Business Insider's personal finance team compared Discover® Bank (Member FDIC) to the best banks and found it to be a standout offering.
Discover® Bank is one of the best banks for online debit and credit cards, especially if you're interested in cash-back cards. It also offers some of the best bank accounts for online banks.
Discover Bank Overview
Discover Online-Only Banking Experience
Discover® Bank offers online-only products and services. You won't be able to visit a physical branch to open a bank account or speak to a banker in person, so you have to be content with a predominantly online and mobile banking experience.
You have access to a debit card with both the checking and money market account. You can use 60,000 ATMs for free, but unlike some competitors, the bank doesn't reimburse any fees charged by out-of-network ATM providers.
At this bank, you'll still be able to deposit cash at Walmart locations, but it might not be as convenient as heading to a branch from a national brick-and-mortar bank.
Your Discover® Bank account is insured by the FDIC for up to $250,000 or up to $500,000 for a joint account.
If you value simpler banking, this bank will appeal to you. It offers one checking account, one high-yield savings account, and one money market account. For CDs, you'll be able to choose from traditional CDs or IRA CDs.
Other banks might have more checking and savings account options, but that can also make the fee structure complex.
You can also find both online banks and brick-and-mortar banks with specialty CDs, like no-penalty CDs or bump-up CDs. This bank doesn't have any specialty CDs except for IRA CDs, so that may be a downside if this is important to you.
Discover Bank Digital Experience and App Usability
Discover® Bank's mobile banking app is for banking, loan, and credit card customers. You can use the app to view your transaction history, make credit card and loan payments, redeem credit card rewards, make mobile check deposits, find ATMs, and send secure messages. These are standard mobile banking features that you'll find among the best banks.
Its website is easy to navigate, and its mobile app has received 4.3 out of 5 stars in the Google Play store and 4.9 stars in the Apple store.
Discover Bank Customer Support Availability and Satisfaction
You can chat 24/7 with a live customer service representative. The bank also provides 24/7 customer service over the phone.
According to the J.D. Power 2024 U.S. Direct Banking Satisfaction Study, Discover® Bank ranked below the segment average in overall customer satisfaction for checking account providers among online banks. That said, the same study also showed that the bank ranked 18 points above the segment average in overall customer satisfaction for savings account providers among online banks.
Understanding Discover's Fee Structure
Similar to other online banks, this bank does not charge most common bank fees. When you get a bank account, you won't have to worry about monthly service fees and insufficient funds fees. The bank also doesn't charge for official bank checks, expedited delivery on replacement debit cards, or check reorders.
There is a $30 outgoing wire transfer fee, but there isn't a fee for receiving a domestic or international wire transfer in U.S. dollars. If you receive an international wire transfer in a foreign currency, there's a $20 currency exchange fee.
Discover Bank Pros and Cons
Discover Bank Pros
- Cash back with your debit card
- High interest rates on savings, CD, and money market accounts
- Long CD terms
- 24/7 customer support
Discover Bank Cons
- Can't bank in person
- Doesn't reimburse out-of-network ATM fees
Banking Options with Discover
Discover Cashback Debit Account
no monthly service fee
None
$0
Pros
Cons
- Earn 1% cash back on up on up to $3,000 per month in eligible debit card purchases (See website for details)
- 100% US-based customer service available 24/7
- No opening deposit or minimum account balance
- No monthly maintenance fees
- Over 60,000 in-network ATMs
- FDIC insured
It isn't very common to find a debit card that offers cash back rewards, but this bank lets you earn 1% cash back on up to $3,000 of purchases per month on the Discover® Cashback Debit Account (see website for details). There are also no monthly service fees for this account. If you enroll in overdraft protection that links your Discover checking account to another account from the bank, this can be a great low-cost checking account.
You have access to 60,000 ATM locations with this bank, but it doesn't reimburse any out-of-network ATM fees charged by ATM providers. The best banks to avoid ATM fees reimburse out-of-network fees.
Discover Bank Online Savings Account
The Discover® Online Savings Account is a worthwhile option for a low-fee savings account. There's no monthly service charge and no insufficient funds charge. The Discover savings rate is competitive, and it doesn't require an initial deposit to open the account.
Discover CDs
2.00% to 4.00%
$0
Pros
Cons
- Terms ranging from 3 months to 10 years
- Early withdrawal penalties ranging from 3 months to 24 months interest
- 100% US-based customer service available 24/7
- No hidden fees
- Interest compounded daily, paid monthly
- FDIC insured
Discover CDs offer a wider range of terms than many competitors — most offer terms up to 5 years, but it also has 7-year and 10-year terms. It also offers IRA CDs for people hoping to save for retirement. Its CD rates are relatively high, at 2.00% to 4.00% APY.
However, it doesn't offer any unique types of CDs, like no-penalty CDs. Its early withdrawal penalties are also on the higher side.
Discover Money Market Account
no monthly service fee
3.50% to 3.55%
$0
Pros
Cons
- No monthly maintenance fees
- Compounding interest to maximize your earnings
- 100% US-based customer service 24/7
- 60,000 ATMs nationwide
The Discover® Money Market Account gives you easy access to your money with a debit card and paper checks. You'll earn 3.50% APY (Annual Percentage Yield) if you have an account balance under $100,000. If you have an account balance of $100,000 and over, the rate increases to 3.55% APY. These rates far outpace the average bank account interest rates.
You can open an account with $0 opening deposit, making it a great choice if you don't have a lot of money to open an account with. The bank has 60,000 free ATMs, but it doesn't reimburse any out-of-network ATM fees charged by ATM providers.
Discover Credit Cards
Discover® Bank directly offers a large array of credit cards for different types of spenders, and Discover credit cards don't charge annual fees. If you're looking for the best cash-back credit cards, this bank might be a good choice for you.
- Discover it® Miles
- Discover it® Chrome
- Discover it® Cash Back
- Discover it® Student Chrome
- Discover it® Student Cash Back
- Discover it® Secured Credit Card
See Business Insider's best Discover credit cards.
Discover Loans
This bank also has personal loans and home loans.
- Discover Personal Loans
- Discover Home Loans
Is Discover Bank Trustworthy?
Discover® Bank has received an A+ rating from the Better Business Bureau. A strong BBB rating signifies the company is transparent in how it handles business, responds effectively to customer complaints, and is honest in its advertising.
The bank has had one recent lawsuit. In 2024, Discover settled a class action lawsuit from DACA recipients. The lawsuit said that the bank unlawfully denied DACA recipients loans because of their immigration status. It will pay $979,500 as part of the settlement. it does not admit wrongdoing by settling, and it maintains that it complied with the law.
Discover Bank Alternatives
Discover Bank vs. Capital One Bank
If you're searching for a variety of CD options, you might prefer Discover® Bank to Capital One Bank. Discover® Bank has CD terms up to 10 years.
Otherwise, your decision will depend on the specific CD term you're interested in. Capital One 360 CD rates range from 3.50% to 4.00% APY and are pretty similar to Discover® CDs, but some terms have slightly higher rates at one bank compared to the other.
Discover Bank vs. Ally Bank
Ally might be a better choice for you if you want a savings account with buckets. The Ally Savings Account, which offers 3.60% APY, lets you use buckets to sort the money in your savings account into separate categories; Discover® savings accounts don't have this feature.
You might prefer Discover® Bank if you want a rewards checking account. Ally offers a good checking account, but it doesn't have a cash-back debit card like Discover® Bank does.
Is Discover Bank Right For You?
Discover® Bank is best for people who find online banking convenient and are interested in fee-free bank accounts or a rewards credit card.
It may not be right for you if you prefer in-person banking. You also may prefer a different online financial institution if you want other products and services, like specialty CDs, more checking account options, or brokerage accounts.
Why You Should Trust Us: How We Reviewed Discover Bank
For this review, we rated bank products and services using our editorial standards.
At Business Insider, we rate products on a scale from one to five stars. For bank accounts, we review different features for distinct types of bank accounts. For example, we'll look at early withdrawal penalties and CD variety specifically for CDs. Meanwhile, for checking accounts, we'll factor in the ATM network size and fees, as well as its overdraft protection options.
We use a weighted average to get our star rating for bank accounts, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
We'll consider factors like annual fees and welcome bonuses for credit cards, and term lengths for loans. In general, we also look at customer service and ethics.
Discover Review: Overall Rating
| Feature | Personal Finance Insider rating (out of 5) |
| Savings | 4.5 |
| Checking | 4.75 |
| CD | 3.75 |
| Money market | 4.5 |
| Trustworthiness | 4 |
| Total score | 4.25 |
Discover Bank FAQs
What fees are associated with Discover Bank accounts?
There are a few fees associated with Discover® Bank accounts. If you use an out-of-network ATM, it won't charge you a fee, but it won't reimburse you if the outside provider charges you. it also charges a fee for sending outgoing wire transfers or receiving an international wire transfer in a foreign currency. Discover® Bankaccounts do not have monthly service fees and insufficient funds fees.
Is Discover Bank a real bank?
Yes, Discover® Bank is a real bank. The bank is FDIC-insured, which means your money is insured by the federal government for up to $250,000 for a single-depositor account and $500,000 for a joint bank account.
What services does Discover Bank offer?
Discover® Bank offers many services including bank accounts, credit cards, home loans, and personal loans. For banking, you'll be able to get an online-only checking account, high-yield savings account, money market account, or CDs.
How can I contact Discover Bank customer service?
You can contact Discover® Bank customer service by calling or sending a message through your mobile banking app. Customer support is available 24/7.
What are the pros and cons of banking with Discover Bank?
The pros of banking with Discover® Bank include strong mobile banking, competitive bank interest rates, and minimal common bank fees. The cons of banking with the bank include no physical branch presence, no specialty CDs, and no brokerage accounts.
