American Express and Capital One are both prominent players in the credit card and online banking sectors, recognized as leading online banks today. Delving into a comparison between these two financial institutions reveals their respective strengths and offerings.
American Express National Bank, established in 1989 and based in Salt Lake City, Utah, is a subsidiary of American Express Company. It provides a range of online banking services including personal savings and checking accounts, loans, investment management, and business accounts and credit lines.
Capital One, a Virginia-based credit card company founded in 1994, has diversified its services to encompass a wide array of financial products for individuals and businesses. These offerings include checking and savings accounts, money market accounts, CDs, and auto loans.
In terms of deposit account options, both American Express and Capital One feature interest-bearing checking accounts without monthly maintenance or overdraft fees. However, American Express shines with a competitive 1% APY on its checking account versus Capital One's 0.1% APY, additionally offering rewards points on eligible debit card transactions. Capital One, on the other hand, lacks rewards for checking accounts but provides a $250 welcome bonus to eligible new accountholders.
Regarding savings accounts, American Express edges out Capital One with a slightly higher 3.7% APY compared to 3.6% APY. Both banks offer convenient features like no minimum opening deposit or monthly fees.
For CDs, both American Express and Capital One offer terms up to 60 months with rates as high as 4%. However, American Express subjects customers to a longer early withdrawal penalty compared to Capital One's more restricted penalty duration.
Beyond deposit accounts, American Express extends its services to cover IRAs, personal loans, credit cards, and business banking solutions. Capital One, on the other hand, provides additional offerings such as a child's savings account, credit cards, auto financing, and business banking solutions.
Overall, American Express generally offers better rates on its checking and savings accounts compared to Capital One. Both banks maintain similar fee structures, not charging monthly maintenance or overdraft fees.
American Express is recommended for individuals seeking high deposit rates and low fees, as long as they are existing Amex cardholders. Capital One is a suitable choice for those prioritizing a quality digital banking experience, competitive rates, and the option to make cash deposits.