In this paper we study linear ill-posed problems Ax = y in a Hilbert space setting where instead of exact data y noisy data yδ are given satisfying ||y - yδ|| ≤ δ with known noise level δ. Regularized approximations are obtained by a general regularization scheme where the regularization parameter is chosen from Morozov's discrepancy principle. Assuming the unknown solution belongs to some general source set M we prove that the regularized approximation provides order optimal error bounds on the set M. Our results cover the special case of finitely smoothing operators A and extend recent results for infinitely smoothing operators.