Table Of Content
If you're looking for a low-risk way to grow your savings, certificates of deposit (CDs) can be a good option. Two popular banks that offer CDs are Capital One and Discover.
In this article, we'll compare and review the CD rates offered by these two banks, as well as explain how CDs work and the minimum deposit required to open an account. We'll also delve into early withdrawal penalties, an important factor to consider when choosing a CD.
Here's a general CD comparison:
Capital One CDs | Discover CDs | |
|---|---|---|
CD Range | 3.90% – 5.00% | 2.00% – 5.10% |
Minimum Deposit | $0 | $2,500 |
Early Withdrawal penalty | 3-6 months of interest | 3 – 24 months of interest |
Term | 6 – 60 months | 3 – 120 months |
How Do CD Rates Compare?
Like the banks themselves, Discover and Capital One CD rates are quite similar. There is no clear winner here, just a slight advantage for Discover in some specific terms.
Overall, the differences are minor and each of them offer competitive CD rates compared to the industry average. The main drawback of both of them is the lack of no penalty CD.
CD Term | Capital One APY | Discover APY |
|---|---|---|
3 Months | N/A | 2.00% |
6 Months | 4.25% | 4.25% |
9 Months | 4.25% | 5.10% |
12 Months | 5.00% | 4.70% |
18 Months | 4.45%
| 4.40% |
24 Months | 4.00% | 4.00% |
30 Months | 4.00% | 3.75% |
36 Months | 4.00% | 3.75% |
48 Months | 3.95% | 3.75% |
60 Months | 3.90% | 3.75% |
120 Months | N/A | 3.75% |
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Both Offer Similar Early Withdrawal Penalty
If the account holder needs to withdraw the funds before the maturity date, the institution may impose a penalty, which can be a percentage of the interest earned or a specific number of days of interest.
As we can see in the table below, there is no clear winner here. Both banks offer more or less the same penalties for the different terms. For the very long CD terms, Capital One seem to be a better option since the penalty is lower than Discover.
CD Term | Capital One | Discover |
|---|---|---|
3 Months | N/A | 3 months of interest
|
6 Months | 3 months of interest | 3 months of interest |
9 Months | 3 months of interest | 3 months of interest |
12 Months | 3 months of interest | 6 months of interest |
18 Months | 6 months of interest | 6 months of interest |
24 Months | 6 months of interest | 6 months of interest |
30 Months | 6 months of interest | 6 months of interest |
36 Months | 6 months interest | 6 months of interest |
48 Months | 6 of months interest | 6 months of interest |
60 Months | 6 months of interest | 18 months of interest |
120 Months | N/A | 24 months of interest |
CD Alternatives: What Do Capital One And Discover Offer?
Discover Online Savings | Capital One 360 Savings | |
|---|---|---|
Savings Rate | 4.25% | 4.25% |
Minimum Deposit | $0 | $0 |
Fees | $0 | $0 |
Promotion | $150 – $200
Minimum deposit of $15,000 / $25,000, expired on 09/12/2024
| None |
The main alternative to CDs is savings account. In this case, the banks offer Discover Bank Online Savings and the Capital One 360 Performance Savings account.
Both banks offer competitive interest rates and no minimum deposit requirements or monthly maintenance fees, making them great options for customers looking to maximize their savings.
The Smart Investor CDs Comparison Methodology
In our comprehensive certificate of deposit (CD) comparison, The Smart Investor team meticulously evaluated various CDs across four key categories to assist you in selecting the most suitable option for your savings goals.
- CD Rates: We thoroughly examined the interest rates offered by each CD, considering their competitiveness in the market. Higher rates typically translate to greater returns on your investment over the CD's term. Additionally, we scrutinized any special promotional rates or conditions that might affect the overall value of the CD.
- CD Features: This category focuses on the unique features and terms associated with each CD. We assessed factors such as minimum deposit requirements, early withdrawal penalties, and the availability of flexible terms. Additionally, we considered any additional perks like interest compounding frequency or options for automatic renewal.
- Customer Experience: A positive customer experience is crucial in banking, and we evaluated each institution's performance in this regard. We looked into aspects such as the ease of opening a CD, the quality of customer service, and the availability of support channels. Reviews from reputable sources such as Trustpilot and JD Power rankings were also considered to gauge overall user satisfaction.
- Bank Reputation: The reputation of the bank is a significant factor in the decision-making process. We examined the bank's financial stability, regulatory compliance, and public perception to assess its overall trustworthiness and reliability as a CD provider.
Compare Capital One Certificate Of Deposit (CDs)
Citi has better CD rates than Capital One for specific terms, but Capital One rates are higher on other terms. Here's a full comparison: Capital One CDs and Citibank CDs
Overall, Capital One CD rates are higher than Chase. Compare CD rates, minimum deposit, early withdrawal fees, and alternatives.
Marcus offers higher CD rates than Capital One on most terms but not all of them. Compare CD rates, min deposit, and early withdrawal fees.
Compare Discover Certificate Of Deposit (CDs)
You can get competitive rates with both Ally and Discover CDs. Compare rates, minimum deposits, and early withdrawal penalties.
Discover the best CD rates Marcus and Discover offer with our comprehensive comparison, including early withdrawal penalty.
Discover and Capital One offer high CD rates on all terms. However, for each term there is a different winner – here's a full comparison: Synchrony CDs vs. Discover CDs
