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 | 4.30% | 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% – 5.00% | 0.03% – 4.75% |
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. One of the most popular cards is the Discover Cash Back credit card that offers up to 5% cash back on your purchases, with a 0% introductory rate for the first 14 months.
There is also a Travel card that offers miles, an NHL card for all 31 teams and a Gas & Restaurant card that offers 2% cash back in this category. Discover also has cards designed for students; the Student Cash Back card with up to 5% cash back and the Student Chrome card that offers 2% cash back on gas stations and restaurants with 1% on other purchases.
For those with a less than perfect credit rating, there is also a Discover Secured card that can help you to build your credit rating while earning cash back.
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.
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. There is also a choice of Bank of America Secured cards including Customized Cash Rewards, Unlimited Cash Rewards and BankAmericard that allow you to earn rewards even if you have less than solid credit.
Finally, there is a choice of partnership cards. Bank of America has teamed up with Alaska Airlines, Susan G Komen, Free Spirit, Amtrak and AllWays to allow you to earn rewards with your preferred brands.
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.
On personal loans, Discover offers a 30-day money-back guarantee. If you decide within 30 days of receiving your loan that you no longer want it, you can return the funds by check and you will not be charged any interest. There are no origination fees, application fees, or prepayment penalties with Discover. If you miss your payment due date, it may charge you a $39 late fee.
Discover | |
|---|---|
APR | 6.99% – 24.99%
|
Loan Amount | $2,500 – $35,000
|
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.
Likewise the Discover and Bank of America websites are easy to use and packed with resources. You can compare accounts and credit card options to narrow down which is the best choice for you. However, Bank of America does have the edge in terms of resources with the Better Money Habits section that can help you with savings, budgeting, debt, investing and tax advice.
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 $100 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.
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Discover Bank vs Capital One
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.
Capital One began as a credit card company, but it has grown to offer a diverse range of traditional banking services over the years. In addition to credit cards, it offers checking and savings accounts, loan refinancing, auto finance, and children's accounts. As a result, Capital One is more appealing to those seeking a traditional banking experience.
Read Full Comparison: Discover vs Capital One: Which Bank Account Wins?
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.
Read Full Comparison: Discover vs American Express: Which Bank Account 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.
Read Full Comparison: Discover vs Citi: Compare Banking Options
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.
Read Full Comparison: CIT Bank vs Discover: Which Bank Account Wins?
SoFi vs Chime
SoFi's online Spend and Save account, like the Chime online checking account, is fee-free, but it has some different checking account features. Chime, for example, offers a $200 fee-free overdraft facility subject to terms, whereas SoFi provides cash back if you have recurring direct deposits of $500 or more each month.
Read Full Comparison: SoFi vs Chime: Which Online Banking Wins?
SoFi vs Ally Bank
Since the bank's inception, the SoFi product line has come a long way. You can now get access to investment products, mortgages, and loans, in addition to its hybrid checking and savings account. SoFi even offers insurance. The only thing missing from this bank are CDs and traditional savings accounts.
Ally offers a much broader range of traditional banking products. In addition to checking, savings, and CD accounts, there are investment and retirement products, mortgages, auto loans, and personal loans available.
Read Full Comparison: SoFi Money vs Ally Bank: Compare Banking Options
SoFi vs Bank of America
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?
SoFi vs Chime
SoFi's online Spend and Save account, like the Chime online checking account, is fee-free, but it has some different checking account features. Chime, for example, offers a $200 fee-free overdraft facility subject to terms, whereas SoFi provides cash back if you have recurring direct deposits of $500 or more each month.
Read Full Comparison: SoFi vs Chime: Which Online Banking Wins?
SoFi vs Varo Bank
SoFi's online Spend and Save account, like the Chime online checking account, is fee-free, but it has some different checking account features. Chime, for example, offers a $200 fee-free overdraft facility subject to terms, whereas SoFi provides cash back if you have recurring direct deposits of $500 or more each month.
Read Full Comparison: SoFi vs Chime: Which Online Banking Wins?
SoFi vs Chime
SoFi's online Spend and Save account, like the Chime online checking account, is fee-free, but it has some different checking account features. Chime, for example, offers a $200 fee-free overdraft facility subject to terms, whereas SoFi provides cash back if you have recurring direct deposits of $500 or more each month.
Read Full Comparison: SoFi vs Chime: Which Online Banking Wins?
