Eric Bank is an M.B.A. who has covered financial and business topics since 1985, appearing regularly on Credible, eHow, WiseBread, The Nest, Zacks, Chron, BadCredit.org and dozens of other outlets. Eric specializes in taking complex subject matters and explaining them in simple terms for consumer audiences, particularly in the world of personal finance. Eric holds a Master's in Business Administration from New York University and a Master's in Finance from DePaul University.
Jon leverages 15-plus years of journalism expertise to inform financial consumers about emerging trends and companies making an impact in the industry. He is most knowledgeable in the areas of budgeting, credit card rewards, and responsible credit use. Jon has a passion for writing and editing, and his articles have appeared in publications produced by The New York Times.
Ashley Fricker has more than a decade of experience as a finance contributor and editor, and has specialized in the credit card industry since 2015. Her credit card commentary is featured on national media outlets that include CNBC, MarketWatch, Investopedia, and Reader's Digest, among many others. She has worked closely with the world’s largest banks and financial institutions, up-and-coming fintech companies, and press and news outlets to curate comprehensive content and media. Ashley holds a bachelor's degree in multimedia journalism from Florida Atlantic University.
I recently helped my niece set up a budget and was amazed at how much she spent on fees every month. Streaming services and social platforms were bad enough, but the money she wasted on needless bank fees really frustrated me.
She decided to switch to online banking and, within a couple of weeks, was the proud new owner of a Discover® Cashback Debit card. Let’s review why that was a good move.
The Discover® Cashback Debit provides no-fee access to a nationwide network of ATMs. You can use Discover’s app-based ATM Finder to locate a no-fee ATM near you. Equally important, it never imposes a monthly fee, minimum balance, or transaction quota.
Here are more details from Discover:
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Cashback – Earn 1% cash back on up to $3,000 in debit card purchases
each month
No. Fees. Period. That means you won’t be charged an account fee on our
Cashback Debit account.
Early Pay – Get your paycheck up to two days early with no charge
No Credit Impact - You can apply without affecting your credit score.
Fraud Protection - You’re never responsible for unauthorized debit card
purchases. If you suspect someone else has used your debit card without
your permission, let us know.
Member FDIC
Fee-free overdraft protection
No minimum opening deposit and no minimum balance
Add cash into your account at Walmart stores nationwide
This account’s low-cost approach extends to free overdraft protection and no fees for insufficient funds. You can even use Zelle to send and receive money for free.
Earning cash back for using the account’s debit card is the cherry on top. You earn 1% cash back on up to $3,000 in debit card purchases each month. A bank account that pays you money — now that’s a beautiful thing.
How to Qualify
You receive the Discover® Cashback Debit card when you open an online account at Discover® Bank. To do so, you must:
be a US citizen or resident alien
be 18 or older
have a valid Social Security number (SSN) or Employee Identification Number
have a valid US address
complete W-9 certification to prove US tax status
register the new account online
Opening an account takes only a few minutes. The online application collects your name, address, phone number, email address, and SSN. You also must supply your mother’s maiden name, date of birth, country of citizenship, and occupation.
The application includes a few questions about how you plan to use the account, the source(s) of your cash deposits, and your annual household income. If everything checks out, you can create a user ID and password. Your account goes live as soon as you review and agree to its terms and conditions, including submitting an IRS W-9 Form.
You should expect your new debit card to arrive within 10 days of account opening, along with paper checks, if requested. After you receive and activate the card, you can set up a personal identification number (PIN) online in the Account Center portal.
Although Discover does not require a minimum deposit to open a checking account, it must receive an initial deposit in any amount within 45 days of account opening, or it will close the account.
Benefits & Drawbacks
Sometimes, a financial product’s benefits and drawbacks are evenly matched. In this case, the benefits score a knockout victory.
Benefits
Cash back rewards: You can collect up to $360 per year through the account’s cash back rewards. You earn 1% monthly on up to $3,000 of eligible debit card purchases.
No fees: The card is fee-free, except for a service charge on each outgoing wire transfer. The account doesn’t charge for in-network ATM usage, personal checks, official bank checks, expedited delivery of replacement cards, overdrafts, or insufficient funds. The account has no minimum balances or activity requirements.
Early pay feature: You can access your paycheck up to two days in advance by setting up direct deposits with your employer.
Mobile banking app: You can access your account anytime, anywhere, with the Discover Mobile Banking App. The app is available from the Apple App Store and Google Play. It supports mobile check deposits, online bill pay, and money transfers.
ATM access: You have free access to more than 60,000 ATMs nationwide. You can also get cash at a bank or credit union by showing your debit card and photo ID to the teller. The mobile app’s ATM Finder points you to nearby in-network machines.
Free access to Zelle: You can set up free access to Zelle using the mobile app. Zelle is a quick way to send money directly to and receive money directly from friends and family members who have US bank accounts.
Freeze it: If you lose or misplace your debit card, you can temporarily freeze it to prevent any new debit card purchases and ATM transactions. Most other account activity will continue as usual, including previously scheduled and recurring transactions, internal and external transfers, deposits, online bill payments from the Discover Account Center, returns, credits, dispute adjustments, reward redemptions, and processed checks. You can unfreeze your card when you find it.
Security features: The account provides several features (described below) to keep your money and identity secure.
Drawbacks
No physical branches: Discover is an online bank. Although you have around-the-clock access to customer service, you can’t talk with a representative in person. That’s a drawback if you enjoy a hands-on approach.
No interest earnings: Unlike some other online bank accounts, the Discover® Cashback Debit does not pay interest on cash balances. However, the debit card’s cash back rewards may be far more lucrative (unless you keep large sums in your checking account). Discover offers a high-yield money market account, savings account, and certificates of deposit.
The Discover network was once less extensive than those of Visa, Mastercard, and American Express. But it caught up, and 99% of merchant locations that accept debit or credit cards now welcome Discover cards.
Comparable Debit Cards
The following three cards compete directly with the Discover® Cashback Debit. They deserve your consideration if you’re looking for additional options, but note that none offer in-person banking.
Your Chime Checking Account comes with a Chime Visa® debit card, no monthly fees or maintenance fees.
Avoid out-of-network ATM fees and access to 60,000+ fee-free ATMs¹ — more than the top 3 national banks combined!
Direct deposits arrive up to 2 days early.²
Disclosures: Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
¹Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
²Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
The Discover® Cashback Debit is an online-only checking account from Discover® Bank. It offers many of the same features you’d expect from a checking account at a brick-and-mortar financial institution.
You can use the card to make purchases online, over the phone, in-store, and in apps while earning up to $30 per month in cash back rewards. The account is fee-free and features a mobile app, paper checks (upon request), free ATM access, and several options to deposit and withdraw money.
The account also provides extensive security features and a highly touted customer service operation. Additional services include online bill pay, mobile check deposit, account alerts, early pay, and optional overdraft protection. You do not have to maintain a minimum balance or meet any transaction quotas.
Discover® Bank also offers savings and money market accounts, CDs, credit cards, and IRAs.
How Do I Put Money in My Account?
Adding money to your account is easy, and you can do in the following ways:
Mailing a check deposit
Mobile check deposit
ACH transfer
Internal transfer
Wire transfer
ACH direct deposit
Depositing cash, checks, or traveler’s checks in person at the single Discover® Bank branch
Using the Add Cash service to add cash to your account at participating merchant retail locations
Zelle
You cannot deposit money or checks to your debit account at an ATM.
Here, we describe some of these deposit methods in more detail.
Mobile Check Deposit
Mobile check deposit enables you to use a compatible mobile device to upload an image of a check or other eligible paper item for deposit to your Discover checking account. There is no charge for the service. The following check types are eligible for deposit using mobile check deposit:
Business checks
Cashier’s checks
Certified checks
Official bank checks
Other federal government checks (for example, Federal Reserve Bank checks, Federal Home Loan Bank checks)
Personal checks
State and local government checks
Teller checks
US Treasury checks
The following items are not eligible for deposit using mobile check deposit:
Checks drawn on foreign institutions located outside the United States or in a language other than English
Checks payable to any person or entity other than you
Expired checks
Money orders
Post-dated checks
Savings bonds
Substitute checks
Traveler’s checks
Unendorsed checks
The bank may impose daily or monthly limits on the cash amounts and number of checks you can deposit this way.
With mobile banking, depositing a check into your account can take less than a minute. You must sign the back of your check as usual, then, within the banking app, select the account for your deposit and confirm the amount.
Next, snap photos of the front and back of your check and upload the images to the bank. Once you receive confirmation, your mobile deposit is complete. The process is much more convenient than traveling to an ATM or bank branch to make a deposit.
Add Cash Service
The no-fee Add Cash Service allows you to deposit money to your checking account at any Walmart location in the United States. Simply bring cash to any Walmart Money Center and ask the cashier to add the money directly to your card account.
You’ll swipe or insert your card, hand your money to the cashier, and receive a receipt. The Add Cash transaction generally posts to your Discover® Bank account on the same day, usually within 10 minutes.
You can add cash at Walmart four times a day, seven times a week, and up to 20 times a month. Daily, weekly, and monthly transaction limits apply, and these limits are subject to change.
Zelle
Zelle is a fast and effortless way to transfer money directly to or from almost any bank account in the United States. With just an email address or US mobile phone number, you can transfer cash to or from people you trust, regardless of where they bank.
Generally, to enroll with Zelle, you must:
Own at least one eligible Discover account (checking, money market, online savings, or statement savings) and have a valid physical address on file
Have a Discover account that is at least 90 days old with a balance of $0 or more at the time of enrollment
Provide an email address (which will be the Zelle identifier for your account) and, for verification purposes, a US mobile phone number that you intend to use for an extended period. You may not enroll in Zelle with a landline phone number, Google Voice number, or Voice over Internet Protocol number.
You can request money using Zelle on the Discover mobile app. The procedure is simple:
Choose “Request” from the app’s Transfer Menu
Select the individual to request money from
Enter the amount
Hit “Request”
The money will move directly into your bank account, typically within minutes of dispatch. Discover imposes no limits on how much money you can receive with Zelle. You can see incoming and outgoing Zelle payments (both pending and completed) on the app’s Zelle activity page.
How Much Cash Can I Withdraw at a Time?
You may make unlimited withdrawals and transfers of any type from your Discover® Cashback Debit account up to your available balance and in accordance with the transaction limitations, regardless of the withdrawal method. However, ATM withdrawals are subject to a daily limit (see below).
You can withdraw money from your account in the following ways:
Make a cash-back-eligible purchase
Perform a wire transfer (a service charge applies)
Perform an online transfer to an external bank account
Request an official bank check
Send money through Zelle
Use online bill pay
Withdraw cash from an ATM
Write a paper check
ATM Withdrawals
The daily ATM withdrawal limit for your debit account is the lesser of $2,000 or your available balance. You can perform no-fee cash withdrawals at more than 60,000 Allpoint and MoneyPass ATMs.
Not all ATMs are available 24/7 — hours may vary at each location. Use the Discover online and mobile ATM Finder to locate a no-fee ATM near you. You can also use your debit card at ATMs nationwide, anywhere you see the Discover, Diners Club International, or PULSE symbols.
Discover will never charge you a fee to use an ATM, but the owner of an ATM outside the Allpoint and MoneyPass networks may charge a fee.
Cash Back Purchases
You can use your debit card for cash back purchases wherever you see the Discover, PULSE, or Diners Club International symbols. Simply choose “additional cash” at participating retailers when you use your card.
How Does Discover Protect My Security?
Credit issuers go to great lengths to protect their customers’ security. The following chart summarizes the many ways Discover does so:
SECURITY FEATURE
DESCRIPTION
Fraud Monitoring
Discover continuously monitors your accounts for suspicious activity, such as unauthorized use or identity theft.
Secure Account Access
The bank employs robust encryption technologies to ensure you receive secure access to online and mobile banking.
Two-Factor Authentication
This technique requires you to supply two forms of identification to access your account, such as a password and a response to a direct message or email.
Account Alerts
The account lets you customize alerts for various activities, including high-value transactions, login attempts, and low balances.
Zero Liability Protection
Discover won’t hold you responsible for unauthorized transactions, but you must report debit card loss or theft promptly.
Freeze it® Feature
You can instantly freeze your account via the app or website if you suspect debit card theft or loss. You can unfreeze the account if you find a misplaced card.
Education and Awareness
Discover offers tips and resources to help you safeguard against fraud and identity theft.
Can I Build Credit With a Debit Card?
No, you can’t build credit with debit cards because they don’t provide credit. The upside is that a bad credit score should have no impact on your application for a debit card.
Discover does offer a way to build credit: It issues unsecured and secured credit cards that report your activity to the three major credit bureaus (Experian, TransUnion, and Equifax). You can use a credit card to build or rebuild credit by paying your bills on time and keeping your unpaid balances low.
Main Takeaways
The Discover® Cashback Debit is about as good as a debit card gets. It has virtually no fees, pays you cash back rewards, lets you access your paycheck up to two days faster, and works with an excellent mobile app.
The other reviewed debit accounts also offer many benefits. Any of them is a great choice for low-cost online banking.
About the Author
Eric Bank
Finance Expert
Eric Bank is an M.B.A. who has covered financial and business topics since 1985, appearing regularly on Credible, eHow, WiseBread, The Nest, Zacks, Chron, BadCredit.org and dozens of other outlets. Eric specializes in taking complex subject matters and explaining them in simple terms for consumer audiences, particularly in the world of personal finance. Eric holds a Master's in Business Administration from New York University and a Master's in Finance from DePaul University.
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