If you’ve ever wished you had a nickel for every time you used your debit card, now you can have two. Discover Bank gives you 10 cents each time you swipe, pay a bill online or write a check, up to $10 per month. Some banks charge that much as a maintenance fee.
The bottom line
- A checking account that earns cash back.
- Some of the best interest rates.
- Some of the lowest fees.
|Certificates of deposit (CDs)|
Read on for more information about Discover Bank’s checking and savings products, CDs, customer experience and fees.
5.0 / 5.0
Discover Bank’s checking account lets customers earn up to $10 per month in cash back. Note that you will need to have a Discover credit card or savings account to enroll. Also, you can’t deposit cash via ATM with this online bank. Still, you can fund your account with direct deposit and remote check deposit (snap a picture with your phone). Add in free checks and 60,000 free ATMs, and Discover Bank has five-star checking.
5.0 / 5.0
Discover’s savings account rate has a competitive APY, and no fees and no minimum opening deposit requirement make it a simple and stress-free account to use. Plus, you can earn a bonus with a minimum qualifying deposit.
Certificates of deposit
4.5 / 5.0
If rates are your biggest consideration, other banks can beat Discover Bank’s CDs. The rates are still competitive, but these CDs require a higher opening deposit than those at some other banks. You stand to earn more money on larger deposits, though.
» MORE: Best CD rates
4.0 / 5.0
Discover Bank is best for those who prefer banking online. You can reach a representative by mail, or 24 hours a day by phone, email or Twitter.
If you’re looking for the best mobile banking experience, you might be disappointed. Discover Bank’s app offers basic functions, along with remote check deposit, but it doesn’t let you perform person-to-person money transfers or provide a digital wallet.
3.5 / 5.0
Discover Bank charges a $30 fee for insufficient funds a maximum of once per day. At other institutions, this overdraft fee might be charged multiple times in a single day, potentially adding up to hundreds of dollars. You can skip this fee altogether with free overdraft transfers when you link a qualifying savings or money market account. (If you can’t cover the overdraft with the linked account, you’ll be charged the $30 fee.) Transfer protection doesn’t extend to ATM withdrawals or debit card purchases, which would be declined (but no fee charged).
Money in your pocket
Discover Bank’s free ATMs, free checks and fee-free services mean you keep more money in your pocket. Plus, the $10 monthly cash-back reward can shake out to more than other banks’ premium accounts pay in interest, and it’s not too difficult to earn: 100 transactions works out to a little more than three card swipes or bill payments per day.
If checking account rewards are what you’re after, shop around to ensure that you’re getting the best deal based on your spending habits. Discover Bank is a good option.
SAVINGS ACCOUNT PROMOTION
“To get your $100 Bonus:
“What to do: Apply for your first Discover Online Savings Account (OSA) by 5/31/17. Enter Offer Code NW217 when applying. Deposit at least $15,000 by 6/15/17.
“What to know: Offer not valid for existing or prior Discover savings customers. Account must be open when bonus is credited. Bonus will be credited to the account by 6/30/17. Bonus is considered interest and will be reported on IRS Form 1099-INT. Offer may be modified/withdrawn without notice.”
For banks and credit unions, NerdWallet’s overall rating is a weighted average of each subcategory: checking accounts, savings and money market accounts, CDs, customer experience and other fees. Factors we consider, depending on the subcategory, include rates and fees, ATM and branch access, account features and limits, user-facing tech and customer service. Several Nerds contribute to each financial institution’s ratings to ensure consistency and accuracy.
What the ratings mean:
— Among the very best
— Very good; only minor caveats for most customers
— Good; issues that might make a difference to some customers
— Fair; make sure strengths and weaknesses are a good match for you
— Poor; proceed with great caution
(or below) — Best to avoid