The company says: "Earn cash back. And we'll match it. To qualify for Debit Cashback Match, you must apply for your first Discover Cashback Debit account online by 12/31/18 and enter Offer Code NCB1218 at the time of your application. We will then match all of the Cashback Bonus rewards you earn each month through 6/28/19. Cashback Match bonus will be applied to your account by 9/1/19. Account must be open at the time the rewards are applied. Offer may be modified or withdrawn without notice."
No monthly fee: It’s rare to find a rewards checking account with no monthly service charge. Discover Cashback Debit offers this benefit, along with no monthly balance requirement.
Large ATM network: The account offers access to over 60,000 fee-free ATMs.
Annual fee forgiveness: The bank will waive one fee per calendar year: a stop-payment or insufficient-funds fee.
There is a downside for those unwilling to let go of face-to-face banking:
One physical branch: Unless you live near Greenwood, Delaware — where Discover Bank has its only branch — you’ll need to do your banking online.
“ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, peer-to-peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo® and PayPal™, which also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries."
See Discover's website for more details.
The Discover online savings account earns an attractive 2.00% annual percentage yield, one of the best rates around.
No monthly fee: You won’t have to pay maintenance charges for this account. There are also no minimum balance requirements to earn interest.
Bonus: First-time savings customers are eligible for a bonus of $150 or $200.
Here’s a drawback:
Required deposit: To be eligible for the $150 or $200 bonus, the deposit requirement is a fairly hefty $15,000 or $25,000, respectively.
"To get your $150 or $200 bonus offer:
"What to do: Apply for your first Discover Online Savings Account by 1/14/19, online or by phone. Enter Offer Code NW1218 when applying. Deposit a total of $15,000 to earn a $150 bonus or deposit a total of $25,000 to earn a $200 bonus by 1/28/19. Maximum bonus eligibility is $200.
"What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded or affinity accounts provided by Discover. Account must be open when bonus is credited. Bonus will be credited to the account by 2/11/19. Bonus is considered interest and will be reported on IRS Form 1099-INT. Offer may be modified/withdrawn without notice."
See Discover's website for more details.
High rates: Discover Bank offers competitive terms on CDs, including 2.70% APY on three-year CDs and 3.00% APY on five-year CDs.
High minimum: You’ll need at least $2,500 to open a CD.
» Want to compare rates? See our list of best CDs this month
Overdraft fees: 3.0/5.0
Discover Bank charges a $30 fee for insufficient funds transactions.
Annual fee forgiveness: The charge is eligible for the bank’s fee forgiveness program, which waives one charge each year.
Daily fee limit: Your account is charged once a day for insufficient funds transactions, regardless of the number of items attempted. At other institutions, this type of fee is charged per item, multiple times a day. That could add up to hundreds of dollars in fees.
Free transfers from linked accounts: You can sign up to have free automatic transfers from a linked savings or money market account. If you have the funds in your backup account, the transfer would cover the cost of a transaction that would otherwise overdraw your checking account.
The $30 fee: Online banks generally have low fees. But this one is close to the $35 to $38 overdraft fee that many large banks charge.
Bank experience: 4.0/5.0
Highly rated apps: Discover’s mobile banking apps receive high ratings from customers. The iOS version receives 4.8 stars out of 5; the Android app receives 4.6 stars out of 5.
24/7 live customer service: Representatives are available by phone every day. You also can reach the bank through mail and social media.
One branch: Discover’s only branch location is in Greenwood, Delaware.
Money in your pocket
» Ready to take the next step? Discover Bank’s rewards checking and high savings rates mean you can keep and grow more of your own cash. The large ATM network is also a nice perk. If you don’t need to drive to a branch on a regular basis, this bank is worth a look.
NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, customer experience and overdraft fees.
Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation.
The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.