Review
Updated
Fact Checked
Ashley Maready
The Discover® Cashback Debit account is an interesting alternative to interest-bearing checking accounts that will appeal to frequent debit card users. It has fewer fees than most banks, including many of its online competitors, plus a simple banking app that makes it easy to manage your finances on the go. Read our full Discover® Cashback Debit account review below to learn about all it has to offer.
Member FDIC.
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Ratings Methodology
Rates as
of Apr 19, 2024
2024 Award Winner
Discover® Cashback Debit
Member FDIC.
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4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
APY
0%
Min. To Earn APY
N/A
- Cash back rewards on debit cards
- Early direct deposit
- No monthly maintenance, NSF, or overdraft fees
- Great customer service
- Cash back rewards capped
- No interest-bearing checking account
- No physical branches
- No reimbursement for out-of-network ATMs
The Discover Cashback Debit account could be a lucrative option for those who frequently use their debit card. With cash back on eligible purchases, it's possible to earn even more than you could with a typical checking account APY without changing your habits at all. The fact that Discover has done away with many common checking account fees only adds to its appeal.
Full Discover® Cashback Debit review
Top perks
1% back: Discover® Cashback Debit account holders are eligible to earn 1% back on purchases (See website for details) they make with their debit cards, on up to $3,000 in debit card purchases each month. Discover® Bank limits you to a maximum of $360 in cash back per year, but this still far outstrips what most checking accounts can offer in interest. ATM transactions, money order purchases, point-of-sale cash withdrawals, peer-to-peer payments, loan payments, and payments made with third-party payment services are not eligible for cash back rewards.
No fees: The buffet of $0 fees is impressive. You won't pay fees for monthly maintenance, overdrafts, stop payments, or insufficient funds, to name a few.
READ MORE: Checking Account Fees and How to Avoid Them
Highly rated app: The Discover® Cashback Debit account connects to the Discover Mobile app, which is one of the best banking apps out there. The app is easy to use, rarely crashes, and helps you keep track of your spending and rewards. It's no wonder it has over 4.3 million reviews on the Apple App Store, with a 4.9 rating to go with it -- Discover has clearly built something that resonates with users. While you can use the Discover Mobile app with any Discover credit card or bank account, it's good to know it's compatible with Discover® Cashback Debit.
Early pay: Customers can receive their paychecks up to two days early with no charge.
Fraud and privacy protection: Discover says customers aren't responsible for fraudulent debit card purchases. Customers can also use Discover's mobile app to remove their personal information from multiple people-search sites online.
Fee-free ATMs: Customers can withdraw money from any of the over 60,000 MoneyPass® and Allpoint® ATMs nationwide without paying any fees. This is a larger network than many online checking accounts offer, so you'll have better odds of finding a surcharge-free ATM near you. You can locate the nearest one using the ATM Locator tool on Discover's website. Discover also won't charge you fees for using ATMs outside of these networks, though the ATM owner might.
No balance or activity requirements: Many checking accounts have minimum balance requirements to open an account, but the Discover® Cashback Debit account does not. It also doesn't charge a monthly service fee -- and there's no ongoing minimum balance or required number of monthly transactions. This makes it an affordable option for those who don't keep a lot of money in their checking accounts and those who don't spend a lot of money each month.
Free checks and debit cards: Discover doesn't nickel-and-dime you on the little things, like the cost of checks or replacement debit cards. This is not unusual among online banks, but what is unusual is that Discover also doesn't charge you for expedited check and debit card delivery, while most other banks do. It may seem like a small thing, but when you're out of checks or you've lost your debit card and you need your money in a hurry, you'll appreciate that Discover makes things easy for you.
FDIC insured: Discover® Cashback Debit accounts are covered by the same FDIC insurance as traditional bank savings accounts. Your funds -- up to $250,000 per depositor ($500,000 for joint accounts), per institution -- are protected in the unlikely event of bank failure.
What could be improved
APY: Discover gives you cash back instead of letting you earn interest on your checking account balance. Whether that's a good or a bad thing depends on your spending habits.
Checking account comparison
We recommend comparing checking account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
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| Account | APY | Promotion | Next Steps |
|---|---|---|---|
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Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
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0%
Min. to earn: N/A
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Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
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Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0.50%
Rate info
You can earn the maximum savings APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
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Cash bonus up to $300 with direct deposit set up (see details when you click 'Open Account')
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Rating image, 4.25 out of 5 stars.
4.25/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0.40% (up to 3.30%)
Rate info
To earn the full APY, account holders must do all of the following: Receive monthly direct deposits totaling more than $1,500; make 10 transactions a month with your Axos debit card, or sign up for Axos's Personal Finance Manager; maintain an average daily balance of $2,500 per month in an Axos Invest Self Directed Trading Account; and use your Rewards Checking account to make your full monthly Axos Bank consumer mortgage, personal, or auto loan payment.
Min. to earn: Monthly direct deposits totaling at least $1,500
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Use promo code AXOS300 and apply by June 30th, to earn up to a $300 bonus!
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Discover® Cashback Debit account fees
| Fees | Monthly Maintenance | ATM Withdrawal | Overdraft | Stop Payment | Insufficient Funds |
|---|---|---|---|---|---|
| Discover® Cashback Debit | $0 | $0 | $0 | $0 | $0 |
Data source: Discover
How to access your money
Discover® Cashback Debit account holders have the following options for depositing or withdrawing money from their accounts.
Deposit options
You can add funds to your account in any of the following ways:
- ACH transfer
- Direct deposit
- Mailed check
- Mobile-deposited check
- Wire transfer
ACH transfers and wire transfers initiated from another bank will show up in your account the same business day Discover receives the funds. ACH transfers and wire transfers initiated from Discover could take up to four days to show up in your account.
Discover makes the first $250 of any mailed or mobile-deposited check available the same business day it receives the funds for existing customers. The full amount becomes available within two to five business days under normal circumstances. New customers -- those who have had a Discover bank account for less than 30 days -- may have to wait up to five business days to access their funds.
Withdrawal options
Withdraw money from your Discover® Cashback Debit account using any of the following methods:
- ACH transfer
- Check withdrawal
- Request a mailed check
- Wire transfer (subject to a service fee)
- ATM withdrawal
- Point-of-sale cash withdrawal
Note that if you're transferring money from your Discover® Cashback Debit account to an external bank, it may take a day or two for the money to show up in your new account.
Discover® Cashback Debit is right for you if:
The Discover® Cashback Debit account is best for those who use their debit cards often and don't usually maintain a high checking account balance. The lack of minimum balance or activity requirements, plus the free checks and debit card replacements make this an affordable account. If you don't have a large balance, the cash back rewards would probably earn you more than you'd get in interest from an interest-bearing checking account.
If you don't use your debit card often and you usually have a few thousand dollars or more in your checking account, you'll do a lot better with a high-yield checking account.
Keep reading about Discover:
FAQs
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The Discover® Cashback Debit is a no-fee checking account.
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Discover will give you 1% back on most purchases made with your Discover® Cashback Debit card on up to $3,000 in total purchases each month, or $30 in total rewards. That means, in a 12-month period, you could earn a maximum of $360 back.
Our Banking Experts
Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.
Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.
Fact Checked
Ashley Maready
Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
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Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Axos Financial, and Target. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.