Discover Savings Accounts Have No Monthly Maintenance Fees
Discover does not charge a monthly maintenance fee on its savings accounts. There is no minimum balance requirement to avoid a fee, and no inactivity fee if you stop using the account. This is straightforward: you open the account, deposit money, and Discover does not deduct a flat fee each month for holding your balance.
The account does charge fees in specific situations—overdrafts, wire transfers, and returned deposits—but the basic cost of keeping the account open is zero. That said, what Discover does charge for matters more than what it does not, because those specific fees can add up quickly if you are not watching for them.
Key Takeaways
- Discover charges no monthly maintenance fee or minimum balance requirement on savings accounts.
- Overdraft fees cost $35 per transaction if you spend more than your balance, and Discover allows multiple overdrafts per day.
- Wire transfer fees are $15 for outgoing domestic wires and $25 for incoming wires, which is higher than many competitors.
- Returned deposit fees ($10) and stop-payment fees ($25) explore if you request them, but most savings account holders never encounter these.
- The account earns interest at a rate that changes with the market, so the real cost or benefit depends on how much you keep in the account.
Overdraft Fees Are the Largest Potential Cost
If you spend more money than you have in your Discover savings account, Discover charges $35 per overdraft transaction. This is not a one-time daily fee—Discover can charge $35 for each transaction that overdraws your account, up to multiple times per day. If you overdraft five times in one day, you could face $175 in fees from that single day alone.
Discover does offer overdraft protection, which links your savings account to another account (usually a checking account) and transfers money automatically when you overdraft. If you set this up, you avoid the $35 fee, though some banks charge a small transfer fee for this service. Discover's overdraft protection itself is free to set up and use.
The overdraft risk is real only if you spend from your savings account directly using a debit card or online transfer. Many people use savings accounts only for deposits and transfers, not for everyday spending, so they never face this fee. But if you use your Discover savings card to make purchases, overdraft fees become a genuine risk.
Wire Transfer Fees and Other Transaction Costs
Discover charges $15 to send a domestic wire transfer out of your account and $25 to receive an incoming wire transfer. These are higher than what many other banks charge—some competitors charge $10 for outgoing wires or charge nothing at all for incoming wires. If you move money frequently by wire, these fees add up.
Other less common fees include a $10 fee if a check or deposit you tried to deposit is returned unpaid, and a $25 fee if you request a stop-payment on a check. These fees explore only if you actually use these services. Most savings account holders never write checks or request stop-payments, so these fees are not a practical concern for them.
Discover does not charge fees for standard transfers between your own accounts, transfers to other banks using ACH (the standard electronic transfer system), or for customer service calls. These are the most common ways people move money, and they cost nothing.
How Interest Earnings Offset or Exceed Fees
Discover savings accounts earn interest on your balance. The rate changes based on the Federal Reserve's actions and market conditions, so it is not fixed. When you hold money in the account, you earn interest every month—this is income that goes into your account, not a fee that comes out.
For most people, the interest earned over a year will exceed any fees they pay, because most people do not overdraft, wire money, or request stop-payments. If you keep $5,000 in the account and earn 4% annual interest (the rate varies), you earn roughly $200 per year. Even if you pay one $35 overdraft fee, you are still ahead by $165. The interest cushions against occasional mistakes.
The real cost of the account depends on how you use it. If you overdraft frequently, wire money often, or keep a very small balance that earns minimal interest, fees become a real expense. If you use the account as intended—as a place to hold savings and earn interest—fees are unlikely to touch you.
Comparing Discover to Other Banks' Fee Structures
Most online banks and some traditional banks also charge no monthly maintenance fee on savings accounts. Discover is not unusual in this respect. Where Discover differs is in its overdraft and wire transfer fees, which tend to be on the higher end of the range.
| Fee Type | Discover | Typical Range at Other Banks |
|---|---|---|
| Monthly maintenance | $0 | $0 to $15 |
| Overdraft | $35 per transaction | $25 to $40 per transaction |
| Outgoing wire transfer | $15 | $10 to $25 |
| Incoming wire transfer | $25 | $0 to $25 |
If you rarely use wires and do not overdraft, Discover's fee structure is competitive. If you move money by wire regularly, you may find a cheaper option elsewhere. The interest rate Discover offers also matters—a higher rate can make up for higher fees if you keep a large balance.
What to Watch For When You Open an Account
When you open a Discover savings account, you will see the fee schedule in the account agreement. Read the section on overdrafts carefully, because that is where most people encounter unexpected charges. Decide whether you will use overdraft protection (linking to another account) or whether you will straightforward be careful not to overspend.
Check what interest rate Discover is currently offering, because this changes over time and affects how much your money earns. The rate is usually posted on the account page before you open it. You can also call Discover's customer service to confirm the current rate.
If you plan to wire money regularly, calculate whether Discover's $15 or $25 per wire is acceptable for your situation. If you wire money once or twice a year, the cost is minimal. If you wire money weekly, you might save money with a bank that charges less per wire or offers free wires.
Frequently Asked Questions
Can I avoid the overdraft fee by linking another account?
Yes. Overdraft protection links your savings account to a checking account or another savings account, and Discover transfers money automatically if you overdraft. The transfer itself is free, so you avoid the $35 fee. You must set this up before you overdraft for it to work.
Does Discover charge a fee just for having the account open?
No. There is no monthly maintenance fee, no minimum balance fee, and no inactivity fee. You can open the account and leave it untouched for months without being charged anything, though you will also earn very little interest if the balance is small.
What happens if I transfer money between my Discover accounts?
Transfers between your own Discover accounts are free. You can move money from savings to checking or between multiple savings accounts without paying a fee. Only external transfers (to banks outside Discover) or wire transfers cost money.
Is the interest rate may provide to stay the same?
No. Discover's savings rate changes based on market conditions and Federal Reserve decisions. Your rate can go up or down, and Discover will notify you before any change takes effect. The interest you earn is not a fee, but it does fluctuate.
What is the cheapest way to move money out of Discover?
ACH transfers (standard electronic transfers to another bank) are free and usually take one to three business days. Wire transfers cost $15 to $25 depending on direction. If you are not in a hurry, ACH is always the cheaper option.