Discover Cashback Debit Account
Fees
Our Rating
Promotion
APY Checking
Discover Cashback Debit Account
Fees
Our Rating
Promotion
APY Checking
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:
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Cashback Debit Card
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.
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ATM Access with Over 60,000 Machines
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.
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No Minimum Deposit
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.
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Mobile Check Deposit
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.
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Physical Checks
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 |
- No Monthly Maintenance Fees
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.
- Minimal Other Fees
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.
- Access to Award Winning Customer Service
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.
- Impressive Product Line
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.
- No Branches
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.
- No Interest
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.
- Discover Network
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.
- Not Always Available
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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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:
- 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.
- 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.
- 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.
- 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
Does the Discover Cashback Debit Account earn interest?
No, you can earn cashback on your debit card purchases, but you’ll not earn any interest on your account balance.
Does Discover Cashback Debit Account offer a promotion?
Discover does periodically run promotions for new customers, but you’ll need to watch out for promotional codes on marketing materials and mailers.
How do you close a Discover Cashback Debit Account?
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:
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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.
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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.
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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.
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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
