Blog/Comparisons

SoFi vs Discover 2026: Direct Deposit Required?

SoFi pays more but requires direct deposit. Discover pays less but adds cashback rewards. Here's how to choose.

By SideBySide Editorial7 min readUpdated January 2026

⚡ Quick Verdict

Choose SoFi if:
  • • You have reliable direct deposit
  • • You want a full banking ecosystem
  • • Higher APY is your priority
Choose Discover if:
  • • You can't commit to DD
  • • You want cashback on debit
  • • You value app experience
Feature SoFi Discover Winner
APY (with DD) 4.00% 3.60% 🏆 SoFi
APY (without DD) 1.00% 3.60% 🏆 Discover
Sign-Up Bonus Up to $300 $200 🏆 SoFi
Cashback Debit ✗ No 1% 🏆 Discover
Mobile App 4.7★ 4.8★ 🏆 Discover
ATM Network 55,000+ 60,000+ Tie
Investing ✓ Yes ✗ No 🏆 SoFi

The Direct Deposit Question

This is the deciding factor. SoFi's 4% APY requires direct deposit—without it, you earn just 1%.

Annual Interest on $25,000

SoFi WITH direct deposit $1,000
Discover (no DD required) $900
SoFi WITHOUT direct deposit $250

If you have stable W-2 employment and can commit to direct deposit, SoFi wins. If you're freelance, self-employed, or between jobs, Discover's unconditional rate is safer.

Capital One Acquisition Factor

Important: Discover is being acquired by Capital One. If the deal closes, accounts may migrate to Capital One, rates could change, and the cashback debit program might end.

This adds uncertainty to choosing Discover. SoFi, while requiring DD, is independently stable.

The Cashback Debit Advantage

Discover's 1% cashback on debit purchases (up to $3,000/month) can add up:

  • $1,000/month in debit spending = $10/month = $120/year
  • $2,000/month = $240/year
  • $3,000/month (max) = $360/year

This partially offsets Discover's lower APY—if you use debit frequently.

The Bottom Line

Choose SoFi if: You have reliable direct deposit and want the higher 4% APY plus bonuses and investing features.

Choose Discover if: You can't commit to direct deposit, value the best-in-class app experience, or want cashback on debit purchases.