Earn up to $150 or $200 when you open a new Discover Savings Account. Read on to learn how.
I’m sure you’ve heard of Discover but did you know they’re not just a credit card company?
Did you know they are a bank too?
Discover Bank is the banking division of Discover Financial Services, Inc (NYSE:DFS).
If you ask most people about Discover, they often talk about their credit cards. One of my first credit cards, opened in 1998, was a Discover card that paid me 1% cashback for years. Now, if you open a savings account with them, they’ll put cash in your pocket too.
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Is Discover FDIC insured?
Yes – we wouldn’t list a bank on our site if they weren’t
Discover got its start with Sears. Sears created the Discover card in 1985 and after being spun off, merging with Morgan Stanley, spun off again and made independent as Discover Financial Services in 2007. Discover Bank was created when Discover acquired The Greenwood Trust Company in 1985 but it wouldn’t get renamed until 2000. This is why the FDIC# of Discover Bank (FDIC# 5649) is only four digits and dates back to January 1st, 1934. It’s also why their only location is 502 E. Market Street in Greenwood, DE.
Is a Discover savings account safe? Also yes, since it is FDIC insured, your cash is protected up to $250,000 by the federal government. It’s $500,000 of protection if you open a joint account with a spouse. FDIC insurance protects your cash so you don’t have to worry if your bank fails, which is rare for banks of this size. It does happen, especially if they are associated with any type of investment bank (Discover isn’t), as we saw in the financial crisis.
Now that we have the history lesson out of the way – you might be wondering if Discover has any promotions.
They do… and here they are:
How to Get Your Discover Savings Bonus
Discover Bank is offering a generous $150 or $200 bonus if you open your first Discover Online Savings Account – just open an account and enter the code WH21 when applying.
You must apply by 12/15/2021 to get this offer.
The bonus depends on how much you deposit within 30 days of account open date:
- Earn $150 if you deposit at least $15,000
- Earn $200 if you deposit at least $25,000
Your bonus will be credited to the account within 30 days of the account qualifying for the bonus.
And the best part about this bonus is that it’s on top of an excellent online savings account. You earn a high rate of interest and there is no minimum opening deposit. There is no maintenance fee, no excessive withdrawal fee, no stop payment order fee, and no insufficient funds fee. Discover charges no fees on this account.
To get your $150 or $200 Bonus: What to do: Apply for your first Discover Online Savings Account, online or by phone. Enter Offer Code WH21 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted to account within 30 days of account open date. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded, or affinity accounts provided by Discover. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 30 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 12/15/21, 11:59 PM ET. Offer may be modified or withdrawn without notice.
Get up to $200 from Discover Bank
(see advertiser website for full details)
Other Discover Cashback Options
Discover also has other options to earn cashback from your use in the form of two cards:
Discover Cashback Debit Account — up to $360 a year
Discover’s Cashback Debit product is an online checking account with no monthly fees or balance requirements, which is now common for an online checking account. You should never pay a monthly fee or have a minimum balance requirement on an online bank account.
What’s uncommon, and downright rare, is their debit card – it’s a debit rewards card. The Discover cashback debit card offers 1% cashback on all purchases up to $3,000 per month. That means you can earn up to $360 in cash back each year on the debit card.
There isn’t a promotion associated with this account, the cashback offer won’t expire, but the debit card cashback offer is itself almost like a bonus. I know a lot of folks who refuse to use credit cards and this is one of the best ways to still earn cashback without getting a credit card.
The cashback debit account has some great perks too:
- No monthly fees or minimum balance requirements
- Uses the Allpoint ATM network (60,000 free ATMs)
- Earn 1% cashback up to $3,000 in purchases/month
- Free online bill pay
- Free check reorders (not common)
- Free incoming wires (very rare)
Discover it Credit Card — No Bonus
The Discover it® Cash Back card doesn’t have a new account bonus but it does offer a Cashback Match on the first year – they will match all of the cashback you earn in the first year automatically. The card has no annual fee and has 1% cashback, plus 5% cashback on rotating quarterly categories like gas, restaurants, supermarkets, etc.
You have to activate it each quarter and there’s a quarterly maximum of $1,500 in purchases.
What does Discover give cashback on? It offers 1% cashback on everything plus 5% on rotating categories. The quarterly schedule is published ahead of time so for 2020 it’s:
- Jan-Mar 2021: Grocery Stores, Walgreens and CVS
- Apr-Jun 2021: Gas Stations, Wholesale Clubs and Select Streaming Services
- Jul-Sep 2021: Restaurants and PayPal
- Oct-Dec 2021: Amazon.com, Walmart.com and Target.com
(it’s pretty much the same as 2020, they just added stores to the list of categories and streaming services)
In terms of cash back cards, it’s an average card. If you want a cash back card, I’d give the Chase Freedom card a look because you get the same cash back structure (1% on all purchases and 5% on rotating categories) but you also get a $150 bonus after you spend $500 on purchases in the first 3 months.
How Do Discover Bank Promotions Compare?
We maintain a list of the best bank promotions and there are a few other alternatives that you should consider instead.
Discover Online Savings Account – $150 or $200
Discover Bank is offering a $150 or $200 bonus when you open your first Discover Online Savings Account with the promotion code WH21 and deposit at least $15,000 into the account within 30 days. You get $150 if you deposit $15,000 or more and $200 if you deposit $25,000.
Chase Total Checking® – $225
Chase Bank will give you $225 when you open a Total Checking account and set up direct deposit within 90 days. There is a $12 monthly fee that is waivable with a monthly direct deposit of just $500, so no gotchas on this deal!
HSBC Premier Checking – $450
HSBC has an offer where you can get $450 for eligible new customers who open an HSBC Premier checking account and make recurring monthly qualifying direct deposits of at least $5,000 for 3 consecutive months. Click here to learn more about this offer.
Huntington Bank – up to $500
If you are a resident of Colorado, Illinois, Indiana, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, South Dakota, West Virginia, or Wisconsin then you could get up to $500 from Huntington Bank for opening a new checking account. There are several checking accounts that qualify but they’re great offers if you live in their geographic region. Click here to learn more about Huntington Bank offers.
Final Verdict: A Strong Savings Account
The Discover Bank Online Savings Account is a good option for an online savings account, even when it doesn’t offer a bonus:
- A high-interest savings account without any annoying fees
- A checking account with a cashback debit cards
If you were to change your primary bank and centralize where you put your funds, Discover Bank makes a strong case for doing so with what they offer. If you already have a checking account and were considering adding a savings account, it’s a no-brainer to take advantage of this account.
Lastly, if the appeal of this account is because of a bonus, make sure you review this guide on bank account bonuses before you jump.