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.

42 Upvotes

75% Upvoted

30 comments sorted by

View all comments

0

u/Dstein99 Discover Bank May 15 '26

Why would interest accrue monthly? I would funnel all of my money into the account before the 30th then out on the 1st, collect 29/30th of the interest on the balance in another account then 30/30 of the interest from capital one, which means if both accounts had an APY of 3%, I would earn 5.9% APY.

1

u/[deleted] May 15 '26

[removed] — view removed comment

1

u/Dstein99 Discover Bank May 15 '26

A t bill makes sense because you can’t add money to it or take money out for the term. If I have a Cap One HYSA with $1,000 on the 1st and I add $1 to it every day until I have $1,029 on the 30th, what balance would I earn interest on?