Capital One vs. Discover® Bank: Which Bank Is Right for You?
Review
Updated
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Bottom line: Capital One offers higher APYs on savings accounts and CDs, while Discover® Bank has a cash back debit card.
Founded in 1994, Capital One is primarily known for its credit cards, including travel, cash back, and business cards. It also offers personal and business banking and auto financing services.
The Discover Card was launched in 1986, and by 1989 Discover Network had signed 1 million merchants. In 2000, the company opened its first banking branch, and today offers financial products including credit cards, checking, savings, and retirement accounts, and personal and home loans. Discover now exists as an online-only financial institution.
| Offer |
|
|
|---|---|---|
| Account |
Capital One 360 Performance Savings
On Capital One's Secure Website. |
Discover® Online Savings
On Discover Bank's Secure Website. |
| Rating |
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 |
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 |
| APY | 3.60% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 8, 2025. Rates are subject to change at any time before or after account opening. | 3.70% |
| Min. to earn APY | $0 | $0 |
| Next Steps |
To qualify for Bonus: Apply for your first Discover Online Savings Account, enter Offer Code TMF325 at application, deposit into your Account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Qualifying deposit(s) may consist of multiple deposits and must post to Account within 45 days of account open date. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of qualifying for the bonus. Bonus is subject to tax reporting. Offer ends 09/11/2025, 11:59 PM ET. Offer may be modified or withdrawn without notice. Due to new customer funding limits, you may wish to initiate fund transfers at your other institution. For information on funding, see FAQs on Discover.com/Bank.
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 Cafe or a bank branch. 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, in line with or slightly higher 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.
| Offer |
|
|
|---|---|---|
| Account |
Discover® Cashback Debit
On Discover Bank's Secure Website. |
|
| 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 | $0 |
| Next Steps |
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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.
APY = Annual Percentage Yield
| Offer |
|
|
|---|---|---|
| Account | Discover® Bank CD | Capital One 360 CD |
| 3 Mo. | 2.00% | -- |
| 6 Mo. | 3.70% | 3.80% |
| 9 Mo. | 3.80% | 3.80% |
| 1 Yr. | 4.00% | 4.00% |
| 1.5 Yr. | 3.80% | 3.70% |
| 2 Yr. | 3.80% | 3.50% |
| 30 Mo. | 3.50% | 3.50% |
| 3 Yr. | 3.50% | 3.50% |
| 4 Yr. | 3.50% | 3.50% |
| 5 Yr. | 3.50% | 3.50% |
| 7 Yr. | 3.50% | -- |
| 10 Yr. | 3.50% | -- |
| Min. Deposit | $0 | $0 |
| Early Withdrawal Penalty | Yes | Yes |
| Next Steps |
|
Capital One 360 CDs come in nine 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 come in 12 terms, which include some unusual terms, like 3-month and 10-year terms. APYs are in the same neighborhood as Capital One's (some higher, some lower) and its minimum opening deposit is also $0.
Capital One beats Discover on APY in an apples-to-apples comparison of its CDs. Some of Capital One's CDs come with a higher APY, especially for longer terms, although Discover offers more term options. The rate on Capital One's savings account is in the same neighborhood, but sometimes slightly lower than the rate on Discover's account.
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.
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 |
|---|---|---|---|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website.
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 3.80%²
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!¹
|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website. |
Open Account for CIT Platinum Savings
On CIT's Secure Website.
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 |
4.10% APY for balances of $5,000 or more
Rate info
4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000+ for max APY
|
Earn a bonus of at least $225 after a one-time deposit of $25,000+.
Transfer a one-time deposit of $25,000-$49,999.99 for a bonus of $225. Transfer a one-time deposit of $50,000+ for a bonus of $300. Account must be opened with code PS2025 while this promotion lasts, and funded within 30 days. Bonus will be fulfilled within 60 days from the funding date. There is no period of time where the customer will be required to maintain the funds. Account must be open when bonus is credited. One bonus per account and primary customer. Bonus will be credited into the Platinum Savings Account that fulfills the funding requirement. Funding can be deposited all at once or incrementally.
|
Open Account for CIT Platinum Savings
On CIT's Secure Website. |
Open Account for American Express® High Yield Savings
On American Express's Secure Website.
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 |
3.70%
Rate info
3.70% annual percentage yield as of April 11, 2025. Terms apply.
Min. to earn: $0
|
N/A
|
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
SoFi disclosure:
¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.
² SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
³ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
⁴ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations.
Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.
⁵ We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
⁶ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
⁷ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the“30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.
Capital One and Discover are neck in neck in customer service rankings and accolades. For one, Discover ranked fifth for checking providers and fourth for savings providers in the J.D. Power 2024 U.S. Direct Banking Satisfaction Study, while Capital One ranked second and third, respectively, in the same study.
On the Better Business Bureau, both banks are BBB accredited and have an A+ rating.
| Capital One | Discover | |
|---|---|---|
| Customer service availability | Live support Sunday through Saturday 8 a.m. to 11 p.m. EST | 24/7 |
| Physical branch locations | Yes | No |
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.
| Capital One | Discover | |
|---|---|---|
| App Store rating | 4.9/5 stars | 4.9/5 stars |
| Google Play rating | 4.5/5 stars | 4.4/5 stars |
If you're looking for higher APYs on CDs or want a bank with physical branches, Capital One might be better suited for you. Its longer-term CDs offer better rates than Discover. On the other hand, if you're a frequent debit card user, you might save money with the Discover® Cashback Debit account.
On Capital One's Secure Website.
Member FDIC.
2025 Award Winner
Capital One 360 Performance Savings
On Capital One's Secure Website.
On Capital One's Secure Website.
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.
Discover® Online Savings
On Discover Bank's Secure Website.
On Discover Bank's Secure Website.
The Discover® Online Savings account promises customers an above-average interest rate and few limitations. Most people won't ever encounter fees with this account, and you won't have to worry about keeping track of your monthly withdrawals either.
To qualify for Bonus: Apply for your first Discover Online Savings Account, enter Offer Code TMF325 at application, deposit into your Account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Qualifying deposit(s) may consist of multiple deposits and must post to Account within 45 days of account open date. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of qualifying for the bonus. Bonus is subject to tax reporting. Offer ends 09/11/2025, 11:59 PM ET. Offer may be modified or withdrawn without notice. Due to new customer funding limits, you may wish to initiate fund transfers at your other institution. For information on funding, see FAQs on Discover.com/Bank.
Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.
These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.
Learn more about how Motley Fool Money rates bank accounts.
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 Cafe or local branch. 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.
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.
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. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page. APYs are subject to change at any time without notice.
