Capital One is a full-service bank with competitive rates and no-fee accounts to meet the majority of banking needs.
While it does have branches and Capital One café in select locations, Capital One is primarily an online bank.
Capital One, best known for its popular credit cards, entered the banking world in 2012 when it purchased ING Direct and rebranded services as Capital One 360 Banking.
Capital One provides credit cards and auto loans, as well as business and commercial solutions. This is in addition to popular consumer banking options.
This Capital 360 review will concentrate on how capital One 360 works, pros and cons and different Capital One 360 accounts.
About Capital one 360
The Capital One 360 savings account is straightforward, safe, and user-friendly.
The first thing you should know about Capital One 360 is that it is not a physical bank (sort of).
Capital One is experimenting with a hybrid model. They have physical locations in eight states as well as online banking.
These are some examples: Connecticut, Delaware, Louisiana, Maryland, The state of New Jersey, The city of New York, Texas, and Virginia\sDC.
Yes, Capital One has branches throughout the United States, but you’re mostly dealing with an online savings account here.
If this idea frightens you, consider the last time you went into a physical banking branch to deposit or withdraw money. It’s probably been a long time for most of us.
How Does Capital one 360 works?
Capital One 360 is the company’s online presence. If you live near a branch or a Café, you can have a hybrid in-person/online banking experience.
On the other hand, you can bank entirely online with Capital One 360.
Capital One’s website is simple to use, and its mobile app received 4.8 out of 5 stars in the Apple App Store and 4.6 out of 5 stars in the Google Play Store.
Once you’ve created an online account, you’ll be able to chat with a live customer service representative 24/7. You can also reach an agent by phone between the hours of 8:00 a.m. and 11:00 p.m. ET.
Capital One 360 provides checking, savings, and CD accounts. You can open a separate checking and banking account for your child under the age of 18. A minor, like you, will earn 0.10 percent on their checking account balance and 0.30 percent APY on their savings account balance.
You have access to over 70,000 ATMs nationwide through Capital One ATMs and partner ATMs. If you use an out-of-network ATM, the bank does not charge you a fee, but it does not reimburse any out-of-network fees charged by an ATM provider.
Your Capital One bank account is FDIC-insured up to $250,000, or up to $500,000 if you have a joint account.
Capital one 360 Checking
Over the years, Capital One 360 has proven to be an ideal option for travelers. This is because, with a Capital One 360 account, you can be sure of making transactions without been charged whether on a daily, weekly, or monthly basis.
Also, the bank offers overdraft protection services to its customers. Moreso, you can be sure of getting your paycheck two days early.
This is because the bank has an early direct deposit feature which is rare when compared with other banks.
Furthermore, there is no opening deposit or minimum account balance. Note, this bank account has 0.10% APY on all account balances.
|360 Checking||APY: 0.1%|
Minimum to open: $0
Monthly fee: $0
Monthly fee waiver: N/A
Minimum to open: $0
Monthly fee: $0
Monthly fee waiver: N/A
Capital One 360 CD
Capital One 360 CDs are available in terms ranging from six months to five years. This bank account pays competitive rates, but higher rates can be found at other institutions.
The Capital One 360 CD distinguishes itself by not requiring an initial deposit to open a CD, whereas most banks require at least $500.
Also, it does not have as many CD options as other banks. Capital One, for example, will not allow you to open a no-penalty CD or jumbo CD. A regular term CD is your only option.
Capital One 360 Savings Account
When it comes to online savings accounts, Capital One’s 360 Performance Savings account checks all the major boxes: This includes no fees, no minimums, and an above-average yield, despite the fact that it cannot compete with many online banks that offer even higher APYs.
Children under the age of 18 can open a Kids Savings account. When an account holder reaches the age of 18, his or her 360 Performance Savings account automatically converts into a 360 Performance Savings account.
The no-fee, interest-bearing account, which includes an automatic savings plan and allows users to set specific savings goals, can be a good way to teach kids how to save.
|360 Performance Savings||APY: 0.4%Minimum balance for APY: $0Monthly fee: $0Monthly fee waiver: N/A|
|Kids Savings Account||APY: 0.3%Minimum balance for APY: $0Monthly fee: $0Monthly fee waiver: N/A|
Who can Open a Capital One 360 account?
Capital One 360 bank account can be opened by:
Anyone who prefers to conduct their banking online
Capital One 360 caters to those who prefer to conduct all of their banking online. If you don’t mind not going into a bank branch to speak with someone, make deposits, or do any other banking, this should be fine.
People who are tech-savvy
A tech-savvy person will appreciate Capital One 360 as well, because there are many tools and options in your account that do not come with an “instruction manual.” It’s easy to use, but it’s intended to be quick, intuitive, and online-based.
Anyone who wishes to have multiple accounts
Finally, if you want to save but don’t want to keep all of your money in one place, Capital One 360 is a great option.
The ability to open up to 25 savings accounts, each with a unique name and set of goals, makes saving money a pleasurable experience.
Furthermore, you always know where your money is and what it is used for.
Pros of Capital One 360
- Saving is simple — With the Capital One 360 Savings Account, you can open up to 25 accounts to save for multiple goals.
- High APY — While the Capital One 360 does not have the highest APY, it is significantly higher than traditional brick and mortar banks.
- You can easily link accounts — It’s simple to transfer money between your Capital One Savings and Checking accounts.
- Customer service is simple — Capital One 360 is open 24 hours a day, seven days a week, which is far superior to most traditional banks.
- APY is still not the highest — While the Capital One 360 is my personal favorite, there are other accounts with higher APYs.
- Few physical locations — While this isn’t necessarily a bad thing, there aren’t many physical locations.
How does Capital One stack up against the competition?
Capital One sits somewhere in the middle of traditional and online banking. It has lower fees and higher yields than most traditional banks, but it does not have the yields of many other online banks. It does, however, provide limited branch access, which online-only banks do not.
Chase Bank vs. Capital One
Although Capital One provides some branch access, it is no match for Chase Bank in this regard. Chase has approximately 4,700 branches in the United States.
Also, Chase has a broad and diverse product offering, including multiple checking accounts, a variety of home loan products, and the industry’s most comprehensive line of rewards credit cards.
Chase Bank also has some excellent sign-up bonuses, including a $200 bonus for signing up for Chase Total Checking and establishing direct deposit.
When it comes to fees and APYs, Capital One beats out Chase Bank. Capital One’s standard checking and savings accounts all have no fees, no minimum balances, and APYs that outperform Chase’s offerings.
Capital One 360 Performance Savings, for example, pays 0.4 percent APY, whereas Chase Savings pays only 0.01 percent.
Ally Bank vs Capital One 360
Ally Bank is one of most well-known online banks, and it follows the same no-fee, no-minimum basic account structure as Capital One.
This Ally bank, on the other hand, does a better job of providing yield to investors. For example, Ally Bank’s basic savings account APY is 0.5 percent APY versus Capital One’s 0.4 percent APY.
Similarly, Ally Bank’s checking account pays 0.25 percent APY on balances of at least $15,000, while Capital One pays 0.1 percent APY on all balances.
If you ever need to contact a branch, Capital One has an advantage over Ally. Although Ally provides phone support 24 hours a day, seven days a week, it does not have any physical locations.
If you require the help of a live person to resolve your issues, or if you simply prefer to speak with someone in person, you can visit a Capital One branch.
The catch is that Capital One branches are mostly restricted to Louisiana, Maryland, New York, New Jersey, Texas, Virginia, and the District of Columbia.
Capital One vs. TD Bank
TD Bank has over 1,200 branches in the Eastern United States. Its banking accounts are also more traditional than Capital One’s, with monthly fees that can only be avoided through qualifying activities.
For example, the TD Convenience Checking account, the bank’s most popular, charges a whopping $15 monthly fee, which can be avoided with a modest $100 daily balance.
To avoid the $15 monthly fee on the TD Beyond Savings account, a minimum balance of $20,000 is required.
Aside from that, the usual slew of big bank fees such as a $35 overdraft fee, a $3 fee for using non-TD ATMs, and a $15 fee for incoming wires.
When it comes to fees and account minimums, Capital One clearly outperforms TD Bank. The strength of TD Bank over Capital One is its customer service.
Customers of TD Bank can easily access help when they need it. Thanks to extensive branch locations — albeit exclusively along the Eastern seaboard — and 24/7 customer service.
Is Capital One 360 reliable?
Capital One 360 has an A rating from the Better Business Bureau for trustworthiness.
A good BBB rating shows that a company responds effectively to customer complaints. It also uses honest advertising practices, and conducts business in a transparent manner.
However, the company has recently been embroiled in a controversy. Capital One agreed to pay $80 million after the Office of the Comptroller of the Currency determined that the bank was partially to blame for a 2019 data breach in which a hacker gained access to over 100 million credit card applications. Capital One’s security, according to the OCC, was inefficient at the time.
So, who is an ideal candidate for a Capital One 360 account? I’d recommend this banking option to anyone who wants to do all of their banking online but isn’t concerned with earning the highest interest rates.
And, because there are no fees for opening or maintaining an account, it’s probably the best option for those on a tight budget.
Check out the other online banking options for those who are “interest rate junkies.” Depending on your needs, you may be able to find even better rates with competitors such as Ally and CIT Bank.
Capital One 360 may also be unsuitable if you live far from a physical location and want to speak with a representative.
Is Capital One insured by the FDIC?
Yes, all Capital One accounts are FDIC insured for up to $250,000 per depositor and account ownership category.
Is Capital One Bank a secure institution?
Capital One employs a number of security measures to protect customer accounts and personal information. SSL encryption, fraud protection, debit card locking features, and other features are included. In 2019, Capital One experienced a security breach involving credit card accounts. The problem was quickly resolved.
Is it possible to open a money market account at Capital One?
No, Capital One does not offer any money market accounts.
Is there a difference between Capital One and Capital One 360?
Capital One is an online-bank. The only real difference is how you access your account and your money. With Capital One 360, you’ll access your account through their website or an app on your smartphone. The only other significant difference is with physical checks.