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Capital One 360 Review: Checking, Savings, CDs

Feb. 4, 2019
Banking, Banks & Credit Unions, Checking Accounts, Savings Accounts
Capital One Review
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4.5 NerdWallet rating

Where Capital One 360 shines:

  • High interest rates and low fees.
  • Excellent money market and CD options.
  • Automatic tool helps track savings goals.

Where Capital One 360 falls short:

  • “Opt-in” overdraft fees can be steep.

Where Capital One 360 shines:

  • High interest rates and low fees.
  • Excellent money market and CD options.
  • Automatic tool helps track savings goals.

Where Capital One 360 falls short:

  • “Opt-in” overdraft fees can be steep.

Where Capital One 360 shines:

  • High interest rates and low fees.
  • Excellent money market and CD options.
  • Automatic tool helps track savings goals.

Where Capital One 360 falls short:

  • “Opt-in” overdraft fees can be steep.

 

The bottom line

Capital One

at Capital One,

Member, FDIC

Capital One 360 offers a top-of-the-line banking experience with top-notch tools, strong customer support and streamlined ways to help you manage your money online. The bank’s shining star is its money market account, but checking and savings accounts also earn solid rates and don’t charge monthly fees. Capital One also has flexible overdraft options, though some of its overdraft charges are high.

Best if: You’re looking for free checking and a savings account with great tools. Its money market account also has a rate on par with the top savings rates.


Read on for details about Capital One 360’s checking, savings, app ratings and more.

Checking: 5.0/5.0

The upsides:

Interest checking. Capital One 360 checking pays interest that is substantially higher than the national average of 0.06% — and it’s a free account to boot. The rate is:

  • 0.20% on balances up to $49,999
  • 0.75% for balances of $50,000 to $99,999
  • 1.00% on $100,000 or more

No opening balance requirement. You can open an account and start earning a little interest on your first dollar.

Large ATM network. In addition to Capital One-branded ATMs, you have free access to those that are part of the Allpoint network, for a total of over 39,000 ATMs.

A downside:

Limited branch access. Don’t expect a bank branch on every corner. Capital One 360 checking is primarily an online account, with deposits available through bank transfers and mobile apps. If you’re close to a Capital One-branded ATM, however, you can make a check or cash deposit there.

» For other excellent options, take a look at NerdWallet’s best online checking accounts

Savings: 4.5/5.0

The upsides:

Decent interest. Capital One 360’s savings interest rate is 1.00% APY, more than 10 times the national average. But if you have $10,000 to save, the rate on the bank’s money market account is more appealing at 2.00% APY. Falling below $10,000 earns a lower rate. (See more about the best money market accounts.)

Goal setting. The savings account has added features that help you manage and save your money, such as the ability to open up to 25 separate savings accounts and to use an automated savings tool to set and track goals.

Up to $500 money market account bonus. Although the 360 Money Market account didn’t factor into our star ratings, opening one can land you $200 or $500, depending on your deposit; see more details to qualify (expires 5/19/19).

A downside:

You can find higher rates elsewhere. Compare Capital One’s savings rate to other online banks.

CDs: 5.0/5.0

The upsides:

Strong interest rates. Capital One 360’s CDs are competitive. Rates range from 0.60% APY to 2.50%. There’s also a wide range of terms, from six months to five years.

  • 2.40% APY for a one-year term
  • 2.40% APY for a three-year term
  • 2.50% APY for a five-year term

No minimum.  You could open an account with $1 if you wanted to, because there’s no minimum balance required to open a CD.

A downside:

Savings rates beat short-term CD rates. Terms of nine months or less earn yields that are lower than the yields on its savings account, which is common among banks. This means you may be better off opening a savings account if you plan to withdraw cash in less than a year.

» Looking for the highest CD rates? See what banks are offering this month

Bank experience: 4.5/5.0

The upsides:

Consistently high app ratings. Capital One 360 accounts boast some of the best mobile experiences for a bank, with app store ratings averaging 4.7 out of 5 stars.

Customer service channels. Reps are available by phone and Twitter seven days a week, including evening hours. Chat is also available for logged-in customers. The bank also has around 30 Capital One Cafés in select states across the country. These locations are hybrid offices where you can explore banking options, speak to a rep, open an account, get coffee and use free Wi-Fi.

A downside:

Scattered brick-and-mortar coverage. Branches are located in only eight states plus the District of Columbia.

Overdraft fees: 3.0/5.0

The upsides:

Free overdraft transfers. The default overdraft policy at any bank is to reject debit transactions that exceed the funds in your account. But Capital One offers free transfers from your savings account or a low-cost line of credit to cover an overdraft.

Optional “Next Day Grace” program. If you don’t want your transactions to be declined, signing up with this program means the bank will consider approving an overdraft transaction without a transfer. There are two versions, standard and plus, which differ slightly based on which transaction types can be covered. Then you have one business day to make a deposit large enough to bring your account up to a positive balance and avoid the overdraft fee.

The downsides:

Overdraft fees. The bank charges a whopping $35 overdraft fee per item, up to four items a day.

Bounced check fee. Capital One charges a $9 nonsufficient-funds fee for a bounced check.

Capital One

at Capital One,

Member, FDIC

Ready to take the next step?

If you want a consumer-friendly online bank that doesn’t have monthly services fees, Capital One could suit you well.

Interest-rate optimizers, however, might want to look through NerdWallet’s list of best high-yield online savings accounts to see how other institutions compare.


Ratings methodology

NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, bank experience and overdraft fees.

Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation.

The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.

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