Is Discover Bank a Good and Real Bank?
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Looking for a safe bank with great rates? This analysis of Discover® Bank reveals all - is it legit? Find out now.
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Is Discover® Bank a Real Bank?
If you're considering an account from Discover® Bank, rest assured that it is a legitimate bank.
Discover Bank is a full-service online bank that offers checking, savings, and retirement accounts. They also offer a selection of popular credit cards, home equity loans, student loans, and personal loans.
Discover doesn't need to maintain brick-and-mortar locations. So, it is able to pass along those savings to the customer. It offers higher deposit interest rates and it doesn't charge any fees.
There's only one Discover Bank branch located in Delaware, where the bank is based. But customers can withdraw cash at more than 60,000 fee-free ATMs nationwide.
Is Discover Bank Safe?
Discover Bank is safe and insured by the FDIC. This protects up to $250,000 of your deposits in case the bank ever fails.
Discover has multiple layers of security to keep your account safe:
- SSL encryption protects your sensitive information online and in the app.
- Two-factor authentication verifies your identity when you sign in from an unfamiliar device. Also, when you need to change your profile information.
The bank also monitors your account for fraud. And they will alert you of any suspicious activity.
Discover Bank Accounts
Discover offers a range of different deposit accounts with competitive rates. Here's a closer look at what Discover has to offer:
Discover® Cashback Debit
This checking account lets you earn 1% cashback on up to $3,000 in debit card purchases monthly. See website for details
The account offers early direct deposits. So, you can get your paycheck up to 2 days earlier. But the best part is that there really are no monthly fees or other banking fees.
The account comes with a debit card. And you can withdraw money at fee-free ATMs.
Online Checking Account - Earn Cash Back
- 1% cash back on up to $3,000 in debit card purchases each month. See website for details
- No fees
- Early Pay - Get your paycheck up to two days early with no charge
- No credit impact - You can apply without affecting your credit score.
- Access to over 60,000 no-fee ATMs in the U.S.
- Bank of America Advantage Banking:
$300 Bonus Offer - U.S. Bank Smartly® Checking:
Up to $450 Bonus - HSBC Premier:
Earn Up to $2,500 - Chase Total Checking®:
$300 Bonus - Truist Bank:
Business Checking Account - $400 Bonus - Bluevine:
Free Business Checking - Earn $300 Bonus - Spend $1500 with your Novo card within 90 days, and get $75
- Quontic:
High Interest Checking - Up to 1.10% APY - Fifth Third Bank:
Personal Checking Account - $300 Bonus - KeyBank:
Key Smart Checking® - $300 Bonus
Discover® Online Savings
Discover offers a high-yield savings account. With an interest rate more than 5x the national average. This account is great for building up an emergency fund. Even just stashing money you don't need right away.
There are no fees and no minimum deposit to open the account.
With the higher interest rate and zero fees, you'll be able to grow your balance faster than you would at a traditional bank.
Online Savings Account - Earn 3.90% APY
- No fees
- No minimum opening deposit
- No minimum balance required
Money Market Account
This account is sort of like a hybrid between a checking account and a savings account. It offers more flexibility for your savings. Your balance earns interest like a regular savings account. But you can access your money with a debit card and checks.
Keep in mind that, money market accounts are limited to 6 withdrawals per month.
Money Market Account
- Earn 3.70% APY for balances under $100,000
- Earn 3.75% APY for balances $100,000 and over
- Dayspring Bank:
Money Market Deposit Account - 4.45% APY - American First Credit Union:
Money Market Deposit Account - 4.45% APY - Hanover Bank:
Money Market Deposit Account - 4.40% APY - UNCLE Credit Union:
Money Market Deposit Account - 4.37% APY - mph.bank:
Money Market Deposit Account - 4.36% APY - First State Bank:
Money Market Deposit Account - 4.35% APY - Grand Bank:
Money Market Deposit Account - 4.31% APY - Harborstone Credit Union:
Money Market Deposit Account - 4.30% APY - Blue Federal Credit Union:
Money Market Deposit Account - 4.25% APY - Sterling Federal Bank:
Money Market Deposit Account - 4.20% APY
Certificate of Deposit
Discover Bank offers very competitive rates for its CDs. The term lengths range from 3 months to 10 years.
If you need to withdraw your money before the CD matures, you will have to pay a penalty.
Discover® CD Rates
- No minimum opening deposit required
- No fees
- FDIC insured
| Term | CD Rates |
|---|---|
| 3 Months | 2.00% APY |
| 6 Months | 3.70% APY |
| 9 Months | 3.80% APY |
| 1 Year | 4.10% APY |
| 1.5 Years | 3.80% APY |
| 2 Years | 3.60% APY |
| 2.5 Years | 3.50% APY |
| 3 Years | 3.50% APY |
| 4 Years | 3.40% APY |
| 5 Years | 3.40% APY |
| 7 Years | 3.40% APY |
| 10 Years | 3.40% APY |
- Western Alliance Bank:
High-Yield CD Rates - Up to 4.05% APY - CIT Bank Term CDs:
Up to 3.50% APY - SkyOne Federal Credit Union:
1-Month High-Yield CD - 4.40% APY - American First Credit Union:
12-Month High-Yield CD - 4.00% APY - Technology Credit Union:
5-Month No Penalty CD - 4.00% APY - Blue Federal Credit Union:
9-Month No Penalty CD - 4.00% APY - Freedom Bank:
12-Month No-Penalty CD - 3.75% APY - Quontic:
CD Rates - Up to 4.45% APY - Consumers Credit Union:
9-Month Super Jumbo CD - 4.75% APY - mph.bank:
60-Month Callable CD - 4.42% APY
Roth and Traditional IRAs
Discover offers IRA CDs and IRA Savings accounts. Both these accounts are available either as a Roth IRA or traditional IRA.
These accounts have the same interest rates as the regular CDs and savings accounts. The only difference is that these accounts are specifically for retirement savings.
IRA Certificate of Deposit
- 4.10% APY for 12-month term
- 3.50% APY for 36-month term
- 3.40% APY for 5-year term
Can You Deposit Cash at Discover Bank?
Online banking can be convenient, but not when it comes to depositing cash. Discover does not accept cash deposits. Although you get access to ATMs—you can only withdraw cash.
To deposit cash to your Discover account, you'll have to deposit to a different bank account first. Once the money is in the other account, you can make an electronic transfer.
Discover does let you deposit checks. You can use the Discover app to make a mobile check deposit.[1]
Bottom Line: Is Discover Bank Good?
If you're looking for a bank that offers highly competitive rates, Discover is one of the best options. Online banks in general offer great rates and low fees.
Discover has done away with fees completely.
The biggest drawback to a Discover Bank account is that you can't deposit cash. If you frequently need to deposit cash, this might not be the right bank for you. But if you usually do all your banking online anyway, the transition to Discover Bank is a breeze.
References
- ^ Discover. Mobile Check Deposit Service, Retrieved 5/26/22
Discover® Online Savings - $200 Cash Bonus
To qualify for Bonus: Apply for your first Discover Online Savings Account, enter Offer Code CY924 at application, deposit into your Account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Qualifying deposit(s) may consist of multiple deposits and must post to Account within 45 days of account open date. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers, including co-branded, or affinity accounts. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of the account qualifying for the bonus. Bonus is subject to tax reporting. Offer ends 03/13/2025, 11:59 PM ET. Offer may be modified or withdrawn without notice. Due to new customer funding limits, you may wish to initiate fund transfers at your other institution. For information on funding your Account, see FAQs on Discover.com/Bank. See advertiser website for full details.
Chase Total Checking® - $300 Bonus
- New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account with qualifying activities
- With over 4,700 branches, Chase has the largest branch network in the U.S. plus access to more than 15,000 ATMs.
- Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
- JPMorgan Chase Bank, N.A. Member FDIC
- Open your account online now
- Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
- Chase Overdraft Assist℠ - no overdraft fees if you're overdrawn by $50 or less at the end of the business day or if you're overdrawn by more than $50 and bring your account balance to overdrawn by $50 or less at the end of the next business day*
Bank of America Advantage Banking - $300 Bonus Offer
- The $300 bonus offer is an online only offer and must be opened through the Bank of America promotional page.
- The offer is for new checking customers only.
- Offer expires 01/31/2025.
- To qualify, open a new eligible Bank of America Advantage Banking account through the promotional page and set up and receive Qualifying Direct Deposits* totaling $2,000 or more into that new eligible account within 90 days of account opening. Bank of America Advantage SafeBalance Banking® for Family Banking accounts are not eligible for this offer.
- Once all requirements are met, Bank of America will attempt to pay bonus within 60 days.
- Additional terms and conditions apply. See offer page for more details.
- *A Qualifying Direct Deposit is a direct deposit of regular monthly income – such as your salary, pension or Social Security benefits, which are made by your employer or other payer – using account and routing numbers that you provide to them.
- Bank of America, N.A. Member FDIC.
U.S. Bank Smartly® Checking - Up to $450 Bonus
Earn up to $450 with a new Bank Smartly Checking account. Complete the following within 90 days of account opening:
- Enroll in online banking or the U.S. Bank Mobile App
- Make two or more direct deposits(s) totaling $2,000 to $4,999.99 to earn $250, $5,000 to $7,999.99 to earn $350 or $8,000 or more to earn $450.
Fund your new account within 30 days to start qualifying activities. Offer may not be available if you are an existing U.S. Bank customer or live outside of the U.S. Bank footprint.
CIT Bank Platinum Savings - 4.55% APY
- 4.55% APY with a balance of $5,000 or more
- 0.25% APY with a balance of less than $5,000
- $100 minimum opening deposit
- No monthly maintenance fee
- Member FDIC
Donna Tang is a content associate at CreditDonkey, a bank comparison and reviews website. Write to Donna Tang at donna.tang@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
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