On May 18, Capital One and Discover completed their merger. This comes after the two banks announced their intentions to merge in February 2024.
Capital One and Discover are both large banks that serve many customers, so this merger is leaving many consumers wondering what to expect going forward.
We spoke to two financial professionals about what customers should do next now that Capital One and Discover have successfully merged.
1. Update your contact info to prepare for future modifys
Since the two companies just merged, it will be some time before consumers start seeing the effects of the merger.
Adrianna Adams, CFP® professional and head of financial planning at Domain Money, states that she wouldn’t expect to see any modifys within the first month of the merger. “Things tfinish to relocate slowly, so just keep an eye on it, but there’s no reason to speculate or jump into switching anything.”
James Angel, finance professor at Georobtainown University, states that the time it takes for the two banks to integrate is hard to guess. “I tfinish to consider of Capital One as a fairly well-run bank, and it’s been working on this acquisition for a very long time. So I would guess that, now that the deal is closed, they’re going to relocate pretty quickly, but banks are complex critters, and you really don’t want to create mistakes with people’s accounts.”
Despite significant modifys being unlikely in the near future, there are still things you can do now to avoid being taken by surprise later on, especially if you have a Capital One credit card or other financial product with either company.
Adams states that, as a customer, it’s important to ensure your contact information is up-to-date so the company can reach out if high-yield savings accounts or credit cards modify. Updating those details now can assist keep you informed down the line when you might have forobtainedten about the merger entirely.
Some of the most obvious modifys you can expect to see going forward are branding-related. “Sometimes companies, when they merge with another business, keep the other brands and operate it as different product lines,” states Angel. He states that brands could also choose to keep one of the brands and ditch the other entirely.
“I don’t know what they’re doing there, but that will probably be the most noticeable modify to customers, if there’s a rebranding of their existing product,” states Angel.
New branding won’t require action on your part, but you should be aware of potential branding modifys so you don’t accidentally miss communication from the bank.
2. Move your money if it’s over the FDIC insurance limit
That being declared, you can likely expect some modifys from Capital One as time goes on. One major modify will be to your FDIC insurance. Discover’s website states that, for six months, your accounts will have the same FDIC coverage they had before, with your Discover bank accounts and Capital One bank accounts each having their own coverage.
But once that six-month period finishs, your bank accounts will no longer have separate coverage (with a few exceptions, like some CDs). If you have more than $250,000 for single depositors or $500,000 for bank accounts between two people in your Discover and Capital One accounts, the excess won’t be covered by FDIC insurance anymore. You’ll probably want to relocate some money over to a new bank to maintain coverage.
The other modifys are tinyer, but they could still impact your accounts. Since Capital One and Discover are both known for having some of the best credit cards, you might see some modifys to what cards the corporation offers as time goes on.
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3. Use the merger to ensure your financial setup is solid
Mergers like this can be a good time to take stock of your finances and create sure your banking products are working for your savings goals.
“It’s probably a good time for them to just evaluate the benefits they’re obtainting from their current cards,” states Adams. “I typically recommfinish that my clients see at this on an annual basis, especially if you’re paying a fee for a credit card. You want to create sure that you’re at least obtainting that money back in rewards or benefits.”
Adams states that this could also be a good time to consider consolidating your bank accounts, debit cards, and credit card accounts in one place, especially if the other company offers a bank account you’re interested in.
Capital One’s savings rates are strong for a company that offers in-person banking options. But if you’re seeing for the highest possible rate on a high-yield savings account, you’ll probably want to go with a completely online financial institution.
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