Discover Online Savings Review 2026

Discover Bank Overview

Most people know Discover for their credit cards—the "it" card that pays cash back. But Discover has offered banking products since 2007, building a solid online bank with competitive rates and excellent customer service.

Discover Bank is FDIC-insured and has over $100 billion in deposits. They've consistently ranked highly in customer satisfaction surveys, often outperforming larger banks in service quality.

Interest Rate: 3.60% APY

Discover currently pays 3.60% APY on all balances, with no tiers or minimum requirements. This is a solid rate, though slightly below Ally (3.70%), Marcus (3.65%), and significantly below leaders like Pibank (4.60%).

The rate applies from dollar one with no direct deposit requirements or hoops to jump through. Discover has historically maintained competitive rates, typically staying within the top 10 of online banks.

The $200 Bonus

Discover offers a welcome bonus for new savings customers:

• $150 bonus: Deposit $15,000-$24,999 within 30 days, maintain for 90 days
• $200 bonus: Deposit $25,000+ within 30 days, maintain for 90 days

The bonus is paid within 30 days after the holding period. Combined with interest, parking $25K for 90 days yields approximately $425 total—an effective annualized rate of over 6.5%.

Standout Feature: 1% Cashback Debit Card

Discover's unique feature is their cashback debit card, which pays 1% cash back on up to $3,000 in debit purchases monthly. No other savings account offers this.

If you spend $3,000/month on the debit card, you'd earn $30/month—$360/year—in cash back. That's on top of your savings interest.

Caveats: The cashback only applies to signature-based transactions (run as credit), not PIN transactions. And ATM withdrawals don't earn cash back. But for everyday spending, it's a genuine differentiator.

Mobile App: Best in Class

Discover's mobile app consistently ranks among the best in banking:

• iOS: 4.8 stars (over 1 million reviews)
• Android: 4.6 stars

Features include mobile check deposit, instant transfers between Discover accounts, Zelle integration, card controls, and spending insights. The interface is clean, fast, and intuitive.

ATM Network

Discover provides fee-free access to 60,000+ ATMs through the Allpoint, MoneyPass, and other networks. They also reimburse up to $30 monthly in out-of-network ATM fees—a nice safety net if you can't find a free ATM.

Customer Service

Discover consistently wins J.D. Power awards for customer satisfaction. Their support is 24/7, U.S.-based, and generally excellent. Wait times are reasonable, and representatives are knowledgeable.

This is one area where Discover genuinely excels over competitors.

The Capital One Acquisition: What It Means

In February 2024, Capital One announced a $35 billion acquisition of Discover. As of January 2026, the deal is still awaiting regulatory approval.

If the deal closes, expect:

• Account migration to Capital One's platform
• Potential rate changes (Capital One currently offers 3.50%)
• Possible elimination of unique features like cashback debit
• Access to Capital One's branch network (a plus)

What you should do: Your money is safe—FDIC insurance continues regardless of ownership. If you're opening a new account, the bonus is still valid. Just know that the product may evolve post-merger.

Discover vs. Competitors

Discover vs. Ally: Ally offers a higher rate (3.70% vs 3.60%), savings buckets, and a similar ATM network. Discover has the cashback debit and better app. For pure savings, Ally edges ahead; for everyday banking, Discover competes.

Discover vs. Capital One: Ironically, Discover currently offers better rates than Capital One (3.60% vs 3.50%). If the acquisition closes, this comparison becomes moot.

Discover vs. SoFi: SoFi offers higher APY (4.00% with DD) but requires direct deposit. Discover's rate is unconditional. SoFi also lacks the cashback debit feature.

Who Should Choose Discover?

Discover is ideal for:

• Existing Discover card users: Nice ecosystem integration
• Cashback seekers: The 1% debit card is unique
• Customer service prioritizers: Best-in-class support
• Bonus hunters: $200 for $25K is competitive
• App enthusiasts: Top-rated mobile experience

Discover is NOT ideal for:

• Rate maximizers: Higher APYs exist elsewhere
• Long-term planners: Acquisition creates uncertainty
• Savings organizers: No buckets or sub-accounts

The Bottom Line

Discover offers a well-rounded savings account with solid rates, exceptional customer service, and the unique cashback debit card. The pending Capital One acquisition adds uncertainty, but for now, it remains a competitive option.

If you value the Discover ecosystem and want that 1% cashback debit, it's worth considering. If you're purely chasing APY, Pibank, SoFi, or Barclays offer higher rates.