discover Bank doesn’t charge a fee for overdrafts. If you don’t have enough money in your account to cover a purchase, and you’ve enabled overdraft protection, Discover will pull the money from your designated funding account. If you don’t have enough in your funding account or you haven’t enabled overdraft protection, the transaction will be declined, and you won’t be charged a fee.

The largest U.S, banks charge an average overdraft fee of $35, according to a recent NerdWallet analysis — sometimes multiple times per day. If you don’t have enough money to make a purchase, Discover won’t penalize you for it.

Transfers from a linked account that cover your overdrafts are free. Other banks may charge for this service. Note that there is no option to have an overdraft line of credit.

Best Savings Account

Discover Bank Online Savings

at Discover Bank,

Member, FDIC

5.0

NerdWallet rating 

at Discover Bank,

Member, FDIC

APY

1.15%

With $0 minimum balance

The Discover online savings account’s annual percentage yield compares favorably to the national average of 0.06%, and you won’t have to pay maintenance charges for this account. There are also no minimum balance requirements to earn interest.

Online Savings Account details from Discover: "Annual Percentage Yield (APY). Advertised Online Savings Account APY is accurate as of 5/21/2020. Applies to personal accounts only. APY may change before or after the account is opened. No minimum deposit to open."

Best Checking Account Overall, Best Checking Account With No Monthly Fee, Best Bank for Overdraft Fee Avoidance

Discover Bank Cashback Debit

Discover Bank Cashback Debit

5.0

NerdWallet rating 
Monthly Fee

$0

Discover’s Cashback Debit is a rewards checking account that lets you earn 1% cash back for certain debit card transactions, on up to $3,000 in purchases each month. It’s rare to find a rewards checking account with no monthly service charge. Discover Cashback Debit offers this benefit, along with no monthly balance requirement and access to over 60,000 fee-free ATMs.

»Looking for more checking account options? Check our NerdWallet's Best Checking Accounts

There is a downside for those unwilling to let go of face-to-face banking: Unless you live near Greenwood, Delaware — where Discover Bank has its only branch — you’ll need to do your banking online.

Cashback Debit details from Discover: "ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, peer-to-peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo® and PayPal™, which also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries."

See Discover's website for more details.

Discover Bank CD

Discover Bank CD

5.0

NerdWallet rating 
1-year APY

1.01%

3-year APY

1.15%

5-year APY

1.25%

Minimum Deposit

$2,500

Discover Bank offers strong CDs with a broad range of term lengths.

CD details from Discover: “Annual Percentage Yield (APY) is accurate as of 5/29/2020, is subject to change without notice, and will be determined and fixed for the term at funding. Applies to personal accounts only. A penalty may be charged for early withdrawal. Minimum deposit to open is $2,500."

4.5

NerdWallet rating 

Discover’s mobile banking apps receive high ratings from customers, and representatives are available by phone every day. You also can reach the bank through mail and social media.

4.5

NerdWallet rating 

Discover Bank doesn’t charge a fee for overdrafts. If you don’t have enough money in your account to cover a purchase, and you’ve enabled overdraft protection, Discover will pull the money from your designated funding account. If you don’t have enough in your funding account or you haven’t enabled overdraft protection, the transaction will be declined, and you won’t be charged a fee.

The largest U.S, banks charge an average overdraft fee of $35, according to a recent NerdWallet analysis — sometimes multiple times per day. If you don’t have enough money to make a purchase, Discover won’t penalize you for it.

Transfers from a linked account that cover your overdrafts are free. Other banks may charge for this service. Note that there is no option to have an overdraft line of credit.

How does Discover Bank compare?

APY

1.15%

With $0 minimum balance

APY

1.30%

With $0 minimum balance

APY

1.15%

With $0 minimum balance

Bonus

N/A

Bonus

N/A

Bonus

$500

Requirements to qualify

RATING METHODOLOGY

NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, banking experience and overdraft fees. Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation. The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.