Is Discover Accepting New Checking Accounts?

The original Discover Cashback Debit account was a checking account that offered 1.00% cash back on up to $3,000 worth of monthly purchases and had no monthly fees or minimum balance requirements.¹ <p>See <a href="https://www.discover.com/content/dam/dfs/online-banking/documents/NationalDepositAccountAgreement.pdf">Deposit Account Agreement</a> for details on transaction eligibility, limitations, and terms.</p> ² <p>Earn 1% cash back on up to $3,000 in debit card purchases each month. See Deposit Account Agreement for details on transaction eligibility, limitations and terms. Deposit Account Agreement can be found at <a href="https://www.discover.com/content/dam/dfs/online-banking/documents/NationalDepositAccountAgreement.pdf">https://www.discover.com/content/dam/dfs/online-banking/documents/NationalDepositAccountAgreement.pdf</a>.</p> However, Discover had to pause new applications in 2022 due to multiple fraud incidents.

Thankfully, Discover is now accepting new checking account applications. It relaunched the product in 2023 with the same cashback feature, no fees, and no minimum balance requirements. It also added enhanced security features and the ability to accept cash deposits.

I don’t have a Discover Cashback Debit checking account, but it's a good option for people already using Discover credit cards or other Discover banking products. Let’s look more into its features and availability.

Key takeaways

• Discover paused new applications for the Cashback Debit account in 2022 due to multiple fraud incidents but reintroduced it in 2023.
• The current checking account offers enhanced fraud detection, alerts, and the ability to deposit cash at Walmart locations.
• The checking account offers 1.00% cash back on up to $3,000 in monthly debit card purchases, no account fees, and a robust mobile app.
• Member FDIC

What is Discover’s checking account?

Although Discover is famous as a credit card company, it also offers banking products like the Discover Cashback Debit account, an online-only checking account.

The Cashback Debit account is insured by the Federal Deposit Insurance Corp. (FDIC) and comes with a debit card offering 1.00% cash back on up to $3,000 in monthly purchases. You can earn up to $30 a month ($360 annually) whenever you use your debit card in a store or online.

Discover also gives you options for spending your rewards, which it will deposit monthly. You can move those funds into your Discover money market, checking, or savings account, or you can transfer your bonus to the Cashback Bonus account for your Discover credit card.

Like many of the best online banks, Discover has no account fees and doesn’t require a minimum opening deposit or monthly balance. It has also added new security features to help prevent fraud and alert you to potentially unauthorized activity as part of the relaunch.

Additional features include cash deposits, Zelle money transfers, and extended overdraft protection for those who qualify. It also offers Early Pay, which provides access to any ACH direct deposits you receive, like your paycheck, up to two days early.

Although I haven’t signed up for this account, I am intrigued by the cash back. This perk is often found with credit cards but can be harder to find with debit cards.

Is Discover accepting new applications for its checking account?

Discover is accepting new applications for its checking account. Here’s the backstory: Discover Financial Services initially launched its Cashback Debit account in April 2022. However, it stopped taking checking account applications by late 2022 because it said it had experienced too much fraud with the product. (The company never went into detail about the type of fraud.)

Discover Financial Services relaunched the Cashback Debit account in mid-2023 with many of the same features, but it added some new ones, including:

• The ability to deposit cash to your account at any Walmart location without fees
• Easier ways to set up or make changes to your direct deposit through the mobile app or online portal
• Secure account linking to external accounts

You can only open this account online, but Discover customer service is available by phone to answer questions or provide technical support.

What does this checking account offer?

The Discover checking account has many attractive perks, especially if you already use Discover credit cards and have a Cashback Bonus account set up.

Its primary features include:

No monthly fees

The Discover Cashback Debit account doesn’t have any account fees (though there’s a $30 service charge for outgoing wires). Although many online checking accounts don’t have monthly maintenance fees, some charge other fees, such as if you want paper statements, request a new debit card, or use an out-of-network ATM. This means you could have to pay more than you would with a Discover checking account.

No minimum deposit or balance requirements

There is no minimum opening or minimum balance requirement to open an account. However, you do need to complete an initial deposit within 45 days of opening the account, or Discover will close it. Many banks require a minimum deposit amount when you open a checking account, some as high as $100, which may prevent some people from accessing essential banking services.

Access to more than 60,000 fee-free ATMs

Discover has a network of over 60,000 no-fee ATMs in stores nationwide. When I typed in my zip code on the Discover ATM finder, there were eight no-fee ATMs less than a mile from where I live and many more within two miles.

Digital wallets

As an account holder, you can make debit card payments from your phone using Apple Pay, Google Pay, or Samsung Pay. Since digital wallets use tokens rather than card numbers, your account information is often safer than using your debit card. It’s also more convenient, and you still earn cash back using a digital wallet.

Cashback debit card and checks

As mentioned above, this checking account comes with a debit card that earns you 1% cash back on up to $3,000 monthly. I also like that you can order checks and deposit slips from Discover through your account portal or over the phone. Finding an online-only bank that offers physical checks can be difficult, and while you may not write them often, there are still some purchases where a check is the best (or only) choice.

Cash deposits

It can be difficult to deposit cash at an online-only bank, but Discover’s relaunch included the Add Cash feature, which lets you use your contactless debit card to make cash deposits at Walmart stores. Discover says the cash is generally posted to your Discover bank account the same day, often within 10 minutes. You must deposit at least $20.00, with a daily limit of $1,000 (or $999.99 for Arizona and New Mexico residents). There’s a total limit of $7,000 per seven days or $20,000 per calendar month.

Overdraft protection

Many checking accounts have overdraft protection, but you may pay a fee to use it. Discover’s overdraft protection links a qualifying Discover account, such as a money market or online savings account, to your checking account and will transfer funds as needed without fees.

Balance+

Qualifying cardholders can also set up Balance+, which allows overdrawing the account by up to $200 without fees. However, you must pay back any negative balance immediately. To become eligible for enrollment, you must set up a direct deposit of at least $200 for the last two calendar months, have a positive balance, and be in good standing. Balance+ only applies to debit card transactions and doesn’t cover checks, ATM withdrawals, ACH transfers, or Zelle payments.

Mobile banking

Discover offers a mobile app to manage your money directly from your phone or online portal. You can deposit checks, transfer money, or send funds using Zelle. You can also set up free online bill pay through the mobile app and pay various recurring bills directly from your account.

Advanced security features

When Discover relaunched the Cashback Debit account, it included additional security features I haven’t seen from other banks. One example is free help removing personal information from select people-search websites. You must opt-in to this feature on the app. If you do, every 90 days, Discover will look for your information on at least 10 of those sites and help you opt out.

Additionally, Discover uses encryption to keep others from accessing your data without authorization and will monitor your accounts to alert you about potential fraud. You can also set up customizable alerts and freeze and unfreeze your debit card if it's misplaced.

Where does it fall short?

Of course, there are some places where the Discover Cashback Debit account could be better. A few of the things that stood out to me were:

No interest

While some of the best checking accounts offer interest on account balances, Discover’s account doesn’t earn interest at all. It's unsurprising, given that most checking accounts don’t earn interest, but it would have been a nice feature that truly sets the account apart.

Only one physical branch

Discover has only one physical banking location — its flagship branch in Greenwood, Delaware. If you like to visit a physical branch, don’t live near a convenient ATM, or need to deposit cash frequently and don’t live close to a Walmart, you might want to look for another banking option.

Limits to cash back

While earning cash back is a nice perk, you must spend $3,000 every month ($36,000 annually) to receive the full $360. The only transactions that qualify for cash back are point-of-sale purchases at a store and online purchases using your debit card. ATM withdrawals, auto loan payments, and Zelle or Venmo payments won’t earn you any.

No ATM operator fee reimbursement

Although Discover has a network of over 60,000 ATMs that don’t charge fees, if you don’t live near one or can’t find one while traveling, you may have to pay an operator fee for withdrawing cash from an out-of-network ATM. Discover doesn’t reimburse those fees, so if you sign up for a Discover Cashback Debit account, make sure you have a plan for getting cash if you aren’t near a network ATM.

Should you apply for a Discover checking account?

The Discover Cashback Debit account has many useful features, especially if you’re comfortable with online banking. It can be a good option for people who want to earn cash back on everyday purchases but don’t want to use a credit card and who live near fee-free ATMs.

You can learn more by reading our Discover checking review.

However, if Discover isn’t the right bank for you, these two other checking accounts below might be a better fit.

Capital One 360 Checking

Much like Discover, Capital One offers credit cards and banking products online. It has many similar features, including no fees, secure banking, early direct deposit (called “early paycheck”), and a robust mobile app that allows you to deposit checks and bank directly from your phone.

Unlike Discover, however, Capital One 360 Checking pays a 0.10% (as of 10/28/24) annual percentage yield (APY) on all balances. It also charges no fees and provides access to over 70,000 fee-free ATMs.

Although Capital One is primarily an online bank, it does have branches in a few states, including Louisiana, Maryland, New Jersey, New York, Virginia, Texas, and Washington, D.C. You can also deposit cash at CVS and Walgreens stores. Member FDIC.

Read our Capital One 360 review to learn more.

SoFi Checking

SoFi® is another online-only bank with no monthly fees or minimum balance requirements.³ <p>We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a></p> It combines a checking and savings account and has many of the same features as Discover.⁴ <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) <b>OR</b> $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="http://sofi.com/banking">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p> <p>SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a></p> When you get a SoFi Savings account, the bank also opens a SoFi Checking account for you (and vice versa).⁵ <p>The following describes the terms that apply to participation in the SoFi Checking and Savings direct deposit promotion (the “Direct Deposit Promotion”) offered by SoFi Bank, N.A, Member FDIC (“SoFi”).</p> <p>Eligible Participants: All new and existing members without any history of direct deposit transactions into their SoFi Checking and Savings account are eligible for the Direct Deposit Promotion. Members who previously enrolled in direct deposit into either SoFi Money or SoFi Checking and Savings, whether currently still enrolled or not, do not qualify for this Direct Deposit Promotion. Bonuses are limited to one per SoFi Checking and Savings account. In the case of a joint account, only the primary account holder (the member who signed up first) is eligible for a bonus.</p> <p>Promotion Period: The Direct Deposit Promotion will begin on 12/7/2023 at 12:01AM ET and end on 12/31/24 at 11:59PM ET.</p> <p>Bonus Terms: In order to qualify for eligibility for a bonus, SoFi must receive at least one Direct Deposit (as defined below) from an Eligible Participant before the end of the Promotion Period. Direct Deposits are defined as deposits of $1,000.00 or greater from an enrolled member’s employer, payroll, benefits provider, or government agency via ACH deposit. Deposits that are not from an employer, payroll, benefits provider, or government agency (such as check deposits; P2P transfers such as from PayPal or Venmo, etc.; merchant transactions such as from PayPal, Stripe, Square, etc.; and external bank ACH transfers not from employers) do not qualify for this Direct Deposit Promotion. The amount of the bonus, if any, will be calculated during the Direct Deposit Bonus Period as described and defined below.</p> <p>Direct Deposit Bonus Period: The Direct Deposit Bonus Period begins when SoFi receives a Direct Deposit within the Promotion Period and ends 25 calendar days later (the “Direct Deposit Bonus Period”). For the avoidance of doubt, the Direct Deposit Bonus Period shall not extend beyond the Promotion Period. The bonus amount will vary based on the total amount of Direct Deposits received during the Direct Deposit Bonus Period. Once the Direct Deposit Bonus Period has elapsed, SoFi will determine if you have met the offer requirements and will deposit any earned bonus into your checking account within seven (7) business days. For example, if SoFi receives between $1,000.00 and $4,999.99 in Direct Deposits during the Direct Deposit Bonus Period, you will receive a one-time cash bonus of $50. A member may only qualify for one bonus tier and will not be eligible for future bonus payments if Direct Deposits subsequently increase after the Direct Deposit Bonus Period.</p> <p>Total Direct Deposit Amount in Direct Deposit Bonus Period<br> Cash Bonus Tier<br> $1,000.00 - $4,999.99<br> $50<br> $5,000.00 or more<br> $300</p><br> <p>Bonus Payment Timeline: SoFi will credit members who meet qualification criteria within seven (7) business days of the end of the Direct Deposit Bonus Period.</p> <p>Bonuses are considered miscellaneous income and may be reportable to the IRS on Form 1099-MISC (or Form 1042-S, if applicable). SoFi reserves the right to exclude any Members from participating in the Direct Deposit Promotion for any reason, including suspected fraud, misuse, or if suspicious activities are observed. SoFi also reserves the right to stop or change the Direct Deposit Promotion at any time.</p> <p>SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a></p>

SoFi offers competitive interest rates, including a 0.50% (as of 12/3/24) APY on checking account balances with direct deposit. When you set up a $5,000 direct deposit or have another qualifying deposit, you also get a 4.00% APY instead of the base 1.20% (as of 12/3/24) APY on your savings balance.⁶ <p>SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a></p>

While it has no in-person branches, SoFi has over 55,000 in-network ATMs.⁷ <p>We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.</p> It also includes no-fee overdraft coverage, but it only provides up to $50 for debit card purchases and requires a monthly direct deposit of $1,000 or more.⁸ <p>Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A.&nbsp; The 30-Day Evaluation Period refers to the "Start Date" and "End Date" set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the "30-Day Evaluation Period"). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking &gt; Savings &gt; Current APY or (ii) Banking &gt; Checking &gt; Current APY.&nbsp; Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.<br></p> You can deposit cash with SoFi, but you must go through the Green Dot network, which charges up to $4.95 to use the platform. Member FDIC.⁴ <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) <b>OR</b> $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="http://sofi.com/banking">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p> <p>SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a></p>

Read more in our SoFi Checking and Savings review.

FAQs

Bottom line

I like the options that the Discover checking account provides. Its no fees, enhanced security features, and 1% cash back make it appealing, but it might not be right for everyone. Although I like Discover, I also want my checking account dollars to earn interest. So, while I plan to keep doing my research before switching checking accounts, I’m keeping the Discover Cashback Account in the “maybe” pile.

As you search for your next checking account, remember to identify the most essential features for your situation, such as interest, overdraft protection, and easy access to ATMs or cash deposits. Search for an account that offers those features, plus standard features like FDIC insurance, low or no fees, and no minimum balance requirements.