Banking » Reviews » Discover Cashback Debit Account Review 2024
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Discover Cashback Debit Account Review 2024

The Discover Cashback Debit Account earn 1% cashback on debit card purchases, doesn't charge monthly fees and offer nice digital tools
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: April 15, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: April 15, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

Discover Cashback Debit Account

Fees

$0

Our Rating

4.5
4.5/5

Promotion

Up to $360 Get 1% of spending. Monthly debit Purchases of $3,000 in purchases per month needed to get the maximum.

APY Checking

0% (1% cash back on up to $3,000 in debit card purchases each month)

Discover Cashback Debit Account

Fees

$0

Our Rating

4.5
4.5/5

Promotion

Up to $360 Get 1% of spending. Monthly debit Purchases of $3,000 in purchases per month needed to get the maximum.

APY Checking

0% (1% cash back on up to $3,000 in debit card purchases each month)

Discover is best known for its credit cards, but in recent years, it has been expanding its product line to include a number of banking products. This includes the Discover Cashback Debit Account. As the name suggests, this account features a debit card which offers cash back in the same way as you may accumulate on your credit card.

Essentially, it is a checking account that allows you to earn cashback up to a $3,000 monthly cap on your debit card purchases. This means that you can use the account as you would any other checking account, but there is the potential to earn up to $360 per year, simply by using your debit card in stores and online.

This is an interesting concept, so here we’ll explore the Discover Cashback Debit Account in more detail.

Discover Cashback Debit Account: Best Features

Here are the main features to know about the Discover Cashback Debit Account:

The primary feature of this account is obviously the cashback debit card. You’ll earn 1% cashback on debit card purchases, but there are some restrictions.

For example, you won’t earn cashback on purchasing money orders, PayPal transfers or ATM withdrawals. Basically, any purchases that are cash equivalents won’t earn cashback.

One of the main benefits of Discober bank is the access to a large ATM network where you won’t incur fees. There are over 60,000 no fee machines in the network, so you won’t incur any charges for making a cash withdrawal or balance inquiry.

discover checking account review
Discover provides access to a large ATM network of over 60,000 no fee machines (Photo by Tada Images/Shutterstock)

Unlike some checking accounts, you don’t need to make a minimum deposit to open the account or maintain a minimum balance to keep the account active.

You can also deposit checks into your account without needing to visit an ATM.

The Discover app includes a mobile check feature, which allows you to take a picture of the front and back of the check, along with entering a few basic details. This means that you can deposit checks from anywhere, even if you’re away from home.

This is becoming a less common feature with checking accounts, as many companies are now paperless. However, you can still receive check writing privileges with the Cashback Debit account.

While the checks are nothing fancy, you will receive basic paper checks if you need them to pay rent or other transactions where you prefer to pay by check.

Is the Discover Cashback Debit Account Good?

There is no clear cut answer to this question, as whether the account is good will depend on your circumstances, preferences and requirements.

As with any financial product, there are both positives and potential negatives to consider, so you can assess whether it is a good fit for you.

Pros
Cons
No Monthly Maintenance Fees
Discover Network
Minimal Other Fees
No Interest
Access to Award Winning Customer Service
No Branches
Impressive Product Line
Not Always Available

It is still quite common for banks to charge a monthly maintenance fee for checking accounts.

If you're looking for a free online checking account, Discover is one of the best options.

Additionally, the account has minimal fees for other services.

Fees that are common with many traditional banks, which are fee free with this account include expedited debit card replacement, incoming wire transfers, returned deposit items and official bank checks.

Discover is well regarded for its customer service and if you do have an issue, you can speak to a representative at any time of the day.

Discover has a decent selection of other banking products, making it as one of the best banks to open an account with.

So, if you’re interested in a new checking account and want to move all of your banking activities under one roof, you should find the Discover product line more than sufficient.

One of the most obvious potential drawbacks for many people is a lack of branches.

Discover is a fully online bank, so you won’t be able to access in person customer support. You’ll need to deal with any issues or queries via the phone helpline or online.

There are many checking accounts online that pay interest, but this account rewards you for your spending rather than leaving money in your account.

This could be a drawback for some, depending on how you typically manage your account and finances.

As we touched on earlier, this is a possible drawback depending on the retailers in your area.

The Discover card network is smaller than Visa and Mastercard, which may make it more challenging to use your debit card for all your purchases.

Even if you think the Cashback Debit Account is a perfect fit for you, you may not be able to access it. This is a relatively new product, but Discover does not always make it available.

 So, you’ll need to watch and wait for it to become available again.

Which Type of Customer is Best Suited to the Discover Cashback Debit Account?

This account will not be for everyone, but there are a few customers who will find it best suits their needs. These include:

  • People who prefer online or app banking: Since this is an online only account, you will need to be comfortable managing your account online or using the Discover app. There are no physical branches, but you can access a large ATM network if you need cash.
  • Those who prefer debit cards over credit cards: One of the frustrating aspects of not liking to use credit cards is that you typically miss out on rewards. While Discover credit cards do typically offer better rewards, this account offers a nice compromise.
  • Those who want to boost their Discover Credit Card cashback: Another feature of this account is that you can combine the cashback you earn with your Discover credit card cashback. You can transfer amounts over to your credit card to get the best rewards.

Is Discover a Good Bank to Work With?

Discover has a solid reputation for offering good customer support, and its app platform is highly rated, offering an excellent user experience.

Discover has a decent product lineup, including savings accounts, money market accounts, CDs, and credit cards. Discover CD rates are very competitive. So, if you’re looking to work with a bank that can handle all of your financial needs, Discover could be a good fit for you.

However, there are limited options for each product. So, if you like the idea of having a choice of savings accounts or want to browse the account options, you may find Discover a little limited compared to many other online banks.

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Fees:
No monthly fees No monthly fees and no overdraft fees. Plus get reimbursed for ATM fees with an active account 
Rewards:
Up to 2% cash back Up to 2% cash back on common everyday expenses for active accounts with monthly $1,000 direct deposit, and up to 1% cash back for other purchases 
Promotion:
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Promotion:
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• Earn an extra $500 when you set up recurring monthly Direct Deposits totaling at least $5,000 for 3 months
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Get access to wealth products, insights and advice from an HSBC Financial Professional through HSBC Securities (USA) Inc
Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.
Top Offers From Our Partners

PNC bank logo

Promotion:
Up to $400 Open a new, select Virtual Wallet product and receive $500/$2,000/$5,000 or more in qualifying monthly direct deposits within 60 days to earn a $100/$200/$400 bonus.
Subject to state availability
PNC Virtual Wallet ® is available in AL, AZ, CA, CO, DC, DE, FL, GA, IL, IN, KY, MD, MI, NC, NJ, NY, NM, OH, PA, SC, TX, VA, WI, and WV. Virtual Wallet ® is offered in the state of MO with the exception of the Greater Kansas City area. Product availability may vary based on where you open your account and the Zip code of your primary address.

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Promotion:
$300 New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account and make direct deposits totaling $500 or more within 90 days of coupon enrollment.. Expired on 7/24/2024
Chase Overdraft Assist
With Chase Overdraft AssistSM, you won’t be charged an Overdraft Fee if you’re overdrawn by $50 or less at the end of the business day OR if you’re overdrawn by more than $50 and you bring your account balance to overdrawn by $50 or less at the end of the next business day

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Fees:
No monthly fees No monthly fees and no overdraft fees. Plus get reimbursed for ATM fees with an active account 
Rewards:
Up to 2% cash back Up to 2% cash back on common everyday expenses for active accounts with monthly $1,000 direct deposit, and up to 1% cash back for other purchases 
Promotion:
$300 Use Promo Code “AXOS300” for a $300 bonus when you apply for a Rewards Checking account
Up to 3.30% APY
to get the maximum rate (up to $50,000) you'll need monthly direct deposits of $1,500 (0.40% APY), 10 transaction on your debit card (+0.30% APY), average daily balance of $2,500 on Axos Invest Managed Portfolio (+1.00% APY), average daily balance of $2,500 on Axos Invest Self Directed Trading Account(+1.00% APY) and make full monthly payment on loans (mortgage, personal and auto) with Axos account (+0.60% APY).

Promotion:
Up to $4,000 New customers may earn up to $4,000 when they open an eligible HSBC Premier checking account from January 8, 2024 through March 27, 2024 and complete qualifying activities:

• Receive a cash bonus of $1,500 when you deposit or invest $100,000 – $199,999.99

• Receive a cash bonus of $2,000 when you deposit or invest $200,000 – $299,999.99

• Receive a cash bonus of $2,500 when you deposit or invest $300,000 – 499,999.99

• Receive a cash bonus of $3,500 when you deposit or invest $500,000+

• Earn an extra $500 when you set up recurring monthly Direct Deposits totaling at least $5,000 for 3 months
Wealth Products & Advice
Get access to wealth products, insights and advice from an HSBC Financial Professional through HSBC Securities (USA) Inc
Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.

How to Open a Discover Cashback Debit Account

As we discussed earlier, Discover is not currently accepting new customers for the Cashback Debit account, but you can request an email notification when it is back. Once the product is available, you can apply in a few simple steps:

  1. Click the Button: At the top of the product page, you should see a button labeled “Open Account.” When you click on this, the website will open a new tab to start the application process.
  2. Confirm your Customer Status: The first screen requires you to confirm if you’re a new or existing customer. If you already hold a Discover account, such as a credit card, you can sign in and Discover will pre-fill many of the application form fields with information from your profile.
  3. Complete the Application: This is quite standard and you’ll need to provide personal details such as your full name, address, date of birth, Social Security Number and mother’s maiden name. You will also need to verify your identity with your driver’s license or other government issued ID.
  4. Fund Your Account: After you complete the application and read through the disclosures, you will have an option to fund your account. There is no minimum initial deposit required for this account, but if you want to start using the account quickly, transferring some funds now is a good idea.

FAQs

No, you can earn cashback on your debit card purchases, but you’ll not earn any interest on your account balance.

Discover does periodically run promotions for new customers, but you’ll need to watch out for promotional codes on marketing materials and mailers.

The easiest way to close your Discover Cashback Debit account is to call the customer support helpline. A Discover representative can walk you through the process and initiate your closure request.

How We Review Checking Accounts: Our Methodology

The Smart Investor team has conducted a comprehensive review of checking accounts offered by various banks, taking into account several key factors to provide a thorough evaluation. Here's how we rated them across four important categories:

  • Checking Account Features (60%): We meticulously assessed the features and benefits associated with each bank's checking accounts. Factors considered include account fees, minimum balance requirements, ATM access, overdraft protection, online and mobile banking functionalities, and additional perks such as rewards programs. Higher ratings were awarded to banks offering a wide range of features and benefits that cater to diverse customer needs, ensuring convenience and flexibility in managing finances.

  • Customer Experience (20%): A positive customer experience is essential in banking, so we evaluated each bank's performance in this area. This included assessing the ease of account opening, quality of customer service, availability of support channels, and overall user satisfaction. Ratings were based on factors such as responsiveness, efficiency, and the bank's commitment to meeting customer needs, ensuring a seamless and satisfactory banking experience.

  • Diversity of Other Financial Products (10%): We also considered the diversity of other financial products offered by each bank, such as savings accounts, loans, credit cards, and investment options. Higher ratings were given to banks with a comprehensive suite of financial products, allowing customers to meet their various banking and financial needs in one place.

  • Bank Reputation (10%): The reputation of a bank is a crucial factor in decision-making. We examined factors such as financial stability, regulatory compliance, and public perception to determine each institution's overall trustworthiness and reliability. Higher ratings were assigned to banks with strong reputations, reflecting their credibility and ability to inspire confidence among customers.

By considering these categories and assigning appropriate weights to each, our review aims to provide valuable insights to help individuals make informed decisions when selecting a checking account

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Picture of Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
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Top Offers From Our Partners

PNC bank logo

Promotion:
Up to $400 Open a new, select Virtual Wallet product and receive $500/$2,000/$5,000 or more in qualifying monthly direct deposits within 60 days to earn a $100/$200/$400 bonus.
Subject to state availability
PNC Virtual Wallet ® is available in AL, AZ, CA, CO, DC, DE, FL, GA, IL, IN, KY, MD, MI, NC, NJ, NY, NM, OH, PA, SC, TX, VA, WI, and WV. Virtual Wallet ® is offered in the state of MO with the exception of the Greater Kansas City area. Product availability may vary based on where you open your account and the Zip code of your primary address.

Chase_logo

Promotion:
$300 New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account and make direct deposits totaling $500 or more within 90 days of coupon enrollment.. Expired on 7/24/2024
Chase Overdraft Assist
With Chase Overdraft AssistSM, you won’t be charged an Overdraft Fee if you’re overdrawn by $50 or less at the end of the business day OR if you’re overdrawn by more than $50 and you bring your account balance to overdrawn by $50 or less at the end of the next business day

UpgradeLogo

Fees:
No monthly fees No monthly fees and no overdraft fees. Plus get reimbursed for ATM fees with an active account 
Rewards:
Up to 2% cash back Up to 2% cash back on common everyday expenses for active accounts with monthly $1,000 direct deposit, and up to 1% cash back for other purchases 

Promotion:
$300 Use Promo Code “AXOS300” for a $300 bonus when you apply for a Rewards Checking account
Up to 3.30% APY
to get the maximum rate (up to $50,000) you’ll need monthly direct deposits of $1,500 (0.40% APY), 10 transaction on your debit card (+0.30% APY), average daily balance of $2,500 on Axos Invest Managed Portfolio (+1.00% APY), average daily balance of $2,500 on Axos Invest Self Directed Trading Account(+1.00% APY) and make full monthly payment on loans (mortgage, personal and auto) with Axos account (+0.60% APY).

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APY on Daily Balances
0.15% APY on daily balances of less than $20,000 or 0.35% APY on daily balances of $20,000 up to $50,000
Get paid up to 2 days early
Set up direct deposits and get your paycheck up to 2 days early

Promotion:
Up to $4,000 New customers may earn up to $4,000 when they open an eligible HSBC Premier checking account from January 8, 2024 through March 27, 2024 and complete qualifying activities:

• Receive a cash bonus of $1,500 when you deposit or invest $100,000 – $199,999.99

• Receive a cash bonus of $2,000 when you deposit or invest $200,000 – $299,999.99

• Receive a cash bonus of $2,500 when you deposit or invest $300,000 – 499,999.99

• Receive a cash bonus of $3,500 when you deposit or invest $500,000+

• Earn an extra $500 when you set up recurring monthly Direct Deposits totaling at least $5,000 for 3 months
Wealth Products & Advice
Get access to wealth products, insights and advice from an HSBC Financial Professional through HSBC Securities (USA) Inc
Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.
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