Discover vs. Capital One: Which credit card giant is the better bank?

Discover Bank and Capital One are often thought of as credit card giants, but these financial institutions offer banking products and services as well. And both of them are known for offering free online accounts with high interest rates.

If you’re looking for a new bank, you may be wondering which is better: Discover vs. Capital One. Read on to learn more about the key features and differences between the Discover and Capital One offerings.

Founded in 1986, Discover Bank offers a wide variety of credit cards, including rewards credit cards, credit-building credit cards, unsecured credit cards, as well as several bank accounts. online. This includes checking accounts, savings accounts, certificates of deposit (CDs), money market accounts (MMAs), and retirement accounts.

Capital One was founded in 1994 as a credit card company and has since expanded its offerings to include a full line of banking products and services for consumers and businesses. These include savings accounts, checking accounts, and more. Capital One also offers customers access to an extensive library of educational resources and loan tools.

If you’re looking for a profitable checking account, Capital One is the clear winner. Although it offers 0.10% APY, it still exceeds the current national rate for interest-bearing checking accounts.

Discover’s checking account doesn’t earn interest, but it does by earning 1% cash back on up to $3,000 in monthly credit card purchases.

There are no overdraft fees, monthly maintenance fees, or minimum payments associated with any account. Both accounts made our top 10 list of .

Capital One and Discover have similar offerings when it comes to savings accounts. Both accounts offer a competitive 4.00% APY, which is more than eight times the national average. Neither account charges a monthly maintenance fee or requires a minimum balance.

The main difference between the two accounts is that Discover currently offers a welcome bonus of up to $200 if you meet certain criteria.

When it comes to CDs, choosing between Discover and Capital One will depend on the factors that are most important to you. Discover offers a wide variety of CD terms, while Capital One has slightly higher interest rates.

No account requires a minimum deposit to open, but there is an early withdrawal penalty of up to 24 months for simple interest for Discover CDs and six-month interest for Capital One CDs. If there’s a chance you’ll withdraw your money before your CD reaches maturity, Capital One may be a safer bet because it charges a smaller penalty than Discover.

Capital One does not currently offer a money market account.

Discover’s money market account offers up to 3.85% APY and has no minimum opening deposit, minimum balance requirements, or monthly maintenance fees. This account also comes with a debit card and checking account for easy access to your money. Because of these many benefits, the Discover money market account made our list.

In addition to deposit accounts, Discover offers credit cards, personal loans, student loans, home loans and retirement accounts.

Capital One offers a wide variety of credit cards, including credit building cards, cash back cards, travel rewards cards, student rewards cards and business rewards cards . It also offers auto, business and commercial loans.

Both Discover and Capital One offer competitive APYs on their banking products. Both offer an attractive 4.00% APY on savings accounts.

However, Capital One currently offers a higher rate on its CDs. On the other hand, Discover offers money market accounts (up to 3.85% APY) while Capital One does not offer this product.

Both Discover and Capital One work on free models; no bank charges monthly maintenance fees or overdraft fees for its deposits.

Discover and Capital One are pretty similar when it comes to their rates, fees and product offerings. However, Discover Bank is a good choice for those looking to earn rewards on their checking accounts and/or those interested in opening a money market account.

Capital One is a solid choice for those interested in getting as much interest as possible on their deposits. Capital One checking accounts currently offer 0.10% APY, while its CDs offer rates as high as 4.50% APY.

Read more: