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Capital One 360 Review: Checking, Savings, CDs

Nov. 22, 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 savings and short-term CD options.
  • Tool helps track savings goals.

Where Capital One 360 falls short:

  • Opt-in overdraft fees can be steep.
  • Longer term CD rates are only average.

Where Capital One 360 shines:

  • High interest rates and low fees.
  • Excellent savings and short-term CD options.
  • Tool helps track savings goals.

Where Capital One 360 falls short:

  • Opt-in overdraft fees can be steep.
  • Longer term CD rates are only average.

 

The bottom line

Capital One 360 offers a top-of-the-line banking experience with strong customer support and streamlined ways to manage your money online. Its checking and savings accounts also earn solid rates and don’t charge monthly fees. Capital One also has flexible overdraft options, though its overdraft charge is high.

Best if: You’re looking for free checking and a savings account with great tools.


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

Checking: 4.5/5.0

The upsides:

Interest checking. It’s somewhat rare to find a checking account that pays interest, but Capital One 360 Checking does  — and it’s a free account to boot. The rates are:

  • 0.20% on balances up to $49,999.
  • 0.50% for balances of $50,000 to $99,999.
  • 0.75% 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 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’s 360 accounts are primarily online, with deposits available through bank transfers, mobile apps and direct deposit. 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: 5.0/5.0

The upsides:

Attractive interest. The Capital One 360 Performance Savings Account interest rate is 1.80% APY, significantly higher than the national average of 0.09%.

Low fees and minimum. There’s no deposit required to open a 360 Performance Savings account, and no monthly maintenance fee necessary to keep one.

Goal setting. The savings account has features that help you manage and save your money, such as automated savings and a goal tracking tool.

» Compare Capital One’s savings rate to other online banks

CDs: 4.0/5.0

The upsides:

Great interest rates on some terms. You’ll earn 2.10% APY for a one-year term CD, which is among the better rates you’ll find, even for online banks. 

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

A downside:

Some CD rates aren’t competitive. 360’s five-year CD pays only 1.60% APY, which is much higher than some brick and mortar banks, but online banks typically pay more. And terms of nine months or less earn yields that are lower than the yields on its savings account, so you may be better off leaving your money in standard savings.

» 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.

Multiple customer service channels. Reps are available by phone seven days a week, including evening hours. Chat is also available for logged-in customers, and there’s support via Twitter as well. The bank also has around 40 Capital One Cafés in select states. These locations are hybrid offices where you can explore banking options, speak to a representative, open an account, get coffee and use free Wi-Fi.

A downside:

Scattered brick-and-mortar coverage. Branches are located in fewer than 10 states plus Washington, D.C.

Overdraft fees: 3.5/5.0

The upsides:

Free overdraft transfers. Capital One offers free transfers from your savings account or a line of credit to cover an overdraft — some banks charge for this service.

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. 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. Many banks offer fewer options for dealing with overdrafts.

The downside:

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

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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