You can close a Discover savings account by calling customer service, sending a secure message through your online banking dashboard, or mailing a written request. There is no option to close the account through a branch since Discover operates entirely online. The process is straightforward, but a few steps beforehand will make sure your money arrives where you want it and nothing gets left behind.
Ways to Close Your Account
Discover gives you three options for closing a savings account:
- Secure message: Log in to your Discover account online or through the mobile app, navigate to the messaging center, and send a message requesting that your savings account be closed. This is the most convenient method since you can do it any time without waiting on hold.
- Phone: Call Discover’s banking customer service line at 1-800-347-7000. A representative can process the closure during the call and walk you through transferring your remaining balance.
- Mail: Send a signed written request to Discover Bank, P.O. Box 30418, Salt Lake City, UT 84130. Include your full name, the account number, and instructions for where to send your remaining funds. This is the slowest route and generally only worth using if you cannot access online banking or reach someone by phone.
Whichever method you choose, Discover will typically confirm the closure and issue any remaining balance within a few business days. If you use the secure message option, expect a response within one to two business days.
Transfer Your Balance First
Before you request the closure, move your money out. You can transfer your balance to an external bank account you’ve already linked, or ask Discover to mail you a check for the remaining funds. Initiating the transfer yourself ahead of time is faster, since external transfers from Discover usually take one to three business days.
If you leave a balance in the account when you request closure, Discover will send you a check for whatever remains, including any interest that has accrued since your last statement. That check can take a week or more to arrive by mail, so pulling the funds electronically beforehand saves time.
Check for Pending Transactions
Make sure there are no pending transfers, direct deposits, or automatic payments tied to the account before you close it. If a recurring transfer tries to hit a closed account, it will bounce, which could cause missed payments or fees at the other institution. Go through your recent activity and redirect anything that deposits into or pulls from the Discover savings account. This includes any automatic savings transfers you may have set up from a Discover checking account or from an external bank.
Early Closure Fees
Some banks charge an early account closure fee, typically between $5 and $50, if you close within 90 to 180 days of opening. Discover’s savings account does not currently charge a monthly maintenance fee, and the bank is generally known for its minimal fee structure. Still, review your account agreement or deposit agreement (available in your online dashboard under account documents) to confirm whether any early closure fee applies to your specific account. If you opened the account recently and earned a signup bonus, check the bonus terms as well, since some promotional offers require you to keep the account open for a set period or risk forfeiting the bonus.
What Happens to Accrued Interest
Discover pays interest on savings accounts monthly. If you close your account partway through a statement cycle, you are still owed interest on the days your money sat in the account. Discover will calculate that prorated interest and include it in your final payout, whether that comes as a check or as part of your last transfer. You do not lose earned interest by closing mid-cycle.
Keep in mind that any interest earned during the calendar year is taxable income. Discover will send you a 1099-INT form the following January for interest paid during the year, even if the account is already closed. Make sure Discover has your current mailing address on file at the time of closure so the tax form reaches you.
If You Have Other Discover Products
Closing a Discover savings account does not automatically affect a Discover credit card, checking account, or CD you may hold. Your online login will still work for any remaining accounts. However, if your savings account was linked to a checking account for overdraft protection, that safety net goes away once the savings account is closed. Log in after the closure is confirmed and verify that your other accounts still have the settings you expect.
Confirm the Account Is Closed
After submitting your closure request, log back in within a few days to make sure the savings account no longer appears in your dashboard. If you closed by phone, the representative may give you a confirmation number. Write it down. If you closed by secure message, save or screenshot the reply confirming the closure. Having documentation protects you in the unlikely event of a dispute or if a stray transaction tries to reopen the account.
Once the account disappears from your online profile and you have received your final balance (plus any accrued interest), the process is complete.