Discover does offer savings accounts, and they come with no monthly fees and no minimum balance requirement
Discover Bank's savings account is called the Discover Online Savings Account. You open it entirely online, fund it by transfer from another bank, and manage it through Discover's website or mobile app. There is no physical branch network—all transactions happen digitally.
The account earns interest on your balance. The rate changes based on market conditions and Discover's pricing decisions, so it is not fixed for life. You can withdraw money anytime without penalty, though federal rules limit you to six withdrawals per month from a savings account (this rule applies across all banks, not just Discover).
Discover also offers a Money Market Account, which works similarly but typically pays a higher interest rate in exchange for requiring a larger opening deposit. Both accounts are FDIC-insured up to $250,000, meaning your money is protected if Discover fails.
Key Takeaways
- Discover's Online Savings Account charges no monthly maintenance fee and has no minimum opening deposit.
- Interest rates on Discover savings accounts vary and are set by Discover, not may provide—check their current rate before opening.
- You can only make six withdrawals per month from a savings account under federal rules; additional withdrawals may trigger a fee.
- Your deposits are FDIC-insured up to $250,000, so your money is protected even if the bank fails.
- All account management happens online or through the mobile app; there are no Discover Bank branches to visit in person.
How to open a Discover savings account
You start on Discover's website and choose either the Online Savings Account or Money Market Account. Discover will ask for your Social Security number, date of birth, address, and employment information. This is standard identity verification.
Next, you link a bank account from another institution to fund your new Discover account. Discover uses this to verify your identity by sending two small test deposits (usually under $1 each) to your existing bank account. You log into that bank, find the deposits, and report the amounts back to Discover. Once confirmed, you can transfer money from that linked account into your Discover savings account.
The entire process typically takes one to two business days. Your account is active and ready to use once the verification is complete.
Interest rates and how they compare
Discover publishes its current savings account rate on its website. The rate is the same for all customers—Discover does not offer tiered rates based on balance size. However, the rate changes periodically as market conditions shift and as Discover adjusts its pricing strategy.
To know whether Discover's rate is competitive, you need to check what other online banks are offering at the same moment. Rates move frequently, so a rate that was high last month may be average today. Websites that track savings rates across banks can help you compare, but the only definitive source is each bank's own website.
The Money Market Account typically offers a higher rate than the Online Savings Account, but it usually requires a larger opening deposit—often $2,500 or more. Check Discover's current terms to see which account and rate makes sense for your situation.
Withdrawals, transfers, and the six-withdrawal limit
You can withdraw money from your Discover savings account by transferring it to your linked external bank account. This transfer usually takes one to two business days. You can also request a check or wire transfer, though these methods may carry fees or take longer.
Federal Regulation D limits you to six withdrawals or transfers per month from a savings account. If you exceed this limit, Discover may charge a fee (typically $10) or convert your account to a checking account. This rule applies to all banks, not just Discover, and exists to keep savings accounts distinct from checking accounts.
If you need to withdraw money frequently, a checking account may be a better fit than a savings account. Discover also offers checking accounts with no monthly fees.
Fees and account costs
Discover's Online Savings Account has no monthly maintenance fee, no overdraft fees (because you cannot overdraft a savings account), and no minimum balance fee. You will not be charged simply for holding the account.
Fees can occur only if you exceed the six-withdrawal limit per month, in which case Discover charges a fee per excess withdrawal. Wire transfers out of your account may also carry a fee, typically $15 to $25. Check Discover's fee schedule on their website for the exact amounts, as these can change.
Interest is paid monthly and deposited directly into your account. You are never charged to earn interest.
FDIC insurance and account safety
Your Discover savings account is FDIC-insured, which means the Federal Deposit Insurance Corporation guarantees your deposits up to $250,000 per account type per bank. If Discover Bank fails, the FDIC will reimburse you for your balance up to that limit.
If you have multiple account types at Discover—for example, a savings account and a checking account—each is insured separately up to $250,000. If you have two savings accounts at Discover, they are combined and insured as a single $250,000 pool.
Your account is also protected by Discover's security measures, including encryption and fraud monitoring. If someone uses your account without permission, you can report it to Discover and are typically not liable for unauthorized transactions if you report them promptly.
How Discover savings accounts differ from checking accounts
A Discover checking account is designed for frequent transactions—paying bills, making purchases with a debit card, and receiving direct deposits. A savings account is designed to hold money you are not spending regularly and to earn interest on that balance.
Checking accounts have unlimited transactions and come with a debit card. Savings accounts have the six-withdrawal limit and no debit card. Checking accounts typically earn little to no interest; savings accounts earn interest based on Discover's current rate.
Many people use both: a checking account for daily spending and a savings account for money they want to set aside and grow. Discover allows you to open both and link them together for easy transfers between them.
Frequently Asked Questions
What is the current interest rate on a Discover savings account?
Discover's rate changes regularly and is published on their website. Visit Discover.com and look for the savings account rate listed on the account details page. Rates vary based on market conditions, so check directly rather than relying on outdated information.
Can I use a debit card with a Discover savings account?
No. Savings accounts do not come with debit cards. You can only access your money by transferring it to another bank account, requesting a check, or using a wire transfer. If you need a debit card, open a Discover checking account instead.
What happens if I make more than six withdrawals in a month?
Discover will charge a fee for each withdrawal beyond six, typically around $10 per excess withdrawal. Repeated violations may result in your account being converted to a checking account. If you need frequent access to your money, a checking account is a better choice.
Is my money safe at Discover Bank?
Yes. Your deposits are FDIC-insured up to $250,000, meaning the federal government guarantees your money even if Discover fails. Discover also uses encryption and fraud monitoring to protect your account from unauthorized access.
Can I open a Discover savings account if I already bank somewhere else?
Yes. You do not need to close your existing bank account or move all your money to Discover. You can open a Discover savings account and link it to your current bank for transfers. Many people maintain accounts at multiple banks.