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Discover
9.8
ratings

Overview

With a large number of options in savings account, it can become difficult to choose the right one. It is important to choose an account that fits your needs, is easy to maintain, and does not cost a lot. The advances in technology have made it possible for us to manage our funds from the comfort of our home and ensure that we are getting the best deal. Out of all the savings accounts in the market, the Discover savings account is a widely preferred account for a number of reasons.

Discover offers an ideal combination of a large bonus, low fees, ease of use, and high APY. Every consumer seeks to get a high APY on their account, but that should not be the only deciding criteria. There are a number of factors that should be considered when choosing a savings account for your use. Understanding the features of the account will give you a better idea about the same and you will be able to determine whether the account is ideal for you or not.

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Pros

  • No monthly maintenance fees
  • Annual first fee forgiveness
  • Award-winning customer service

Cons

  • No physical branch
  • No way to directly deposit cash
  • $5 bonus after 50 transactions

Transfer and withdrawals

All the account holders have a set of options to deposit funds, which include online transfer, mobile check deposit, direct deposit, or mailing in a physical check. This makes it easier for the account holders to manage their funds online. Account holders have a range of withdrawal options that address the needs of consumers. The easiest way is setting up a free electronic transfer between any brick and mortar bank and Discover. There is an option of outgoing wires as well.

Access

There is a mobile app for all the savings account holders. It is an iOS and an Android app which is rated high by users. The app allows consumers to manage transactions with ease and convenience. Account holders can also access their details in the account, transfer money, and deposit checks. The mobile app is easy and convenient to use. It allows the account holders to manage their funds without having to visit the bank physically.

A limiting factor of Discover is the absence of an ATM card. Discover has no ATM cards or a convenience card for the purpose of withdrawals like most other banks in the market today do. However, it offers a cash back debit account, where you can transfer the funds between accounts for easy debit transactions, and the account will earn 1% cash back on an amount of $3,000 of debt purchases per month.

Fees and rates

  • Monthly fees
    With every account, there are certain fees and charges applicable from time to time. The savings account is accessible to varied account holders in addition to those who do not maintain a large monthly balance. With Discover, there is no need to maintain a minimum monthly balance in the account. There is no maintenance fee for every month. However, there is a charge of $15 on each transaction after you exceed six withdrawals in each month. The withdrawal charge is applicable to every account holder. There are a number of banks, which have no such fees on the withdrawals and Discover could improve on this front. For account holders who have more than six withdrawal transactions each month, this cost could be substantial.
  • Interest rates
    There is a flat 2% APY, which is the highest out of all the online savings accounts available in the market today. In addition, all the balances earn the same interest rate at all times. However, there are some where online savings account offer tiered rates based on their account balances.
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