Bank of America vs. Capital One: Which Bank Is Better? (2024)

The right bank can make managing your finances easier. The specific features offered by a bank can help you streamline your financial management to avoid unnecessary hassles. But since everyone has different money management preferences, the best bank for you varies based on your unique situation.

Bank of America, Member FDIC, and Capital One are popular banking options in the U.S. We will explore how these two financial institutions stack up against each other to determine which bank better suits your needs.

Bank of America vs Capital One: Access

Bank of America is the second-largest bank in the U.S., by asset size. While Capital One still ranks in the top ten largest banks in the U.S. by asset size, it’s more than five times smaller than Bank of America.

The big swing in size is also reflected in the number of branches offered by each bank. Bank of America boasts over 3,900 physical branch locations, which are spread across 39 states.

Capital One has a more limited selection of physical branches. Although the exact number is not published, you’ll only find Capital One locations in New York, Louisiana, Texas, Maryland, Virginia, Maryland, New Jersey and the District of Columbia. With fewer states and its reputation for online service, it’s likely you’ll find significantly more bank branches available through Bank of America. But Captial One customers still have access to over 70,000 ATMs.

In terms of digital access, both Bank of America and Capital One offer robust online platforms. Additionally, both banks offer highly-rated mobile apps.

Bank of America vs Capital One: Accounts

Not surprisingly for the second largest bank in the country, Bank of America offers a big range of products. Some of the products offered include checking accounts, savings accounts, certificates of deposit, credit cards, home loans, auto loans and investment advising. The robust selection presents an opportunity to manage all of your financial needs in a single place.

As a smaller bank, Capital One offers a bit less variety, but many can still find exactly what they are looking for. Some of the products offered include credit cards, checking accounts, savings accounts, certificates of deposit, auto loans and small business banking.

While the details vary from account to account, Capital One accounts tend to come with lower fees and higher APYs. For example, the Bank of America Advantage Plus Banking account comes with a waivable $12 monthly fee. But Capital One’s 360 Checking account doesn’t come with any monthly fees. That’s one example of why Capital One won the honor of best bank for high rates and no fees in GOBankingRates’ Best Banks of 2023 ranking.

Bank of America vs Capital One: APYs

Savers who want to put their hard-earned dollars to work can find more value through Capital One’s attractive APYs.

Bank of America offers the Bank of America Advantage Savings account with APYs ranging from to . You’ll need at least $2,500 and unlock the Preferred Rewards Tier to snag the APY. The APYs attached to some Bank of America CD terms are more attractive. For example, you can find a seven-month CD with an APY of and a 13-month CD with a APY.

Capital One tends to offer higher interest rates for savers. For example, Capital One’s 360 Performance Savings account comes with a APY, which means you can earn an attractive rate without giving up access to your funds. Capital One also offers competitive CD rates. For example, it offers a one-year CD with a APY, a two-year CD with a APY, and a five-year CD with a APY.

Which Bank Is Better: Bank of America vs. Capital One?

Bank of America and Capital One are both popular banks. But the best bank for you varies based on what you are looking for in a bank. Consider making a list of banking priorities to guide you through your search. For example, you might care more about physical branches or high APYs, which would guide you in different directions.

Who Should Bank With Bank of America?

Bank of America shines with its ability to cater to your banking needs in person. The large network of physical branches means there is a good chance you can manage your banking needs with the team at your local branch.

Additionally, the extensive product offering means it’s conceivable to manage all of your finances with Bank of America. Before you opt to go all in with Bank of America, or any bank, make sure to read all of the product details. You don’t want to get stuck paying for unnecessary fees.

Who Should Bank With Capital One?

For savers who want to make top APYs a priority, Capital One could be the right fit. You’ll find competitive rates through Capital One that you generally won’t find at bigger banks. For example, the APY attached to Capital One’s 360 Performance Savings account is significantly better than the APY you could possibly snag through Bank of America.

If you are comfortable conducting your banking online, then there’s nothing to detract from moving forward with Capital One.

Takeaway

Capital One and Bank of America both offer an array of financial products. But the right bank varies based on your needs. Before you move forward, consider exploring all of the best banking options to confirm you’ve found the right fit.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Dec. 28, 2023

Savings vary depending on account usage and payment behavior.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.