Banking Checking Accounts

Discover Checking vs. Capital One Checking [2025]: Cash Back vs. APY

The Discover Checking account pays 1.00% back on up to $3,000 in purchases made with a debit card each month, but Capital One pays 0.10% (as of 01/11/25) APY on checking and offers better variety and access.

By Ben Walker, CEPF, CFEI®
and Samantha Hawrylack

Edited by Lauren Graves

Updated Jan. 13, 2025

4.5

Earn 1.00% cash back on up to $3,000 in debit card purchases each month¹ <p>See website for details.</p>
Easily switch direct deposit via the Discover mobile app or online for Early Pay (get your paycheck up to 2 days early!)
Get the security of a Member-FDIC bank

Our view

The Discover Cashback Debit account and Capital One 360 checking account are often compared because they're both offered by well-known banks, and the accounts have a few features in common. Neither charges fees or requires a minimum balance, and they're both more rewarding than your typical checking account. That said, there is a major difference between the two: The Discover checking account earns cash back on eligible debit card purchases, while the Capital One checking account does not. On the flip side, the Capital One checking account earns interest, while the Discover checking account does not.

As you can probably guess, the account we recommend depends on whether you'd get more use from debit card rewards or regular interest earnings. If you use a debit card often, the Discover account is the obvious choice. However, Discover's cash back rate is low compared to what many credit cards offer, so it's probably not worth switching to this account if you don't already use your debit card for many purchases. If that's the case, Capital One would be our pick. While it doesn't earn the best rate you can find on checking, it has enough other perks going for it to be worth signing up for, including good ATM access and account variety.

How we evaluate products

Discover Cashback Checking vs. Capital One 360 Checking

	Discover Cashback Checking	Capital One 360 Checking
Annual percentage yield (APY)	None	0.10% (as of 01/11/25)
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 (FDIC Cert. #5649)	Up to $250,000 (FDIC Cert. #4297)
	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 a 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. However, the big caveat we have to mention is that you need to have an online savings account with Discover, which is pretty limiting.

When to go with Capital One checking

Capital One isn’t one of the most popular checking account options, either, but like its credit card, it offers 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.

Capital One and Discover checking differences

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

APYs

Winner: Capital One

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 01/11/25).

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 01/11/25) APY is a low rate that doesn’t translate into meaningful gains. Still, it's higher than the national average rate of 0.07% (as of 12/16/24), according to data from the FDIC. For better APYs, check out our list of the best savings accounts.

Cash back

Winner: Discover

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.

4.5

Discover® Cashback Debit

Discover®️ Cashback Checking

Earn 1% cash back on up to $3,000 in debit card purchases each month.¹ No minimum deposit or balance. FDIC Insured.

Learn More

Products and services

Winner: Tie

Capital One is a full-service bank offering a range of bank accounts, credit cards, and loans.

Discover offers similar products but on a smaller scale. For example, Discover has less than 10 credit cards, while Capital One has more than 30. Still, Discover has every type of primary bank account, including a checking account, savings account, money market account, and certificates of deposit (CDs). So we'll call this one a tie.

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 use your debit card a lot and don’t plan on using or needing physical branches, I recommend Discover Cashback Debit.

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

Earn 1.00% cash back on up to $3,000 in debit card purchases each month¹ <p>See website for details.</p>
Easily switch direct deposit via the Discover mobile app or online for Early Pay (get your paycheck up to 2 days early!)
Get the security of a Member-FDIC bank