Published June 18, 2024
By: Steven Porrello
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Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.
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Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.
Bottom line: Capital One offers higher APYs on savings accounts and CDs, while Discover® Bank has a cash back debit card.
Capital One vs. Discover: Account options
Savings accounts
Rates as
of Jun 26, 2024
| Offer |
|
|
|---|---|---|
| Account | ||
| Rating |
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
| APY | 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening. | 4.25% |
| Min. to earn APY | $0 | $0 |
| Next Steps |
|
Capital One offers the Capital One 360 Performance Savings -- a free savings account with a decent APY. The account doesn't have minimum balance or deposit requirements, nor do you need to maintain balances to earn its APY. You can deposit checks through the Capital One mobile app or get in-person support if you live near a Capital One's Café. It also offers a kids savings account and a business savings account.
For its part, Discover offers an online high-yield savings account with no monthly fees or balance requirements. Its APY is competitive but slightly lower than the Capital One 360 Performance Savings. That said, money in your Discover® Online Savings account will compound daily, whereas Capital One's account compounds monthly.
Checking accounts
Rates as
of Jun 26, 2024
| Offer |
|
|
|---|---|---|
| Account | ||
| Rating |
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
| APY | 0% | 0.10% |
| Min. to earn APY | N/A | $1 |
| Next Steps |
|
Capital One and Discover offer free checking accounts with several overlapping features. Both accounts give you access to thousands of fee-free ATMs, allow you to get paid two days in advance, and come with debit cards.
The Capital One 360 Checking, however, earns a small percentage of interest, whereas the Discover account isn't interest bearing. The Discover® Cashback Debit comes with a cash back debit card which earns 1% back on up to $3,000 in monthly purchases. Capital One also offers a checking account for teens.
CDs
Rates as of June 7, 2024
APY = Annual Percentage Yield
| Offer |
|
|
|---|---|---|
| Account | Discover® Bank CD | Capital One 360 CD |
| 3 Mo. | 2.00% | -- |
| 6 Mo. | 4.25% | 4.25% |
| 9 Mo. | 4.25% | 4.25% |
| 1 Yr. | 4.70% | 5.00% |
| 1.5 Yr. | 4.40% | 4.45% |
| 2 Yr. | 4.00% | 4.00% |
| 30 Mo. | 3.75% | -- |
| 3 Yr. | 3.75% | 4.00% |
| 4 Yr. | 3.75% | 3.95% |
| 5 Yr. | 3.75% | 3.90% |
| 7 Yr. | 3.75% | -- |
| 10 Yr. | 3.75% | -- |
| Min. Deposit | $2,500 | $0 |
| Early Withdrawal Penalty | Yes | Yes |
| Next Steps |
|
In the arena of CDs, Capital One emerges as a clear winner.
Capital One 360 CDs come in 12 terms, ranging from six months to five years, each with a rare $0 minimum deposit. It offers competitive CD rates for most of its terms.
Discover® Bank CDs also come in 12 terms, which include some unusual terms, like 3-month and 10-year terms. It does not offer competitive APYs in respect to Capital One and its minimum opening deposit is $2,500.
Capital One vs. Discover: APYs
Capital One beats Discover on APY for all of its main offerings, including savings accounts and CDs. The rate on its savings account is only slightly better than Discover's account, but its CDs are often significantly higher, especially for longer terms.
That said, if you use your debit card frequently, you might earn more cash back on the Discover® Cashback Debit than you would in interest on the Capital One 360 Checking.
Compare savings rates
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 4.60%
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
|
New customers can earn up to a $300 bonus with qualifying direct deposits!
|
|
|
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
4.25%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
|
N/A
|
|
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
4.25%
Rate info
4.25% annual percentage yield as of June 26, 2024
Min. to earn: $1
|
N/A
|
Capital One vs. Discover: Customer service
Capital One and Discover are neck in neck in customer service rankings and accolades. For one, Discover ranked second in the J.D. Power 2023 U.S. Direct Banking Satisfaction Study, while Capital One ranked fifth in the same study. On the other hand, Capital One ranked first in the 2023 J.D. Power U.S. National Banking Satisfaction Study, its fourth year in a row beating out other national banks.
On the Better Business Bureau, both banks are BBB accredited and have an A+ rating. Discover has much better hours for live customer service, as it offers assistance 24/7, whereas Capital One has live support Sunday through Saturday 8 a.m. to 11 p.m. EST.
Capital One vs. Discover: Mobile apps
Both banks have excellent banking apps that boast high ratings on Google Play and the App Store. They also share many features, such as credit score monitoring, fraud protection, and the ability to manage all your accounts for that bank (credit cards, loans, bank accounts) in one app.
As far as ratings go, Discover's app has 4.9 out of 5 stars on the App Store and 4.5 out of 5 stars on Google Play, whereas Capital One has 4.8 out of 5 stars on the Apple App Store and 4.5 out of 5 stars on Google Play.
Capital One vs. Discover: Which is right for you?
If you're looking for higher APYs or want a bank with physical branches, Capital One might be better suited for you. Its savings account and CDs offer much better rates and terms than Discover, plus you can earn a little interest on its checking account. On the other hand, if you're a frequent debit card user, you might save money with the Discover® Cashback Debit account.
Member FDIC.
Rates as
of Jun 26, 2024
Capital One 360 Performance Savings
Member FDIC.
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Best
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= Excellent
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= Good
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= Fair
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= Poor
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Best
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= Excellent
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= Good
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= Fair
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= Poor
= Best
= Excellent
= Good
= Fair = Poor
APY
4.25%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
Min. To Earn APY
$0
- Competitive APY
- Branch access
- No account fees
- Comfort of a well-known brand and reputation
- 24/7 customer support
- No ATM access
Capital One 360 Performance Savings checks all the boxes we look for in a high-yield savings account. It even offers branch locations and Capital One Cafes where customers can seek in-person support (if you live near one). This makes it a great fit when you want to reap the rewards of online banking but aren't quite ready to cut ties with brick-and-mortar banks.
FAQs
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Capital One might be right for those who want competitive APYs from a big national bank. It's also great for those who want an online account, but wouldn't mind some in-person support at a Capital One Café. You might also appreciate the $0 minimum deposit on its CDs, which can invite those with less savings than others to enjoy a high rate of return.
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Discover frequently ranks high in customer satisfaction as a savings and checking account provider. It also offers one of the best cash back debit cards on the market, which could help you save on everyday purchases if you prefer debit over credit cards.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.