Earlier today, Discover announced that it is eliminating the fees associated with deposit accounts in an attempt to provide more affordable banking options to its customers.
According to the latest changes, Discover will long longer charge fess for insufficient funds to complete a bank transfer or falling below the minimum balance requirements. Previously, the bank stated that it would charge $10 to $30 in such situations but it was unclear how often the bank was charging its customers. For instance, with the latest changes, those checking customers who are not enrolled in overdraft protection will no longer be charged a $30 insufficient funds fee in case such transactions get declined.
Talking about the latest changes, Arijit Roy, vice president of deposits at Discover said, “Helping our customers lead better financial lives, is at the heart of everything we do, whether that’s removing fees, offering industry-leading rewards or consistently delivering distinctive customer experience. Removing all deposit account fees was an easy decision for us based on our commitment to offer the most rewarding banking products in the industry.”
At the moment, the bank offers 1 percent cashback to customers who make debit card purchases. Following the changes, only outgoing wire transfers will be charged according to the bank.
This latest move isn’t a massive surprise as the bank’s first quarter reports revealed that deposits made up 49 percent of Discover’s total funding. According to Roy, the latest decision to eliminate fees will allow the bank to accelerate deposit growth in the coming months.