I’ve been earning a living over the last few years by coming up with ways to bring in extra cash, ranging from clever ideas like making money buying beer to borderline absurd ones like launching a cricket farm.
Yet often it’s the simplest concepts that make me wonder why I didn’t think of them earlier.
If you haven’t caught wind of Discover’s new checking account, you should read this…
Discover Bank (yes, the same card your grandma probably carried) is among the fastest-growing online banks around.
What makes them stand out is they actually pay people to use their bank. No joke.
Discover doesn’t just provide free checking accounts — their debit card gives you $0.10 back on every purchase you make. And it’s not limited to debit swipes. They’ll credit you $0.10 for every written check and $0.10 for every bill you pay online.
Pause and think about that. Consider all the transactions you carry out in a day: fueling up, grabbing coffee, quick trips to the grocery store, paying your mortgage. I checked my own statements for the past few months and averaged about 420 transactions a month. With a dime back each time, I could pocket more than $42/month simply by continuing my usual spending. That’s $42 a month for as long as you keep doing the same things — essentially passive income.
How to snag this offer…
Unfortunately, you need to be a Discover customer to access this benefit, because Discover isn’t rolling out its checking accounts broadly until later next year. However, you can enroll NOW if you first open a Discover savings account. That gives you a Discover login and lets you add a checking account.
Step 1 – Open a Discover savings account here. There are no monthly fees on this account. Plus, they’re offering a solid 0.80% interest rate on deposits. Not bad for a savings account.
Step 2 – After your savings account is active, you’ll be able to open a checking account here (the minimum to open is just $25). Also, no monthly fees. No ATM charges. No minimum balance. Nothing.
Step 3 – Activate your debit card and use it everywhere. Your card typically arrives in about a week.
Why this model works…
Every time you use your card, the bank charges the merchant a processing fee. Banks rake in billions from these swipe fees each year, yet very few share any of that revenue back to customers via cash-back offers. Discover is betting there’s an opportunity to attract new clients by splitting those fees with account holders.
If you already have a cash-back credit card, you likely understand the idea. The hitch is many people don’t qualify for those credit cards, and even if you do, not all of us have high enough credit limits to charge most of our purchases monthly.
Cash-back on debit cards is rare these days. Even my trusted USAA account discontinued its cashback perk.
I’m comfortable with an online-only bank — my USAA account has no branches either. If you’re new to this setup, here’s how deposits work:
- Use their mobile app to photograph checks and deposit them
- Make free online transfers between Discover and your existing bank
- Set up direct deposit through your employer
And the ATMs don’t charge you either. Thank goodness — nothing annoys me more than paying $2.50 to withdraw $20…
- Free ATM withdrawals at over 60,000 Allpoint® and MoneyPass® ATMs
- No Discover fees at any ATM
- Handy mobile ATM locator
I know a lot of readers say they’ll try these money-making tips someday. This one really is as easy as it gets. It takes about five minutes to open an account…
What have you got to lose? Oh right, $42 a month in free money…
Also, if you enjoy hunting for bargains in person, check out how to get the best deals at flea markets for tips to stretch that extra cash further.
Good luck Savinly Readers!
