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Capital One 360 Review: Checking, Savings, CDs

Banking, Banks & Credit Unions, Checking Accounts, Savings Accounts
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Capital One Review

NerdWallet’s rating: 4.5 / 5.0

4.5 stars out of 5

Capital One 360 provides top-notch online banking along with a degree of brick-and-mortar support you might not expect from an online bank. It has virtually no fees, no high minimum balance requirements and relatively high interest rates.

In many ways, Capital One 360 lives up to the reputation of the much-loved ING Direct, which it acquired in 2012.

The bottom line

  • Capital One 360 is an online bank with a few branches in certain parts of the country under its parent bank, Capital One.
  • Few fees and high interest rates make for competitive products across the board.
  • Overdraft policies are customer-friendly and make it easy to avoid fees you’d be slapped with elsewhere.
Our Ratings
Checking accounts5.0 stars out of 5
Savings and money market accounts4.5 stars out of 5
Certificates of deposit 5.0 stars out of 5
Customer experience4.0 stars out of 5
Overdraft fees4.5 stars out of 5
Overall4.5 stars out of 5

Read on for more details about Capital One 360’s checking and savings accounts, certificates of deposit, customer experience and fees.

Checking

5.0 stars out of 5
5.0 / 5.0

Capital One’s 360 Checking pays interest that is substantially higher than the national average of 0.04% — and it’s a free account to boot. Although you can deposit checks through its mobile app and withdraw money at thousands of ATMs nationwide, depositing cash can be tricky. For now, you can do so only at Capital One branches or Capital One Cafés scattered across the country.

ProsCons
  • No monthly fee or opening minimum balance requirement
  • Free access to over 40,000 ATMs nationwide
  • Interest rate of 0.20% on balances up to $49,999.99, 0.75% on balances $50,000 to $99,999.99, and 0.90% on $100,000 and over
  • You can deposit cash only at Capital One branch or Capital One café locations
Account reviewed for rating: 360 Checking

» MORE: NerdWallet’s best online checking accounts

Savings

4.5 stars out of 5
4.5 / 5.0

Although Capital One 360’s savings interest rate is high, other online banks pay higher rates. Added flexibility and tools — such as the capacity to open as many as 25 separate savings accounts, an automated savings tool and the ability to set and track goals — can help you save and manage your money.

ProsCons
  • No monthly fee or minimum opening balance
  • Interest rate of 0.75%
  • You can have up to 25 accounts with individual names
  • Set up an automatic savings tool and track savings goals

  • Although the interest rate is high, you can find other banks with higher rates
Account reviewed for rating: 360 Savings

» MORE: NerdWallet’s best savings accounts

Certificates of deposit

5.0 stars out of 5
5.0 / 5.0

Capital One 360’s CDs are competitive. Although, overall, its rates aren’t the highest in the market, the bank’s two-year CD yields about three times the national average.

However, for terms of nine months or less, Capital One 360’s CDs don’t pay any better than its 360 Savings account, meaning there’s no financial benefit to locking your money away in the CD.

ProsCons
  • Strong interest rates ranging from 0.40% to 2%
  • Wide range of terms: six months to five years
  • No minimum deposit requirement or monthly fees
  • For terms of nine months or shorter, you’d earn more interest on your money in a 360 Savings account while keeping your money accessible

Customer experience

4.0 stars out of 5
4.0 / 5.0

Capital One 360 provides a fine digital banking experience, and in eight states plus the District of Columbia, you can even get limited brick-and-mortar support. Customers can use the branches for certain services like disputing transactions, changing contact information, printing tax statements and accessing some debit card services.

As a Capital One customer, you’ll be able to access Capital One Cafés in 13 cities across the country, with locations in three more set to open soon. These are hybrid offices where you can speak to a rep, open an account and get discounted coffee and free Wi-Fi.

With consistently high ratings, Capital One boasts one of the best mobile experiences for a big bank. Customer service reps are available by phone and on Twitter, seven days a week including evening hours. Capital One lacks chat support, which many other banks have adopted.

Overdraft fees

4.5 stars out of 5
4.5 / 5.0

Capital One 360 has unusually consumer-friendly overdraft policies. Unless you choose another option, the default is to automatically decline transactions if you don’t have enough in your account to cover them. Except for a $9 nonsufficient-funds fee for bounced checks, that means you won’t have to worry about overdrafts or any of the fees that come with them.

You can also opt into one of three other overdraft coverage options:

  • Free overdraft transfers from your saving account
  • A grace period in which Capital One will pay the charge and give you one business day to bring your balance up to positive again
  • A line of credit, where you’ll borrow money from Capital One and pay interest on the amount when you pay it back

» MORE: NerdWallet’s top high-yield online banks

If you want a consumer-friendly online bank that doesn’t charge you a lot of fees, Capital One 360 could suit you well. However, interest-rate optimizers seeking the highest yields might want to look through NerdWallet’s list of best checking accounts to see how other institutions compare.

Jeanne Lee and Amber Murakami-Fester are staff writers at NerdWallet, a personal finance website. Email: jlee@nerdwallet.com or amufe@nerdwallet.com. Twitter:@jlee_jeanne or @iamyams

Verified Feb. 15, 2017.


Ratings methodology

For banks and credit unions, NerdWallet’s overall rating is a weighted average of each subcategory: checking accounts, savings and money market accounts, CDs, customer experience and other fees. Factors we consider, depending on the subcategory, include rates and fees, ATM and branch access, account features and limits, user-facing tech and customer service. Several Nerds contribute to each financial institution’s ratings to ensure consistency and accuracy.

What the ratings mean:
5 stars out of 5 — Among the very best
4.5 stars out of 5 — Very good; only minor caveats for most customers
4 stars out of 5 — Good; issues that might make a difference to some customers
3.5 stars out of 5 — Fair; make sure strengths and weaknesses are a good match for you
3 stars out of 5 — Poor; proceed with great caution
2.5 stars out of 5 (or below) — Best to avoid