Discover Checking Accounts
Written by
Dawn Allcot
Edited by
Sequoya Davis
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Discover is best known for its cash-back credit cards. But the company is not just a credit card provider. Discover® Bank, Member FDIC, is also an online-only bank that offers a no-fee, cash-back checking account, the Discover Cashback Debit account.
The Discover Cashback account earned recognition from GOBankingRates as one of the best checking accounts in 2024. Discover often has promotions and bonuses for its loyal customers. Right now, you can earn 1% cash back on up to $3,000 in debit card purchases each month.
Discover Cashback Debit Account Overview
Let’s dig into the features and benefits of a Discover Cashback Debit checking account.
| Feature | Key Details |
|---|---|
| Overdraft protection | Yes |
| Monthly maintenance fee | No |
| Minimum opening deposit | No |
| Overdraft fee | No |
| Cashback | 1% cash back on up to $3,000 in purchases per month; see website for details |
| Early direct deposit | Yes |
| ATM network | Access to 60,000+ ATMs |
Discover Checking Features
Discover offers all the benefits and features you’d expect from a checking account, with the added advantage of 1% cash back on up to $3,000 per month in debit card purchases. Get paid up to two days earlier than many other banks when you set up ACH direct deposit. Link your Discover debit card to a digital wallet and pay with one click, while earning cash-back rewards.
Discover also has a few options for no-fee overdraft protection. You can link a qualifying Discover savings or money market account to your Discover® checking account. If a transaction puts your checking account into overdraft, Discover will automatically transfer the funds from your other account, with no fees attached.
You can also choose to enroll in Balance+, another no-fee service from Discover. If your checking account has received a qualifying direct deposit of at least $200 for each of the last two calendar months and you have a positive balance, you can enroll in this service. With Balance+, Discover may cover debit card purchases that would put your account into the negative. You must fund the account as soon as possible. Balance+ does not cover ATM cash withdrawals, checks or electronic payments.
Discover Checking Fees
There are no monthly maintenance fees and no minimum balance or minimum opening deposit requirements for your Discover Cashback Debit checking account. You also won’t pay fees when you use your ATM card at any of the 60,000-plus fee-free ATMs in the network. Discover doesn’t charge fees for using out-of-network ATMs, but other ATM operators might.
Discover also has no overdraft fees, although it may decline transactions if the debit card purchase puts your account into the negative.
Discover also doesn’t charge any fees for expedited delivery of a debit card, official bank checks or personal check orders. There is a $30 fee for outgoing wire transfers from your account.
Pros and Cons of the Discover Cashback Debit Account
Here are some pros and cons to consider to help you decide whether the Discover checking account is right for you.
Pros
- 1% cash back on purchases
- No fees
- 60,000-plus ATMs in network
- Early direct deposit
Cons
- No in-person branches
- $30 outgoing wire transfer fee
- Debit card may not be accepted everywhere overseas
Alternatives to Discover Cashback Debit
While a Discover Cashback Debit account provides a lot of advantages, it may not be the best choice for everyone. Here are a few alternative checking accounts to consider.
Capital One
Capital One 360 Checking delivers the benefits of personalized service at local branches and Capital One Cafés, along with no monthly fees or overdraft fees. Just like Discover, there is no minimum account balance required to open an account. Capital One has a network of 70,000-plus ATMs and an easy-to-use mobile app.
In many ways, the checking account offerings for Capital One and Discover are very similar, with Discover offering cash back on purchases while Capital One adds the convenience of in-person banking.
SoFi®
SoFi, Member FDIC is a leader in online financial services, providing loans, checking and savings accounts, and more. If you are considering an online-only bank like Discover, it’s worth giving SoFi a look. Right now, SoFi has an interest-earning bank account offering APY on checking and up to APY on the balance in your linked savings account, with no monthly fee. To qualify for interest, you must have at least one direct deposit into your account during that statement period. Alternatively, you can qualify with other deposits totaling $5,000 or more during that statement period.
Like Discover, SoFi has early direct deposit, no-fee overdraft coverage and an easy-to-use mobile banking app.
You can also earn a one-time bonus of up to $300 with $5,000 or more in qualifying direct deposits within the first 25 days of opening an account. If you have at least $1,000 but less than $5,000 in direct deposits, you’ll earn a bonus of $50.
Depending on your direct deposit activity and typical account balances, SoFi may be a more profitable choice for a bank account that generates extra cash for you.
FAQ
- Does Discover have a checking account?
- Discover offers a cash-back checking account with no monthly fee.
- What is the minimum balance for the Discover checking account?
- The Discover Cashback Debit account has no minimum required balance and no minimum opening deposit requirements.
- Can I deposit cash into my Discover checking account?
- You can deposit cash into your Discover checking account by using your contactless debit card at any Walmart in the U.S. You must make a minimum deposit of $20 at Walmart. You can also deposit funds through an internal transfer from another Discover account or an external transfer from another bank account. You can also deposit funds through a wire transfer.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Nov. 22, 2024.
All information about Discover® Cashback Debit & Discover® Money Market Account has been collected independently by GoBankingRates. Discover® Cashback Debit & Discover® Money Market is no longer available through GoBankingRates.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
