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 -- 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.
Fees
