Banking » Compare Banks » Comparing CD Rates: Capital One vs. Discover Side By Side
Advertiser Disclosure

This website is an independent, advertising-supported comparison service. The product offers that appear on this site are from companies from which this website receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This website does not include all card companies or all card offers available in the marketplace. This website may use other proprietary factors to impact card offer listings on the website such as consumer selection or the likelihood of the applicant’s credit approval.

This allows us to maintain a full-time, editorial staff and work with finance experts you know and trust. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impacts any of the editorial content on The Smart Investor. While we work hard to provide accurate and up to date information that we think you will find relevant, The Smart Investor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof.

Learn more about how we review products and read our advertiser disclosure for how we make money. All products are presented without warranty.

Comparing CD Rates: Capital One vs. Discover Side By Side

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
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor, which helps consumers make better financial decisions.  Silvermann’s areas of expertise include investing, banking, and credit cards. Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more. Aside from being a finance expert, his background includes working as a business and financial analyst. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor, which helps consumers make better financial decisions.  Silvermann’s areas of expertise include investing, banking, and credit cards. Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more. Aside from being a finance expert, his background includes working as a business and financial analyst. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

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% – 4.75%
2.00% – 4.75%
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
3.90%
3.40%
9 Months
3.90%
3.50%
12 Months
4.75%
4.75%
18 Months
4.75%
4.75%
24 Months
4.30%
4.30%
30 Months
4.30%
4.30%
36 Months
4.30%
4.30%
48 Months
4.20%
4.00%
60 Months
4.10%
4.00%
120 Months
N/A
3.80%

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
3.90%
4.00%
Minimum Deposit
$0
$0
Fees
$0
$0
Promotion
$150 – $200 Minimum deposit of $15,000 / $25,000, expired on 06/15/2023
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.

Compare CD Rates

Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor, which helps consumers make better financial decisions.  Silvermann's areas of expertise include investing, banking, and credit cards. Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more. Aside from being a finance expert, his background includes working as a business and financial analyst. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.
Best CD Rates

Table of Contents

$200 Chase Total Checking Banner

Advertiser Disclosure

The product offers that appear on this site are from companies from which this website receives compensation.