Hi! I’m Kyle, the Penny Hoarder.

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How to Get a Free $42/Month for the Rest of Your Life….
free cash

by - January 23, 2013 - 20 Comments

I’ve made a living over the past few years coming up with ways to make money that range from the genius, like my idea to make money buying beer. To those that border on the ridiculous, like my idea to start a cricket farm.

But, sometimes it’s the simplest ideas that make me feel like an idiot for not coming up with them sooner.

If you haven’t heard about Discover’s new checking account, you need to read this….

Discover bank (yeah, the credit card that your grandma used to carry) is one of the fastest growing, online banks.

But what sets them apart is that they pay people to bank with them. I’m serious. 

Not only does Discover offer completely free checking accounts, but they offer a debit card that gives you .10 back on every purchase you make. And not just debit transactions. They give you .10 for every check you write and .10 for every bill you pay online.

Think about that for a second. Think about all the transactions you make in a given day. Gas station. Coffee Shop. Running to the grocery store. Paying your mortgage. I took a look at my bank statements the last few months and I’m average 420 transactions a month. With ten cents cash back on each of them, I could earn more than $42/month just for doing what I’m already doing. That’s $42/month for the rest of your life. It’s practically passive income.


How to snag this deal…

Unfortuantely, you have to be a Discover customer in order to get this deal, because Discover isn’t planning on rolling out their checking accounts to the broader public until later next year. However, you can sign up NOW, if you first sign up for a Discover savings account. That’ll give you a Discover login and allow you to open a checking account.

Step 1 – Open a Discover savings account here. There are no monthly fees with this account. Plus, they offer a kick-ass .80 interest rate on deposit. Not bad for a savings account.

Step 2 – Once your savings account is open, you’ll be able to open a checking account here (minimum to open is only $25). Also, no monthly fees here. No ATM Fees. No minimum balance. Nothing.

Step 3 – Activate your debit card and use it everywhere. :) It takes about a week to get your debit card.


Why it works…

You see every time you swipe your card, the bank charges the merchant a fee for the transaction. The banks are racking up billions of dollars in these swipe fees each year, but very few of them are offering a portion of it back to the account holders in the form of cash-back promotions. Discover is hoping there’s an opening here to attract new customers by offering to share those fees with it’s customers.

Now if you’ve got a cash-back credit card, you probably already know this trick. The problem is that a lot of people don’t qualify for these types of credit cards and even if you do, even fewer of us have a high enough credit limit to be able to charge all of our purchases each month.

Yet hardly anyone is offering cash-back on debit cards these day. Even my USAA account that I cherish ended their cashback program.

Now I’m used to having an online-only bank, because my USAA account doesn’t offer any branches. However, if you aren’t used to this type of banking, here’s how the deposits work…

  • Use their mobile app to take a picture of the check and deposit it
  • Make free online transfers between Discover and your bank
  • Sign up for direct deposit through your employer

And the ATMs are free too. Thanks god. Nothing ticks me off more than having to pay $2.50 to get a $20 out…

  • Free ATM withdrawals at over 60,000 free Allpoint® and MoneyPass® ATMs
  • No Discover fees at any ATM
  • Convenient Mobile ATM locator

I know a lot of you read these posts and think you’ll try the money-making idea at some point. But this one really is as easiest as gets. It takes 5 minutes to open an account…

What have you got to lose? Oh yeah, $42 a month in free money… :)

Good luck Penny Hoarders!

From the Web


  • http://armsofasister.com Monique Burkes (@armsofasister)

    Appreciate the information, but am I the only one who pays rent with a check? My landlord won’t accept a credit card payment for rent, and if I pay my car payment with a credit card then I’d have to pay a fee. So this would cost me money.

  • Alexander Cash

    This looks like such a great money making opportunity. Thanks for sharing all the details!

  • http://www.wstreetstocks.com Brett @ wstreetstocks

    Thanks for sharing this money making opportunity. I am suprised that more people aren’t taking advantage of this.

  • Melissa

    I have been a member for about a year for my personal checking and six months with my family account. I was able to buy a Kindle for my birthday and do half my Christmas shopping with the Perks I earned :)

  • kim

    Thanks Kyle! Used your link and took advantage of this sweet bank… screw BoA and Citibank, especially JP Morgan.. sick of those crooks.. like Perks is lead by anyone better but at least there’s not as many fees to be screwed with. <3 XoXo

  • Sherry Butcher

    Thanks for sharing the information. How do you get retirement accounts for a widow to change to deposing to this? I tried to change form a bank to Credit Union but for some reason they have not done this as I asked.

  • Laura

    Correct me if I’m wrong, but this says that only debit card purchases give you 1% back on every purchase you make “as long as you don’t use your Pin # during the transaction.” I have never been able to make a debit card purchase without using my pin #. Is that even possible?

    • Terry

      To make a non-PIN purchase with a debit card, ask to have your card run as ‘credit’. Most merchants have the capability to do this. I had one employer whose POS register software ran everything as credit, so they couldn’t even run your card as debit if you wanted them to.

      The difference is in how the payment is processed – meaningful to the merchant but usually not to the customer.

      • http://inexplicablejoy.com monique

        Yep, it’s a small distinction, but they’re simply saying that she needs to use her BANK card as a credit card – the card that pulls the money right out of her bank account. Since the merchant pays MORE money when they swipe cards without PINs (ie, credit cards, or debit cards used as credit cards), that’s what your bank wants them to use. Which means the reverse is also true, the merchant pays LESS money when you enter your PIN.

        When I patronize small businesses, I always use my PIN. Besides the fact that I’m shopping at a small business (keeping my money local), I also like for them to keep a few extra cents in their pocket when I can.

  • peter

    How do you pay a mortgage with a debit card?

    • http://armsofasister.com monique

      I asked that same question. I’m in the process of moving and just found a few realty companies which will accept a credit card for your monthly payment. So I guess some mortgage companies will do the same.

      Who knew?

    • Kyle Taylor

      Yeah, it depends on your mortgage company. Some of them do accept debit cards as payment.

      Alternatively – if you’re really set on getting your 1%, you could always go to the grocery store, buy a money order with your debit card, and send the money order to your mortgage company. :)


  • Michael Sanders

    More people aren’t taking advantage of this because it’s not the deal that the author portrays it to be. Who makes 420 monthly transactions? Losers, that’s who. Obviously, the author spends most of his time shopping, if he has time to make 420 monthly transactions. Do the math: 420 / 30 days = 14 daily transactions. When would one have time to be at their job? I suppose if you can buy a bunch of crap you don’t need online with free shipping, it might be worth it…NOT! No way does the math make any sense. My credit card company pays me 5% on every transaction. That’s a whole lot more than $42. This article just goes to show that not everybody with a hair-brain scheme should write about it, lest they embarrass themselves.

    • Meka

      You have a nasty mouth and unprofessional to talk like that..
      you don’t know what everyone’s schedule are.. and like and dislike
      as well as what they can and cannot do.. everyone are entitle to their own
      dos and don’t. and who are you to judge. I am Greatful and excited to have come
      across this author and his article I’ve learn a lot and accomplish most of the ideal
      that his have to offered for free..

    • Brian Reynolds

      I just counted my transactions that would have qualified… I have 126 in the past month. That’s $12.60 that my bank isn’t paying me and Discover will. I might switch!

    • Mary

      Um, transactions include every time you buy gas or groceries or a snack, every single time you pay for something. I work 40-50 hours a week and I’m constantly buying small things (snacks at work, lunch, etc). Granted, one of my jobs is working at a super cheap grocery store, so I probably get groceries and lunch at work a more than most, and those transactions are always very little (usually less than $5 for snacks or lunch, rarely over $20 for the quick grocery stops like when we run out of milk, eggs, etc).
      My point is that you have no clue what everyone’s expenses, schedules, etc are like, so you really don’t have room to judge. Not all of us can get credit cards like yours, so this might be easier.
      If the tip doesn’t work for you, then don’t use it, and move on. Stopping to write a long comment about how it won’t work for YOU doesn’t help other people for whom it might work.

    • http://www.thepennyhoarder.com Kyle Taylor

      Hi Michael –

      Can you share with us the credit card company that is offering 5% on every transaction? Never heard of a rebate that high before and that would be great to share with folks…

  • Matt Fauske

    This all sounds good. But it looks like you need 500$ to open the savings account, is that right? Also if one was shopping would you be able to break up a shopping trip to 3 or 4 transactions in the self checkout like to get your transaction # higher. And it looks like come July they are limiting you to only 100 transactions a month.

  • Tommy Z

    Very quick question here…the $0.10 per transaction…is that for all and every transaction, including transactions for less than $0.10 such as 1 penny transactions?

  • Jose Arevalo

    Does this still work or not?

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