Business Insider's personal finance team compared the Discover® Online Savings Account to the best high-yield savings accounts and found it to be a standard offering.
Discover Bank® (Member FDIC) pays a much better savings rate than most traditional banks, but you can find even higher rates at other online banks.
With fewer overhead costs than brick-and-mortar banks, the best online banks often pass savings on to customers through better rates and lower fees. Discover is exactly like other online banks in this area, even if its rates aren't quite as high as you can get from smaller online banks and credit unions.
Current Discover Savings Account Rate
The Discover® Online Savings Account interest rate is 3.60% (as of 04/22/25) APY (Annual Percentage Yield), which is drastically higher than the average savings account interest rate.
There is no monthly service fee and a $0 minimum deposit, and you'll earn the same rate regardless of your balance.
Overview of Discover Savings Accounts
Discover offers one main savings account, the Discover® Online Savings Account. It is a high-yield savings account, offering higher rates than many brick-and-mortar banks do. It also doesn't require a minimum opening deposit or monthly service fee.
Discover also offers more specialized types of savings accounts, such as certificates of deposit and a money market account. Discover CD rates pay 2.00% to 4.00% APY for terms between 3 months and 10 years. The Discover® Money Market Account pays 3.50% to 3.55% APY, and the interest rate depends on your account balance.
The bank also has the Discover® Cashback Debit Account, which is one of the best checking accounts.
How Discover Savings Accounts Work
Since Discover is an online bank, you won't be able to open an account in a physical branch. You can open a savings account either by calling customer service or by using Discover's website or app. The information you need to open a Discover account is similar to what you need to open a bank account in general; you'll need to provide some personal information to open an account, such as your name, Social Security number, and address. You can generally open an account in minutes if you have your information prepared.
Discover Savings Account Earnings
Discover offers a much higher interest rate than many large banks do, offering 3.60% (as of 04/22/25) on its savings account.
If you have a Discover credit card and want to keep your finance products at the same place while still earning a good rate, this might be a good choice for you. However, if you're only interested in getting the best possible rate, the best high-yield savings accounts have higher rates.
Discover Savings Account Fees and Charges
The Discover® Online Savings Account does not charge any monthly maintenance fees, making it a free savings account. It also doesn't require a minimum opening deposit or charge insufficient funds fees, making it a good bank if you want to avoid bank fees.
The only fee that Discover charges is for making an outgoing wire transfer. If you need to make a wire transfer, you'll need to pay $30. However, incoming wire transfers don't cost you any money, whether they're domestic or international.
Discover Savings Account User Experience and Accessibility
You can access your Discover® Online Savings Account through Discover's website or through their mobile banking app. Their mobile banking app is well-rated on both Google Play and the Apple App Store, so you won't have to worry about a poorly-optimized mobile banking experience.
Since Discover is an online bank, you'll be banking from your computer frequently. You can use Discover's website to do things like check your balance, find nearby ATMs, and use a live chat to speak with customer service representatives. If you're uncomfortable with banking online and would prefer to bank in-person, you might want to go with another bank.
Discover Savings Account Customer Service and Support
Discover is a bank with 24/7 customer service, which you can access via their phone lines. You can also send a message to customer service via their website or app. However, because Discover is an online bank, you won't be able to go into a branch to get in-person help.
Discover Savings Account Security
Like most banks, Discover is FDIC-insured. This means that your money is safe in case of a bank failure for up to $250,000 per person, per account type. To help keep your money secure, Discover uses the security protocol SSL to encrypt your data. It also monitors your accounts for potential fraud.
Discover Savings Account Rate Pros and Cons
Discover Savings Account Rate Pros
- Good interest rate, compounded daily
- No monthly service fee
- $0 minimum deposit
- Early direct deposit
- 24/7 customer service in the U.S.
- Excellent online and mobile banking tools
Discover Savings Account Cons
- No physical branch locations
- $30 outgoing wire fee
Discover Savings Account Alternatives
Discover Online Savings vs. American Express® High Yield Savings Account
The American Express® High Yield Savings Account (Member FDIC) pays 3.60% (as of 5/8/25) APY (annual percentage yield).
Neither bank has monthly service fees, excess transaction fees, or minimum opening deposit requirements. Both banks offer 24/7 customer support, a highly rated mobile app, and various banking products, including checking accounts, CDs, credit cards, and personal loans.
One noteworthy distinction when it comes to comparing Discover savings accounts to other banks pertains to mobile check deposits. With American Express National Bank (Member FDIC), you can deposit up to six checks totaling $50,000 during any seven-day period, with a limit of $25,000 per check — a flexible limit compared to many online banks. Discover's online disclosure doesn't specify limits; however, a customer service representative told us the limits are dynamic and new customers might start with a monthly limit of about $500.
You can't go wrong with either account in terms of interest rates and fees. Still, American Express National Bank may be the better option if you want more flexibility regarding mobile deposits. Otherwise, the decision may come down to your preferences and previous experiences with either bank.
American Express National Bank Review
Discover Online Savings vs. Capital One 360 Performance Savings
Capital One 360 is a suite of banking products from Capital One, one of the nation's largest banks by assets. While Capital One is primarily an online bank, it has physical branches in a handful of states and about 50 cafés (a cross between a bank branch and a coffee shop). Discover is an online-only bank, so it doesn't have any branch locations.
The Capital One 360 Performance Savings account offers a 3.60% (rate as of 04/08/25) APY on any balance. The interest in Discover's account compounds daily, while Capital One's interest compounds monthly. Depending on how much money you keep in savings, this may or may not make a significant difference.
The banks share similar features, including zero monthly fees or overdraft fees, a $0 minimum opening deposit, and no requirements to earn the APY. Both banks offer mobile check deposit with dynamic daily and monthly limits. Discover comes out ahead with 24/7 customer service; Capital One has live support seven days per week, but from 8 a.m. to 11 p.m. ET.
Discover and Capital One offer such similar rates, fees, and features that deciding between the two can be tricky. Ultimately, customers who live near a Capital One branch or café might choose it over Discover for the convenience of in-person banking. Discover might be a better fit if you prefer 24/7 customer support.
Is a Discover Savings Account Right For You?
The Discover® Online Savings Account has a good interest rate and low fees — you'll earn 3.60% (as of 04/22/25) APY while paying no monthly service fee The $0 minimum opening deposit might be especially attractive to new savers who don't meet the higher initial deposits some banks require.
If you want to bank in person or if you're solely interested in getting the highest possible interest rate for your savings, a Discover Savings account might not be the right choice for you.
Why You Should Trust Us: How We Reviewed Discover Online Savings
We rate banks on a scale from one to five stars, with five being the most favorable. For our Discover® Online Savings Account review, we used Business Insider's savings account methodology, which considers minimum opening deposits, miscellaneous features, monthly service fees, interest rates, customer support, mobile app ratings, and the company's ethics and security.
We use a weighted average to get our star rating, 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.
When considering whether or not Discover is right for you, consider its additional product lines:
Discover Savings Rates FAQs
What are Discover Savings Accounts?
Discover offers one savings account, a high-yield savings account. A high-yield savings account is an account that online banks and credit unions offer that pays above-average interest rates on deposits. The Discover® Online Savings Account pays 3.60% (as of 04/22/25) APY, well above the national average.
What interest rate does the Discover Savings Account offer?
The Discover® Online Savings Account currently pays 3.60% (as of 04/22/25) APY. The average savings rate is only 0.42%, according to the FDIC. It's one of the best banks among national brands, although smaller places may offer even higher rates right now.
How do I open a Discover Savings Account?
You can open a Discover Savings account by going online and filling out an application form. You'll need some personal information, such as a Social Security number and your physical address. If you aren't comfortable filling out the form yourself, you can call Discover's customer service; they can help you open an account. You won't be able to open accounts at branches because Discover is an online bank.
Are there any fees associated with Discover savings accounts?
No, the Discover® Online Savings Account doesn't have monthly account fees or minimum balance requirements. There are also zero fees for official bank checks, stop payment orders, insufficient funds, or bounced checks. Additionally, Discover doesn't charge an excess withdrawal fee (some banks charge a fee of about $10 if you make more than six monthly withdrawals from a savings account). The only fee it charges is a $30 fee for outgoing wire transfers.
Is a Discover Savings Account secure?
Yes, your Discover savings account is secure. Discover Bank is a Member FDIC bank. Deposits held in a Discover Online Savings Account are insured for up to $250,000 per depositor, per account ownership type.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
**Enrollment required.
*Varo Savings Account: To earn the highest APY each month (5.00%) on up to $5,000, you must receive at least $1,000 in direct deposits each month and keep your Varo Bank Account balances above $0. Earn 2.50% APY on your remaining balance. Rates are subject to change at any time.
**LendingClub LevelUp Savings Account: Earn 4.40% APY when you deposit at least $250 per month, earn 3.40% standard APY if minimum isn't met.
***Barclays Tiered Savings Account: Accounts with $250,000 or less will earn 3.65% APY, accounts with over $250,000 will earn 3.75% APY. Rate are determined by balance tiers and amount deposited.
1Platinum 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.
2Based on comparison to the national average Annual Percentage Yield (APY) on savings accounts as published in the FDIC National Rates and Rate Caps, accurate as of September 15, 2025.
1 APY — Annual Percentage Yield is accurate as of September 23, 2025. Interest Rates for the Savings Connect Account are variable and may change at any time without notice. The minimum to open a Savings Connect account is $100. Fees could reduce earnings on the account.
2Based on comparison to the national average Annual Percentage Yield (APY) on savings accounts as published in the FDIC National Rates and Rate Caps, accurate as of September 15, 2025.
