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

Capital One vs. Discover checking accounts compared

	Discover Cashback Checking	Capital One 360 Checking
Annual percentage yield (APY)	None	0.10% (as of 04/28/25)
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
Branches	None	260+ (nine states)
FDIC insured	Up to $250,000 (FDIC Cert. #5649)	Up to $250,000 (FDIC Cert. #4297)
	Visit Discover	Learn more in our review

When to go with a Discover checking account

You may only think of Discover as a credit card, but Discover Bank offers several banking products, including a robust checking account. Choose Discover 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 pays 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.

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 a Capital One checking account

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 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.

Read more: Best Free Debit Cards for Kids

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

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).

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 04/28/25).

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 04/28/25) 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 4/21/25), 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.

2025 award winner Best Online Checking Account

4.5

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Discover® Cashback Debit

Discover® Cashback Checking

Earn 1% cash back on up to $3,000 in debit card purchases each month.¹ <p>See website for details.</p> No minimum deposit or balance. FDIC Insured.

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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.

Learn More

2025 award winner Best Online Checking Account

• 
  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

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2025 award winner Best Overall Checking Account

• 
  No monthly maintenance fees and no overdraft fees
• 
  Enjoy access to more than 70,000 fee-free ATMs in the MoneyPass and Allpoint network as well as Capital One-branded ATMs
• 
  FDIC insured