Discover® Bank High Yield Savings Account Review
By: Conor Keenan Last updated October 02, 2025
Conor Keenan, co-founder of CompareAccounts, is a notable personal finance expert with work seen in Wall Street Journal | Associated Press | Reuters | Yahoo Finance
Editorial Independence: Our opinions, reviews, and recommendations are our own. Partner commissions keep our site free, but our content remains independent.
Read our review & open a new savings account with confidence. Discover Bank is FDIC insured up to $250,000 per depositor.
Fund your new account & take advantage of the power of compound interest today!
Key Benefits of Discover Savings Account:
Competitive APY: The Discover Online Savings account offers an impressive 3.40% APY, one of the highest among leading online savings accounts. This rate applies to all balances, setting it apart from competitors that offer tiered rates based on account balances.
No Minimum Balance: Discover’s high-yield savings account is accessible to a wide range of account holders, including those who do not maintain substantial monthly balances.
Zero Fees: Discover Bank is one of the first online focused banks to offer no monthly fees and what they call “No. Fees. Period.” Enjoy the freedom from fees for stop payment orders, excessive withdrawals, insufficient funds, or monthly maintenance.
Superior Mobile App: Discover boasts one of the most user-friendly mobile apps among online banks. As an online savings account holder, you can manage transactions typically handled in-person at a bank, view account activity, deposit checks electronically, and transfer money from the comfort of your home all from your phone.
FDIC Insurance: Rest assured, your funds are safe with Discover, a proud member of the FDIC. In the unlikely event of bank failure, the FDIC insures up to $250,000 per depositor, per institution.
Compound Interest: Interest compounds daily and is credited to your account on a monthly basis. Several other competing banks, such as Chase and Bank of America, don’t offer this level of compounding on their interest bearing accounts.
Areas for Improvement
The Discover Online Savings account currently does not offer an ATM or physical branches for withdrawals. If you need ATM access, then we recommend opening a checking account instead of a savings account.
Although Discover does not operate physical branches, it provides several options for deposits and withdrawals.
Deposit Methods:
- Mobile deposit
- Online transfer
- Wire transfer
- Direct deposit
- Mailing in a check
Withdrawal Methods:
- Wire transfer
- Official bank checks
- Online transfers to external banks
- Transfers to other Discover accounts
Although the APY for Discover’s Savings Account is high, there are higher options available. Some of which you can find below.
However, if you want a bank with award winning customer service, it’s tough to beat Discover.
Award Winning Bank
Discover continues to impress and it’s awards demonstrate its commitment to its customers and employees.
- Discover is named to the 2023 Fortune 100 Best Companies to Work For® list
- Discover was included in the 2022 Fortune Best Workplaces for Women™ list
- Discover is named to the Best Workplaces for Parents™ list in 2022
- Foundry’s Computerworld names Discover to the 2023 List of Best Places to Work in IT
- The Chicago Tribune has named Discover a Top Workplace in 2022
- Discover Certified™ as a Great Place to Work Based on Employee Feedback
- Discover was named a Best Place to Work for Disability Inclusion by the Disability Equality Index
- Discover is recognized in the 2022 Top Workplaces USA list
- Discover has been included on the “Top 50 Employers” 2022 list in CAREERS & the disABLED magazine
soure: https://www.discover.com/company/our-company/awards-and-recognition/
Customers Also Viewed These High-Yield Savings Accounts
Up to $300 Bonus
Annual Percentage Yield (APY)
4.50% APY
with qualifying activities
On SoFi®'s Secure Site,
Member FDIC
Best For: Bonus + Large Deposits
SoFi redefines banking with a commitment to no fees—no monthly fees, no overdraft fees, and no account minimums.
Bonus: up to $300 with direct deposit.ⓘ
In addition to the bonus, you'll enjoy up to 4.50% annual percentage yield (APY) on savings balances with qualifying activities and 0.50% APY on checking balances, fee-free overdraft coverage up to $50 and access your direct deposit funds up to two days early, giving you greater financial flexibility. Terms apply.
The current savings APY without direct deposit is 1.00%. Although this is still higher than the national average, if you don't plan on setting up direct deposit, you should look at the other offers on this list unless you want more FDIC insurance.
Your deposits are FDIC-insured up to $250,000 per depositor and you can also access up to $3,000,000 of additional FDIC insurance through a network of participating banks. Ensuring your money stays safe and secure.
Limited Time Offer: New account holders earn +0.70% boost to 4.50% on their Savings APY for up to 6 months with eligible direct deposit. Terms apply.
1. Up to $300 Bonus Tiered Disclosure
New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 4.50% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
2. APY disclosures
SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 4.50% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
3. Fee Policy
We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
4. Additional FDIC Insurance
SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/receivingbanks
5. ATM Access
We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
6. Early Access to Direct Deposit Funds
Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
7. Overdraft Coverage
Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with Eligible Direct Deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.
8. 0.70% Savings APY Boost
Earn up to 4.50% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.80% APY as of 8/5/25) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
Annual Percentage Yield (APY)
3.85% APY
On CIT Bank®'s Secure Site,
Member FDIC
Best For: Customer Experience + High APY Interest Rates
CIT Bank ranked #1 in the nation for humanizing the customer experience in a recent survey conducted by American Banker of more than 5,000 consumers covering 50 financial institutions.
CIT Bank has been helping customers for over 100 years. Founded in 1908, CIT Bank is now part of First Citizens BancShares, Inc.
CIT Bank offers 3.85% APY, as of October 02, 2025, on their Platinum Savings account with no monthly fees. Minimum Balance for this APY is $5,000.
You can open a CIT Bank platinum savings account in as little as 5 minutes to complete the sign-up process.
Deposits are insured through the FDIC for up to $250,000 per depositor and interest compounds daily. Terms Applyⓘ
See CIT Bank's Secure Site For More Details.
Platinum Savings Account Disclosure
Platinum Savings is a tiered interest rate account. Interest is paid on the entire account balance based on the interest rate and APY in effect that day for the balance tier associated with the end-of-day account balance. *APYs — Annual Percentage Yields are accurate as of September 23, 2025: 0.25% APY on balances of $0.01 to $4,999.99; 3.85% APY on balances of $5,000.00 or more. Interest Rates for the Platinum Savings account are variable and may change at any time without notice. The minimum to open a Platinum Savings account is $100.
- For complete list of account details and fees, see our Personal Account disclosures. please visit: https://cit-fcb-t.cit.com/cit-
bank/resources/forms
Best For: High APY Interest Rates
Western Alliance Bank offers 4.10% APY exclusively through the Raisin Platform.
This APY is substantially higher than what you’ll find at most brick-and-mortar banks and even most online banks.
In addition to this high APY, Western Alliance offers $0 monthly maintenance fees, unlimited withdrawals, and is insured by the FDIC for up to $250,000 per depositor.
Customer service is located in New York, NY and is available via email and phone. You'll have online access to your funds 24/7.
Western Alliance Bank is consistenly ranked among the top banks. The bank has over $80 Billion in Assets and were ranked #1 top-performing large bank with assets greater than $50 billion in 2021, 2022, 2023 & 2024 by American Banker. Serving clients across the country wherever business happens.
Limited Time Offer: New customers can earn a $75 bonus for $10K, $250 bonus for $25K, $500 bonus for $50K deposited or $1,000 bonus for $100K deposited or more. Use promo code EASY at sign-up.
See Raisin's Secure Site for Western Alliance Bank For More Details.
Brief History of Discover
Discover Bank is a direct banking and payment services company that is one of the most recognized brands in U.S. financial services. Here’s a brief history:
1985: The Discover Card was launched by Sears in a bold move to diversify its business. The card was unique at the time because it did not charge an annual fee and offered a higher-than-normal credit limit.
1986: Discover began offering a cashback bonus on purchases, which has since become a staple feature of many credit cards.
1991: Sears spun off Discover Financial Services, Inc. as an independent, publicly traded company.
1997: Discover acquired the Greenwood Trust Company and rebranded it as Discover Bank. This allowed Discover to offer more than just credit cards, expanding into banking services like home loans, private student loans, personal loans, home equity loans, checking and savings accounts, and certificates of deposit.
2000s: Discover Bank continued to grow its offerings and customer base. It launched an online banking portal and began offering high-yield savings accounts and money market accounts.
2007: Discover became a bank holding company to access funding from the Federal Reserve during the financial crisis.
2010s: Discover Bank continued to innovate, focusing on mobile banking and consistently being recognized for its customer service.
2020s: Discover Bank continues to be a significant player in the direct banking industry, offering a range of financial products and services to customers.
Discover Financial Services: A Publicly Traded Company
Discover Bank is a part of Discover Financial Services, which is a publicly traded company. Here’s some information about Discover Financial Services as a publicly traded entity:
Ticker Symbol and Exchange: Discover Financial Services is listed on the New York Stock Exchange (NYSE), one of the world’s largest and most prestigious stock exchanges. It trades under the ticker symbol “DFS”. This ticker symbol is used by traders and investors when buying or selling the company’s shares, and it’s also used when displaying the current market price of the company’s shares.
Initial Public Offering (IPO): Discover Financial Services became an independent, publicly traded company in 2007. Before this, it was a part of Morgan Stanley, a leading global financial services firm. The process of becoming an independent company, known as an Initial Public Offering or IPO, involved selling a portion of the company’s equity to public investors for the first time. This was a significant milestone in Discover’s history, marking its transition from a subsidiary of a larger company to an independent entity.
Business Segments: Discover Financial Services operates through two primary business segments: Direct Banking and Payment Services. The Direct Banking segment includes all of Discover’s consumer banking and lending products. This includes credit cards, which are the company’s most well-known product, but it also includes a range of other products such as personal loans, student loans, and home equity loans. The Payment Services segment includes PULSE, an electronic funds transfer network; Diners Club, a global payments network; and the company’s network partners business, which leverages the global reach of the Discover Network to form partnerships with other financial institutions.
Financial Reporting: As a publicly traded company, Discover Financial Services is required to adhere to strict financial reporting standards set by regulatory bodies such as the Securities and Exchange Commission (SEC). This involves publishing detailed financial reports on a quarterly and annual basis, which provide a comprehensive overview of the company’s financial performance. These reports include information about the company’s revenues, net income, assets, liabilities, and cash flow, among other financial metrics. They also include management’s discussion and analysis of the company’s performance, which provides valuable insights into the company’s strategy and future prospects.
Stock Performance: The performance of Discover Financial Services’ stock is influenced by a wide range of factors. This includes the overall health of the economy, as changes in economic conditions can impact consumer spending and borrowing patterns, which in turn can affect Discover’s revenues and profits. It also includes the company’s own financial performance, as strong financial results can boost investor confidence and lead to increases in the stock price. Investor sentiment towards the financial services sector more broadly can also impact the stock’s performance.
Dividends: Discover Financial Services has a history of returning capital to its shareholders in the form of dividends. Dividends are payments made by a company to its shareholders, typically on a regular basis, out of its profits. The amount and frequency of these dividends can vary based on a number of factors, including the company’s financial performance, its capital requirements, and the decisions of its board of directors. In addition to dividends, Discover has also returned capital to shareholders through share buybacks, which involve the company purchasing its own shares from the market in order to reduce the number of outstanding shares.
Corporate Governance: As a publicly traded company, Discover Financial Services is subject to a range of corporate governance requirements. This includes having a board of directors, which is elected by the company’s shareholders and is responsible for overseeing the company’s management and strategy. The company is also required to hold an annual meeting of shareholders, at which shareholders can vote on various matters related to the company’s operations and governance.
Investor Relations: Discover Financial Services has a dedicated investor relations team, which is responsible for communicating with the company’s shareholders and the broader investment community. This includes publishing the company’s financial results, hosting earnings calls, and responding to inquiries from investors and analysts.