Discover Bank says it is ending fees on deposits, a move straight out of the playbook of online banks.
The no-fee policy is for customers with a checking, savings, money market or CD account, Discover said in a news release.
Discover drops fees on deposit accounts
Discover says that effective immediately, it is dropping fees for too many withdrawals, insufficient funds, stop-payment requests, as well, as when customer accounts fall below the minimum balance.
“We’re promising that if you bank with us, we’re committed to finding you ways to save more of your money,” Arijit Roy, vice president of deposits at Discover, said in the written statement. “Very few large or direct banks can make that same promise.”
To recap, Discover now has no fees for the following:
- Monthly maintenance
- Checkbook orders
- Replacement debit cards
- Insufficient funds
- Excessive withdrawals
- Falling below minimum balance
Money expert Clark Howard says the amenities offered by online banks make them a major consideration for people looking to keep more of their hard-earned money.
“Recently, I’ve had to rethink banking. It used to be a two-horse race between banks and credit unions,” Clark says. “But now online banks are the new low-cost place to bank.”