Discover Bank Review
Discover Bank is a full-service online bank as well as a payment services company. Discover offers both banking and retirement solutions for individuals. Discover is best known for its rewards credit cards, personal, student, and home equity loans are also available.
Discover is a strictly online bank, therefore there are no local branches customers can visit in person for banking needs. Discovery is accessible to its customers through customer service, which is available 24 hours a day. You can access your account in several ways. All accounts are accessible online.
Discover uses a mobile app that is available on both iOS and Android. You can access all of your Discover accounts through this application and use their mobile check deposit, by taking a photo with your phone or tablet.
Discovery has more than 50,000 ATMs available to their customers. This provides a large portion of the convenience factor for Discover Banking. You can easily access your account and update your finances without the hassles of traveling to a physical location.
Account Types
- Savings Account
- Checking Account
- Certificate Of Deposits (CDs)
- Money Market Account
Minimum Deposit
- $0 - $2500
PROS
- An Easy To Use Online And Phone App
- No Online Fees For Checking And Savings Accounts
CONS
- No Physical Branch
- Online Tools Are Not As Useful As Big Banks
Here are the main products Discover bank offers for savers:
Discover Bank Savings Account
Discover Banking also offers competitive offers for their savings accounts. The rates premium because they are five times higher than the national average. These rates are highly competitive and benefit the customer exclusively. Discover savings accounts earn 0.70 APY. If you have $10,000 in your savings account, you would earn over $70 from interest annually. Your interest compounds daily and pays out monthly.
Another added benefit of opening a savings account with Discover Banking is there are no fees associated with online savings accounts. There is also no minimum balance requirement. This start contrast is directly related to Bank of America's Advantage Savings account, which requires a minimum of $500 to waive their eight dollars monthly fee.
This is a great example of why the Discover Banking savings account is a great option to build and grow your finances. The mobile app is easy to use when you want to deposit a check, you can easily transfer and view your financial status. This is an incredibly user-friendly system that comes highly recommended.
Discover Bank Checking Account
Discover Checking Accounts offer unique offerings for your banking needs. Discover checking accounts allow you to earn cashback rewards. You earn one percent cash back on up to $3,000 in debit card purchases monthly.
This is a unique feature along with their lack of charging fees with their checking accounts. There are no fees for your account maintenance, ordering checks, In-network ATM use, online bill pay, or replacement debit cards. Discover checking accounts also have no minimum balance requirements or activity requirements. This largely benefits the customer by eliminating excessive fees, while incorporating incentives to open an account.
Overall, Discover offers one of the best options for checking accounts in the industry. You should seriously consider opening an all online checking account and enjoy the many services and flexible options available.
It is simple to deposit paper checks as well. Discover uses a mobile app where you can easily track your spending, move your money, and deposit paper checks. These are exclusive features through Discover that just a few amongst the many features offered to satisfy their customer.
If you prefer online banking, instead of traveling to a physical banking branch, then this is the right bank for you. Your mobile deposit is secure and you are never held responsible for any unauthorized transactions.
Discover Bank CDs
Discover Bank offers one style of CD that requires a minimum deposit of $2,500. Once you meet this minimum requirement the amount you deposit has no impact on the CD’s interest rate. There is a wide selection you can choose from to set up your CD.
Discover Bank's CD rates are highly competitive when compared to other banks. Discover Bank offers a wide variety you can choose from. There are no fees throughout the term you decide on your CD. Discover Bank makes sure your CD is safely secured within its system. You do not have to fear that your CD will be negatively impacted by a market dip or crash.
CDs are protected unlike stocks, which is a great relief to you wanting to safely grow your finances. Another value of having a CD is a fixed interest. This offers you great short and long terms the will grow your financial portfolio with no additional risks.
Discover Bank Money Market Account
A money market account takes your earning power from your savings account and gives you access to your checking features for an increased versatile account. Discover offers money market accounts that provide you with ATM access, debit card, and check-writing capabilities.
When using your money market accounts you can rely upon the highly effective and convenient service Discover Bank provides. There is high earning potential within the Discover banking system. If your account is under $100,000 you earn 0.55% APY and with a balance of over $100,000 you earn 0.60% APY.
If your account balance is $20,000 saved for five years, you will earn $110 the first year and $558 over five years of saving.
Overall, Discover’s money market accounts have no fees and no minimum balance requirements. This allows you to earn more interest than you would from a traditional checking account, which makes this a great opportunity to grow and expand your financial portfolio without taking too big a risk.
Discover prioritizes your need and desire to expand and grow your financial interests. It is extremely important to use the best and safest option.
Pros
- There are no online fees for checking and savings accounts with no minimum deposits
- An easy to use online and phone app for optimal usability
- Offers a highly-rated credit card with a well-regarded application to track them with
Cons
- There is no physical branch if you want to sit down the face-to-face and speak with a representative
- The online tools are not as useful as big banks
- There is no way to directly deposit your cash, which is a problem if you are a heavy cash user or cash-based business
Application Process
Visit the discover bank homepage and click “Open an account.”
Next, fill in your personal information, such as your names, and SSN, then click “Continue.”
Next, fill in your contact info, such as your address, city, state and zip code.
Next, indicate if it the account is going to be an individual or a joint one, then click “continue.” The next page requires your funding info; fill in the necessary details and click “Continue.”
Next, go through the three disclosures provided and lastly, click “Agree and submit.”
Alternatives Banks For Consideration
Here are our alternatives to Discover Bank:
Ally Bank is a US company that offers a series of online banking services like checking, money market, savings, and certificates of deposit.
All accounts are insured by FDIC, no monthly maintenance fees and no minimum deposit. Checking accounts have an APY of 0.25% for a minimum daily balance of $15,000. There are some advantages for using checking accounts, such as; no ATM charges, activities are fully managed online, deposit checks can be photographed on mobile phones to make payments, and easy movement of funds. Savings accounts require no minimum balance and have a 0.60% APY. Also, there is an option to automate your savings to move money into the account on a schedule. A big plus is the Bank's high-functioning website that makes it easy to navigate and manage accounts effectively.
The Bank may require clients to fill in personal and public details to create an account, like; name, date of birth, social security number, account number, and tax identification number.
Ally Bank puts a monthly transaction limit on the savings account, after which there is a $10 charge per time. It isn’t suitable for clients who prefer the traditional in-house banking system.
JD Power ranks Ally in the second position with a score of 0f 864 for direct banking satisfaction. Business Bureau awards the Bank a B- for customer support.
Varo Bank is an online bank with a high-quality mobile application offering savings and checking investment accounts.
There are numerous banking benefits with Varo like; no minimum deposit amount, no overdraft fees, no transfer charges, no hidden fees, no ATM charges, and FDIC insurance coverage up to $250,000. The savings account has an APY of 0.81% and may increase based on certain conditions. There are two savings accounts: Save Your Pay, an automated account to save a percentage of direct deposits, and Save Your Change, which rounds the deposit amount up to the nearest dollar and transfers the remaining cents to the savings account. Checking accounts can be opened on mobile with no monthly charges.
You may want to prepare some details before applying for a Varo bank account. They include; name, date of birth, identification like driver's license, social security number, contact address and residential details.
One disadvantage of Varo bank is the limit on cash deposits for the savings account. The organization also fails to provide a wide range of investment and financing offers like loans, Certificates of deposit, and joint accounts. There are no physical offices; hence, it is only suitable for customers who like full online banking services.
Varo bank meets Better Business Bureau accreditation requirements and has an A+ rating for overall organizational performance.
Summary
Discover Bank is a premium online banking service that offers competitive rates on their accounts with no minimum balances or fees. With your checking accounts, you can earn one percent cash back, which is a rarity in the banking industry.
Discover banking prioritizes their accounts by offering comparisons to other banks, by providing absolute transparency and maintaining flexibility. Because of the user-friendly banking products, you can safely use their services without any fear of the security of your account.
Discover Bank online bank is a great example of a company that is offering services for the adult with a busy schedule while offering reliable software you can use without concern. This is a high-yield earning offer that you should take advantage of through using Discover Bank.
Discover Bank is a safe option for anyone looking to grow their financial portfolio is a safe way, where their money is secure and will grow. Discover Bank is a great opportunity to secure your finances and looks forward.