36.6 C
Washington

Why Capital One 360 could be a smart money move

Date:

Share:



It might come as a surprise that Capital One, one of the largest corporations in the world, is headquartered in McLean, Virginia–a town with around 50,000 residents. Since its establishment in 1994, this financial giant, despite its modest roots, has made a significant mark on a global scale. It operates in five countries, has nearly 300 branch locations, and maintains around 1900 Capital One-branded ATMs. 

Capital One offers credit cards, loans, commercial services, checking, and savings accounts. If you’re not near any of its branch locations, such as one of its 54 café locations, you can still bank online. Its online division is called Capital One 360, and that’s where you can find high-yield savings accounts, checking accounts, and certificates of deposits (CDs). 

This review focuses on the products you can find through its Capital One 360 service. All rates and fees are current as of February 14, 2024, and are subject to change.

Capital One 360 at a glance

  • Checking accounts: Starting at $0 per month
  • Savings accounts: Open with as little as $0
  • CD rates: Earn up to 5.00% annual percentage yield (APY)

Who is Capital One good for?

Capital One is ideal for anyone who appreciates a digital banking experience so they can handle banking tasks anytime, anywhere, with few fees or minimum requirements. Its checking and savings accounts have no minimum account opening requirements, no minimum balance requirements to earn interest, and no monthly fees. Setting up multiple accounts is easy, and you can view these from a single dashboard, making it ideal for those who have specific goals set up for each account they have.

For people who travel frequently, having access to a large network of fee-free ATMs means easy access to cash. Additionally, if located near any one of its 50-plus café-style branches, customers can enjoy a coworking space and coffee shop all rolled into their banking experience. 

Who shouldn’t use Capital One?

Capital One uses a tool called Early Warning Services (EWS), which, similar to a credit score, assigns a deposit account score on a scale from 495 to 1,000, instead of evaluating traditional creditworthiness. This is a company co-owned by seven large financial institutions, including Capital One, who help detect and prevent fraud associated with banking transactions and make it easier for institutions to make account opening decisions. 

If you have a history of account defaults, first-party fraud, or other similar account issues, you may have a hard time opening a checking account with Capital One. However, you may still be able to open a savings account if you’re declined for a checking account.

Additionally, you must be a paperless customer to use any of its 360 banking products. If you prefer to handle all your banking under one company, from mortgages to student loans, consider an alternative option, as Capital One focuses heavily on its core products:; credit cards, checking and savings accounts, and business or commercial banking. 

Pros Cons
No monthly fees or minimum deposits on checking and savings accounts Those with poor or limited checking account history might be declined for checking account approval
Offers Kids Savings Accounts, which allow for automatic sweeping of their allowance Physical branch locations are limited and are predominantly available in metropolitan areas
Make deposits right from your mobile phone Outgoing wire fees are on the higher end

Capital One 360 rates and products

Capital One 360 offers a variety of products, including high-yield savings accounts, checking accounts, and CDs. It also offers teen checking accounts and kids’ savings accounts, which is ideal for teaching children the value of money management. Here are your options. 

Checking accounts 

Capital One offers a free checking account, although it doesn’t offer an account opening bonus. You won’t pay a monthly fee nor will you pay any overdraft fees. Like many free checking accounts, you also aren’t required to keep a minimum amount in your account to avoid fees. 

Capital One 360 checking account features
Account opening bonus None
Minimum opening deposit $0*
Monthly fees $0
Overdraft fee $0
Top APY 0.10%
Free check First 50-count checkbook free; subsequent orders vary in price
Mobile deposit Yes
Types of checking accounts available 360 Checking, MONEY Teen Checking
Domestic wire transfer $30
Cashier’s check purchased at a Capital One branch $10
Cashier’s check purchased online with expedited delivery $20
Last updated: Feb. 14, 2024
*For your account to be considered “open,” you must deposit at least 1 cent, although you don’t need to maintain this balance to keep the account open. 

Savings accounts

A high-yield savings account can help you earn a higher APY on the money in your account and typically is offered by online-only banks. Capital One 360 is no different, offering up to 4.35% APY, with no minimum requirement to earn interest. Compare this rate against current high-yield savings accounts.

Capital One 360 savings account features
Minimum opening deposit $0
Monthly fees $0
Top APY 4.35%
Minimum balance to earn interest 1 cent
Types of savings accounts available 360 Performance Savings, Kids Savings Account
Cashier’s check purchased online with expedited delivery $20
Last updated: February 14, 2024

Capital One 360 bank savings rates compared to current top rates*

While Capital One 360 is a great option, there are some banks may offer features that are more valuable to you. Compare the rates above to this list of competitors:

Certificates of deposit

A CD is a type of savings account that holds your money for a specified period of time in exchange for an APY typically higher than what you’d find in a traditional savings account. This is because, in exchange for a higher APY, you’re tying up that money for a specific time frame, known as a term. If you take your money out before the specified term, you’ll usually pay an early withdrawal penalty. 

Capital One 360 CD features
Minimum opening deposit $0
Available term lengths 6, 9, 10, 11, 12, 14, 18, 24, 30, 36, and 48 months
Top APY (or) APY range 5.10% for 14 months
Grace period Your CD will renew automatically after 10 days of maturity if you haven’t redeemed it
Last updated: February 14, 2024

Capital One 360 CD rates

Term length APY
6-month CD 4.35%
9-month CD 4.35%
10-month CD 4.35%
11-month CD 4.50%
12-month CD 5.00%
14-month CD 5.10%
18-month CD 4.70%
24-month CD 4.30%
30-month CD 4.10%
36-month CD 4.10%
48-month CD 4.05%
60-month CD 4.00%
Available term lengths and APYs are subject to change at the institution’s discretion. Please visit Capital One for the most current rates & term lengths.

Compare more CD rates:

Other services Capital One offers 

Capital One offers many products and services for its customers. These include:

  • Credit cards: Whether you’re looking for travel rewards credit cards or business credit cards, Capital One has options to suit many different needs. 
  • Loans: While it no longer offers mortgages, you can apply for pre-approval for auto loans online.
  • Business and commercial services: Whether you need a business loan or commercial funding, there are several options available to you.  
  • CreditWise: Whether you’re building your credit or looking to maintain it, CreditWise helps you monitor your credit and provides tips to help it grow.
  • Capital One Shopping: Through its browser extension and mobile app, it will apply coupons at checkout automatically. You can also earn cash back for purchases.

Online banking

While you can open an account through a local branch, banking online with Capital One is easy. Each of its 360 products is exclusively online and requires you to sign up for paperless options. However, if you prefer to do all your banking in one place, from student loans to mortgages and everything in between, there are other online banks and credit unions that can help meet that need. 

The Capital One 360 platform and customer support 

Customers can access Capital One 360 customer support through its mobile app, where you can speak with its artificial intelligence (AI) chatbot named Eno. However, for this review, we attempted to speak with Eno to ask what its customer support hours are. It gave us a line about there being long wait times for calls because of the COVID-19 pandemic and suggested other chat topics for us. When told that this wasn’t what we asked, it then gave an option to connect with a representative. When clicking that button, it took us to our mobile browser, which gave a list of frequently asked questions (FAQs) and phone numbers to call. 

It lists no hours of operation for credit card inquiries, although it does list hours for banking inquiries: live support is available seven days a week from 8 a.m. to 11 p.m. Eastern time. 

Is Capital One secure?

On July 19, 2019, Capital One discovered a data breach impacting 100 million individuals in the United States and 6 million individuals in Canada as well as small businesses who applied for credit card products from 2005 through 2019. This compromised approximately 140,000 Social Security numbers and 80,000 bank account numbers. For its Canadian customers, 1 million Social Insurance Numbers were compromised. 

A class action lawsuit awarded a $190 million settlement for this breach.

Capital One user reviews

Customer reviews of Capital One and its products are generally positive, with many commenters stating they appreciate its high-yield savings account APYs, no monthly fees or minimums, access to fee-free ATMs, early paycheck access, and no foreign transaction fees. However, some find the lack of physical locations to be cumbersome, especially when the need for depositing cash comes up. To do so, they must go to Walgreens or CVS. Additionally, some customers prefer to have all their banking products under one roof, which can’t be done with Capital One as it doesn’t offer mortgages, retirement accounts, or student loan products.

Compare Capital One 360 alternatives

Is Capital One 360 right for you?

Capital One 360 is best for users comfortable with online banking, drawn to fee-free accounts, and interested in high-yield savings and competitive CD rates. It may not suit those who prefer in-person banking or deposit cash frequently due to limited physical branches. Additionally, if you need student loans, mortgages, or retirement accounts, consider an alternative option. 

Frequently asked questions

What is the difference between Capital One and 360?

Capital One is the larger financial institution responsible for traditional branch banking and credit products, whereas 360 is the online banking arm of Capital One, offering high-yield checking and savings account products.

Is it safe to put money into Capital One 360?

Capital One 360 offers the same protections you’ll find banking at a traditional branch: up to $250,000 per depositor, per institution Federal Deposit Insurance Corp. (FDIC) insurance.

How much can I withdraw at an ATM from my Capital One account?

For 360 Checking accounts, you can withdraw $1,000 per day. For non-360 accounts, the limit is $600 per day.



Source link

Subscribe to our magazine

━ more like this

Junk bonds are now in high demand as Wall Street bets on another Trump presidency

The credit world’s version of the “Trump trade” is beginning to take shape: Buy American high-yield bonds and steer clear of anything inflation-sensitive. Corporate...

The worst IT catastrophe ever hit less than 1% of all Microsoft Windows devices

A faulty software update from cybersecurity firm CrowdStrike Holdings Inc. affected 8.5 million devices globally that rely on the Microsoft Windows operating system. Microsoft...

Phishing attempts rise as scam artists try to exploit the CrowdStrike global tech outage

As the world continues to recover from massive business and travel disruptions caused by a faulty software update from cybersecurity firm CrowdStrike, malicious...

Gunman in Trump assassination attempt flew a drone over the rally site ahead of shooting, official says

The gunman in the attempted assassination of former President Donald Trump is believed to have flown a drone around the Pennsylvania rally site ahead of...

‘Black Swan’ investor warns the ‘greatest bubble in human history’ is about to pop and stocks could lose more than half their value

Mark Spitznagel, cofounder and chief investment officer of the hedge fund Universa Investments, has frequently sounded the alarm about bubbles popping and other...