Table Of Content
Because Discover is an online bank, there are no local branches where customers can visit for banking needs. Discover is best known for its rewards credit cards, but it also offers personal, student, and home equity loans.
Discover makes use of a mobile app that is available for both iOS and Android devices. You can use this app to access all of your Discover accounts and use their mobile check deposit by taking a picture with your phone or tablet.
Bank of America is a full-service national bank with a 240-year history. The bank, which is the second largest in the United States in terms of assets, provides in-person banking through approximately 4,300 financial centers located across the country.
Bank of America provides business and commercial banking products and services in addition to personal banking. However, Bank of America's savings and CD interest rates can't really compete with the best online banks.
Banking Options
Discover | Bank of America | |
|---|---|---|
Savings Accounts | ||
Checking Accounts | ||
CDs | ||
Money Market Account | ||
Debit Card | ||
Credit Cards | ||
Personal Loans | ||
Mortgage | ||
Government Mortgage | ||
Business Loans | ||
Investing Capabilities |
Savings Account
In terms of savings accounts, Discover has the edge. Discover offers over 10 x the interest rate, and you need to be a Preferred Rewards member to access the higher Bank of America rates.
Additionally, Discover does not charge a monthly fee, so you don’t need to worry about maintaining a minimum balance or linking your accounts to avoid the $8 monthly fee.
However, Bank of America does have the innovative Balance Connect feature that allows you to link your savings account to your current account and avoid overdrawn fees if you inadvertently have insufficient funds in your account.
Discover | Bank of America | |
|---|---|---|
APY | 3.75% | 0.01% – 0.04% |
Fees | $0 | $8 per month
Can be waived by maintaining a balance of $500+, becoming a Preferred Rewards member or linking to your B of A Advantage Banking account. Fees are also waived for enrolled students aged under 24
|
Minimum Deposit | $0 | $100 |
Checking Needed? | No | No |
Main Benefits |
|
|
Checking Account
Discover also has the edge when looking at the checking accounts. While both providers do not offer interest on their checking accounts, like with the savings accounts, Discover does not charge any fees.
Bank of America requires that you need to be a Preferred Rewards member, maintain a minimum account balance or make qualifying deposits to avoid the $12 monthly fee. Another plus point for Discover is that you can earn 1% cash back on purchases made with your associated debit card.
So, while you won’t receive interest on your account, you could potentially make a little cash on your account activity.
There are some key similarities with Discover and Bank of America checking accounts. Both allow you to use Zelle and have an app to manage your account on the go.
However, it is worth mentioning that Bank of America does employ Smart Money Management tools that include customized rewards, custom alerts and savings goals.
Discover | Bank of America | |
|---|---|---|
APY | 0% (1% cash back on up to $3,000 in debit card purchases each month) | 0.01% – 0.02% |
Fees | $0 | $12
can be waived by maintaining an account balance of $1,500, qualifying deposit of $250+ per month or enrol in Preferred Rewards
|
Minimum Deposit | $0 | $25 – $100 |
Main Benefits |
|
|
CDs
Finally, when comparing CDs, Discover also comes up on top. Although you need a higher minimum balance, even the one year CDs offer rates that are over 10x more compared to Bank of America.
Additionally, while Bank of America offers the same rates regardless of the CD term, Discover offers more attractive rates if you take on a longer term. So, unless you can’t reach the minimum deposit, Discover is the better option.
Discover | Bank of America | |
|---|---|---|
Minimum Deposit | $2,500 | $1,000 |
APY Range | 2.00% – 4.00% | 0.03% – 4.00% |
Credit Cards
Both companies are considered on top when it comes to their credit card options.
Discover Credit Cards
Discover is primarily known for its credit cards and so it offers a decent selection of options.
All Discover credit cards benefit from Unlimited Cashback Match. Discover will match the cash back you earn during your first year automatically, dollar for dollar with no maximum rewards or minimum spending.
Top Offers From Our Partners
Top Offers From Our Partners
Bank Of America Credit Cards
Like Discover, Bank of America has an impressive choice of credit card options. There is the Customized Rewards card that allows you to select your preferred cash back tiers and the Unlimited Rewards card that simply offers 1.5% cash back on all your purchases.
The Travel Rewards card offers miles, the BankAmericard offers 0% for the first 18 months and the Premium Rewards card offers unlimited points.
Bank of America also offers a similar card selection for students, including Customized Rewards, Unlimited Cash Rewards, BankAmericard and Travel Rewards.
Card | Rewards | Bonus | Annual Fee |
| Bank of America® Customized Cash Rewards credit card
| 1-3%
3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings, 2% cash back at grocery stores and wholesale clubs and 1% cash back on all other purchases. The 3% and 2% cash back available on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter (then 1%)
| $200
$200 cash rewards bonus after making at least $1,000 in purchases in the first 90 days of your account opening
| $0 |
|---|---|---|---|---|
| Bank of America® Travel Rewards credit card | 1.5X
1.5 points for every $1 you spend on all purchases everywhere, every time and no expiration on points
| 25,000 points
25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening – which can be redeemed for a $250 statement credit toward travel purchases
| $0 |
| BankAmericard® credit card | N/A |
N/A
N/A
| $0 |
| Bank of America® Premium Rewards® credit card | 1.5X – 2X
Unlimited 2X points on travel and dining purchases. Unlimited 1.5X points on all other purchases
|
60,000 points
60,000 online bonus points after spending $4,000 on purchases in the first 90 days. | $95 |
| Bank of America Unlimited Cash Rewards credit card | 1.5%
unlimited 1.5% cash back on all purchases
|
$200
$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
| $95 |
| Bank of America® Premium Rewards® Elite | 1.5x – 2x
2 points for every dollar you spend on travel or dining purchases, with 1.5 points per dollar on all your other purchases | 75,000 points
75,000 bonus points if you spend $5,000 or more within 90 days of opening your account
| $550 |
Personal Loans
A Discover personal loan can be used for a variety of purposes, including financing large purchases such as home repairs or a wedding, as well as debt consolidation.
You can also use your personal loan to cover unexpected expenses, such as home renovations or the purchase of a new vehicle. An unsecured personal loan does not require collateral, such as a home or a car.
Discover offers a low minimum APR. However, you will only be eligible for that rate if you have excellent credit.If you use a Discover loan to consolidate your debts, Discover will send funds directly to your creditors.
You must use at least 70% of your loan for existing creditors, or your final APR may be affected. Discover also offers a 30-day money-back guarantee.
Discover | |
|---|---|
APR | 7.99% – 24.99%
|
Loan Amount | $2,500 – $40,000
|
Terms | 36 to 84 months
|
Customer Service
Whether you have a query or a banking emergency, you need to be able to access the customer service team. Bank of America does have a 24/7 helpline for lost or stolen cards and you can also access the support team via the app, website and its social media channels.
However, if you want to speak to an agent on the phone, the team is only available 8 am to 9pm ET Monday to Friday with weekend hours of 8 am to 8 pm and 8 am to 5 pm on Saturday and Sunday respectively.
Discover has less avenues to access customer service, but the hours are more flexible. The website and app has a chat function that allows you to message a U.S based agent at any time. There is also a 24/7 toll free number.
Online/Digital Experience
Discover Bank | Bank of America | |
|---|---|---|
iOS App Score (1-5) | 4.9 | 4.8 |
Android App Score (1-5) | 4.6 | 4.6 |
BBB Rating (A-F) | A+ | A+ |
Consumer Affairs (1-5) | 3.8 | 3.7 |
WalletHub (1-5) | 4 | 3.9 |
Contact Options | phone | phone/social |
Both Discover and Bank of America have embraced the latest digital trends and technology. Both banks have an impressive app that allows you to fully manage your account on the go.
You can use Zelle to transfer funds and use the app to set alerts to ensure that you remain on budget. In fact the Bank of America app is rated 4.8/5 and 4.6/5 on the Apple Store and Google Play respectively, while the Discover app is similarly rated with 4.9/5 and 4.6/5 on Apple and Google.
Which Bank is The Winner?
Although Bank of America does have a larger product line with options for business loans and government mortgages, the Discover products do seem to have the edge. While you may not have as many choices, the savings account and CDs offer better rates, while the checking account has no fees, so you don’t need to worry about meeting account minimums to avoid the monthly maintenance fee.
However, Bank of America does have an impressive selection of credit card options. So, if you prefer to have all of your financial products with one institution, you may appreciate Bank of America. If you enroll in the Preferred Rewards membership program, you can access better rates and fees are waived, allowing you to access a wider variety of products with decent terms.
FAQs
What promotion does Bank of America offer?
Bank of America offers a welcome bonus of $200 for new personal checking customers who open an account online.
Many of the cards have a decent welcome bonus (or points equivalent) if you meet the spending criteria within the time limit. For example, with the Bank of America Customized Cash Rewards card, you can get a $200 cash rewards bonus after making at least $1,000 in purchases in the first 90 days of your account opening.
What promotion does Discover offer?
As of now, Discover offers $150 or $200 bonus offer on its personal savings account. There is a minimum deposit of $15,000 or $25,000 within 30 days.
What are the major disadvantages of Discover Bank?
Aside from the high minimum opening deposit, Discover Bank's CDs have another significant limitation: you cannot cash them out without penalty. Furthermore, Discover Bank is not affiliated with a brokerage firm, which could provide account holders with additional investment options. Finally, while Discover Bank does provide credit cards to small business owners, it does not provide business banking accounts.
What are the major disadvantages of Bank of America?
Bank of America's interest rates on various investment products are very low when compared to other banks and even the national average. Furthermore, most accounts have high monthly fees that you won't necessarily have to pay at other banks like Discover.
How does the Discover CD IRA work?
Basically, an IRA is a tax-advantaged account that allows you to save for retirement. You have the freedom to tailor your IRA holdings to your specific needs. IRA CDs and IRA savings accounts can provide you with the security of consistent returns as well as the tax benefits of IRAs. IRA CDs pay a predetermined, guaranteed rate that is set at the time of purchase. The rate is determined by the term of the IRA CD; the longer the term, the higher the rate rate you'll get.
Customers can select from Roth IRA CDs or Traditional IRA CDs based on their needs. Discover IRA CDs can be funded with funds from many other retirement accounts. Customers can also move an IRA from another financial institution into a Discover IRA CD. Discover Bank refers to the CD and IRA CD as having a “no penalty” feature. If you lose your job involuntarily, you can withdraw your funds without penalty.
What is the reputation of Bank of America?
- 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.
- 4.7/5 based on +180 BBB customer reviews – Customers can leave positive, negative, or neutral feedback about their marketplace experiences using BB customer reviews.
- Trustpilot 4.7/5 (+180 reviews) – TrustScore is an overall measurement of reviewer satisfaction that ranges from 1 to 5.
Discover vs Bank Of America: Comparison Methodology
In our detailed comparison, The Smart Investor team thoroughly looked at Bank of America and Discover in five main areas:
Checking Accounts (30%): We checked things like direct deposit, debit card availability, monthly fees, ATM and branch access, check deposit, bill pay options, and account alerts. We also considered any special offers for customers.
Savings Accounts including CDs (20%): We focused on important stuff like how much interest you can earn (APY), the smallest amount you need to open an account, how flexible the accounts are, and if they're insured by FDIC. We also looked at special savings offers, different types of CDs, and any fees for taking money out early.
Credit Cards (15%): We looked at what rewards you get, how much the card costs each year, any bonuses you get for signing up, perks for traveling, how much interest you pay on balances, and if you can transfer balances from other cards.
Lending Options (15%): We checked out the different kinds of loans they offer, like personal loans, student loans, mortgages, and loans where you use your home as collateral.
Customer Experience And Bank Reputation (20%): We looked into how easy it is to use their online and mobile banking, how helpful their customer support is, what people say about them online, any awards they've won, and how stable they are financially. This gave us a good idea of what it's like to be a customer and how much people trust them.
Compare BofA With Alternative Banks
Bank of America is a nationwide network that offers deposit, loan, and credit card services. There are also increased daily limits on ATM and debit purchases, which is an excellent incentive to improve your financial situation. Aspiration's company was presented in a very different manner than their bank competitors.
One feature that sets them apart from their competitors is that they let their customers decide how much they want to pay for their services. The fee that the customer believes is fair or appropriate for the level of service they receive is set by the customer.
Wells Fargo's product offering is even more extensive. This bank offers checking accounts, a variety of savings accounts, mortgages, loans, and investment options such as IRAs, 401ks, and wealth management services. This makes switching from another bank even easier because you'll have access to all of your favorite banking products.
Bank of America offers a diverse range of banking services. Checking and savings accounts, auto loans, home loans, credit cards, and investment options are all available.
Read Full Comparison: Bank of America vs Wells Fargo: Which Bank Is Better?
Bank of America has an impressive line of banking products, as one would expect from a large banking institution. Aside from various checking and savings accounts, there are auto loans, home loans, a variety of credit cards, and investment options. This makes switching from your current bank easier because you'll find many familiar products.
Chase also has a good selection of banking products. There are checking and savings accounts, auto loans, home loans, and home equity options, as well as a fantastic selection of credit cards.
Read Full Comparison: Bank of America vs Chase: Where to Save Your Money?
US Bank offers an even more impressive range of banking services. Savings and checking account options, investments, personal loans, mortgage products, and wealth management are all available.
Bank of America offers a wide range of banking services. There are numerous credit cards available, as well as various checking and savings accounts, home loans, investments, and auto loans.
Read Full Comparison: Bank of America vs US Bank: Which is Best For You?
Bank of America is a large banking institution, and its impressive banking product line reflects this. Aside from savings and checking accounts, there are home loans, auto loans, investment options, and a variety of credit cards. Citi also has a diverse product offering. Credit cards, CDs, personal loans, mortgages, IRAs, investment options, wealth management plans, and checking and savings accounts are all available.
As a result, if you want to switch from your current bank, either bank is a viable option because you won't have to make any compromises in terms of banking products.
Read Full Comparison: Bank of America vs Citi: Which Bank Suits You Best?
Spend and Save is a SoFi savings and checking account hybrid. For the purposes of this comparison, we'll look at the savings features, of which there are a few. The most visible are the savings vaults. These enable you to set up separate funds to work toward different savings goals without the need for multiple accounts. This helps you organize your money, and you can even designate a vault for your round-up funds.
Bank of America offers a more traditional savings account, but it pays far less interest, ranging from 0.01 percent to 0.04 percent depending on your Preferred Rewards status, compared to SoFi's 0.25 percent. In addition, there is a $8 monthly maintenance fee that can be waived by keeping a balance of $500 or more in the account or linking your checking account. By linking your accounts, you can avoid going overdrawn with Balance Connect.
Read Full Comparison: SoFi Money vs Bank of America: Which Is Better For Your Needs?
Both banks have a decent selection of banking products, but there are some gaps in each line up. If you’re looking for the best returns, Capital One does have the edge in terms of CD and savings rates.
There is no clear winner as to whether Truist Bank or Bank of America is a better choice, but we prefer the latter. Here's why.
Truist Bank vs. Bank Of America: Which Bank Account Is Better?
Bank of America and PNC Bank offer various banking products, but which is a better fit for you? Let's compare and see our winner: PNC Bank vs. Bank Of America
We'll explore Bank Of America and TD Bank savings accounts, checking accounts, CDs, credit cards, and lending products. Here's our winner: TD Bank vs. Bank Of America
BMO is the winner when it comes to savings products, while Bank Of America offers many more credit card options. Here's our winner: Bank of America vs. BMO Bank
There is no clear-cut winner, but we prefer Bank Of America. But, there are cases when Citizens is best. Here's our comparison: Bank of America vs. Citizens Bank
While Bank of America and Fifth Third Bank offer a range of banking services, Fifth Third is our winner in this competition. Here's why.
Bank of America vs. Fifth Third Bank: Which Bank Account Is Better?
We'll explore Bank of America and M&T Bank savings accounts, checking accounts, CDs, credit cards, and lending products. Here's our winner: Bank of America vs. M&T Bank
We believe Bank Of America is the preferred option in this battle. But, there are significant differences to know. Here's our comparison: Bank of America vs. KeyBank
While Regions Bank offers better checking accounts, Bank of America wins in credit cards and CDs. Here's our side by side comparison: Regions Bank vs. Bank of America
If you feel comfortable with online-only banking and depending on your needs – Ally may be a better option than Bank Of America. Here's why.
Ally Bank vs. Bank of America: Which Bank Account Is Better?
For most consumers, Bank of America may be a better option. American Express is a solid option for customers with higher wealth. Here's why.
American Express Bank vs. Bank of America: Which Bank Account Is Better?
Banking Reviews
Ally Bank Review
Capital One Bank Review
Discover Bank Review
Chase Bank Review
Bank of America Review
Wells Fargo Bank Review
Citi Bank Review
SoFi Bank Review
Barclays Bank
Synchrony Bank
American Express Bank
Varo Bank Review
TD Bank Review
Aspiration Review
Merrick Bank Review
Sallie Mae Bank Review
BMO Harris Bank Review
Citizens Bank Review
Quontic Bank Review
Axos Bank Review
CIT Bank Review
PNC Bank Review
Connexus Credit Union Review
U.S. Bank Review
LendingClub Review
PenFED Credit Union Review
Alliant Credit Union Review
Banks & Credit Unions Reviews
Top Savings Accounts From Our Partners
Quontic High Yield Savings
- 3.85% APY on savings
- Interest is compounded daily
- No Monthly Service Fees
CIT Savings Connect
- Up to 4.35% APY on savings
- No monthly service fees.
- Zelle, Samsung & Apple Pay
Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.
Top Offers From Our Partners
Advertiser Disclosure
Top Offers From Our Partners
