Discover vs. Capital One Checking [2026]: Cash Back vs. APY
Capital One acquired Discover and discontinued Discover checking, but it still offers a great checking option. Here's how these accounts compared, and how to know if Capital One makes sense for you.
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Discover® Cashback Debit
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
VS
2026 AWARD WINNERBest Overall Checking Account
4.9
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Our partners do not influence our ratings.
Capital One acquired Discover and discontinued Discover checking, but it still offers a great checking option. Here's how these accounts compared, and how to know if Capital One makes sense for you.
Discover merged with Capital One in May 2025 and no longer accepts new banking applications as of January 2026. Existing accounts are expected to migrate to Capital One, though Capital One doesn't currently offer an equivalent cash back debit account. What it does offer is Capital One 360 Checking.
Discover Cashback Debit and Capital One 360 checking accounts were both offered by well-known banks and credit card issuers, and they shared many features and benefits. They both had no monthly fees or minimum balance requirements and were more rewarding than most. This is still true of Capital One checking, which earns some interest. The Discover checking account earned cash back on eligible debit card purchases.
If you're comparing Discover and Capital One checking, your decision now comes down to whether Capital One is a good fit or not. If you don't use your debit card often, the larger-than-ever is plenty worthwhile. If you want to earn cash back on your purchases, you'll have to consider other cash back debit or credit cards.
Warning
The following review includes details about Discover checking accounts that were accurate until the accounts were closed to new applicants.
Capital One acquired Discover and discontinued Discover checking, but it still offers a great checking option. Here's how these accounts compared, and how to know if Capital One makes sense for you.
Discover merged with Capital One in May 2025 and no longer accepts new banking applications as of January 2026. Existing accounts are expected to migrate to Capital One, though Capital One doesn't currently offer an equivalent cash back debit account. What it does offer is Capital One 360 Checking.
Discover Cashback Debit and Capital One 360 checking accounts were both offered by well-known banks and credit card issuers, and they shared many features and benefits. They both had no monthly fees or minimum balance requirements and were more rewarding than most. This is still true of Capital One checking, which earns some interest. The Discover checking account earned cash back on eligible debit card purchases.
If you're comparing Discover and Capital One checking, your decision now comes down to whether Capital One is a good fit or not. If you don't use your debit card often, the larger-than-ever is plenty worthwhile. If you want to earn cash back on your purchases, you'll have to consider other cash back debit or credit cards.
Warning
The following review includes details about Discover checking accounts that were accurate until the accounts were closed to new applicants.
How we rate products
We know checking and savings accounts can be critical tools for managing your money. They're one of the financial tools you use the most. That's why the features offered by a bank matter so much and we've taken that into consideration in our evaluations.
We consider the annual percentage yield (APY), account features, minimum opening balance required, fees, customer service, and FDIC insurance. The best banks also offer a variety of account types and the support you need to you make the most of your money.
We intensively research all products and services we review, and our team members personally use a wide array of financial products. Our product rankings and scores are based on objective measurements and product features as well as expert opinions from our editorial team.
Capital One vs. Discover checking accounts compared
Capital One 360 Checking accounts are simple and may seem less flashy than Discover's checking accounts because they don't offer debit card cash back, but they're still worth consideration. And in some cases, I'd recommend them over Discover.
Choose Capital One 360 checking if:
You don't use your debit card a lot.
You prefer to bank in person.
You worry about overdrafts.
You want to add kids' checking accounts.
It's also worth mentioning that these checking accounts often come with sign-up bonus offers (such as the ability to earn up to $250 and meet direct deposit requirements), and these are not all that difficult to qualify for compared to other bank promotions and bonuses.
For more about who this account could be best for, check out our Capital One 360 review.
You don't make a lot of debit card purchases
Discover shines when you use your debit card regularly, but it falls flat when you don't. If you're like me and prefer to make most (if not all) of your transactions with a credit card, you may get more out of Capital One checking because you'll at least earn some interest on your balance. It's not a lot, but it's better than earning no APY with Discover checking.
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.
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 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
I'll admit that the difference between Discover vs. Capital One isn't stark here. Discover, too, provides fee-free overdraft protection, but only insofar as you can have funds transferred from a linked account to cover a transaction that would make your balance negative. Capital One provides the extra choice of no-fee overdraft, where the bank may approve transactions that would bring your balance below $0, including debit card purchases (which is somewhat uncommon).
When to go with a Discover checking account
Reminder: You can't open this account anymore
If Capital One checking isn't right for you, compare some of the best checking accounts, including free checking account options that were once similar to Discover Cashback Debit.
You may only think of Discover as a credit card, but Discover Bank offers several banking products, including a robust checking account. Choose a Discover Cashback Debitaccount if:
You make a lot of debit card purchases.
You deposit cash often.
You have savings goals (and you want to automate them).
Read our full Discover checking review for the scoop on this account's main benefits and drawbacks, plus who it's best for.
You use a debit card often
When you look at Discover vs. Capital One strictly for debit card users, there's no contest – Discover is the way to go. This benefit alone is reason enough to consider the account.
The Discover checking account earns 1.00% cash back on up to $3,000 in debit card 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 account, 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.
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Our partners do not influence our ratings.
AWARD WINNERBest Online Checking
SoFi Checking & Savings - Earn Up to $300 When You Set Up Direct Deposit
Limited-Time Offer: Earn a $50 or $300 bonus with eligible direct deposit and up to 4.00% APY on Savings (3.30% APY2 <p>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 Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p><p>SoFi members with Eligible Direct Deposit can earn 3.30% 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 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit 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 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>.</p> with +0.70% APY Boost) for up to 6 Months on new accounts. Terms Apply.3 <p>Earn up to 4.00% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.30% APY as of 12/23/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 3/30/2026. Rates variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#2">sofi.com/banking#2</a>. SoFi Bank, N.A. Member FDIC.</p> FDIC Insured.4 <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", Arial, sans-serif;">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 <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p>
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Our partners do not influence our ratings.
Enjoy $400 as a new Chase checking customer
When you open a new Chase Total Checking® account with qualifying activities.5 <p>Offer not available to existing Chase checking customers, or those whose accounts have been closed within 90 days or closed with a negative balance within the last 3 years. You can receive only one new checking account opening related bonus every two years from the last coupon enrollment date and only one bonus per account. Coupon is good for one-time use. To receive the bonus: 1) Open a new Chase Total Checking account, which is subject to approval; AND 2) Have your direct deposits totaling $1,000 or more made to this account within 90 days of coupon enrollment. Your direct deposit needs to be an electronic deposit of your paycheck, pension or government benefits (such as Social Security) from your employer or the government. Person to Person payments (such as Zelle®) are not considered a direct deposit. Micro-deposits do not qualify as a direct deposit for the bonus. Micro-deposits are small deposits, typically less than $1, that are sent to your account to verify it is the correct account. After you have completed all the above requirements, we'll deposit the bonus in your new account within 15 days. To receive this bonus, the enrolled account must not be closed or restricted at the time of payout. Eligibility may be limited based on account ownership. Bonus is considered interest and will be reported on IRS Form 1099-INT (or Form 1042-S, if applicable). Offer availability subject to change. Other Chase checking bonus offers may exist concurrently.</p> FDIC Insured. Offer valid through 4/15/2026.
FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment.
Our partners do not influence our ratings.
Use Cash App As Your All-in-One Financial Services Platform
Bank6 <p>Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). Savings provided by Cash App, a Block, Inc. brand.</p><p class="">Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). Direct Deposit provided by Cash App, a Block, Inc. brand.</p> without all the fees—save, send, and spend your money the way you want.7 <p class="">Your balance is eligible for FDIC pass-through insurance through our Program Banks Wells Fargo Bank, N.A. and/or Sutton Bank, Members FDIC for up to $250,000 per customer when aggregated with all other deposits held in the same legal capacity at each Program Bank above, if certain conditions are met. Cash App is a financial services platform, and not an FDIC-insured bank. Prepaid debit cards issued by Sutton Bank, Member FDIC. See <a href="https://cash.app/legal/us/en-us/card-agreement">terms and conditions</a>. </p> Get paid up to 2 days early – up to 2 days earlier than most banks8 <p>Your first deposit may take longer depending on your employer.</p>
FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment.
Our partners do not influence our ratings.
Bank of America Advantage Banking
Up to $500 cash offer. Click ‘Learn More' for more details. Bank of America, N.A. Member FDIC.
Capital One checking vs. Discover checking: Differences
If you're deciding between a Discover checking or a Capital One checking account, here are the differences broken down by three key areas, and which bank wins in each comparison.
Earning interest
Winner: Capital One 360 Checking
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 09/15/25).
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 09/15/25) 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 2/17/26), according to data from the FDIC. For better APYs, check out our list of the best savings accounts.
Debit card cash back
Winner: Discover Cashback Debit
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.
Product and service variety
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.
Discover and Capital One merger
As noted, Capital One, N.A., acquired Discover Bank on May 18, 2025, following an announcement all the way back in February of 2024. Whether you're a customer with one, both, or neither, this is kind of a big deal.
Discover banking has been discontinued entirely. The bank previously offered a checking account, savings account, a money market account, and CDs, but you'll now be directed to look into Capital One's banking products if you visit the banking page on Discover's site.
Screenshot
In addition, Discover has stopped offering home loans, but it still offers personal loans for the time being.
Note for existing customers
If you already have a bank account with Discover, you'll need to wait for further instructions from Capital One. This full transition will take a while, and you can keep using your accounts until further notice.
FAQs
Which is better, Capital One or Discover?
The better choice for you between Capital One and Discover depends on exactly which accounts or services you're looking for. Both offer credit cards, banking, loans, and more, with many comparable but different options within each category. For instance, if you're looking for a cash back credit card with no annual fee, the Discover it® Cash Back and Capital One Savor Cash Rewards Credit Card are just two options to consider, and they have vastly different earn rates and benefits.
Capital One and Discover even have similar customer ratings on Trustpilot and mobile apps, and both primarily operate online.
So rather than compare these two institutions overall, think about what type of product you need. Then, compare equivalent options from both side-by-side.
Are Capital One or Discover savings accounts better?
Capital One and Discover savings accounts are both competitive when you compare their yields to the national average savings rate of 0.39% (as of 2/17/26). But while savings rates are very similar between the two, Discover's rates are often a touch better.
The Capital One 360 Performance Savings account earns 3.40% APY, while the Discover Savings account earns 3.40% APY.
If you look just at benefits and fees, the Discover Cashback Debit and Capital One 360 checking accounts were fairly similar. But today, you can only apply for a Capital One checking account, as Discover is now owned by Capital One.
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 would really prefer to earn rewards on your spending, consider a different cash back debit card.
FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment.
Our partners do not influence our ratings.
AWARD WINNERBest Online Checking
High APY of up to 4.00% on Savings (3.30% APY2 <p>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 Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p><p>SoFi members with Eligible Direct Deposit can earn 3.30% 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 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit 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 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>.</p> with +0.70% APY Boost) for up to 6 Months on new accounts. Terms Apply.3 <p>Earn up to 4.00% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.30% APY as of 12/23/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 3/30/2026. Rates variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#2">sofi.com/banking#2</a>. SoFi Bank, N.A. Member FDIC.</p>
Paycheck access up to 2 days early with direct deposit9 <p>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.</p>
No monthly maintenance or overdraft fees10 <p>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 <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a></p>
Streamlined savings and savings goals with Vaults
Access to a large ATM network11 <p>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 may be incurred when using out-of-network ATMs. SoFi’s ATM policies are subject to change at our discretion at any time.</p>
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