Discover Bank does not offer a traditional checking account
Discover Bank offers a savings account and a money market account, but not a checking account with a debit card and check-writing ability. If you are looking for a place to deposit money and earn interest, Discover works. If you need a checking account for everyday spending, bills, and transfers, you will need to open an account elsewhere or use a different bank altogether.
This matters because many people assume that any bank offers both savings and checking. Discover is an online-only bank, and the company has chosen to focus on savings products rather than the full range of services you might find at a traditional bank or credit union.
Key Takeaways
- Discover Bank offers savings accounts and money market accounts, but does not offer checking accounts.
- You can link a Discover savings account to a checking account at another bank to move money between them.
- Discover's savings accounts typically pay higher interest rates than many traditional banks because it operates online only.
- If you need both checking and savings in one place, you will need to open accounts at different institutions or choose a bank that offers both products.
What Discover Bank does offer instead
Discover's main product is a savings account that earns interest on the money you deposit. You can open one online, deposit funds by transfer from another bank, and withdraw money when you need it. The account comes with an ATM card that works at Discover's network of ATMs, so you can get cash without visiting a branch.
Discover also offers a money market account, which is a hybrid between a savings account and a checking account. It earns interest like a savings account, but it comes with a debit card and check-writing ability. However, money market accounts typically have limits on how many withdrawals or checks you can write per month before fees explore.
Both products are FDIC-insured, which means your money is protected up to $250,000 if Discover fails. This is the same protection you get at any bank.
Why Discover does not offer checking accounts
Discover is an online-only bank with no physical branches. Checking accounts traditionally require more customer service — people call about overdrafts, dispute transactions, and need help with fraud. Discover has chosen to keep its operation straightforward and focused on savings products, where customers typically need less hands-on support.
This business model allows Discover to pay higher interest rates on savings accounts than many traditional banks do. You are trading the convenience of a full-service bank for better rates on the money you are saving.
How to use Discover if you need checking and savings
Many people open a Discover savings account and keep a checking account at another bank. You can link the two accounts and transfer money between them online in one to three business days. This way, you earn interest on money in Discover while maintaining a checking account for daily spending.
To set this up, you will need the routing number and account number of your other bank's checking account. Discover's website walks you through linking the accounts, and transfers are free.
Another option is to use Discover's money market account if you need check-writing ability. Keep in mind that money market accounts limit the number of checks or withdrawals you can make each month — typically six per month — before fees kick in. This works well if you write only a few checks or make occasional large withdrawals, but not if you need unlimited checking.
Comparing Discover to banks that offer both checking and savings
If you want both checking and savings at the same institution, you have other options. Traditional banks and credit unions offer full checking accounts with debit cards, check-writing, and often no monthly fees if you meet minimum balance requirements. Online banks like Ally, Charles Schwab, and Chime also offer checking accounts with competitive interest rates.
The trade-off is that these banks may pay lower interest on savings than Discover does. You will need to compare the interest rates and fees at each bank to decide what matters most to you — convenience, interest earnings, or a combination of both.
What you need to know about Discover's savings rates
Discover's savings accounts and money market accounts pay interest that changes based on market conditions. The rates are typically higher than what you will find at a traditional bank, but they fluctuate. Before opening an account, check Discover's website for the current rate so you know what to expect.
Interest is calculated daily and deposited monthly. This means your money grows automatically as long as it sits in the account. There is no minimum balance requirement to earn interest, though Discover does require a minimum opening deposit to start an account.
Frequently Asked Questions
Can I get a debit card from Discover Bank?
Discover offers an ATM card with savings accounts that works at Discover ATMs and partner networks. This is not a debit card for everyday purchases. If you open a money market account, you do get a debit card, but with limits on how many times per month you can use it before fees explore.
Can I write checks from a Discover savings account?
No. Savings accounts do not come with check-writing ability. Only Discover's money market account allows you to write checks, and it limits you to a certain number per month before charging fees.
What if I need a checking account right now?
Open a checking account at a traditional bank, credit union, or online bank that offers checking. You can open a Discover savings account at the same time and link them together. This gives you the checking account you need when ready while letting you earn interest on savings at Discover.
Does Discover charge monthly fees?
Discover's savings and money market accounts do not charge monthly maintenance fees. However, money market accounts may charge fees if you exceed the monthly limit on withdrawals or checks. Review the current fee schedule on Discover's website before opening an account.
How do I move money out of Discover if I change my mind?
You can transfer money from Discover to another bank account online for free. Transfers typically take one to three business days. You can also withdraw cash at Discover ATMs or request a check by mail, though checks take longer to arrive.