Table Of Content
Axos Bank was previously known as Bank of Internet USA before being rebranded as Axos in 2018. Axos Bank operates entirely online and uses its branchless banking model to offer some of the best savings rates to its customers. It positions itself as a bank that will remain focused on its clients and their financial objectives.
Axos Bank remains committed to providing a “100% digital” experience, as evidenced by its lack of branches. Customers benefit from higher rates of return on financial products when there are no branches. Axos Bank is also a full-service bank, offering deposit accounts and loans to individuals and businesses. Despite its web-based nature, this is definitely made easier by its 24/7 access to your accounts and numerous ways to contact a bank representative. Axos does not have its own ATMs, but it does offer a comprehensive set of ATM fee reimbursements.
Discover bank has some of the industry's best rates on bank accounts. Its savings accounts, certificates of deposit, and MMAs all earn rates that are significantly higher than the national average. Perhaps more noteworthy is the bank's checking account, which offers 1% cash back on debit card purchases.
While not a full-service bank, Discover Bank is part of the Discover Group, which offers a wide range of loan products. Having an account with Discover Bank means you'll be in their system if you ever need a loan or a credit card. Except in Delaware, Discover Bank does not have bank branches. If you require a bank branch, you should look elsewhere.
While its online and mobile features make it easy to access your money, Axos and Discover bank may not be sufficient for those who value having a nearby branch.
Banking Options
Discover | Axos Bank | |
|---|---|---|
Savings Accounts | ||
Checking Accounts | ||
CDs | ||
Money Market Account | ||
Debit Card | ||
Credit Cards | ||
Personal Loans | ||
Mortgage | ||
Government Mortgage | ||
Business Loans | ||
Investing Capabilities |
Savings Account
While Discover does offer 4.30%% rate on its savings account, on Axos you can earn higher rate on balances up to $24,999. After this the rate drops, so it's really depends on how much you plan to deposit. For most people, this funding bracket makes the Axos savings account far more attractive.
The downside of this is that there is a minimum deposit of $250 to open an Axos savings account. However, once your account is opened, there are no minimum monthly account balance requirements.
Discover | Axos Bank | |
|---|---|---|
APY | 4.30% | Up to 0.61% |
Fees | $0 | $0 |
Minimum Deposit | $0 | $250 |
Checking Needed? | No | No |
Main Benefits |
|
|
Checking Account
The checking account options for both Discover and Axos are quite similar. Both accounts are fee free, but the accounts do have slightly different features. For example, Discover offers 1% cash back on debit card purchases, while Axos has Direct Deposit Express that allows you to get your paycheck up to two days early.
The crucial difference between the two banks is that Axos has a number of checking account options. We’ve examined the Essential Checking account, which is the basic account, but you can also upgrade to Cash Back checking that offers up to 1% cash back, as you would get with Discover or Rewards checking that pays 1% interest on account balances. These account options are also fee free, but there are some opening requirements. For example, you need $50 to open a Rewards Checking or Cash Back Checking account.
Discover | Axos Bank | |
|---|---|---|
APY | 0% (1% cash back on up to $3,000 in debit card purchases each month) | Up to 3.30% APY
to get the maximum rate (up to $50,000) you'll need monthly direct deposits of $1,500 (0.40% APY), 10 transaction on your debit card (+0.30% APY), average daily balance of $2,500 on Axos Invest Managed Portfolio (+1.00% APY), average daily balance of $2,500 on Axos Invest Self Directed Trading Account(+1.00% APY) and make full monthly payment on loans (mortgage, personal and auto) with Axos account (+0.60% APY).
|
Fees | $0 | $0 |
Minimum Deposit | $0 | $50 |
Main Benefits |
|
|
CDs
The CD comparison is a little more tricky. While Discover does offer far better rates, the minimum deposit is also far higher at $2,500 compared to Axos’s $1,000. Additionally, Axos has a lower rate regardless of the CD term, while Discover incentivizes taking on a longer CD term.
So, unless you don’t have the $2,500 minimum deposit, Discover is a far more attractive option.
Discover | Axos Bank | |
|---|---|---|
Minimum Deposit | $2,500 | $1,000 |
APY Range | 2.00% – 5.00% | 0.20% |
Credit Cards
Discover established its reputation as a credit card brand, but over time it has expanded its financial product line. As you would expect, Discover offers a decent selection of credit card options. All of the Discover cards offer cardholder rewards up to 5%, with the Discover Cash Back, but you can also choose tiered reward cards, such as the Gas & Restaurant card or get miles with the Travel Card. There is also a secured card, to earn rewards and build your credit or for students earn rewards with Student Chrome and Student Cash Back.
What makes Discover credit cards really attractive is that there is an Unlimited Cashback Match. This means that Discover will match the rewards from your first year, dollar for dollar with no maximum cap or minimum spend.
Unfortunately, while Axos has an impressive product line, at this time, the bank does not offer even one credit card option. If you want financing, you have to apply for an Axos personal loan.
Personal Loans
Axos Bank does not require collateral for personal loans. That's great news for people who need money fast but don't have anything to put down as collateral for a loan. The lender claims to have flexible lending requirements, but no minimum credit score, credit history, or debt-to-income ratio is specified.
These loans could be used for a variety of purposes, including debt consolidation, medical expenses, and home improvements.
Axos does not publish its personal loan rates online; you must apply and receive a rate quote to discover what you might pay. According to Axos Bank, the decision to approve a loan is based on the applicant's assets, income, employment history, credit history, and credit score.
Discover | Axos Bank | |
|---|---|---|
APR | 6.99% – 24.99%
| 7.15% – 17.99% |
Loan Amount | $2,500 – $35,000
| $5,000 – $50,000 |
Terms | 36 to 84 months
| 36-72 months |
Unlike many lenders Discover is one of the few that lend to people in all 50 states. They also do not charge an origination fee and have a loan calculator on their website to assist you in getting started. They offer flexible repayment terms, fixed rates, and a staff of 100% US-based loan specialists to assist you.
Discover only conducts a soft pull inquiry when you apply for a personal loan, but you should have a minimum yearly income of $25,000. In order to be accepted, your credit score cannot be lower than 660. Discover is a good option because their rates are competitive, and borrowing from them means you're making direct payment to the creditor. Lastly, college candidates would be able to get a student loan via Discover.
The only issue with Discover is that the application process is more time consuming than others, and they charge a hefty late payment fee. They also do not permit joint borrowers, and the maximum amount that can be borrowed is lower than in many other places.
Customer Service
Discover offers 24/7 to its customer service team via a toll free number or through the website. Axos also has a 24/7 helpline, but you can also chat with the Evo virtual assistant or browse the extensive support page on the website.
Online/Digital Experience
Both Discover and Axos have an easy to use website to explore products and access support and help with various finance topics. This ensures a great user experience, particularly if you’re not sure exactly what banking services and products are the best option for you.
Both the banks also have highly rated apps. The Discover app is rated 4.9/5 on the Apple Store and 4.6/5 on Google Play, while Axos mobile app is rated 4.7/5 and 4.5/5 for Apple and Google respectively.
These apps allow you to not only transfer funds and manage your transactions, but you can access support and manage your card. You can even locate the nearest fee free ATM through the app, making it highly convenient if you’re in an unfamiliar neighborhood.
Which Bank is The Winner?
Obviously, Discover is a bigger brand compared to Axos, but does this mean it is a better bank? We’ll need to look a little closer to make that determination.
Both Discover and Axos offer fee free accounts to make managing your money easy. However, Axos offers a far better savings rate and you can upgrade your checking account to enjoy up to 1% on your balance or 1% cash back on your debit card purchases, a feature that is standard with the Discover checking account. In terms of CDs, Discover offers better rates, but you do need a higher minimum deposit.
However, the big difference between these banks is that while Discover has numerous credit card options, at this time, Axos does not have a credit card. So, if you’re looking to have a checking account, savings account and credit card with the same bank, Discover is a better option. On the other hand, if you don’t particularly need a credit card, Axos may offers better terms.
FAQs
How's Discover bonus promotion?
Discover offers bonus promotions for new accounts as well as on a variety of credit cards. As of September 2023 , Discover Online Savings offers $150 – $200 bonus promotion based on your minimum deposit. There are also promotions on Discover Cashback Debit Account
How's Axos bonus promotion?
Axos offers a decent promotion for new customers. $100 when you open a new account.
What is Axos Bank's reputation?
- A+ on BBB – BBB assigns ratings ranging from A+ (highest) to F (lowest) (lowest). BB ratings are based on information in BBB files about factors such as the business's complaint history with the BBB, the type of business, the length of time in business, transparent business practices, and more.
- 3.5/5 on WalletHub (+1100 reviews) – overall rating of reviewer satisfaction, scaled from 1 to 5.
What are Axos Bank's main disadvantages?
Although Axos Bank has three locations, none of them are open to the public; the bank operates entirely online. As a result, if you're looking for a bank where you can get help from a teller in person, Axos is not the right choice for you.
Furthermore, the minimum deposit for CDs is quite high, and Axos Bank's CD rates are at best average.
How's Discover money market account work?
A money market account combines the earning power of your savings account with access to your checking features for a more versatile account. Discover offers money market accounts that include ATM access, a debit card, and the ability to write checks.
Discover's money market accounts are free of fees and have no minimum balance requirements. This allows you to earn more interest than you would with a traditional checking account, making it an excellent opportunity to grow and expand your financial portfolio without taking on too much risk.
How does the Discover debit card work?
It's unusual to find a debit card which gives cash back rewards, but Discover allows you to earn 1% cash back on up to $3,000 in purchases per month. Discover also does not charge monthly service fees. This can be a great low-cost checking account if you enroll in overdraft protection, which ties your checking to another Discover account.
Discover gives you access to 60,000 ATMs, however the bank does not reimburse any out-of-network ATM fees charged by ATM providers.
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Axos vs Ally Bank
Ally Bank is an online bank that arose from the banking division of General Motors Acceptance Corporation. GMAC used to be an auto financing company before being purchased by Ally Bank. This bank now offers a wide range of products. Among the products available are credit cards, home loans, investing products, savings accounts including certificates of deposit, and checking account options. Ally Bank serves millions of customers and provides high-quality banking services.
Axos is a well-established online-only banking service. It has been in business since 2000 and is constantly expanding its services for both individuals and businesses. The bank is a subsidiary of Axos Financial and is headquartered in San Diego, California. Despite the fact that the bank has three locations, the vast majority of its customers are served online.
Read Full Comparison: Axos Vs Ally Bank Comparison – Which Is Better?
Axos vs Varo
Axos is a large online bank that offers checking, savings, CDs, investing, and other services. Customers can earn interest or cash back on a variety of checking account options. The APY on Axos Bank's Rewards Checking account isn't the highest among online banks, but it's high enough to justify opening an account as part of a larger online banking strategy, and there aren't many fees.
Varo Bank is a web-based bank that offers a variety of deposit and loan products. It was founded in 2015 and is based in San Francisco. Varo offers high-yield savings accounts and cash-back checking accounts, as well as a fee-free ATM network (see below for more information from Varo) and automatic savings tools.
Read Full Comparison: Axos vs Varo: Compare Banking Products
Axos vs Chime
Axos Bank offers home improvement loans as well as checking and savings accounts online. Because Axos is a low-cost online lender, it is able to pass on significant savings to its customers. Axos waives many fees and reimburses ATM and rewards checking fees.
Chime is an online-only company that works with two banks to provide checking and savings accounts. Online banking with Chime is not the same as using a traditional banking system. Chime secures and protects your online financial accounts. It is a safe place to keep your money and access it without any technical difficulties.
Read Full Comparison: Axos VS Chime: Which Online Bank Is Better?
Axos vs Marcus
Marcus, on the other hand, made Goldman Sachs banking more accessible to the general public when it debuted in 2016. Our in-depth Marcus review can help you decide if this online bank is right for you. Goldman Sachs is one of the world's largest investment banks, with offices in every major financial center and a client list that includes other banks as well as the state of New Jersey. With Marcus, however, you could be next on the list.
Axos online bank, which provides checking, savings, CDs, investing, and other services, has a lot to offer. A variety of checking account options allow customers to earn interest or cash back. The APY on Axos Bank's Rewards Checking account isn't the highest among online banks, but it's sufficient to justify opening an account as part of a larger online banking strategy, and there are almost no fees.
Read Full Comparison: Axos vs Marcus: Which Online Bank is Better?
Discover Bank vs Chase Bank
The Discover checking account is more traditional. While the account does not pay interest, you can earn 1% cash back on debit card purchases. There are also no fees if you require a replacement debit card, have a deposit item returned, or have insufficient funds in your account.
Chase offers a wide range of banking products, including savings accounts, checking accounts, home loans, home equity options, auto loans, and a wide range of credit cards. In addition, Chase's customer service system is quite extensive.
Read Full Comparison: Discover vs Chase: Which Bank Account Suits You Best?
Discover vs Citi
Discover began as a credit card company and has since expanded into banking services. As a result, it stands to reason that Discover would offer a diverse range of credit cards. Discover offers a simpler checking account. There are no account fees or minimum deposits, and you can earn 0.40 percent.
Citi offers home loans, personal loans, lines of credit, wealth management options, and investments, as well as everyday and premium banking services. This exemplifies Citi's viability as a viable alternative to the traditional high-street bank.
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Discover vs American Express
Discover Bank is a full-service online bank as well as a provider of payment services. Discover can be used for banking and retirement planning by individuals. Discover is best known for its credit cards with rewards, but it also provides personal, student, and home equity loans.
American Express is one of the world's most well-known credit card brand names. Customers can get a personal banking solution from American Express National Bank, which offers online savings and CD options. Personal savings accounts have a high potential yield. They do not, however, provide as many products as Discover Bank does.
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Discover vs CIT Bank
The CIT Bank eChecking account pays 0.10 percent to 0.25 percent interest. The account also has almost no fees. Only if you have a stopped payment, a returned item, or want to make a wire transfer will you be charged a fee. There is also free ATM access, with up to $30 in ATM fee reimbursements per month if you incur fees when using another bank's machine.
While Discover's checking account does not pay interest, you can earn 1% cash back on debit card purchases. There are no fees, as with eChecking. If you need a replacement debit card, have insufficient funds, or have a deposit returned, you will not be charged a fee.
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Discover vs SoFi
SoFi has developed a respectable banking product line. Aside from its hybrid savings and checking account, it also offers mortgages, loans, and investment products. The only thing missing from the offering is a traditional savings account and CDs.
Since its inception as a credit card provider, Discover has come a long way. Of course, credit cards are available, but you can also get home loans, personal loans, and a variety of checking and savings products such as retirement accounts, CDs, and money market accounts.
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