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Discover Bank review 2025: Straightforward banking with extremely few fees

Joseph HostetlerBy Joseph HostetlerStaff Writer, Personal Finance
Joseph HostetlerStaff Writer, Personal Finance

    Joseph is a staff writer on Fortune's personal finance team. He's covered personal finance since 2016, previously serving as a reporter and editor at sites like Business Insider and The Points Guy. He has also contributed to major outlets such as AP News, CNN, Newsweek, and many more.

    The Discover Bank logo on a blue and purple background.
    Illustration by Fortune; original logo from Discover

    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
    View offer

    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 productAPY
    Checking accountFree with no balance or opening amount required
    Savings account3.50% APY
    CDsUp to 4.20% APY
    MMAsUp to 3.45% APY
    Checking account
    APYFree with no balance or opening amount required
    Savings account
    APY3.50% APY
    CDs
    APYUp to 4.20% APY
    MMAs
    APYUp 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.

    Discover Bank checking account features

    Account rewards1% cash back on up to $3,000 in monthly debit card purchases
    Minimum opening deposit$0
    Monthly fees$0
    Monthly balance requirementNone
    Debit card replacement fee$0
    Stop payment fee$0
    First order of checks$0
    Debit card daily purchase limit$5,000
    Daily ATM withdrawal limit$510

    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.

    Discover Bank savings account features

    Minimum opening deposit$0
    Monthly fees$0
    APY3.50%
    Overdraft transfer$0

    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.

    Discover Bank MMA features

    Minimum opening deposit$0
    Minimum balance to earn APY$0
    APY3.40%-3.45%
    Monthly fees$0

    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 features

    Minimum opening deposit$0
    Available term lengthsThree months to 10 years
    APY range2.00%-4.20%
    Early withdrawal penalty– Terms of less than 1 year: 3 months simple interest- Terms between 1 and < 4 years: 6 months simple interest- Terms between 4 and < 5 years: 9 months simple interest- Terms between 5 and < 7 years: 18 months simple interest- Terms between 7 and < 10 years: 24 months simple interest

    Discover Bank CD Rates

    Term lengthAPY
    3-month CD2.00%
    6-month CD4.20%
    9-month CD3.50%
    12-month CD4.00%
    18-month CD3.80%
    24-month CD3.80%
    30-month CD3.60%
    3-year CD3.60%
    4-year CD3.60%
    5-year CD3.75%
    7-year CD3.50%
    10-year CD3.50%
    3-month CD
    APY2.00%
    6-month CD
    APY4.20%
    9-month CD
    APY3.50%
    12-month CD
    APY4.00%
    18-month CD
    APY3.80%
    24-month CD
    APY3.80%
    30-month CD
    APY3.60%
    3-year CD
    APY3.60%
    4-year CD
    APY3.60%
    5-year CD
    APY3.75%
    7-year CD
    APY3.50%
    10-year CD
    APY3.50%

    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 logo
    Discover Bank
    <a href="https://fortune.com/company/american-express/" target="_blank">American Express</a> Logo
    American Express

    Capital One
    Checking account APYChecking account APYChecking account APY
    N/A1.00%0.10%
    Savings account top APYSavings account top APYSavings account top APY
    3.50%3.50%3.50%
    Top CD APYTop CD APYTop CD APY
    Up to 4.20%Up to 4.00%4.20%
    Checking account monthly feeChecking account monthly feeChecking account monthly fee
    $0$0$0
    Learn moreLearn moreLearn 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.

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