Discover Savings Interest Rates (February 2025) (original) (raw)

Last Updated: Nov 21, 2024

Discover’s savings account sidesteps opening deposit and balance requirements and still delivers a competitive 3.75% APY.

Alyssa Trostle Editor Alyssa Trostle Editor

Alyssa Trostle is a MarketWatch Guides team editor based in Pittsburgh. She has written and edited for marketing firms and publications across the U.S. and covered many different topics, including areas of legal practice, auto insurance and personal finance.

Editor Christopher Murray Editor Christopher Murray Contributor

Christopher Murray is a professional personal finance and sustainability writer covering topics from budgeting to unique investing options like socially responsible investing and cryptocurrency. His work has been featured on Bankrate, Money Crashers, FinanceBuzz, Investor Junkie, ConsumerAffairs and Time.

Andrew Latham

Editor Andrew Latham Editor Andrew Latham Reviewer

Andrew Latham is a Raleigh-based certified financial planner (CFP) and the content director at SuperMoney.com. He has over 10 years of experience specializing in debt, investment and retirement strategies. When he’s not working, Andrew enjoys hiking, traveling, learning languages and working out with his wife and son.

Editor Christopher Murray Editor Christopher Murray Contributor

Andrew Latham

Editor Andrew Latham Editor Andrew Latham Reviewer

Our Research Process

Here’s a breakdown of how we reviewed and rated top banks and credit unions

Learn more about MarketWatch Guides

154 Institutions Monitored

Our team reviewed 154 of the country’s largest and most prominent financial institutions, from big banks like Chase and Bank of America to credit unions like Navy Federal Credit Union and PenFed Credit Union.

688 Products Studied

Total number of checking, saving, CDs, and money-market accounts that inform our review ratings.

719 Rates Tracked

The accounts with an annual percentage yield (APY) several times the national average rate receive the highest scores. Accounts with the lowest APY offering (under 1%) earn the least points.

10 Professionals Consulted

Before we began our research process, we consulted with financial advisors and industry experts to ensure our evaluations covered the banking product aspects that matter most to potential customers.

Key Takeaways

Discover’s online savings account offers a 3.75% APY and doesn’t have fees for items such as monthly maintenance, insufficient funds, official bank checks and excessive withdrawals.
The savings rate is competitive with the APYs offered by other online banks such as Ally, American Express and Capital One, though it’s not the highest offer out there.
There are no minimum opening deposit or minimum balance requirements to start earning interest.
Discover’s other banking products include credit cards, checking accounts, certificates of deposit (CDs), IRA CDs, money market accounts, student loans and personal loans.

The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.

Featured Savings Accounts

FEATURED

Lending Club

4.3

APY 3.50%

Bonus N/A

Min. Deposit Amount $0

Earn up to 4.75% APY with $250+ deposits per month

SoFi Checking + Savings

4.8

APY 3.80%

Bonus Up to $300

Min. Deposit Amount $0

SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either 50(withatleast50 (with at least 50(withatleast1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR 300(withatleast300 (with at least 300(withatleast5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.

UFB Portfolio Savings

4.6

APY 4.01%

Bonus N/A

Min. Deposit Amount $0

Unlock up to 4.21% APY, Combine Freedom Checking with Portfolio Savings to boost your savings APY by up to 0.20%

Discover

4.6

APY 3.75%

Bonus N/A

Min. Deposit Amount $0

Discover Savings Interest Rates

Discover Savings Account

4.4

Money Market Rates Up to 3.65%

Discover’s online savings account offers an annual percentage yield (APY) of 3.75%, which is more than nine times the current national average of 0.46%. This account also has no fees and no minimum deposit or balance requirements.

We surveyed 1,000 banking customers and found that 68% of participants indicated that low or no fees mattered most when opening a savings account. Since Discover doesn’t charge fees and doesn’t require minimum deposit amounts or balance requirements, these stand-out features can help you reach your savings goals faster.

With competitive rates and no fees, Discover savings accounts are best for anyone looking for a straightforward account that can be handled online. The fact that there are no minimum account balances or monthly fees is a huge plus, however, it can take up to 48 hours for your funds to be accessible after a transfer from another bank. While this is pretty standard for the industry, it’s not the fastest you can find.

If you are looking for a full-service bank with numerous financial services, Discover offers its customers ease and simplicity along with quality rates.

Discover Savings Rates

High-yield savings accounts make it easier to grow your money. Just by storing it in the right place, savers can earn hundreds or thousands of dollars in interest each year.

For Discover, its high-yield savings account rate is much higher than rates offered at traditional brick-and-mortar banks. What’s more, interest on top savings accounts here are compounded daily, helping savers build their balances faster than they would with an account that compounds interest monthly. Plus, Discover’s savings account has no minimum deposit or balance requirements.

Discover Account	APY*	Minimum Deposit
High-yield online savings	3.75%	None

*APY accurate as of February 6, 2025 .

Discover’s savings account also avoids monthly maintenance fees and account fees. Only outgoing wire transfers have a service charge.

Borrowers here can add optional overdraft protection if they link the account to a Discover money market, savings or Cashback debit card account — Discover’s checking and money market accounts don’t have monthly fees, either.

Discover Savings Rates vs. Other Top Banks

The Discover savings account has a competitive interest rate and no minimum deposit requirement to earn that rate. With the bank’s lack of fees and its CD and MMA account options, it could be a good option for many customers.

Here’s how Discover’s savings rate compares to what other popular banks offer:

Bank	APY*	Minimum Deposit
Ally	3.80%	None
American Express	3.80%	None
Capital One	3.70%	None
Discover	3.75%	None
Marcus by Goldman Sachs	3.90%	None
Synchrony	4.00%	None
TD Bank	0.02%	None

**APY is for a $5,000 deposit and is accurate as of February 6, 2025. Rates may vary by location. The TD Bank APY is for Cherry Hill, N.J.

Compare Discover to competitors with our savings calculator and see if the Discover savings account is best choice.

Discover Bank vs. Highest Rates

Learn how Discover compares to the banks with the highest rates in 2024.

Bank	APY*
Discover	3.75%
Veritex Community Bank	4.90%
Great Southern Bank	5.00%
Quontic Bank	4.75%
Illinois Bank & Trust	4.75%

_*APY accurate as of February 6, 2025

Discover Bank CD and Money Market Rates

In addition to its high-yield savings account, Discover bank offers a money market account and CDs with 12 terms to choose from.

Discover CDs

Discover’s CD rates are as good as its savings rates. The downside to Discover’s CDs is the minimum deposit of $2,500 that’s required to open a CD. This minimum requirement is higher than Discover’s competitors and the national average.

Discover CD	APY*	Minimum Deposit
Three-month CD	2.00%	$2,500
Six-month CD	3.70%	$2,500
Nine-month CD	3.80%	$2,500
One-year CD	4.00%	$2,500
18-month CD	4.00%	$2,500
Two-year CD	4.10%	$2,500
30-month CD	3.50%	$2,500
Three-year CD	3.50%	$2,500
Four-year CD	3.50%	$2,500
Five-year CD	3.50%	$2,500
Seven-year CD	3.50%	$2,500
10-year CD	3.50%	$2,500

*APY accurate as of February 6, 2025.

Discover Money Market Account

Discover’s money market account has APYs that are well above the national average reported by the Federal Deposit Insurance Corp. The rate differs based on the account balance:

Account Balance	APY*
Under $100,000	3.60%
$100,000 and over	3.65%

*APY accurate as of February 6, 2025.

Like Discover’s savings and CD accounts, the money market account doesn’t have fees (with the exception of outgoing wire transfers). You’ll need a minimum $2,500 initial deposit to open a money market account, but after that, there’s no minimum account balance required to earn interest.

How To Open a Discover Savings Account

Discover makes opening a savings account online or by phone easy. On its website, the bank outlines the application process before you begin:

#1 Submit Your Information

You’ll submit your personal information, including these details:

Name
Social Security number
Email address
Physical address

#2 Choose Whether To Make Your Opening Deposit

Since there’s no minimum deposit required, you don’t need to fund your account right away. You have a few options for depositing money:

Mobile check deposit with the Discover app
Online transfer from a bank account with Discover or another financial institution
Direct deposit
A check mailed to Discover

#3 Confirm Your Account

After you put the required information in, you’ll confirm your account through an email. The whole application process takes five minutes or so. If you have questions along the way, you can call Discover’s customer support team.

#4 Start Earning Interest

Once you start earning interest, it compounds daily and gets added to your balance monthly. This is better than monthly, quarterly or annual compounding because it makes interest accrue faster.

The Bottom Line: Is a Discover Savings Account Right for You?

The Discover savings account rate is higher than the national average, which is below 1%. While it beats many large banks and has no monthly fees, Discover doesn’t have one of the highest rates among online banks and credit unions. The bank also doesn’t have physical branches, so it’s best used by customers who are comfortable banking online and through mobile apps.

FAQ: Discover Savings Account Rates

The rate for a Discover savings account is 3.75% APY. That is very competitive with some of the other top rates from online banks, though not the highest you can find.

Yes, Discover offers a high-yield savings account. The account comes with a competitive interest rate and no monthly fees or balance requirements.

The highest APYs on savings accounts reach into the 5% range and typically can be found at online banks or credit unions. The highest savings account rate available today is 5.00%.

**Data accurate at time of publication.

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.

Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.