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 |
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| Account |
Discover® Online Savings
On Discover Bank's Secure Website. |
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| Rating |
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
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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. | 3.60% |
| Min. to earn APY | $0 | $0 |
| Next Steps |
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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 |
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| Account |
Discover® Cashback Debit
On Discover Bank's Secure Website. |
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| 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 |
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| Account | Discover® Bank CD | Capital One 360 CD |
| 3 Mo. | 2.00% | -- |
| 6 Mo. | 3.70% | 3.80% |
| 9 Mo. | 4.00% | 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 |
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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%
Rate info
SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members 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 Eligible 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. 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. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. 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.
Min. to earn: $0
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New customers can earn up to a $300 bonus with qualifying direct deposits!
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Open Account for SoFi Checking and Savings
On SoFi's Secure Website. |
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank'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 |
4.30%
Rate info
The annual percentage yield (APY) is accurate as of May 2, 2025 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Min. to earn: $500 to open, $0.01 for max APY
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N/A
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Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
Open Account for Barclays Tiered Savings
On Barclays' Secure Website.
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 |
4.00%
Rate info
Balances less than $250,000 earn 4.00%, and balances greater than $250,000 earn 4.20%.
Min. to earn: $0
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N/A
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Open Account for Barclays Tiered Savings
On Barclays' Secure Website. |
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.
2025 Award Winner
Capital One 360 Performance Savings
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.
