The savings rate of Discover Bank is significantly greater than that of most conventional banks. With fewer overhead costs than their brick-and-mortar equivalents, the best online banks frequently pass savings on customers through better rates and lower fees, which is why Discover Bank shines on both counts.
Discover Bank, based in Chicago, is a leading online banking and payment service company. The Discover Online Savings account offers 4.30% APY, which is significantly higher than the average savings account interest rate. You can earn the same rate regardless of your balance, with no monthly service fee and $0 minimum deposit, and you can earn the same rate irrespective of your balance.
The American Express High Yield Savings Account pays 4.30% as of September 27th, 23 APY, the same as the American Express High Yield Savings Account.
Neither bank has monthly service fees, excess transaction fees, or minimum opening deposit requirements. Both banks offer 24x7 customer support, a highly rated mobile app, and various banking products, such as checking accounts, CDs, credit cards, and personal loans.
Mobile check deposits are a distinct category, with one notable difference being the convenience of mobile check deposits. With Amex, you can deposit up to six checks totaling $50,000 during any seven-day period, with a limit of $25,000 per check, a flexible limit that differs from many online banks. However, Discover's Online Disclosure doesn't specify limits, but a customer service representative said the limits are dynamic and new customers may start with a monthly limit of about $500.
You can't go wrong with either account in terms of interest rates and fees. Amex may be the better option for mobile deposits, but it may be more flexible in terms of mobile deposits. If you have preferences and previous experiences with either bank, then the decision may come down to your preferences and previous experiences with both banks.
Capital One 360 is a collection of banking products from Capital One, one of the nation's largest banks by assets. While Capital One is primarily an online bank, it also has physical branches in a handful of states and about 50 cafés. Discovery is an online-only bank, so it doesn't have any branch locations.
The Capital One 360 performance savings account offers a 4.30% APY on any balance. Capital One's interest compounds monthly, while Discover's account has daily interest. If you keep a lot of money in your savings, this may or may not make a significant difference.
The banks have similar features, such as zero monthly and overdraft fees, a $0 minimum opening deposit, and no requirements to earn the APY. Both banks offer mobile check deposit options with dynamic daily and monthly limits. Discovery and Capital One have similar rates, fees, and features that can make it difficult to decide between the two. The convenience of in-person banking is a key factor for those who live near a Capital One branch or café. Why should you trust us: How we review Discover Online Savings?
We rate banks from zero to five stars, with five being the most favorable. Our review of the Discover Online Savings account was conducted using insider's savings account methodology, which considers minimum opening deposits, monthly service fees, interest rates, customer support, mobile app ratings, and the company's ethics.
As a potential customer, consider the additional product lines offered by Discover to determine whether or not it's right for you.
Jean Folger, a successful financial writer, has 15+ years of experience in real estate, investing, active trading, retirement planning, and retirement planning abroad. She co-founded PowerZone Trading, a company that has provided programming, consulting, and strategy development services to active traders and investors since 2004. Jean was previously a real estate broker, an English teacher, and a trip leader for an adventure travel company. Evelyn is a compliance associate at Insider and supports the Personal Finance Insider team. The compliance team aims to give readers stories that are current and fact-checked, so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring clear, exact, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. She served as a legal and compliance officer in various industries, including the legal and pharmaceutical industries, before joining Insider. Evelyn obtained her M.S. from the University of California, Berkeley. In order to combining and consolidating her knowledge of law and business, she spent one year studying 1L courses at Suffolk University Law School to further her legal knowledge. While studying for her B.A. in Management at the University of Massachusetts Amherst, she has also completed MBA business law courses at the University of Massachusetts, Amherst. She enjoys spending time outside of work with her 15-year-old Shih Tzu named Money and her 5-year-old Bichon named Tibber.