Capital One 360 Bank Review – High APY Savings
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Fast Facts
High-Yield Savings APY:
4.25%
Fees:
No maintenance fees or minimum balance requirements.
Robust App:
Mobile banking app for managing accounts and deposits.
Kids Accounts:
Provides savings accounts for children with no fees.
ATM Access:
Access to over 70,000 fee-free ATMs.
CD Options:
Rates ranging from 4.10% to 5.25% APY.
Given the number of banks in the industry, it can become confusing to choose one for yourself. Before you choose a bank, you need to be clear about your expectations and requirements from the service provider.
If you, like many others, are looking for an online bank with straightforward products and no fees, Capital One 360 could be a good choice. In this review, we help you decide if it meets your requirements and see how it stacks up against the competition.
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What is Capital One 360?
Capital One 360 Bank is a full-service financial institution that addresses the end-to-end banking needs of customers. Capital One 360 is one of the best national banks but functions more like an online bank. It offers Checking accounts, saving accounts, and Certificates of Deposit. The bank no longer offers new customers money market accounts but has joint checking and savings account options for kids. However, like all the other banks, it comes with some of the pros and cons you should consider when deciding if it will meet your banking needs.
While Capital One Bank is mainly an online bank, you can find physical branches in eight states, including New York, New Jersey, Louisiana, Texas, Maryland, Virginia, Delaware, Connecticut, and the District of Columbia. The company is testing the Capital One Cafes concept in a few cities with a hybrid limited branch location and a full-service coffee bar.
This Capital One 360 review will help you decide if the bank is worth your time and money.
How does Capital One 360 work?
An account can be opened quickly if there is a Capital One Bank branch or a cafe near you. But if you want to open an account online, head to the company’s homepage and click on “checking and savings” at the top area to check out the available financial products. Here, you’ll see all the types of accounts available.
Once you decide the type of account you want to open, click on the option and then click Open account. Now, they’ll ask you if you already have a Capital One login, and if you do, you just need to log in using your name and password.
If not, you will need to fill in your basic details. It only takes five minutes to open an account with the bank.
You will be asked about your residential area, income, job title, and your date of birth. In the last step, you need to fund the account.
Start saving in 3 simple steps
1. Use Capital One Shopping for Free. It takes seconds to add Capital One Shopping and works with all major browsers.
2. Shop as you normally do. Capital One Shopping's magic works quietly in the background, searching for discounts on your purchase.
3. Save effortlessly. Ready to save? Just click Capital One Shopping and the best deal discovered will be applied to your cart.
Capital One 360 features
Check out the robust features of Capital One 360 Bank.
Capital One 360 Checking Account
The Capital One 360 Checking account is an interest-bearing account, and your money will earn interest, irrespective of the balance in the account. It does not have any maintenance or overdraft fees, and you also have options on how the bank handles transactions that overdraw your account. There is a free transfer option where the bank will automatically pull money from a linked 360 savings account to cover the overdraft. Alternatively, you can have the bank auto-decline a transaction that will lead to a negative account balance.
When you do not choose an overdraft option, the bank will approve certain transactions that could lead to a negative account balance while declining several others. You can also receive your paycheck up to two days early with a direct deposit in this account. It also allows you to send and receive money with Zelle and use the mobile app to deposit checks. What makes the checking account attractive is that it is really free. You will also receive your first checkbook for free. It also gives access to 70,000+ ATMs across the country at no fees.
Money Teen Checking Account
This is a very cool product by Capital One 360. The Money Teen Checking Account is designed for teenagers; no fees or minimum deposits are required to open an account. The account will pay 0.10% (annual percentage yield) APY in interest on all account balances. Since you will be the account manager, you will receive real-time text updates that will help track your child’s spending.
Your teen will also get a free debit card; if you want to teach them financial discipline, this account is worth looking at. The account is available for kids above 8 years of age, and even if you do not have a Capital One account, you can link any account to it. Parents and teens will have mobile app logins to help manage their funds.
Capital One 360 Performance Savings Account
Capital One offers a very basic savings account. You will earn a competitive high-yield APY on your money, and there is no maintenance fee you need to worry about. The current interest rate is 4.25%. The interest will be compounded and credited to your account monthly.
The accounts are FDIC-insured, so you do not have to worry about losing money. Like the checking account, you can transfer funds or deposit checks using the mobile app. You can also use the app to withdraw money. This account does not come with an ATM or debit card.
Kids Savings account
Capital One offers a kid's savings account with no minimum balance requirement or fees. It pays 2.50% APY on all balances. You can link any account to your child’s bank account and create multiple high-yield savings accounts for each of your children.
You can make money transfers, make automatic mobile deposits, and set up savings plans. Open an account when your child is a baby and reach your savings goals as they grow. You will be the guardian of the account till your child turns 18. If the child is 12, even a grandparent can open an account for them.
Capital One 360 CDs
You can enjoy excellent terms on the Certificate of Deposit from six months to five years. You can open a CD for any amount, but if you close it before maturity, there is a withdrawal penalty of three to six months of interest, based on the terms of the CD. The CD interest will accrue daily and compound monthly. You can also receive interest disbursements monthly or yearly, as you prefer. The APY ranges from 3.90% to 5.00% based on the term.
Robust digital features
The online bank offers several digital assets that can help you manage your account. Capital One has a mobile banking app where you can access all your accounts and manage your transactions online. You can also set up automatic deposits and make transfers conveniently. If you want to deposit cash, visit a Capital One ATM or use the mobile app at CVS to add cash to your account.
The mobile app allows you to set up fingerprint recognition and enable two-factor authentication for an extra layer of security. You can also monitor your credit score with its CreditWise feature. The website has a find a branch tool to check for a branch in your area. You can also call and speak to the executives any day between 8 a.m. to 11 p.m.
Access to over 70,000 ATMs
With Capital One, you can access 70,000 ATMs, and there are no ATM fees to worry about.
How much does Capital One 360 cost?
There are no fees to open or maintain your accounts with Capital One 360. There are no minimum deposit requirements, minimum balance requirements, or foreign transaction fees. However, there is an early withdrawal penalty for CDs, and you also pay fees for services like overnight replacement card delivery, issuing stop payments, and overnight check delivery.
Who should use Capital One 360?
You want to teach your children about money. One of the best features of Capital One 360 is the kids' and teen accounts. You can open an account for your child when they are a baby and start saving for them. But once they reach the age of 12, you can open a teenage checking account for them and let them learn to manage money. The account is fee-free.
You want an affordable banking solution. If your banking needs are basic and you only seek high interest in your money, Capital One 360 can be a good choice. You can continue saving and growing your money without fees or account minimums.
Who shouldn’t use Capital One 360?
You want different checking account options. Capital One offers only one checking account option, which may not be suitable for everyone. That said, there are no bonuses or special offers for account holders.
You prefer in-person banking. A big disadvantage with Capital One 360 is that you cannot speak to them face-to-face when you need help. Despite having a few branches, the bank has limited access to those who prefer mortar banks. However, you can find quick and efficient customer service.
Start saving in 3 simple steps
1. Use Capital One Shopping for Free. It takes seconds to add Capital One Shopping and works with all major browsers.
2. Shop as you normally do. Capital One Shopping's magic works quietly in the background, searching for discounts on your purchase.
3. Save effortlessly. Ready to save? Just click Capital One Shopping and the best deal discovered will be applied to your cart.
Pros and cons
Pros
- No monthly maintenance fees
- No minimum opening deposit or balance requirements
- No overdraft fees
- Account options for teens and kids
- Competitive interest rates
- Access to 70,000 in-network ATMs
Cons
- No reimbursement of out-of-network ATM fees
- No money market account
- Limited account options
Capital One 360 vs. competitors
Bank | Offerings | Monthly fee | Minimum deposit | Savings APY |
Capital One | Checking account, savings account, and CD | $ 0 | $ 0 | 4.25% |
Ally Financial | Checking accounts, savings accounts, loans, credit cards, investments and more | $ 0 | $ 0 | 4.20% |
Barclays | Credit cards, personal loans, savings accounts, and CD | $ 0 | $ 0 | 4.35% |
Discover | Checking account, savings account, CD, Money market deposit, and IRA | $ 0 | $ 0 | 4.25% |
Ally Financial
A great online banking alternative if you are looking for wider financial products, including investment, mortgage, or personal loans, Ally Financial also has no monthly fees or minimum deposit requirement. You also get access to over 43,000 Allpoint ATMs at no fees. It is an ideal choice for those who seek a complete online banking experience, from saving to spending and investing at a low cost.
Barclays
With Barclays, you only get an online savings account and CD. However, it has a higher savings rate of 4.35%, and if you are only concerned about earning interest on your money, this bank could be a good choice. However, it doesn’t offer much variety regarding account options.
Discover
Discover suits those seeking savings, checking, or IRA accounts. The bank has no monthly fees, no minimum monthly deposit, and an APY of 4.25%, higher than many banks today. Discover offers a lot more than Capital One at the same APY. However, it has no branch locations and does not offer reimbursement for out-of-network ATM fees.
FAQs
Is Capital One 360 safe?
There are several tools that the bank uses to ensure that your money and data remain safe. Your checking account, savings account, and CD are insured by FDIC. The deposit accounts as well as the credit cards come with different fraud protection measures like card lock, security alerts, and $0 liability protection. The mobile app comes with two-factor authentication, fingerprint, and face recognition. Additionally, your data is encrypted. Thus, you do not need to worry about safety when it comes to Capital One 360.
Does Capital One 360 offer a debit and credit card?
When you open a checking account with Capital One 360, you receive a debit card. It has a purchases and withdrawals limit of $5,000 per day. It also offers credit cards that fit your spending requirements.
How much money do I need to open an account with Capital One Bank?
The best thing about Capital One Bank is that you do not need any money to open an account. There is no minimum deposit or minimum balance requirement you need to worry about. You can open an account and fund it whenever you want to.
The bottom line
If you enjoy online banking and want to avoid fees while enjoying higher interest rates on your savings account, Capital One 360 is a good choice. It offers a bank account for kids and teens and a large network of fee-free ATMs, which add convenience to customers.
However, if you are looking for more checking account options or banking products like money market accounts, you might want to look at other online banks. Capital One 360 is also not a good choice for you if you live away from a physical location and need to be able to talk to someone whenever you need help. Overall, it is a good choice with perks like no-fee accounts and no minimum balance requirements that you can make the most of.
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Writer
Vandita Jadeja is a financial writer and editorial assistant at Joywallet. She loves to read and write about money and brings 7 years of experience from the financial industry. She loves coffee, mountains and sunsets.
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