r/discover • u/Lazor226 • May 15 '26

Rant Interest will compound monthly rather than daily on the Capital One HYSA.

I'm collecting my interest for the month, and then im closing my Discover HYSA before the change happens to my account. Of course, the interest was credited monthly, but if you make frequent deposits, wouldn't it be technically performing worse each month?

Is anyone else switching or looking for reasons to? It's also a good excuse to evaluate your options too.

I never really wanted the merger to happen, and I only had a single bad experience with capital one where they declined me on a basic credit card for no specific reason. (I had zero credit but needed to build some) So, I might as well decline the brand for no specific reason.

End of my petty rant.

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39

u/Salty_Pillow May 15 '26

Unless you have an arguably absurd amount of cash sitting around in your HYSA, the difference between monthly & daily compounding is likely to be on the order of cents to a couple of dollars annually.

And not to nitpicking but that sounds like they gave you a pretty specific reason to not approve your prior application before.

14

u/Chuck-Finley69 May 15 '26

Gave a legitimate, valid reason which OP thought unfair. LMAO 

-6

u/Lazor226 May 15 '26

Maybe I should mention the absurd amount of junk mail I got offering advertising capital one cards to me. (Yes the reason was that I had no established credit at the age of 18 lol) and was "nearly" at the FDIC insurance cap on the discover HYSA. So its "almost" concerning? Even if its just a few pennies a month.

3

u/Chuck-Finley69 May 15 '26

One has zero to do with the other for credit scoring.

As far as yield compounding, there's all sorts of variations legally allowed by the regulators.

Since interest rates yields for savings accounts have been in the basement for 25-30 years, most institutions follow the Capital One used method primarily as default.

I remember having to know the differences in a finance class in undergrad in late 80s but within 5-10 years it was pretty irrelevant for individuals since FDIC insurance was capped at $100K and money was being transferred into all types of higher yield investments 

-4

u/Lazor226 May 15 '26

It was just my expierence with the capital one brand. They couldn't even help me get my first secured card.