Discover® is a digital bank with no branches offering banking products like checking and savings accounts, loans like personal and student loans, and credit cards with different rewards. Discover is committed to helping you spend smarter, manage debt and save more money for a brighter financial future. They offer 100% U.S.-based customer service and a robust mobile app to manage all your banking online and access tools to manage your money in a smarter, more accessible way.
Since Discover is a member of the FDIC and is also an accredited business, this means that your deposits at Discover are FDIC-insured up to the legal limits.
Discover Online Banking
Online banking is a revolutionary approach that makes your finances more accessible and offers better perks. Since online banks do not have physical brick-and-mortar locations, they have fewer overhead costs. Those savings translate into lower interest rates on loans and higher interest rates on savings accounts. Discover is one of the online banking companies that is leading this innovative approach.
Discover offers a top-rated mobile app that lets you access your accounts and products on the go. The app allows you to deposit checks anytime from anywhere from the convenience of your phone using the Mobile Check Deposit feature.
Although Discover does not have any physical branches like brick-and-mortar banks, the financial institution offers a vast ATM network. This network is helpful for consumers who need to withdraw cash. You can choose from more than 60,000 no-fee ATMs in the U.S. The Discover mobile app makes it easy to see the locations of these ATMs. With online bill pay, you can consolidate all your bills in one hub to help you manage all your bills conveniently in one place. Online bill pay also allows you to set up automatic payments to make sure you never miss one. You can also easily transfer money between your accounts or pay from or to your accounts using Zelle.
You can feel secure accessing the mobile app, as you can set up a touch or face ID or a passcode. You can also freeze your card to prevent new purchases or unauthorized transactions or set up account activity alerts for extra security.
If you use wearable tech, like a smartwatch, the Discover app connects to several devices to view your accounts from there, too.
Discover Credit Cards
Discover offers several credit cards that come with excellent customer service and top-notch rewards. Discover credit cards have no annual fees, and if you want to get pre-approved, the process is done online, is easy and free, and does not affect your credit score.
You can easily compare Discover credit cards on their website, depending on the bonus categories you are looking for and the APR. For example, a Discover credit card with miles can be an excellent option for someone who travels often. Easily find the best Discover credit card for you. It is also worth noting that although Discover credit cards are widely accepted, they still have a lower one than Visa or Mastercard.
If you are looking into building or improving your credit score, a secured credit card can also help you. Secured credit cards have easier requirements compared to unsecured credit cards.
- Discover it® Cash Back Credit Card: This cash back card is best for you if you are interested in earning a cash bonus for your everyday purchases at different places, like grocery stores quarterly.
- Discover it® Student Cash Back Credit Card: If you are a student and want to earn cash back, this credit card allows you to earn it on everyday purchases every quarter. It also comes with a bonus statement credit if your GPA is 3.0 or higher.
- Discover it® Secured Credit Card: If you want to earn cash back rewards at gas stations and restaurants and build or improve your credit score, this Discover card may be a good option.
- Discover it® Student Chrome Credit Card: This Discover card is best if you are a student who wants to earn cash back rewards for your purchases at gas stations and restaurants.
- Discover it® Travel Credit Card: If you travel often, this card offers unlimited 1.5 x miles for every dollar you spend on anything, like airfare or groceries.
- Discover it® Gas & Restaurants Credit Card: You can earn cash back at gas stations as well as dining rewards when you eat out at restaurants.
- Discover it® Business Credit Card: If you are a business owner, earn cash back on every dollar you spend on anything.
- Discover it® NHL Credit Card: If you are a hockey fan, want 5% cash back for qualifying purchases, and your team’s logo on your credit card, this card may be the right one for you.
As a Discover cardholder, you also get other perks, such as an unlimited cash back match. Some of the credit cards have this feature, in which Discover will match the cash back you have earned at the end of the first year with no minimum or maximum dollar-to-dollar match.
To get a credit card with Discover, you can apply online on their website or call them on the phone. Before you do that, you may want to check your credit score on the Discover free credit scorecard.
Discover Online Banking Products
Discover offers a checking account, an online savings account, a money market account, a certificate of deposit account, and retirement accounts with no monthly service fees. All are conveniently managed through a free online banking portal and a top-rated mobile app.
Checking Account
With this checking account, you can earn cash back on your debit card purchases. The checking account also offers no monthly maintenance fees or minimum deposit and access to over 60,000 no-fee ATMs. You can also get a free replacement debit card, standard checks, and official bank checks. You can use online bill pay to pay bills from your account and use Zelle to transfer money to and from U.S. accounts.
You can earn up to 1% cash back on all debit card purchases. This cash back program only applies for the first $3,000 you spend on your debit card every month. Not every debit card offers rewards, and if you want to stay away from a high credit card debt, this card can work for you.
Online Savings Accounts
A Discover Online Savings Account features a competitive APY and no monthly fee, and interest compounded daily and paid back to you every month. Discover Bank offers an interest rate of 4.00%, which is five times the national average. The online savings account has no minimum balance requirements or minimum opening deposit, and it does not charge an insufficient funds fee either.
You can create multiple savings accounts with Discover Bank. Having multiple accounts makes it easier to allocate funds for specific goals. You can create savings accounts for vacations, emergency funds, education, and other important categories. This categorization can help you stay on top of your finances, and you will enjoy a higher interest rate with a savings account than a checking account.
Money Market Account
Money markets invest in short-term bonds and reward account holders with interest. These accounts let you earn interest, but that’s not where the perks end. Discover customers with Money Market Accounts can also get access to their money via Discover’s ATM network. This high-yield savings account has a competitive APY and no minimum balance fees. You can also withdraw cash from this account at more than 60,000 no-fee ATMs. Also, get a free replacement debit card, standard and official checks, and access to free online bill pay. The minimum opening deposit for a Discover money market account is $2,500.
Certificate of Deposit Accounts
With terms from 3 months to 10 years, Discover Bank offers competitive rates on their CD accounts. The longer the CD term, the more interest you will earn. 1-year CDs currently have 5% APY, while 10-year certificates of deposit feature 3.80% APY. The interest rate is currently 4.00% APY or higher if you get a CD with a term of five years or fewer. This account has no fees, but you will need to make a $2,500 minimum opening deposit to get started with a Discover CD.
Certificates of deposit offer fixed, guaranteed returns as long as you do not withdraw funds. These accounts can help with portfolio diversification and make your wealth less volatile. These investments don’t have as high of a ceiling as stocks, but they offer stable income. Discover’s CD rates are competitive with the online banking industry.
Retirement Accounts
The financial institution offers a Roth IRA and a Traditional IRA with no fees to help you save for your retirement. Roth IRAs are funded with after-tax dollars, so earnings and qualified withdrawals are tax-free, and contributions are not deductible. In contrast, Traditional IRAs are funded with pre-tax dollars, so earnings are tax-deferred, and contributions are tax-deductible to certain income limits.
You can either create an IRA Savings account or an IRA CD with Discover. The IRA Savings account does not have a minimum opening deposit, but you need to put in at least $2,500 to open an IRA CD with Discover. Contributing to your retirement account early and often will give the gains more time to compound. You can also score on the tax advantages and save money in the long run. Discover can guide you on the path to a smooth retirement and offers educational resources for customers wondering which IRA makes sense for them.
Discover Loan Products
Discover offers personal loans, home loans, and student loans aside from their banking products and cards.
Personal Loans
Discover Personal Loans can help you afford any large purchase or consolidate higher-interest debt. You can get a personal loan with no origination fees, flexible repayment terms between 36 and 84 months, and fixed monthly payments. With their fixed rates, you will know exactly how much you need to pay back each month. If you return the loan within 30 days, you will pay no interest. The application process is fast and straightforward, with same-day approval in the majority of cases.
Checking your interest rate will not impact your credit score. You need a 660 credit score or higher to obtain a personal loan with Discover Bank. The financial institution gives out lower interest rates to people with higher credit scores. You will get the best APR if your credit score is above 800. If you use a personal loan for debt consolidation, you will get a lower interest rate.
Home Loans
Discover offers home equity loans and mortgage refinance loans. With a home equity loan, you get to keep your current mortgage and borrow cash against it, whereas with a refinance mortgage, you will be swapping your existing mortgage for one with better terms for you.
Home loans are available for amounts between $35,000 and $300,000 and have low fixed rates. Interest rates start at 6.24% APY for the first liens and 7.49% APY for the second liens. The fixed interest rate for a mortgage refinance can get as high as 10.24% APY. Borrowers can choose 10, 15, 20, or 30-year terms for their mortgage refinances. Both financial products come with zero origination fees and zero appraisal fees, and no cash is required at closing.
Your available cash for a down payment, debt-to-income ratio, credit history, and property value impact how much you can borrow for a home loan. Discover has a short form for people interested in the loan. After you fill it out, Discover will send you some of its loan options.
Student Loans
Discover’s student loans help cover up to 100% of college costs and give you cash rewards if you get good grades. The student loans come with no fees and a choice of fixed or variable interest rates. Fixed interest rates range from 4.99% APR to 14.99% APR, while variable interest rates range from 6.37% APR to 16.62% APR. The online bank offers student loans for undergraduates and graduates. You can use this loan to pursue many education paths, such as law, health, and business.
Discover Financial Services also offers a free search tool to help you find scholarships. Every scholarship adds up, and applying to several of them can help you save thousands of dollars in college tuition. The bank also helps out with cash rewards for good grades and an automatic 0.25% APR deduction to your loan’s rate if you enroll in automatic payments. These loans have zero fees. You won’t have to worry about origination fees, application fees, or late fees. The application process only takes a few minutes.
Get Started with Discover Online Banking
Getting started with any of the Discover products is simple and straightforward. You can complete the process easily online or talk to a customer service representative on the phone.
You can get pre-approved for credit cards, which will not affect your credit score, or directly apply for one. For accounts, choose between savings, checking, money market, CD, or retirement accounts and follow the application process on their website. You can also easily apply for a personal loan, student loan, or home loan on their website or talk to a U.S. loan expert to walk you through the process.
