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American Express and Capital One are two major players in the credit card and online banking space. In fact, they're both considered among the best online banks today. But is one better than the other? Here’s a closer look at how these two financial institutions stack up against each other.
American Express vs. Capital One: General overview
About American Express National Bank
Founded in 1989 and headquartered in Salt Lake City, Utah, American Express National Bank is a subsidiary of American Express Company. As an online bank, Amex offers personal savings and checking accounts, loans, investment management services, and business accounts and lines of credit.
Read our full review of American Express National Bank
About Capital One
Capital One is a Virginia-based credit card company founded in 1994. Over the years, Capital One has expanded its offerings to include a full suite of financial products and services for consumers and businesses, including checking and savings accounts, money market accounts, CDs, auto loans, and more.
Read our full review of Capital One
American Express vs. Capital One: Deposit account options
Checking accounts
American Express and Capital One both offer interest-bearing checking accounts that are free to open with no monthly maintenance fees or overdraft fees.
However, American Express stands out for its checking account interest rate, which pays a competitive 1% APY vs. Capital One’s 0.1% APY. The Amex checking account also offers membership rewards points on eligible debit card purchases. However, it is currently only available to card members with a U.S. basic consumer card issued by American Express National Bank with at least 35 days tenure.
Capital One does not offer any rewards for its checking account. However, like Amex, it offers a $250 welcome bonus for new accountholders who meet specific criteria. Both of these accounts made our list of the 10 best free checking accounts available today.
Savings accounts
American Express and Capital One both offer a high-yield savings account with no minimum opening deposit, monthly maintenance fees, or minimum balance required to earn the disclosed rate.
American Express does offer a slightly higher rate than Capital One (3.7% APY vs. 3.6% APY). Although this is a small difference, it does translate to more earned interest over time. Additionally, both of these accounts made our list of the 10 best high-yield savings accounts available today.
Certificates of deposit (CDs)
American Express and Capital One both offer CDs with terms of up to 60 months. Neither bank requires a minimum opening deposit. Additionally, both banks offer CD rates as high as 4%.
The main difference is that Amex imposes an early withdrawal penalty of up to 540 days’ worth of interest (approximately 18 months), depending on the CD term. On the other hand, Capital One imposes a maximum penalty of six months’ worth of interest.
Read more: The best CD rates on the market today
American Express vs. Capital One: Additional products and services
In addition to the products we compared above, American Express also offers individual retirement accounts (IRAs), personal loans, credit cards, and business banking products and services.
Capital One offers a kid’s savings account, credit cards, auto financing, and business and commercial banking solutions as well.
Does American Express or Capital One have better APYs?
Overall, American Express offers slightly better rates on its checking and savings accounts. Right now, its checking account rate is more than five times the national average. Its savings account also offers a competitive rate that’s more than nine times the national average. American Express offers similar interest rates on its CDs compared to Capital One.
Does American Express or Capital One have lower fees?
Both banks have similar fee structures and do not charge monthly maintenance fees or overdraft fees for their accounts.
Who should bank with American Express?
American Express National Bank is a great option for consumers who value high deposit account rates, low fees, and who don’t need to make cash deposits. However, the checking account is only available to existing Amex members.
Who should bank with Capital One?
Capital One is a worthwhile option for those who value a quality digital banking experience, competitive interest rates, and the ability to make cash deposits.
Read more: Best new bank account promotions and bonuses: Earn up to $3,000
