While most people may know about Discover’s array of credit card options, their banking services often go without mention, so we investigated and wrote a Discover checking account review. Discover’s checking account offers features and benefits that give it a leg-up on the competition. One such feature is the ability to receive cashback on all debit card purchases — a benefit typically offered only to credit card users.
Table of contents
Discover Checking Account Reviews
Discover’s cashback checking account typically rates highly among banking and financial experts. Many reviews contain common areas of praise:
- 1% cash back on debit card purchases
- A lack of fees
- Access to a large fee-free ATM network
- Award-winning customer support
- Free checks
While there are checking accounts that offer several of these benefits, it’s difficult to find a single bank that offers all of them together. This makes Discover’s product a leader in the banking services industry.
Discover Checking Account Feature
At this point, most people are probably aware of cashback credit cards. However, a cashback
debit card is an innovative step forward for consumers. Discover’s cashback debit card will give
you 1% cashback across all of your purchases. While this doesn’t quite reach the high return
rates of some major credit cards, it’s almost unheard of for a debit card to offer this reward.
Another advantage of the Discover cashback checking account is the lack of most fees. There
are neither maintenance nor low balance fees. However, the lack of fees doesn’t stop there.
Discover also charges nothing for a variety of services:
- Replacement debit cards
- Standard and official checks
- Expedited delivery for debit cards or bank checks
- Incoming wire transfers
- Insufficient funds
- Online bill pay
- Returned deposits
- Stop payment requests
- Withdrawals at 60,000 ATMs nationwide
- Closing the account
Many banks charge fees for some, if not all, of the services listed above. When you combine Discover’s fee-free mentality with their cashback rewards, you’ll find yourself receiving money from your bank instead of having it taken to cover service payments.
Discover Checking Account Disadvantages
While the advantages of Discover’s checking account outweigh the disadvantages, it should be noted that this account may not be for everyone. Discover lacks the physical footprint of other banks and financial institutions. That is, you won’t be able to walk into a branch to discuss an issue face-to-face or make a deposit. Their excellent phone-based customer support helps negate this somewhat, but those who prefer in-person interactions will find Discover lacking.
Since there are no physical locations, you will also have some complications when it comes to depositing cash. Namely, with this account, you lack a direct way of adding cash to your account.
You can always deposit your bills into and checking account at a different bank and transfer it
over, but that can be an obnoxious workaround for individuals or business who most operate with
One final disadvantage is the lack of earned interest in your checking account. Many banks now
offer interest-bearing checking accounts that let you earn money on your balance. While Discover
does offer cashback for purchase, they do not pay out interest on your checking account balance.
Discover Checking Account Customers
Most people will benefit from a Discover cashback checking account. This is especially true if you are comfortable conducting most of your banking needs online or using the mobile app. Those that tend to rely on their debit card for purchases will reap the most benefits due to the cashback rewards.
If you prefer to use your credit card’s reward structure and pay off your balances each month, you may not find as much benefit with this Discover account. However, even if the cashback isn’t enticing, the lack of fees for most services should still provide a clear advantage over other checking accounts.