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Editor’s note: The APYs listed in this article are current at the time of publication. They can fluctuate (up or down) when the Fed rate changes. CNBC will update as changes are made public.
Physical banks may not be known for offering the highest rates, but many consumers find it comfortable to put their money in an established institution versus a new online-only bank.
Discover is a popular option, as the major financial institution still offers savers a competitive rate (unlike many brick-and-mortar banks), as well as easy access to other Discover accounts that help you manage your money in one place. .
CNBC Select reviewed the High Yield Savings Accounts offered by the major banks and/or credit unionsand we found that the Discover the online savings account ranks as our top pick for a one-stop shop. This account offers users a high interest rate through its high-yield savings and the ability to add a checking account with ATM access and cashback. Users get the most out of opening a savings account and a checking account.
Below, we review the Discover Online Savings Account and give you all the details of its features, including Annual Percentage Yield (APY), access to your money, benefits and fees so so you can decide if this high-yield savings account is right for you.
Check out the Online Savings Account Review
Discover the online savings account
Discover Bank is a member of the FDIC.
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Annual Percentage Yield (APY)
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The minimum balance
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Monthly fee
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Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle *Cycle withdrawal limit of 6/instructions is waived during the Coronavirus outbreak under Regulation D
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Excessive transaction fees
Discover may refuse to pay for each transaction that exceeds the limits. If you exceed these limits more than occasionally, it may result in the termination of your account.
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Overdraft fees
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Offer a current account?
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Offer an ATM card?
Yes, if you have a Discover current account
Benefits
- Strong APY
- No minimum balance required
- No monthly fees
- Up to 6 free withdrawals or transfers per statement cycle*
- 24/7 customer support
- Ability to add a checking account with ATM access
- Offers mobile check deposits
- Helpful Tips via Modern Money Blog
The inconvenients
- The account might close if you often exceed the withdrawal limit
Discover the APY online savings account
The current APY is 0.50%. The users of Discover the online savings account can start earning interest immediately, with no minimum balance required in their account.
Interest on your savings is calculated daily and paid monthly. This means you earn interest on interest every day and see that earnings credited to your account every month.
Access to your cash
The Discover Online Savings Account gives customers easy, mobile access to your money and accounts.
With mobile check deposits, savers can deposit a check into their savings account by taking a photo of it with their smartphone or tablet. Using the app, they can also transfer money from one account to another and use Quick View to check their savings account balance without having to log into their account each time.
As required by law, Discover savings account holders can make up to six free withdrawals or transfers per statement cycle (limit removed during the coronavirus outbreak under Regulation D).
Benefits
Apart from having a well-rated 24/7 customer service, Discover stands out as it offers a checking account option that earns rewards, making it easy to do all your banking in one. place.
The online Discover the Cashback debit account comes with no monthly fees, cash back on your debit card purchases, and access to over 60,000 ATMs nationwide. This account ranked “Best for Rewards” on CNBC Select’s list of the best no-fee checking accounts.
The Discover website also makes it easy to compare their savings account to accounts from other major banks. On the website, users can add and remove certain banks to create their own comparison table to see how banks compare to each other. The Discover website also offers helpful tips and “how to” articles through its Modern Money Blog.
Costs
There is no monthly fee or minimum deposit required to open a Discover Online Savings Account.
At the end of the line
Our methodology
To determine which high-yield savings accounts offer the best return on your money, CNBC Select analyzed dozens of savings accounts offered by online and physical banks, including major credit unions. We narrowed down our ranking by only considering savings accounts that offer an APY of around 1%, no monthly maintenance fees, and low (or no) minimum balance requirements.
While the accounts we picked in this article consistently rank among the highest APY rates, we also benchmarked each savings account on a range of features, including ease of use and account accessibility. , as well as factors such as insurance policies and customer reviews. when available. We also considered user deposit options and the compound frequency of each account.
All accounts included in this list are FDIC insured up to $250,000. Note that pricing and fee structures for High Yield Savings Accounts are not guaranteed forever; they are subject to change without notice and often fluctuate with the Fed rate. Your income depends on the associated fees and the balance you have in your High Yield Savings Account. To open an account, most banks and institutions require a deposit of fresh money, which means that you cannot transfer money that you already had in an account with that bank.
*National Bank American Express is a member of the FDIC.
Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.
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