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

Discover Cashback Checking vs. Capital One 360 Checking

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.

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.

Read more: Best Free Debit Cards for Kids

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.

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.