Discover credit cards offer 5% cash back at restaurants, supermarkets, and gas stations. Discover offers an additional 1% cash back on all purchases.
Discover is one of the most popular credit cards. Some of the most generous rewards are offered by it. There are over 44 million cards. American Express is one of the most popular credit cards in the world and offers a wide range of rewards and benefits, making it an attractive choice for a variety of customers.
Discover has an online bank which offers savings and checking accounts, debit cards, and CDs to account holders across the U.S. You don’t have to make a deposit to open an account online.
I will conduct a thorough review of Discover Bank to help you make a decision.
Who Is Discover Bank Owned By?
Discover Financial Services is based in Riverwoods, Illinois. Discover Financial Services has been in business for over 30 years. Both the Discover card and the online bank were launched decades ago by Sears Roebuck & Co., a huge retailer back in the day.
Discover Financial Services employs over 16,000 people and processes $376 billion in transactions annually. It is one of the leading financial services companies in the world. This financial institution also owns the following major brands:
- The Discover Network is a global payments network. It processes $2 trillion in payments each year.
- Diners Club International offers credit cards, access to airport lounges, and discounts at signature hotels.
- The PULSE ATM network offers credit card and debit payment services to businesses, as well as access to over 2 million ATMs throughout the world. Customers can easily access and withdraw cash from their accounts.
Enough with the financial services company. Let’s move on to the next topic. Discover Bank offers its financial products online. Savings accounts, credit cards, and other services are offered by the bank.
What Does Discover Bank Offer?
Discover Bank is an online bank that offers:
- Checking Accounts
- Online Savings Accounts
- Money Market Accounts
- Certificates of Deposits (CDs)
- IRA certificates of deposit
- Student Loans
- Personal Loans
- Home Equity Loans
Discover Checking
Discover Bank doesn’t pay an annual percentage yield on your checking account balance. A variety of financial services are offered by Discover Bank.
You can still earn rewards with this bank account. Discover Checking gives 1% back on all debit card purchases.
It’s a rare feature for checking accounts. It can help you manage your finances more effectively. If you spend $3,000 a month on your card, Discover Cashback Debit will give you an extra $30 a month for free.
When you use your Discover card, payments through Venmo, Apple Pay, and similar apps will not earn 1% cash back.
There are absolutely no monthly maintenance fees or transaction fees, regardless of your checking account balance — and cardholders have access to over 60,000 ATMs throughout the U.S. Discover does not charge a fee for outgoing wire transfers. Most wire transfers are free with Discover.
Since Discover Bank doesn’t have a network of retail branches, you’d have to use an ATM or the app. If you want to make sure you always add money to your account, you can set up direct deposits from your employer. (Discover Bank does have one branch, and it’s in Greenwood, Delaware.)
Facts About Discover Checking
- Minimum Deposit to Open Account: $0
- Minimum Balance Requirement: $0
- Overdraft or Insufficient Funds Fee: $0
- Monthly Fee: $0
Discover Online Savings
You will earn 3.50% on your deposits with the Discover Online Savings Account. It’s a great way to grow your savings. It is easy to deposit and transfer funds with the Discover mobile app.
Looking at the numbers, an online savings account deposit account with $10,000 in it can earn nearly $70.24 each year, without any effort whatsoever from your end.
This is much higher than the $1 you would earn on $10,000 at 0.01 APY, a typical rate at a large neighborhood bank with branches. Discoer is on the higher end of online savings account rates. Discover provides a convenient online banking experience and is known for its customer service.
Facts About Discover Online Savings
- Minimum Deposit to Open Account: $0
- Minimum Balance Requirement: $0
- Monthly Fee: $0
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Money Market Accounts
Money Market Accounts allow account holders to have access to their cash while earning up to 3.45% APY, slightly less for balances under $100,000. Money Market Accounts allow account holders to earn a competitive rate of return on their savings while still having quick access to their money.
You may be wondering about the difference between Discover’s Money Market Account is an online savings account. A Money Market Account is a great choice for those who want to earn higher interest on their savings while maintaining quick access to their funds. That is a valid question. Asking questions will help you gain a better understanding.
The main difference is a Money Market Account gives you immediate access to your cash, whether you want to write a check or withdraw funds. You earn less interest compared to an online savings account. The convenience of a traditional savings account may be worth the difference in interest.
While your interest earnings are slightly higher with an online savings account, you are not able to withdraw funds at an ATM. Many people choose an online savings account because of the higher interest rates, but they should consider the convenience of having access to cash in an emergency. Federal law limits you to six transactions per month, so you have to transfer the funds electronically. You will be charged a fee for each transfer you make.
Most banks will charge an excessive withdrawal fee if they exceed the federal limit. Discover doesn’t charge this fee. Automatic payments and account alert are some of the helpful tools Discover has to offer. The bank can close your account if you make a lot of withdrawals. Check your bank’s policies for withdrawal limits and fees.
Facts About Discover Money Market Accounts
- Minimum Deposit to Open Account: $2,500
- Minimum Balance Requirement: None
- Monthly Fee: $0
Certificate of Deposit (CD)
CDs are a safe investment vehicle because they provide a guaranteed interest rate that’s relatively high at virtually no risk to the investor.
The money has to be left in the CD account until the certificate matures. You will have to pay early withdrawal penalties if you access the money early. If absolutely necessary, you should access the money early as it could potentially cost you more than you will gain from the higher interest rate.
Facts About Discover CDs
- Minimum Deposit to Open Account: $2,500
- Minimum Balance: $2,500
- Monthly Fee: $0
- CD Terms: 3 to 120 months
Today’s Discover Bank CD Rates:
| Product | APY | Min Deposit |
|---|---|---|
| Discover Bank 18 Month CD | 4.75% APY | $2,500 |
| Discover Bank 1 Year CD | 4.50% APY | $2,500 |
| Discover Bank 2 Year CD | 4.30% APY | $2,500 |
| Discover Bank 30 Month CD | 4.30% APY | $2,500 |
| Discover Bank 3 Year CD | 4.30% APY | $2,500 |
| Discover Bank 4 Year CD | 4.10% APY | $2,500 |
| Discover Bank 5 Year CD | 4.10% APY | $2,500 |
| Discover Bank 7 Year CD | 4.10% APY | $2,500 |
| Discover Bank 10 Year CD | 4.10% APY | $2,500 |
| Discover Bank 9 Month CD | 3.50% APY | $2,500 |
| Discover Bank 6 Month CD | 3.40% APY | $2,500 |
| Discover Bank 3 Month CD | 2.00% APY | $2,500 |
IRA Certificate of Deposit
Discover’s IRA CDs offer the same returns as the bank’s traditional CDs, but with the tax benefits that come with a retirement savings account. IRA CDs are an excellent option for those looking to invest in their future.
There are two different types of Discover IRA CDs:
- You won’t pay income taxes on money you deposit up to $6,000 a year, but you will have to pay taxes when you withdraw the funds during retirement. Traditional IRA CD is a good option for those who want to invest in after-tax income.
- When you withdraw funds during retirement, you won’t have to pay taxes on the money, because you don’t get the tax break on deposits now. It’s a great way to save for retirement and ensure you have the funds you need when the time comes. If you think you will be in a lower tax brackets during retirement, I recommend you to open a Roth IRA. Tax-free growth on IRAs can have a significant impact on your retirement savings over time.
For more information on the differences between the two kinds of IRAs, read our post on Roth vs. Traditional IRA’s.
Discover Personal Loans
If you need to take out a personal loan to pay for an emergency expense or to consolidate high-interest credit card debt, you might consider borrowing from Discover Personal Loans.
If you make your payments on time, you will enjoy the benefits of no origination fees and flexible repayment terms. You will be able to manage your loan effectively with these features.
Credit requirements are involved in borrowing. A thorough assessment of financial records and credit history is required for the process of borrowing. Customers with fair credit have secured loans, even though Discover doesn’t publish specific guidelines for borrowers. It’s important to remember that your credit score is only one factor in the loan approval process, and other factors such as income, debt-to-income ratio, and employment history may also play a role.
If you have good credit, your interest rate could be as high as 24.99%. It’s important to shop around for the best rate possible, as lenders may be willing to offer lower interest rates based on your credit score. Discover does not allow borrowers to co-sign on loans. To be eligible for a Discover loan, borrowers must meet the lender’s requirements.
Discover Student Loans
Discover Student Loans has variable and fixed interest rate plans for private student loans. Repayment options are offered by Discover Student Loans.
There are student loans for law degrees and medical residencies at Discover.
Variable-rate loans range from 2.99% to 12.59% and fixed-rate loans range from 4.99% to 13.99%.
Home Equity Loans
With a You can borrow money to pay off other expenses, such as high-interest credit cards debt or a home renovation, using your home equity as a security. You can use the equity in your home to help fund other financial goals with a Home Equity Loan.
Home equity loans have lower interest rates than personal loans. Home equity loans can be used to access funds for large purchases or home improvements. For example, with a The Discover Home Equity Loan starts at 5.99% and can go as high as 12.99% depending on your creditworthiness.
I don’t recommend rushing into a home equity loan without doing your research. It’s important to understand the terms of a home equity loan before signing.
(Of course, you need to be a homeowner with some built-up equity in your home to take a home equity loan out in the first place.) Details vary depending on your loan amount, equity amount, income, and credit score.
Discover Credit Cards
Discover has a fast growing credit card presence in the U.S. American Express is the most popular credit card. There is a wide range of credit card products. Consumer demand for convenience and flexibility has fueled the growth of the credit card market over the past few years. None of these cards have annual fees. They all offer great rewards.
Discover it Card
5% cash back is offered on rotating quarterly categories on the Discover it card.
You can get a 100% match on all the cash back you accumulate during your first year. You can get up to 3% back on eligible purchases within your first year as a member.
Discover it Miles
The Discover it Miles Card is a travel-focused credit card. It’s a great option for people who want to earn 1.5x miles on every purchase.
At the end of your first year of card ownership, this card offers unlimited 1.5x miles earned on all purchases, as well as unlimited miles earned match. The sign-up bonus is 25,000 miles if you spend $2,500 in the first three months.
Discover it Chrome
The Discover it Chrome Card gives 2% cash back on gas station and restaurant purchases and 1% cash back on all other purchases.
Discover it Secured Card
Those who want to rebuild their credit can use the Discover it secured card. It is an ideal choice for those looking to rebuild their credit with the Discover it secured card.
The Secured card offers 2% cash back on gas station and restaurant spending, on up to $1,000 in spend each quarter, and 1% cash back on all other purchases. You can track your progress with access to your credit score and credit report, and there is no annual fee.
Discover it Student Cash Back
The Discover it Student Cash Back Card has 5% cash back on rotating categories each quarter, and 1% cash back on everything else.
The card pays you to get good grades. Depending on how well you do in school, you can get up to $20 a month in cash rewards. College students who maintain a If you have a 3.0 or higher grade point average, you can get a $20 statement credit. The statement credit is an excellent way to save money.
Discover it Business Card
There is a 100% cash back match at the end of your first year on the Discover it Business Card. It gives you free access to your credit score and fraud protection.
Discover it Chrome for Students
College students can earn 2% cash back at gas stations and restaurants with the Discover it Chrome for Students card. This card also offers a $20 statement credit for students who achieve a 3.0 GPA or better.
NHL Discover it Card
The NHL has an official credit card. Hockey fans all over the world will be offered rewards and benefits on this card. Cardholders can earn cash back on categories rotating each quarter. Cardholders have access to exclusive discounts on merchandise from their favorite teams.
NHL fans will love the fact that the NHL Discover it Card comes with their favorite team’s design. It’s a great way to show team pride and loyalty.
FAQs
Does Discover Card have a bank?
Yes. Discover Financial Services has a bank that offers a wide range of financial services, including high-yield savings accounts and a checking account that pays 1% cash back on up to $3,000 a month in debit card expenses. Customers can easily transfer money between their accounts with no fees or minimums.
Is Discover a reliable bank?
Yes. Discover Bank is a reliable bank that offers checking accounts, savings accounts, certificates of deposit, money market accounts, and more.
Is Discover Bank FDIC insured?
Discover Bank is insured by the Federal Deposit Insurance Corporation. Deposits are protected up to the maximum allowed by law. Deposits of up to $250,000 are protected. No matter how much you deposit, your money is safe.
Does Discover Bank offer mobile check deposits?
Like most online banks, you can use the bank’s app to deposit money. You can transfer money between accounts, set up direct deposits, and view account balances with the app. Discover has a network of fee-free ATMs. Discover offers fee-free ATMs, as well as the ability to access their accounts at over 60,000 retail locations.
Why doesn’t Discover charge overdraft fees?
Discover can afford a more customer-friendly fee structure because it does not have physical branches. It’s easier for customers to access banking services if they don’t have to worry about high costs or hidden fees. To cover the checking overdraft, the bank will pull money from your savings or credit card account. The fee for the overdraft will be deducted from your account.
If you keep your account in the negative, Discover Bank can close it. It’s important to be aware of the rules and regulations that come with having a Discover Bank account so you can avoid any unnecessary charges.
Is online banking really a good idea?
Online banking was a great idea for high yield savings accounts. There are more and more online banks that can handle your everyday banking needs. Competitive interest rates and low fees make these banks great options for keeping your money safe.
Great online customer service is one of the perks of online banks. Online banks often have better rates on loans and credit cards. If you prefer face-to-face banking, you should stick with your traditional bank. An online bank is a great option for those who prefer banking online.
Discover Bank only has one physical branch and it is located in Delaware. Customers can access their accounts online or through a mobile app.
How do I waive Discover Bank’s monthly fee?
The bank doesn’t charge Discover’s monthly fee so you don’t have to qualify. Even without a fee Waiver, Discover may be the right choice for you, as the bank offers several other benefits that make it worth considering. Many banks require you to make direct deposits or maintain a minimum balance in order to waive monthly fees. Some banks offer free checking accounts with no strings attached.
Do I have to make a minimum initial deposit to open an account?
No, you can open a You can open an online savings account with any amount of money. To open a You need $2,500 to open a money market account. All of Discover’s A $2,500 minimum deposit is required for CD terms. The deposit will be used to purchase CDs.
What fees does Discover Bank charge?
If you use official bank checks, you can avoid the $30 fee for outgoing wire transfers.
Discover doesn’t charge an excessive withdrawal fee when you exceed six transactions per month in a savings or money market account. It is easy to transfer money from your savings account to your checking account with Discover.
If account-holders abuse the fee-free environment, their accounts could be closed. It is important to remember that banks are not obligated to provide free services, and that misuse of these privileges could result in serious consequences.
Is Discover Bank Right For You?
I hope the Discover Bank review gave you enough information to make a decision. Don’t hesitate to reach out to a customer service representative if you have any further questions. If you would like an easy online bank to work with that also offers a wide range of services such as credit cards, student loans, and CDs, then Discover Bank might be right up your alley. The customer service team at Discover Bank can answer any questions you may have.
If you prefer a face-to-face relationship with a bank, look elsewhere. It is possible that a traditional bank is the right option for you. Even then, you could still open an online savings account with Discover and earn 5% cashback with a Discover It is a credit card. At the end of your first year, Discover will match all of the cash back you’ve earned, plus there are no annual fees.
The high-yield APY on the Discover Online Savings Account may be my favorite thing about this bank. I like the low minimum balance requirements and the lack of monthly fees. It is great for an emergency fund. You can use it to save for a trip. This account should pay more when interest rates bounce back.
While exposing yourself to the potential for losing money, no savings account can compete with the gains you could make in the stock market. Savings accounts can give you a chance to save money without the risk of large losses.
For more information on that, check out my in-depth YouTube presentation: Best Investing Strategies.
