Finding the right bank can make it easier to manage your money. But your quest to find the perfect bank won’t be an easy one, especially if you’re looking for features such as checking rewards and high-yield savings.
That’s why we want to highlight Discover Bank. It has some of the best features of any bank we’ve seen, both online and traditional. Read on to learn more about Discover Bank and how it can help you achieve your financial goals.
Discover online banking review
Here’s a bird’s-eye view of Discover Bank’s pros and cons:
|Offers a checking rewards program||Has only one physical branch|
|High-yield savings||Doesn’t offer cash deposits|
There isn’t a lot to dislike if you’re fine using an online-only bank. But if you need physical branches, you might be better off with a bank that has a brick-and-mortar location in your area.
Discover Bank products
Discover Bank offers a handful of basic banking products to its customers, including:
- Cash-back checking
- Online savings
- Money market
- Certificate of deposit (CD)
- Individual retirement account (IRA) CD
To help you decide if Discover Bank is right for you, here’s a breakdown of each banking product it offers.
Discover’s checking account doesn’t let you earn interest on any money you keep in it. However, depending on how often you use your debit card, it offers something better: cash back on your debit card spending.
You’ll earn 1 percent cash back on up to $3,000 in debit card purchases every month. That’s up to $30 per month in cash rewards, and you don’t have to sign up for a credit card to get it.
Keep in mind, however, that the following won’t generate rewards:
- ATM transactions
- Purchase of money orders or cash equivalents, such as gift cards
- Cash-over portions of point-of-sale transactions (think cash back at the cash register)
- Peer-to-peer payments
Additionally, purchases made using third-party payment accounts, such as Venmo or PayPal, might not generate rewards.
You can deposit money into your cash-back checking account in the following ways:
- Online transfer from another bank account
- Direct deposit
- Mobile check deposit
- Check deposit by mail
Note that cash deposits aren’t an option. The only exception is if you live near the bank’s sole physical branch, which is located in Delaware.
As far as fees go, Discover Bank is remarkably generous. Here’s what you can expect:
|Official bank check||$0|
|Online bill pay||$0|
|Wire transfers||$0 for incoming transfers; $30 for outgoing transfers|
|Insufficient funds (overdraft)||$30 per item; maximum of one per day|
To avoid the bank’s overdraft fee, you can set up an automatic transfer from your online savings account.
Also, although Discover Bank will never charge you for an ATM withdrawal, out-of-network ATM operators might charge you a fee. The good news is Discover has a network of 60,000 ATMs nationwide, so you won’t have a hard time finding one nearby.
In addition to launching a cash rewards program for its checking account, Discover Bank also offers one of the highest savings yields on the market.
As of December 2017, you’ll earn 1.30% APY with no minimum balance requirement and no phaseout on higher balances. The account also charges no monthly fee. However, if you make more than six withdrawals from your account in a month, there’s a $15 fee per withdrawal after your sixth withdrawal.
What’s more, Discover Bank allows you to open as many savings accounts as you want. So, if you have multiple savings goals, you can separate them into different accounts to stay organized.
Other Discover Bank accounts
- As of December 2017, you’ll earn 1.05% APY if your balance is under $100,000 and 1.10% APY on balances of $100,000 or more.
- Certain types of transfers and withdrawals are limited to a total of six per month, after which you’ll get hit with a $15 fee per withdrawal. There’s no limit on withdrawals by ATM or official check, however.
- You’ll pay a $10 fee if you don’t have an average daily balance of at least $2,500 each month.
- As of December 2017, you’ll earn 1.50% APY for a 12-month term. You can choose a term between three months and 10 years.
- The minimum opening balance is $2,500.
- You’ll pay a penalty if you make a withdrawal before the CD matures.
- The terms of the regular CD account apply to the CD IRA as well.
- You can choose between a Roth or traditional IRA.
- Withdrawals made from an IRA before the age of 59 and a half might be subject to income taxes and a 10 percent penalty.
Using the Discover online banking platform
To open an online savings account, visit the bank’s main account page and click on “open an account.”
Discover allows you to open up to five accounts with just one application. When you choose which account type you want, you’ll enter how much you want to deposit into it and click “add account.”
Once you’ve added all the accounts you want, you can move on to the next step.
After you’ve determined which accounts you want, you’ll share the following information about yourself:
- Full name
- Phone number
- Email address
- Social Security or Taxpayer ID number
- Date of birth
- Mother’s maiden name
- Citizenship status
- Employment and income information
If you already have an account with Discover, you can log in, and the bank will use the information it already has on file.
Once you’ve filled out this information, you can add a joint owner or beneficiary to your accounts. Then, you’ll fill out your bank information to complete the opening deposit — or opt to fund the account later — and agree to Discover’s disclosures.
After submitting the application, you’ll get a response within a minute. You might need to answer some extra questions to verify your identity. Then, you’ll be ready to go.
Once you’ve been approved, you can set up an online account. Since the bank has just one brick-and-mortar branch, everything you need can be found through online banking.
Discover online banking review: Customer service
Discover Bank is well-known for its stellar customer service. The bank was second-highest in customer satisfaction by a recent J.D. Power survey.
Is Discover Bank right for you?
If you have no issue with doing all your banking online, Discover Bank is one of the best options out there.
With a high savings yield and cash-back rewards on debit card purchases, you stand to get a lot of value out of your bank accounts, especially considering the low fees.
That said, it’s wise to shop around before making a decision on a bank account. Compare several bank accounts to make sure you’re getting the best one for your needs. Be mindful of fees, interest, and special features that can help you as you work toward your financial goals.
Interested in refinancing student loans?Here are the top 6 lenders of 2019!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for SoFi.
2 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.54% APR (with Auto Pay) to 7.27% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of March 18, 2019, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 0318/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
3 Important Disclosures for Laurel Road.
Laurel Road Disclosures
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the fixed rate will decrease by 0.25%, and will increase back up to the regular fixed interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.5% effective February 10, 2019.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.54% – 7.12%3||Undergrad & Graduate|
|2.54% – 7.27%1||Undergrad & Graduate|
|2.67% – 8.96%4||Undergrad & Graduate|
|3.23% – 6.65%2||Undergrad & Graduate|
|2.69% – 7.43%5||Undergrad & Graduate|
|2.98% – 9.72%6||Undergrad & Graduate|