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Discover Removes Fees on Checking, Savings and Money Market Accounts

June 17, 2019
Banking, Banking News, Banks & Credit Unions, Checking Accounts, Personal Finance, Savings Accounts
Discover Removes Fees on Checking, Savings, Money Market Products
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Bank accounts have traditionally carried sneaky fees that can add up fast — think overdraft fees, monthly maintenance fees and the like. Now more banks are looking to attract customers accustomed to getting free services, with Discover being the latest to join the no-fees game.

Discover announced today that it has removed all fees on its checking, money market and savings accounts — most notably its $30 insufficient funds fee, which previously applied to customer overdrafts.

Overdraft and insufficient funds fees are typically the most expensive fees that banks charge on deposit accounts, generally around $35 per overdraft, and they can often charge those fees multiple times per day if there’s more than one overdraft transaction.

A Consumer Financial Protection Bureau report in 2017 showed Americans paid $15 billion in fees for bounced checks and other overdrafts the previous year. A NerdWallet analysis of the study found that the 8 million people who overdraw frequently pay an average of $442 a year in overdraft fees.

No charge for overdrafts

Discover customers can apply for overdraft protection and link a savings account that will cover the overage for online bill payments, electronic transfers initiated externally, and checks. Under the new fee structure, Discover customers attempting to make a purchase without overdraft protection will see their transaction rejected without incurring a fee, rather than having the purchase declined and then being charged a $30 insufficient funds fee.

Other fees removed from Discover accounts include:

  • Stop payment fees, for all accounts.
  • Excessive withdrawal fees, for money market and savings accounts.
  • Minimum balance fees, for money market accounts.

Discover’s deposit accounts already came with no monthly maintenance fees.

Discover

at Discover,

Member, FDIC


In recent years, some online banks and credit unions have touted their no-fee accounts to differentiate themselves from traditional fee-charging banks and attract customers looking to optimize their financial products. Allied Credit Union, Ally, Aspiration, Axos Bank and Consumers Credit Union are among the institutions offering accounts with no monthly maintenance fees and other free services.

» See NerdWallet’s choices for best free checking accounts

Deposit account pros and cons

Other benefits of Discover’s deposit accounts include:

  • Sign-up bonuses of either $150 or $200 for first-time savings account customers who meet certain qualifications.
  • CDs with competitive rates.
  • A large ATM network.
  • High app ratings.
  • 24/7 customer service.

Some drawbacks of banking with Discover include:

  • Only one physical branch, in Delaware.
  • Sign-up bonuses on Discover’s savings accounts require deposits of either $15,000 (to earn the $150 bonus) or $25,000 (to earn the $200 bonus).
  • A high $2,500 minimum to open a CD.

» See NerdWallet’s 4.5-star review of Discover

Compare bonuses

See how Discover compares with these other promotions, or browse our list of this month’s bank bonuses


NerdWallet bank rating:


Learn more
at Chase Bank

NerdWallet bank rating:


at Discover Bank

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at HSBC Bank

Chase Total Checking® Bonus

$200





Minimum qualifying deposit

$0





When you'll get it

Within 10 business days of first direct deposit
(Expires 10/14/2019)


Discover Savings Bonus

$200






Minimum qualifying deposit

$25,000





When you'll get it

By Sept. 2, 2019
(Expires 8/5/2019)



HSBC Advance Checking Bonus

$350






Minimum qualifying deposit

$5,000





When you'll get it

Around 8 weeks after requirements met
(Expires 7/31/2019)



Get more details on how to qualify for this bonus.
Get more details on how to qualify for this bonus.
Get more details on how to qualify for this bonus.

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