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!