Discover is an online bank that offers competitive interest rates and 24/7 customer service

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  • Discover (Member FDIC) offers savings, checking, and money market accounts, as well as CDs.
  • The bank pays competitive rates on its savings account, money market account, and CDs, and you earn 1% cash back with your checking account debit card.
  • You can open a savings or checking account with no initial deposit, but Discover requires $2,500 to open a money market account or CD.
  • See Business Insider’s picks for the best high-yield savings accounts »

Discover is an online bank with one branch location in Delaware and ATMs around the country. Discover offers a variety of bank accounts and pays competitive rates on savings, CDs, and money market accounts. You can open a checking or savings account with no initial deposit, and Discover doesn’t charge monthly fees for any of its accounts.

You might like banking with Discover if you:

  • Want a debit card that helps you earn cash back
  • Are looking for a competitive APY on your savings, CD, or money market account balances
  • Enjoy banking digitally
  • Want a CD with a term longer than five years
  • Value 24/7 customer service
  • Have easy access to Discover ATMs

You might not like banking with Discover if you:

  • Want to earn interest on your checking account balance
  • Aren’t comfortable banking digitally
  • Don’t live near a Discover ATM
  • Don’t have $2,500 to open a money market account or CD
  • Details
  • Pros & Cons

    • No monthly balance requirements
    • 100% US-based customer service available 24/7
    • No hidden fees
    Pros
    • Competitive APY
    • No monthly service fee
    • No opening deposit
    • No insufficient funds fee
    • No excess withdrawal fee
    Cons
    • Only 1 branch location
    • No debit card unless you open a checking account
    • No out-of-network ATM fee reimbursements


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    Discover pays a competitive rate on your savings account balance, and it doesn’t require an initial deposit to open the account.

    The Discover Online Savings Account is a worthwhile option for a no-fee savings account. There’s no monthly service charge and no insufficient funds charge.

    Federal law restricts account holders to six transactions per month from a savings account, regardless of which institution you bank with. However, unlike many competing banks, Discover doesn’t charge an excess transaction fee — the bank will just close your account if you exceed six monthly transactions three times in 12 months. 

    The government has suspended its rule that banks have to penalize members for exceeding six transactions per month during the Pandemic Protocol pandemic, so Discover won’t close your account if you frequently go over the limit for the time being.

    See Business Insider’s picks for the best high-yield savings accounts »

  • Details
  • Pros & Cons

    • Earn 1% cash back on up on up to $3,000 per month in eligible debit card purchases
    • 100% US-based customer service available 24/7
    • No opening deposit or minimum account balance
    • No monthly maintenance fees
    • Over 60,000 ATMs
    Pros
    • Earn up to 1% cash back on up to $3,000 in purchases per month
    • No monthly service fee
    • Over 60,000 ATMs
    • Enroll in free overdraft protection
    Cons
    • Debit card can only be used in the US, Canada, Mexico, and the Caribbean
    • Only 1 branch location
    • $30 overdraft fee if you don’t enroll in overdraft protection


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    It isn’t very common to find a debit card that offers cash back rewards, but Discover lets you earn 1% cash back on up to $3,000 of purchases per month. There are also no monthly service fees with Discover, though there are overdraft fees. However, if you enroll in overdraft protection that links your checking to another Discover account, this can be a great low-cost checking account.

    You have access to 60,000 ATM locations with Discover, but the bank doesn’t reimburse any out-of-network ATM fees charged by ATM providers.

    See Business Insider’s picks for the best checking accounts »

  • Details
  • 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
    Pros
    • Terms up to 10 years
    • No monthly service fee
    Cons
    • $2,500 opening deposit
    • High early withdrawal penalties for longer terms
    • Doesn’t offer no-penalty CDs
    • You can find higher APY elsewhere
    • Only 1 branch location


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    Discover offers a wider range of CD terms than many competitors — most offer terms up to five years, but Discover also has seven-year and 10-year terms. However, it doesn’t offer any unique types of CDs, like no-penalty CDs.

    When compared to other online banks, Discover CD rates are about average. Rates are higher than what many competitors pay, but you can find a higher APY elsewhere. You’ll also need $2,500 to open a Discover CD, and while this is lower than some banks’ requirements, you can find institutions that ask for less to open a CD account.

    Discover’s early-withdrawal penalties are fairly standard for terms of five years or less. However, you’ll pay a relatively high penalty if you withdraw from a seven-year or 10-year CD before it matures.

    See Business Insider’s picks for the best CD rates »

  • Details
  • Pros & Cons

    • No monthly maintenance fees
    • Compounding interest to maximize your earnings
    • 100% US-based customer service 24/7
    • 60,000 ATMs
    Pros
    • Competitive APY
    • Paper checks and debit card
    • No excess transactions fee
    • 60,000 ATMS
    Cons
    • $2,500 opening deposit
    • Need $100,000 to earn highest APY
    • Only 1 branch location
    • No out-of-network ATM fee reimbursements
    • Debit card can only be used in the US, Canada, Mexico, and the Caribbean


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    The Discover Money Market Account  offers a relatively competitive rate on your savings, and it gives you easy access to your money with a debit card and paper checks. You’ll need at least $2,500 to open an account, though.

    Discover has 60,000 free ATMs, but it doesn’t reimburse any out-of-network fees charged by ATM providers. Federal law limits you to six transactions per month from a money market account, regardless of which institution you use. Unlike many competitors, Discover won’t charge you a fee when you exceed that limit — the bank will just close your account should you go over six monthly transactions three times in 12 months.

    See Business Insider’s picks for the best money market accounts »

    Discover’s website is easy to navigate, and its mobile app has received 4.6 out of 5 stars in the Google Play store and 4.8 stars in the Apple store.

    Once you set up an online account, you can chat 24/7 with a live customer service representative. Discover also provides 24/7 customer service over the phone.

    Discover offers a savings account, checking account, money market account, and CDs. 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, Discover doesn’t reimburse any fees charged by out-of-network ATM providers.

    Your Discover Bank account is FDIC insured for up to $250,000, or up to $500,000 for a joint account.

      Discover Capital One 360 (Member FDIC) CIT Bank (Member FDIC)
    Bank accounts Savings, checking, CDs, money market account Savings, checking, CDs, teen savings, kids checking Savings, checking, CDs, money market account
    Opening deposits $0 for savings, checking; $2,500 for CDs, money market $0 $100 for savings, checking, money market; $1,000 for CDs
    Monthly fees $0 $0 $0
    ATM access Network; no out-of-network fee reimbursements Network; no out-of-network fee reimbursements No network; $30/month for out-of-network fee reimbursements
    Customer service 24/7 live chat and phone service 24/7 live chat; call 8 a.m. to 11 p.m. ET 24/7 live chat and automated phone service; Live phone service M-F 9 a.m. to 9 p.m. ET and Saturday 10 a.m. to 6 p.m.

    Discover vs. Capital One 360

    Neither Discover nor Capital One 360 charges monthly service fees, and they pay comparables rates. Both have a large ATM network but don’t reimburse any out-of-network ATM fees charged by providers.

    Capital One 360 doesn’t have a money market account, but it does offer savings and checking accounts specifically for kids.

    Capital One has hundreds of branch locations across eight states (Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia), as well as Washington DC. It also has dozens of Capital One Cafés, where you can grab Peet’s Coffee and speak with a money coach. If you like face-to-face banking and live near a Capital One branch or café, you may prefer Capital One.

    Discover vs. CIT Bank

    Both Discover and CIT Bank offer a savings account, checking account, money market account, and CDs, and the banks pay similar rates. However, CIT Bank also has no-penalty and jumbo CDs.

    Your choice between Discover and CIT Bank may come down to how much money you have for an opening deposit. CIT Bank requires more money to open a checking and savings account, but Discover requires more for a money market account and CDs.

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    More:

    Discover
    Discover Online Savings
    Discover Cashback Debit Account
    Discover CD

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