Discover Checking vs. Capital One Checking [2024]: Cash Back is Better

Discover Cashback Checking vs. Capital One 360 Checking

	Discover Cashback Checking	Capital One 360 Checking
Annual percentage yield (APY)	None	0.10% (as of 10/28/24)
Cashback rate	1.00% cash back on up to $3,000 in debit card purchases each month	None
Minimum deposit requirement	$0	$0
Monthly maintenance fees	$0	$0
ATM access	Fee-free access to 60,000+ ATMs	Fee-free access to 70,000+ ATMs
FDIC insured	Up to $250,000	Up to $250,000
	Learn more in our review	Learn more in our review

When to go with Discover Checking

You may only think of Discover as a credit card, but they offer several banking products, including a robust checking account. Choose Discover if:

• You make a lot of purchases with your debit card
• You deposit cash often
• You have savings goals

You use your debit card often

The Discover checking account pays 1.00% cash back on purchases made with your debit card on up to $3,000 in purchases monthly. This may not sound like a lot of money, but when you compare it to the interest you could earn on the Capital One card, it makes sense.

You make cash deposits

If you make a lot of cash deposits, the Discover checking account makes it simple. You can deposit cash at any Walmart cash register with very few limitations, compared to Capital One.

	Discover cash deposits	Capital One cash deposits
Daily limit	$999 in AZ and NM and $1,000 in all other states	$999
Monthly limit	$20,000	$4,995 (up to five deposits)

You prefer automated savings

If you take advantage of the Discover Cashback bonus, you can use the Auto Redemption feature to have your earnings automatically sent to your savings account. This makes it a no-brainer to save, helping you reach your savings goals faster.

When to go with Capital One checking

Capital One isn’t one of the most popular checking account options, either, but like their credit card, they offer a robust program. Choose Capital One checking if:

• You prefer to bank in person
• You worry about overdrafts
• You want to add kids’ checking accounts

You like in-person banking

Discover almost exclusively offers online banking, with no option to speak to someone in person unless you live near its one branch in Delaware. While Capital One doesn’t have nearly as many branches as large, national banks, they do have locations around the country that make banking in person when necessary, possible.

Overdrafts keep you up at night

Capital One offers three options to handle overdrafts, so you don’t have to worry about how to waive overdraft fees, which I like. While I don’t want overdrafts to be approved if I try to purchase something that I don’t have the money to cover, they offer other options for people who want them covered, including:

• Auto-decline of purchases you can’t cover
• Free transfer from a linked savings or money market account
• No-fee overdraft which allows the transaction and doesn’t charge you a fee

You have kids who need checking accounts

Capital One makes it easy to add kids’ checking accounts to your existing account, which makes managing their accounts easier. You can instantly transfer funds from your account to theirs or vice versa.

While you can link any bank account to a MONEY Teen Checking account, it’s much faster and easier if you have a Capital One account yourself. Plus you can manage all accounts in one app, making it easy to keep track of everyone’s funds.

Key differences

Like any bank, there are differences you should consider when choosing a Discover checking vs. Capital One checking account.

APY rates

The Discover Cashback Debit account isn’t an interest-bearing account, while the Capital One 360 Checking offers an APY rate of 0.10% (as of 10/28/24).

Considering the Discover account doesn’t earn interest, Capital One 360 Checking is the clear winner here. But keep in mind that 0.10% (as of 10/28/24) APY is a low rate that doesn’t translate into meaningful gains. For better APY rates, check out our list of the best savings accounts.

Winner: Capital One 360 Checking because it enables you to earn interest

Cashback rates

With Discover Cashback Debit, you can earn 1.00% cash back on up to $3,000 in debit card purchases each month. The Capital One 360 Checking account doesn’t offer cash back for making debit card purchases, making Discover Cashback Debit the winner here.

That said, I recommend using cash back credit cards for increased security and the potential to earn more rewards compared to most debit cards.

Winner: Discover Cashback Debit because it provides cash back on eligible debit card purchases

In-person branches

Discover is largely an online-only bank, which means you likely won’t find a Discover branch nearby. On the other hand, Capital One has a decent number of in-person branch locations, largely in areas like Washington, D.C., Baltimore, and New York.

Winner: Capital One 360 Checking because Capital One has in-person branches

Products and services

Capital One is a full-service bank. You can visit in-person branches and apply for a number of financial products, including bank accounts, credit cards, and loans.

Discover also offers similar products but on a smaller scale. For example, Discover has less than 10 credit cards, while Capital One has more than 30.

Winner: Capital One 360 Checking because Capital One offers more products and services

FAQ

Bottom line

If you only look at their benefits and fees, the Discover Cashback Debit and Capital One 360 checking accounts are fairly similar.

If you want a full-service bank, Capital One 360 Checking is the way to go. If you don’t plan on using or needing physical branches or other Capital One products, I recommend Discover Cashback Debit, especially if you use a debit card often, as you can earn cash back on purchases.

You can also check out alternative options in our list of the best checking accounts.