Discover Financial Services acquired the Greenwood Trust Company in 1985. Greenwood Trust Company rebranded as Discover Bank in 2000. These days, most consumers know Discover for its branded credit cards rather than its banking services. The company continues to grow its online banking products and services, nonetheless. More and more people continue to turn to the online banking provider due to its competitive products. In fact, analysts expect the bank to continue to grow moving forward.
What Products and Services Are Offered By Discover Bank?
Unsurprisingly, Discover Bank offers everything consumers would expect from an online bank. This includes everything from checking and savings accounts to credit cards and various types of loans. Discover has long offered student loans and personal loans. Not everyone realizes the company also offers home equity loans. At this point, investment products remain the only major omission in Discover Bank’s offerings. All of Discover’s products compete well against similar options from competitors.
Credit Cards From Discover Bank
Over 40 million consumers own and use a credit card from Discover Card. That’s a small figure in comparison to the 120 million cardholders with American Express. Nonetheless, Discover provides competitive credit card offerings designed for all types of consumers. The original Discover card was introduced without an annual fee and with higher credit limits than competitors’ cards. Analysts originally called Discover a market disrupter, and that description still holds true today.
All consumers should be able to find a credit card that suits their needs. Discover offers travel rewards credit cards, low-interest cards, and even student credit cards. On top of that, a secured credit card is available through the company for those with bad or limited credit history. Various business cards are available as well, and Discover credit cards never come with an annual fee. It’s hard to argue that the company doesn’t cater to all consumers with an option to suit their needs.
Interest rates on Discover credit cards are standard within the industry. These credit cards stand out by offering high credit limits and no annual fees. Unfortunately, travel rewards through Discover are lacking compared to something like Chase Sapphire or various American Express cards. Consumers that like the benefits with those cards may want to stick with those specific credit cards today. The average consumer can find a better than average credit card by option for Discover, though.
Checking and Savings Accounts From Discover Bank
Discover Bank offers both checking and savings accounts with online access. Each account type comes with benefits not typically seen with traditional banks. At minimum, all account holders have access to online banking and 24/7 live customer service. Account access is always available, and Discover gives its account owners the power to control their finances without worry. Checking and savings accounts come with no minimum balance requirements, no overdraft fees, and no monthly maintenance fees.
The checking account is an interesting offering because it provides cash back. All qualified debit card purchases come with 1% cash back, capped at $3,000 in purchases per month. Without a doubt, most traditional and online banks almost never offer cash back rewards with checking accounts. Discover breaks the mold and gives consumers one more source to earn cash back on purchases. A maximum of $30 per month doesn’t sound like much, but that amount adds up when combined with the lack of fees on the account.
Checking accounts include access to more than 60,000 ATMs nationwide as well.
Discover’s standard savings account currently offers a rate above 2.00%. That interest rate is far and above what traditional banks offer right now. Compared to other online banks, Discover still offers one of the most competitive interest rates today. Luckily, consumers don’t have to meet minimum balance requirements for his high-yield savings rate. The account works like all other savings accounts, and that higher yield makes a difference compared to the pitiful rates offered at other banks.
Certificates of Deposit (CDs) From Discover Bank
No bank can skip on offering certificates of deposit these days. In Discover’s case, the company once again offers high rates and consumer-friendly terms. CD rates are well above the industry average with flexible terms and features. Terms range from one to ten years with Discover Bank, and there are no maintenance fees on CDs. Like all other CDs, account owners will pay a small penalty for early withdrawals. A more competitive CD offering might not be available from most traditional or online banks.
Personal Loans From Discover Bank
Discover Bank even offers personal loans with no loan origination fees. The only “fee” consumers pay on these loans is the interest rate. As with its other products, this online bank offers competitive interest rates on all personal loans. Creditworthiness is used to determine the rate, but Discover’s highest rate isn’t necessarily terrible. Fixed rates and flexible repayment terms make the bank’s personal loans worth choosing. Funds can be utilized for a variety of purposes like paying off debt. In fact they’re known to offer some of the best debt consolidation loans.
Student Loans From Discover Bank
When it comes to student loans, Discover Bank treats students well. Student loans from the bank come with no loan origination or late fees. Plus, interest rates are lower than competing banks, and flexible repayment options are available. Discover Bank will cover 100% of a student’s certified school costs. Good students will even receive 1% loan rewards for getting a 3.0 GPA or higher each year. It doesn’t hurt that Discover Bank will even approve students for multi-year loans without separate applications.
Home Equity Loans From Discover Bank
Finally, Discover Bank offers home equity loans so that homeowners can tap into their property’s value. Applicants will find no loan origination fees, no closing payments, and a lack of fees in general here. These loans can range from $35,000 to $200,000 from Discover Bank with competitive interest rates and repayment time frames. Before taking out a home equity loan, homeowners need to consider the upsides and downsides. Discover Bank offers a competitive home equity loan product either way.
How Does Discover Bank Perform When It Comes To Customer Service?
Discover Bank claims to prioritize customer service and customer experience above all else. On the latter subject, competitive interest rates and a lack of fees help the company succeed. An online bank lives and dies by its customer service performance, and we’re happy to say that Discover tends to exceed expectations. Traditional and online banks often have relatively lackluster customer service ratings. Discover Bank bucks that trend through a commitment to treating its customers with respect.
Currently, all of Discover’s customer service representatives come from within the United States. Its entire customer service force is based in the United States, and no outsourcing of these tasks is performed. This comes in stark contrast to most banks that outsource their customer service to other countries. Undoubtedly, many consumers will appreciate the ability to talk to someone within the US. Live 24/7 customer service also means that help is always a phone call away with minimal wait times.
In annual polls, Discover tends to perform above average in general customer service and satisfaction. Consumers note the company is always available but also tends to solve problems. Far too many banks let customer service issues slip by without properly addressing them. For Discover, the company’s goal of treating customers well shines through here, leading to a better customer service experience. Most consumers rate the companies online banking, credit cards, and loan products well, too.
Wait times for calling in to Discover Bank are quite short. Most callers reach a live person in less than five minutes, which is below the industry average. From there, most phone calls don’t last more than a few minutes. The average caller won’t need to make a second call in order to resolve their issue. US-based customer service helps fuel these results, and more banks should provide the same level of service. On an annual basis, Discover Bank tends to improve its performance incrementally.
Does Discover Bank Operate Physical Branch Locations?
Not all consumers need physical branch locations, especially from an online bank. However, Discover Bank does operate one physical location in the United States. Greenwood, Delaware, is the home of the nation’s only branch location for Discover Bank. Greenwood is the home of the original bank Discover acquired back in 1985. This location sees low to moderate foot traffic each day. The average Discover customer doesn’t go out of their way to do banking in person at this location.
Are There Any Downsides Associated With Discover Bank?
Discover Bank comes with a lot of positives and few negatives. Then again, plenty of consumers will take issue with the company’s single physical branch. CDs come with a high deposit requirement of $2,500 for all terms. Checking accounts don’t come with an overdraft line of credit, which continues to grow in popularity among consumers. Also, most promotions for new accounts come with high balance requirements for relatively low rewards. Consumers often love Discover, but the online bank isn’t perfect.
The Final Verdict On Discover Bank: Should You Sign Up?
Millions upon millions of consumers cannot be wrong in choosing Discover Bank. The company’s credit cards stand front and center in the eyes of consumers. On the other hand, its other online banking products continue to gain momentum each passing year. More and more consumers continue to opt for an online bank, and Discover finds itself competitive against other online banks. A dedication to eliminating extra fees and treating customers right helps the company outperform its closest competitors.
Discover Bank does many things right and only makes a few missteps. Most consumers will find themselves looking past a few minor flaws. Plus, Discover doesn’t have any notable deal breakers for the average consumer. The company lacks the prestige of American Express by name, but Discover is an excellent online bank in all regards. Consumers stand to pay more fees and reap less benefits with other banks. With online banking, Discover Bank provides one of the best solutions for consumers.
- Discover offers checking and savings, credit cards, personal loans, and more.
- Its 24/7 customer service team is exclusively based in the United States.
- Interest rates are always competitive, and Discover doesn’t charge fees.
- None of Discover’s credit cards come with an annual fee.
- Interest checking is available; savings and CDs come with high interest rates.
- Discover does offer a secured credit card for building or rebuilding credit.
- Discover’s travel rewards card lacks common high-end benefits.
- There’s only one physical branch location that you’ll never visit.
- CDs come with a high initial deposit requirement.
- Discover doesn’t currently offer any solutions for investments.
- Discover doesn’t offer home or auto loans and won’t anytime soon.
Other Banks to Consider
General Discover Bank Questions
This section answers the basic questions you need to know to understand Discover Bank.
How does Discover Bank work?
Discover Bank works like any other primarily online bank. You can manage your account, link accounts, and do anything you need to do from the comfort of your home or office.
Is Discover an online bank?
For the most part, yes. There is one physical branch for Discover Bank, but most of their business is conducted online.
Where is Discover Bank headquartered?
Discover Bank is headquartered in New Castle, Delaware and was founded in 1911.
Does Discover have physical banks?
Discover has only one physical branch, most of their business is done online.
Is there a Discover Bank near me?
Probably not – there’s only one physical branch location for Discover Bank, most of their business is done online.
What bank is Discover with?
Discover is with their own bank, Discover Bank, headquartered in Delaware.
Does Discover Bank have branches?
There’s only one physical branch of Discover Banks, almost all of their business is done online.
Does Discover Bank use ChexSystems?
Discover Bank Savings Accounts do not use ChexSystems.
Does Discover Bank offer investment services?
Not at this time from what we could find on their site. We do however cover investment topics on our site including investing apps for beginners if that interests you. One such company that does this is Ally Invest.
Discover Bank Safety and Security
We’ll answer the most common questions people have about Discover Bank Safety and Security in this section.
Is Discover Bank FDIC insured?
Yes, Discover Bank is a member FDIC, so your deposits are insured up to the standard federal limits.
How safe is Discover Bank?
Discover Bank is extremely safe – they’ve been in operation since 1911 and have millions of happy customers.
Is Discover a good bank?
For many people, yes. Discover Bank offers a great return on savings accounts, CDs, and a wide range of other financial products.
Are Discover Banks CDs covered by FDIC?
Yes, Discover Bank CDs are covered up to $250,000 by the FDIC.
Discover Bank Accounts
This section answers the most popular questions about Discover Bank accounts.
How to open a Discover Bank account?
The easiest way to open a Discover bank account is to go online to their website. Pick the type of account you want to start and follow the directions to get things moving. Ask about their $200 bonus.
How to withdraw money from Discover Bank?
You can withdraw money from Discover bank by transferring it to another external bank account, using a domestic wire transfer, an international wire transfer, or by requesting a bank check.
When does Discover Bank pay interest?
Interest for Discover Bank accounts is compounded daily based on the 30/365 formula. If you’re searching for higher returns then we talk about how to buy stock online in another article.
Can a business open a CD at Discover Bank?
There’s nothing on Discover Bank’s website or anywhere else we could find that says a business can’t open a CD at Discover Bank. You may also want to look at high yield money market accounts.
Can a church open a CD at Discover Bank?
A Church shouldn’t have a problem opening up a CD at Discover bank according to our research.
Can I open a Discover Bank business checking?
No, at this time Discover Bank doesn’t offer business checking accounts.
Do Discover Bank IRA CDs rates raise with interest increases?
The rate you get on your Discover Bank IRA depends on the term of the CD, not the interest rate increases generally. If you wanting higher returns then other types of investments may be a better fit. Check out our other artilce where we talk about things such as the best way to invest 5k short term.
Does Discover Bank CDs pay monthly?
Discover Bank doesn’t have any public information available for when their CDs pay. Check out more high interest CD options.
Does Discover Bank do auto loans?
No, Discover Bank doesn’t offer auto loans at this time.
Does Discover Bank do mortgages?
No, Discover Bank doesn’t offer mortgages at this time. They may however be able to direct you to home equity loan bad credit options. Or you can take a look at home mortgage refinance rates with other banks and companies.
Does Discover Bank have a Roth CD?
Yes, Discover Bank offers both traditional and Roth IRA CD options to customers.
Does Discover Bank have a kids account?
Yes, you can open a savings account for your children with Discover Bank.
Discover Bank Account Services
We’ll cover your questions about Discover Bank Account Services in this section.
Does Discover Bank use Zelle?
Discover Bank has partnered with Zelle to implement the Zelle system with their accounts, but it isn’t running as of this writing.
How to order checks from Discover Bank?
Discover Bank lets you order checks and deposit tickets online at the account center or by calling 1-800-347-7000.
Can Discover Bank be accessed abroad?
You can access your Discover Bank account abroad, but you might be subject to foreign transaction fees.
Can Cash app work with Discover Bank?
Yes, you can link the Cash App to your Discover Bank account.
Can Discover Bank account get used for Acorns?
Yes, you can use your Discover Bank Account for Acorns.
Can I get bank statements from 2 years ago Discover?
Yes, you can access up to 7 years of statements and 2 years of account activity online through your Discover account.
Can I link my Discover savings to my bank?
Yes, your Discover Savings account can be linked to your current bank account to make saving even easier.
Can I put my fiancé on my Discover Bank account?
Yes, you’ll just need to go to your account center when you log in online or call the customer service number displayed when you log in to add your fiancé to your account.
Can I transfer Discover funds to bank account?
Yes, you can link your bank account to your Discover Bank account to transfer funds between the two.
Can I use Discover Bank international?
You can use Discover Bank internationally, but you might be required to pay foreign transaction fees to do so.
Can I withdraw money from a CD Discover Bank?
You can withdraw money from a CD with Discover Bank. However, if your CD hasn’t matured yet, then you’ll incur an early withdrawal penalty.
Can you link Capital One to Discover Bank?
Yes, you can link your Capital One account to your Discover Bank account and transfer funds between them.
Can you open more than one Discover Banking account?
Yes, you can open more than one Discover Banking account. You should talk to a customer service rep to make sure your accounts are structured in the most optimal way.
Does Discover Bank accept money via email?
Discover Bank accepts a wide variety of electronic transfers. Depending on the platform you intend to use, Discover bank may accept money via email.
Does Discover Bank allow money orders?
Yes, you can request a money order from or deposit a money order to a Discover Bank account.
Does Discover Bank have bill pay?
Yes, you can set up bill pay with Discover Bank to make sure your bills are covered every month.
Does Discover Bank have ATMs?
Discover doesn’t have ATMs of its own, but you can use any ATM with an orange pin without incurring a surcharge.
Does Discover Bank allow beneficiary?
Yes, you can designate beneficiaries with Discover Bank accounts.
Does Discover Bank have a SWIFT code?
Yes. Discover Bank’s SWIFT code is IRVTUS3N. The Beneficiary Bank Address is #3 Mellon Bank Center, Pittsburgh, PA, 15258.
Other Discover Bank Questions
This section answers your Discover Bank questions that don’t fit into our other categories. Check here if you can’t find your question elsewhere.
Are Discover Bank and Discover Financial Services the same?
Sort of. Discover Financial Services is the name of the company that owns and operates Discover Bank.
Can Discover loan be denied based on bank statements?
Yes, if your bank statements show that your debt obligation is higher or your income is lower than you claimed, then Discover can deny a loan to you.
Can you get cash back with direct Discover Bank account?
Yes, the Direct Discover Bank Account will allow you to earn cash back on debit purchases.
Did Discover Bank get a bail out?
Yes, Discover got about $1.2 billion in bailout funds from the TARP program.
Did Discover Bank stop paying rewards for online bill pay?
You’ll need to contact Discover Bank to ask about the specific rewards program you want information about.
Did Discover buy bank of Montreal?
We couldn’t find any information indicating that Discover Bank purchased the Bank of Montreal.
Does Discover and Simplicity MasterCard use the same bank?
No, they don’t. Discover is a bank, Discover Bank. Simplicity Mastercard is a Citi Bank product.
Does Discover offer credit monitoring?
Yes like most banks these days you can monitor you credit. There are also a number of credit protection companies you can compare and review. For example, we recently reviewed Identity Guard vs Lifelock to help visitors make an informed decision.