Discover Savings Account Interest Rates

Discover offers a relatively accessible savings account, but the APY is low compared to top high-yield savings options

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Ben Luthi
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Ben Luthi has been writing about credit cards and personal finance for six years and has written for U.S. News, NerdWallet, CreditCards.com and Experian, among others. Ben has developed many of Investopedia's in-depth credit card reviews and enjoys collecting and redeeming credit card miles and points in his everyday life and international travels.
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Updated July 05, 2023
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Brendan Harkness
Brendan Harkness
Fact checked by Brendan Harkness
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Brendan Harkness is a senior finance editor at Investopedia and The Balance. He has spent 8-plus years researching, writing, and editing content for financial and business publications about credit, banking, and credit cards.

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Discover Savings Account Interest Rates

Discover offers a high-yield savings account that comes with an annual percentage yield (APY) that's much higher than the national average. The interest rate applies regardless of your balance, so you don't have to worry about complicated APY tiers.

The APYs listed are up to date as of the date of publication of this article. We review the bank’s savings account rates every two weeks and update the information below accordingly.

Discover Savings Accounts
Account Name Minimum Deposit APY Monthly Fee
Discover Online Savings Account $0 4.15% APY $0

Discover Savings Accounts: Key Features

Discover Online Savings Key Features
APY  4.15%
Minimum Balance to Earn Highest APY $0
Minimum Deposit $0
Withdrawal Limit 6 per statement cycle
Monthly Service Fee $0

The Discover Online Savings account is easy to open, with no minimum deposit or balance requirement. You'll also earn the same APY regardless of your balance. Interest is compounded daily and paid monthly. Although the bank's APY is high compared to the national average (0.42%, as of June 20, 2023), it’s low compared to the best high-yield savings accounts on the market.

Discover doesn't charge any account fees, though, so you don't have to worry about extra costs. 

Like many other savings accounts, this one has a limit of six withdrawals per statement cycle, and while Discover won't charge you a fee for excessive withdrawals beyond that threshold, it may refuse to complete the transaction. If you exceed the withdrawal limit regularly, the bank may close your account.

About Discover: Other Savings Options

Discover offers savings accounts nationwide, but the online bank has no physical locations. It also offers a rewards checking account, a money market account, and certificates of deposit, among other banking services.

That said, the bank has a reputation for good customer service, receiving top marks in J.D. Power's 2022 U.S. Direct Banking Satisfaction Study.

Savings account interest rates can fluctuate regularly, so while one bank may offer the best APY at the moment, there's no guarantee it will stay that way as banks compete for consumers' business. While a high APY is important, consider all account features to determine the best fit for you.

Compare Savings Account Rates

Is Discover Good for Savings?

Discover offers a high yield on its savings account, but if you're looking to maximize your return on your short-term savings needs (like for an emergency fund or home down payment), you can find better APYs elsewhere. Take a look at the best high-yield savings accounts to see the highest rates on the market today.

What’s the Minimum Balance for a Discover Savings Account?

Discover doesn't have a minimum balance requirement to open a savings account or to earn interest. With some other banks, you may need to make a minimum deposit to get started or maintain a certain balance to earn the account's highest interest rate, which makes Discover relatively accessible.

How Do You Withdraw Money From a Discover Savings Account?

You can withdraw money from your Discover Online Savings account through a bank transfer (either to a Discover checking account or to an external account), a wire transfer, or a bank check. The account doesn't come with an ATM or bank card, so there's no way to withdraw cash. 

Remember that there's a limit of six withdrawals per statement cycle. If you make more than that, the bank may decline your request.

Are Discover Savings Accounts FDIC-Insured?

Yes, Discover offers FDIC insurance up to the maximum limit of $250,000 per account category, per owner. In other words, you're insured up to $250,000 on your own or $500,000 with a joint account owner.

Article Sources
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  1. FDIC. "National Rates and Rate Caps."

  2. Discover. "Online Savings Account."

  3. FDIC. "National Rates and Rate Caps."

  4. Discover. "Deposit Account Agreement," Page 19.

  5. J.D. Power. "Established Direct Banking Brands Flex Their Digital Banking Muscle, According to J.D. Power."

  6. Discover. "Federal Deposit Insurance Corporation."