Two of the most valuable attributes you’ll find with a good bank are simplicity and transparency regarding fees. Discover Bank does this better than just about anyone. Pair those features with lucrative annual percentage rates (APY) and there’s a lot to love about banking with Discover.
Banking and credit card behemoth Capital One recently acquired Discover, but Discover maintains a separate slate of products as of this writing. It offers uncomplicated checking and savings, money market accounts, and certificates of deposit (CDs). And, it offers competitive yields for its savings account, money market account, and CDs, as you’ll see below. But the perks of the bank’s simplicity come with some tradeoffs. Here’s what you need to know about Discover Bank.
All rates and fees are current as of July 24, 2025 and are subject to change.
Discover Bank at a glance
Discover Bank
| Checking account | Earn 1% back on eligible debit purchases |
| Savings account | 3.50% APY |
| CDs | Up to 4.20% APY |
at Discover Bank
- Year Founded: 1985
- Company Headquarters: Riverwoods, IL
- CEO: Michael Shepherd
Pros
- Generous APYs on savings and CDs
- Cash back checking account
- Minimal fees
Cons
- Limited account options
- Only one physical branch
Who is Discover Bank good for?
Discover is famous for its lack of account fees. If you’re looking for a straightforward banking option that doesn’t nickel and dime you with monthly maintenance fees, insufficient funds fees, check reorder fees, etc., Discover is a great option.
It’s also a rewarding choice for those that prefer to use a debit card for purchases, as Discover’s checking account earns 1% back on all purchases.
Who shouldn’t use Discover Bank?
Discover Bank has one-size-fits-all banking products with one savings account, one checking account, and one money market account (MMA). If you’re seeking variety within your banking products, there are other financial institutions with more options.
Discover Bank is an online bank with just one physical branch located in Delaware. If you prefer to do your banking in-person, Discover won’t have what you need.
Discover Bank rates and products
Discover bank offers a free checking account with a debit card that earns up to 1% cash back, a savings account with a solid APY and no monthly fees, several CD options, and a free MMA with no maintenance fees.
| Discover Bank product | APY |
|---|---|
| Checking account | Free with no balance or opening amount required |
| Savings account | 3.50% APY |
| CDs | Up to 4.20% APY |
| MMAs | Up to 3.45% APY |
| Checking account | |
|---|---|
| APY | Free with no balance or opening amount required |
| Savings account | |
| APY | 3.50% APY |
| CDs | |
| APY | Up to 4.20% APY |
| MMAs | |
| APY | Up to 3.45% APY |
Bank details checked July 24, 2025.
Checking account
Discover’s Cashback Debit account offers 1% cash-back rewards on up to $3,000 in debit card purchases each month. The free checking account has no monthly maintenance fee or activity requirements and there’s no minimum balance requirement either.
In addition, account holders have access to more than 60,000 no-fee ATMs across the country. The account also comes with the option to get paid up to two days ahead of schedule when you establish direct deposit.
Bank details checked July 24, 2025.
Savings account
Discover Bank has an interest-earning savings account with a 3.50% APY. The account is free with no maintenance fee or minimum deposit to open. That’s a solid return for a high-yield savings account.
Bank details checked July 24, 2025.
Money market account
Money market accounts are best thought of as a hybrid checking and savings account. It’s a high-APY account designed to help you save, but it comes with the ability to spend directly from your account by swiping a debit card, writing a check, etc.
The return you’ll receive from a Discover Bank MMA depends on the amount of money you’ve got in the account. Balances below $100,000, you’ll earn 3.40% APY—while balances of $100,000 or more will earn 3.45% APY.
Discover’s MMA is also free with no maintenance fees, though there is a $30 charge for any outgoing wire transfers.
Bank details checked July 24, 2025.
Certificates of deposit
Discover Bank has a wide variety of CDs with yields up to 4.20% APY for select term lengths. Terms range from three months to 10 years. Uniquely, Discover doesn’t enforce a minimum deposit to open a CD. That’s quite a contrast from many banks that demand a minimum deposit of hundreds (or even thousands) of dollars to get the best rates.
While these are great benefits, Discover CD rates are slightly below some of the best CD rates on the market.
You’ll be subject to early withdrawal penalties if you touch your money before the account matures. Discover charges between three and 24 months simple interest, depending on the term length.
You can also choose to open IRA CDs with the same terms.
Discover Bank CD Rates
| Term length | APY |
|---|---|
| 3-month CD | 2.00% |
| 6-month CD | 4.20% |
| 9-month CD | 3.50% |
| 12-month CD | 4.00% |
| 18-month CD | 3.80% |
| 24-month CD | 3.80% |
| 30-month CD | 3.60% |
| 3-year CD | 3.60% |
| 4-year CD | 3.60% |
| 5-year CD | 3.75% |
| 7-year CD | 3.50% |
| 10-year CD | 3.50% |
| 3-month CD | |
|---|---|
| APY | 2.00% |
| 6-month CD | |
| APY | 4.20% |
| 9-month CD | |
| APY | 3.50% |
| 12-month CD | |
| APY | 4.00% |
| 18-month CD | |
| APY | 3.80% |
| 24-month CD | |
| APY | 3.80% |
| 30-month CD | |
| APY | 3.60% |
| 3-year CD | |
| APY | 3.60% |
| 4-year CD | |
| APY | 3.60% |
| 5-year CD | |
| APY | 3.75% |
| 7-year CD | |
| APY | 3.50% |
| 10-year CD | |
| APY | 3.50% |
Bank details checked July 24, 2025
Other services Discover Bank offers
Discover Bank also offers a variety of additional financial services:
- Retirement accounts: Discover offers traditional and Roth individual retirement accounts (IRAs) with yields at 3.50% APY.
- Personal loans: Personal loans of up to $40,000 are available from Discover to cover a variety of needs, including home renovations, medical costs, and debt consolidation. Interest rates range from 7.99% to 24.99% as of this writing
- Financial education: Discover Bank publishes a Modern Money blog, which provides education and guidance on everything from saving, budgeting, and family finances to retirement and banking 101.
The Discover Bank platform and customer support
Again, Discover is an online bank with extremely limited physical presence. But its platform is easy to use, and its customer support is available by phone or live chat 24/7. It even offers dedicated help for the speech impaired. If you prefer, Discover offers physical addresses to which you can send mail.
Discover also has a handy mobile app that receives a star rating of 4.9 in the App Store and 4.3 in the Google Play store. You can manage all your accounts, deposit checks, send money to friends and family, and more.
Is Discover Bank secure?
Discover Bank has federal insurance on deposits through the FDIC, up to $250,000 per depositor and account type. The bank also implements encryption technology for shared data online, and it offers a secure document upload portal for sending personal information.
Discover offers account alerts that can notify you of certain activities, such as a large withdrawal and changes to your login info. And Discover’s mobile app has several layers of security, including a touch ID log-in option and the ability to freeze your debit card at any time with the tap of a button.
Discover Bank user reviews
It’s worth noting that online rankings often trend negative, as most reviews are typically written by those with a poor experience.
Bearing that in mind, Discover receives an unimpressive 1.9 stars on Trustpilot, with some reviewers lamenting pain points like account closure without warning, difficulty withdrawing funds, and poor customer service. While these are likely anecdotal, they can help you to temper your expectations for a fully digital bank where you can’t hash out your problems in person.
Reddit reviews, on the other hand, are more positive. Users appreciate the lack of fees, rewards-earning checking account, and ability to receive a paycheck up to two days early.
Compare Discover Bank alternatives
As we noted earlier, Capital One now owns Discover, but the two brands still have a separate slate of product offerings.
Discover Bank |  American Express |  Capital One |
|---|---|---|
| Checking account APY | Checking account APY | Checking account APY |
| N/A | 1.00% | 0.10% |
| Savings account top APY | Savings account top APY | Savings account top APY |
| 3.50% | 3.50% | 3.50% |
| Top CD APY | Top CD APY | Top CD APY |
| Up to 4.00% | Up to 4.00% | 4.20% |
| Checking account monthly fee | Checking account monthly fee | Checking account monthly fee |
| $0 | $0 | $0 |
| Learn more | Learn more | Learn more |
| View offer at Discover Bank | View offer at MoneyLion | View offer at MoneyLion |
Bank details checked July 24, 2025
Is Discover Bank right for you?
Despite being an online bank, Discover is a full-service bank. If you want to do all your banking in the same place, from checking and savings to personal loans to credit cards—all in a fee-free ecosystem—Discover can serve you.
That said, Discover only offers one type of each account. Those who want a selection of various savings accounts, CDs, etc. may not find what they need. Discover also notably doesn’t offer mortgages.
Discover is also right for those comfortable doing all banking online, as it’s only got one physical branch.
Frequently asked questions
What bank owns Discover?
Discover is owned by Capital One, who bought the bank on May 18, 2025. There has yet to be any major change to Discover customers.
How do I deposit money into my Discover Bank account?
There are several ways to deposit money to Discover accounts, including making a mobile check deposit with the Discover banking app, completing an online transfer to your Discover account from an external account, or setting up direct deposit. You can also head to Walmart and load money to your account with the help of a cashier (minimum $20).
What is the Zelle limit for Discover?
The Zelle limit for Discover is $600 per day.
How long does a Discover Bank transfer take?
While transfers from one Discover deposit account to another are nearly instant, transfers to or from outside banks may take up to five business days.