Discover® Bank High Yield Savings Account Review 

Conor Keenan Author Bio By: Conor Keenan  Last updated on July 30, 2023
Conor Keenan is's co-founder. His work in personal finance has been featured by MSN, CNN, AOL, Fox News, Yahoo News & many more.

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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!

Discover Bank Logo




  • High Yield Savings Account
  • Min. balance for APY: $0
  • Min. Initial Deposit: $0
  • 4.25% APY
  • 5x National Savings Avg*
  • Mobile Check Deposit
  • No Monthly Fees
  • 100% U.S.-based Customer Service Available 24/7
  • Interest Compounded Daily
  • FDIC Insured up to $250,000
  • See Site For Details

On Discover Bank's Secure Site, Member FDIC


Key Benefits of Discover Savings Account:

Competitive APY: The Discover Online Savings account offers an impressive 4.25% 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


Discover Bank Logo

4.25% APY


On Discover Bank's Secure Site,
Member FDIC

Best For: Online Banking Experience + No Fees

Discover Bank offers 4.25% APY with no monthly fees and $0 initial deposit.

Discover Bank is one of the first online focused banks to offer no monthly fees and what they call "No. Fees. Period."

Whereas other banks may charge you a fee for certain services, Discover won't charge you a fee on any of the following items: monthly maintenance, official bank check, expedited delivery for official bank checks, deposited item returned, stop payment order, insufficient funds, or for closing your account.

If you're looking for a competitive APY with "No. Fees. Period." this account is for you.

See Discover Bank's Secure Site For More Details.

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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.