Pros/Cons of Discover's Cashback Debit Checking Account

Does anyone recommend Discover's Cashback Debit account? I've just discovered it exists and it sounds like a great deal. If you would recommend something else, please explain why? I'm trying to improve my understanding of personal finance. The concepts are fairly new to me in general. Thanks for your input!

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    • Superbone
    • YNAB convert since 2008
    • Superbone
    • 1 mth ago
    • 2
    • Reported - view

    Just went and read about it. Mostly cons for me. You'd have to do most spending on a debit card that's not as safe as using a credit card. You only get 1% back where I get 2% with my Citi Double Cash card. Plus, the cash back is limited to $3000 per month.

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      • MomonWheels
      • Magenta_Camera.8
      • 1 mth ago
      • Reported - view

      Superbone  We already do most spending on a debit card (credit limit is only 300 currently) and it will be awhile before we qualify for any credit cards with rewards. I don't think we would typically go over 3000 in a month since that doesn't include loan payments and such. However,   Purple Panther  gives me pause by pointing out issues with Discover being accepted.

  • It might be a decent deal if you're spending less than $3,000 on valid purchases, but they don't count Venmo, Paypal, Apple Pay Cash, loan payments, and certain other types of transactions, so you might lose out there. Also I don't know if people have this problem elsewhere, but I've found in New York and California where I've lived, a lot of establishments simply don't accept Discover cards. I've seen my friends' Discover cards get verbally rejected over and over again.

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  • I would see it as a good option if you are:

    - Comfortable with fully online banking with less/no banker interaction.

    - Debit card user and do not want to use CC, but do not want to lose out on some cash back opportunity.

    - Is Discover accepted in a lot of places around where you live?

    I had a brief time, where I paused my CC usage completely, at which time I pondered about Discover bank. But I did not choose them as I preferred a bank with local branch for checking.

  • I found the transfer and hold times for discover to be slow. Also minimum transfer amount is $25 which just annoys me that they would stipulate a minimum amount. 

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