December 11, 2023

Discover Checking Account Fees

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Does Discover® Cashback Debit have any fees? Find out if they are completely fee-free.

Discover® Cashback Debit account lauds itself as a free checking account with no fees. And, you can earn 1% cashback on up to $3,000 in monthly purchases. See website for details.

This makes it a good option for your day-to-day expenses. But is that all there is to know?

Let's talk more about Discover® checking account and see if there is any catch to it.

Does Discover® Bank offer a free checking account?
Yes, Discover® Bank has a free checking account called the Discover® Cashback Debit. It has no account opening deposit requirement and $0 monthly fees.

What is your biggest concern regarding checking account fees?

Does Discover® Checking Account Have Fees?

Discover does not charge any fees on your checking account except a $30 service charge for outgoing wire transfers from your account.[1]

For a clearer picture, here's a list of Discover Cashback Debit's fee-free features.

  • No monthly fees
  • No balance or activity requirements
  • No insufficient funds fee
  • No official bank check fee
  • No expedited debit card replacement fee
  • No check reorder fee

You also get access to over 60,000 fee-free ATMs within the U.S. But if you use ATMs outside of this network, the operator of the ATM might charge you.

Discover Checking Minimum Balance

Discover® checking account does not have a minimum balance, so you won't be hit with fees or charges for going below zero. However, if you have just recently opened the account, make sure to deposit money within 45 days.[2]

Otherwise, the bank will close the account and you'll have to reapply for a new one.

Discover Checking Overdraft Fees

In general, Discover® Cashback Debit will not charge you for overdrafts, mainly because any withdrawal or transfers from your account when it has insufficient funds will be declined or will not go through.

That is, unless you opt-in for the free overdraft protection transfer service.

With the overdraft protection, you will be designating a Discover® savings account as your funding account. When you overdraw, it will take funds from your savings account to make up for the missing amount to process the transaction.

How much does an overdraft fee cost?
Typically, overdraft fees average around $35[3], but Discover Cashback Debit will not charge you for overdrafts. It would be best to be on top of your account to avoid overdraft fees.

Discover Checking ATM Fee Reimbursement

Unfortunately, Discover does not offer ATM fee reimbursement if you use one that's outside of their 60,000+ fee-free ATM network.

Make sure you use an ATM affiliated with Discover when using your Cashback Debit. They have an ATM locator that you can use to find one near you.

But you can also use your debit card to make payments. Using your debit card on an eligible transaction will get you a 1% cashback.

Is there an ATM withdrawal limit on Discover Cashback Debit?
Yes. The daily ATM withdrawal limit is the lesser of $2,000 or your available balance.[4] However, if you withdraw from an unaffiliated ATM, the ATM operator might have other limits and charges.

How to Open a Discover® Checking Account

You can easily open an account from the comfort of your own home. Here's how to do it through their website:

  1. Go to the Discover Cashback Debit page and select Open a Checking Account.
  2. Fill out the application form with the necessary information.
  3. Fund your account.

Make sure to prepare the required documents beforehand. They usually ask for your legal name, residential address, date of birth, Social Security or Tax Identification number, and a valid government ID (driver's license, state ID, etc).

Should You Get a Discover® Checking Account?

If you're looking for a checking account that has virtually no fees, then Discover Cashback Debit is a good option. It can certainly help you maximize your funds without having to pay any pesky fees and charges.

Plus, the 1% cashback on up to $3,000 of your purchases monthly can be pretty neat. Particularly if you're a frequent debit card user for most of your spending.

If these are helpful features for you, you can open a Discover Cashback Debit account free of charge.

What are the Discover Cashback Debit transactions that qualify for the 1% cashback?
The qualified debit card purchases for Discover's 1% cashback include point-of-sale purchases and online purchases through your debit card.[5] But ATM transactions, peer-to-peer payments, online sports betting, and several more do not qualify. You can check Discover® Cashback Debit page for the full list.

How important are fee structures in your decision to choose a checking account?

Bottom Line

Some checking accounts can have a lot of fees tied to them which can be frustrating. Luckily, free checking accounts like the Discover Cashback Debit exist for you to avoid them as much as possible.

Ultimately, whether it is good for you or not will depend on your financial needs. Best to consider your options before you commit to any checking account.

References

Write to Rue Atanacio at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

Discover Bank
Member FDIC

Discover® Online Savings - $200 Cash Bonus

To qualify for Bonus: Apply for your first Discover Online Savings Account, enter Offer Code CY624 at application, deposit into your Account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Qualifying deposit(s) may consist of multiple deposits and must post to Account within 45 days of account open date. Maximum bonus eligibility is $200.

What to know: Offer not valid for existing or prior Discover savings customers, including co-branded, or affinity accounts. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of the account qualifying for the bonus. Bonus is subject to tax reporting. Offer ends 09/12/2024, 11:59 PM ET. Offer may be modified or withdrawn without notice. See advertiser website for full details.

Expires 9/12/2024
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