Discover Bank Review: So Much More Than Just a Credit Card

Discover Bank might be the best online option for you.

You’re probably most familiar with Discover as a credit card issuer. But did you know Discover also offers a wide variety of traditional banking products? As an online bank, it’s also designed to make your banking experience easier and more convenient.

There are no physical Discover Bank branches, but the FDIC member bank offers access to 60,000 no-fee ATMs. If you’re contemplating changing banks or are just curious to see the benefits in store at one of the most popular online banks,  then consider banking with Discover.

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Discover Bank Review

As one of the top-rated online banks, Discover is loaded with different options for its customers — from students to homebuyers to travelers. It offers four unique credit cards, a range of CDs and IRA CDs with flexible terms from three months to 10 years, and money market accounts, savings accounts and checking accounts. Discover also offers a wide range of options for student, personal and home equity loans.

In addition, as a Discover Bank member, you have access to your account at all times through the bank’s app.

Discover Credit Card Products

If you’re not happy with your credit card, then Discover Bank might be your next banking home. Discover matches all the cash-back bonus you’ve earned at the end of your first year. But aside from those perks, see some other benefits Discover card members get to enjoy and learn why Discover offers some of the best cash-back cards:

  • Earn up to 5 percent cash back
  • 24/7 customer service
  • Pay bills automatically with auto-pay
  • Download or print statements for tax records
  • Activate free alerts that notify you when your Social Security number is detected on questionable websites
  • Free next-day shipping for card replacements to any street address you request

Discover it Cash Back Card

The Discover it Cash Back card allows you to get 5 percent back on various categories that the bank sets each quarter. Earn 5 percent cash back at restaurants between July and September 2018. You still get an unlimited 1 percent cash back on all other purchases. There is no annual fee for this card. After 14 months from the date you open the account, the standard purchase APR is 13.49-24.29 percent.

Discover it Chrome Card

If you’re a student looking to save a little extra money each year, then this card might be right for you. Discover will give you $20 credit each school year your GPA is 3.0 or higher for up to five years. In addition, there is no late fee on your first late payment. And as a bonus, enjoy 0% APR for six months from the day you open the account. Then the standard APR of 14.49-23.49 percent applies.

Learn: 10 Best Credit Cards for Students

Discover it Miles Card

For all you backpackers and world travelers, take advantage of the Discover it Miles Card. For every dollar you spend, you earn unlimited 1.5x miles. And you can continue to rack up those miles anytime since there are no blackout dates. Also, enjoy 0% APR for 14 months from the day you open the account, then the standard 13.49% APR percent applies, depending on your credit history.

Discover it Secured

Looking to build your credit history? Then consider the Discover it Secured card — it’s one of the best credit cards for building credit. Although this card comes with no annual fee, there is a 24.49% APR. You’ll also earn 1 percent cash back on all purchases.

Discover Banking Products

If you’re looking to earn interest, then Discover might be a viable option to consider with its overall high APYs.

Checking Account

With the Discover checking account, you don’t need a minimum deposit to open an account. You earn 1 percent cash back on up to $3,000 in debit card purchases a month. These rewards never expire and you can transfer your Checking Cashback Bonus to your Discover credit card cash-back bonus account in any amount.

Savings Account

Compared to some brick and mortar banks such as Chase and Bank of America, Discover’s savings account has a more favorable APY at 1.75%. Chase’s online savings account offers a 0.01% APY and Bank of America offers a 0.03% APY.

Money Market

Discover’s money market account requires a minimum deposit of $2,500 and you are charged a $10 fee if you dip below that amount. But the bank makes up for it in APY. For balances under $100,000 there is a 1.50% APY, and for balances over $100,000 there is a 1.55% APY.

CDs

Opening a certificate of deposit with Discover requires a $2,500 minimum deposit. CDs do carry high APYs, which are ideal for making more money through your account. For example, a 12-month CD has a 2.25% APY and a 10-year CD comes with a 2.85% APY.

See: How Much You Need to Open CDs at Discover and 17 Other Banks

Discover Loan Products

Whether it’s a student loan or home equity loan, Discover offers competitive options to give you the financial assistance that you need.

Personal Loans

If you’re interested in consolidating your debt into a personal loan, then Discover might have what you need. There are no origination fees of any kind as long as you pay on time, and Discover offers flexible repayment terms up to 84 months to fit your budget. Personal loans also have fixed rates ranging from 6.99% to 24.99% APR.

Student Loans

Besides the $0 late fees, Discover rewards students with a 3.0 GPA or better with a 1 percent cash reward on each new student loan. You can opt for loans with variable rates or fixed rates. Discover student loans with variable rates begin at 3.99% APR and loans with fixed rates range from 5.99% to 13.99% APR. See how Discover’s student loan offerings compare to other banks’.

Home Equity Loans

Discover offers loans from $35,000 to $150,000 with fixed rates starting at 4.99% APR. Opt for a 10-, 12-, 15-, 20- or 30-year plan, and enjoy zero origination fees. In addition, zero cash is required at closing. Learn how to get a Discover home equity loan.

Discover Bank Pros

  • No hidden fees
  • No minimum opening deposit for online savings account
  • Gives 1 percent cash reward to students with GPA of at least a 3.0
  • High earnings on annual interest for a $15,000 balance on a savings account
  • Award-winning customer service

Discover Bank Cons

  • $2,500 minimum deposit for CDs is higher than other banks
  • The variety of account options is more limited than other banks

The Bottom Line

Overall, Discover is generally highly rated among customers. It is a great bank if you’re someone who favors cash-back credit cards and hopes to earn interest with additional banking products. As an online bank, it doesn’t offer face-to-face services. But with rates this good, it doesn’t need to.

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This content is not provided by the companies mentioned. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been reviewed, approved, or otherwise endorsed by Discover Bank.