What Discover's Checking Account Offers
Discover Bank's checking account has no monthly fee, no minimum balance requirement, and no limit on how many times you can transfer money out each month. You get a debit card, online bill pay, and access to a network of ATMs without paying out-of-network fees — Discover reimburses those charges. The account earns interest on your balance, which is unusual for checking accounts; most banks pay nothing.
The trade-off is that Discover is online-only. There are no physical branches where you can walk in, deposit cash, or talk to someone face-to-face. If you need to deposit checks, you can photograph them with the mobile app. If you need to deposit cash, you cannot do it directly through Discover — you would have to transfer money from another bank account you control.
Interest rates on checking accounts change frequently and vary based on your balance. Discover's rate is typically higher than traditional banks offer, but you should check their current rate before opening an account, since it may have changed since this was written.
Key Takeaways
- Discover charges no monthly fee and no minimum balance, and reimburses ATM fees charged by other banks' machines.
- Your balance earns interest, which is rare for checking accounts and can add a small amount of money over time.
- You cannot deposit cash directly or visit a physical branch, which matters if you handle cash regularly or prefer in-person banking.
- Check deposits work through your phone camera, so you need a smartphone and a way to photograph the front and back of checks.
- Whether this account is right for you depends on whether you can live without branches and whether you have another way to deposit cash if you need to.
When Discover Works Well
Discover's checking account works best if you rarely use cash, pay most bills online or with your debit card, and do not need to visit a bank in person. If you get paid by direct deposit and handle most money digitally, the lack of branches is not a problem. The interest you earn is small but real — on a $5,000 balance, you might earn a few dollars per month, depending on the current rate.
It also works well if you travel or live somewhere without many bank branches nearby. Since Discover reimburses ATM fees, you can use any ATM in the country without paying extra. If you already have a savings account somewhere else, you can keep it there and use Discover just for checking.
When Discover Does Not Fit
If you deposit cash regularly — whether from a job that pays in cash, a side business, or family help — Discover is not a good fit. You would have to find another bank that accepts your cash deposits, then transfer the money to Discover, which adds steps and delays.
If you prefer talking to a person about your account, need notarized documents, or want to explore for a loan, Discover cannot help. Their customer service is by phone and online chat only. If you have had trouble with online banking in the past or do not have reliable internet access, a traditional bank with branches might be safer.
Discover also may not work if you need to deposit checks very often. The mobile check deposit process requires a smartphone with a good camera and decent lighting. If you receive dozens of checks per month, a bank with branch deposit options or a mobile deposit app you trust more might be easier.
How Discover Compares to Other Online Banks
Other online banks like Ally, Charles Schwab, and Chime also offer no-fee checking with no minimum balance. The main differences are in interest rates, ATM networks, and customer service quality. Schwab, for example, has a broader ATM network and better phone support. Chime is designed for people who want early direct deposit and is popular with gig workers. Ally offers similar features to Discover but with different interest rates.
The best choice depends on what matters most to you. If earning interest on your checking balance is the priority, compare current rates across all three. If you want the biggest ATM network, Schwab may win. If you want the simplest account with the fewest features, Chime or Ally might be better.
How to Decide If This Account Is Right for You
Ask yourself three questions: Do I deposit cash more than once or twice a year? Do I need to talk to a banker in person? Do I have reliable internet and a smartphone? If you answered yes to any of those, Discover may not be the right fit.
If you answered no to all three, open a Discover account and use it for 30 days. You can close it anytime with no penalty. Pay attention to whether the mobile check deposit works for you, whether you miss having a branch, and whether the interest rate is actually being added to your balance each month. After a month, you will know whether it works for your life.
What You Need to Open an Account
You will need a valid government ID, your Social Security number, and a way to verify your identity online. Discover will ask for your address and phone number. The whole process takes about 10 minutes on their website or mobile app. You can fund the account by transferring money from another bank account you already have.
Discover may run a soft credit check, which does not affect your credit score. They also check ChexSystems, a database that tracks banking history. If you have had problems with a bank in the past — like bouncing checks or leaving an account negative — Discover may decline you. You can ask Discover why if they say no, and you can dispute inaccurate information in ChexSystems.
Frequently Asked Questions
Can I deposit cash into a Discover checking account?
Not directly. Discover has no branches and does not accept cash deposits. If you receive cash, you would need to deposit it at another bank you have an account with, then transfer the money to Discover. This works if you have a second account, but it adds an extra step.
How much interest will I earn?
Interest rates change and depend on your balance. Check Discover's website for the current rate before opening an account. On a typical balance, the interest is small — a few dollars per month — but it is more than you would earn at most traditional banks, which pay zero interest on checking.
What happens if I need to deposit a check?
You photograph the front and back of the check using the Discover mobile app. The check usually clears within one to two business days. This works well if you receive a few checks per month, but it is slower than walking into a branch and handing a check to a teller.
Can I use any ATM without paying a fee?
Yes. Discover reimburses ATM fees charged by other banks, so you can use any ATM in the country. The reimbursement usually appears in your account within one to three business days. This makes Discover a good choice if you travel or live far from Discover ATMs.
What if I need to close my account?
You can close a Discover checking account anytime with no penalty. Withdraw or transfer your remaining balance, then contact Discover to close it. There is no waiting period and no fee for closing early.