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Capital One 360 Review: Checking, Savings, CDs

Sept. 25, 2018
Banking, Banks & Credit Unions, Checking Accounts, Savings Accounts
Capital One Review
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We adhere to strict standards of editorial integrity. Some of the products we feature are from our partners. Here’s how we make money.

NerdWallet rating: 4.5/5.0

Where Capital One 360 shines:

  • Low fees and high interest rates
  • Excellent 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:

  • Low fees and high interest rates
  • Excellent 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:

  • Low fees and high interest rates
  • Excellent 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 provides top-notch banking tools, strong customer support and streamlined ways to help you manage your money online. The bank’s checking and savings accounts earn stellar 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.


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 0.05% — and it’s a free account to boot. The rate is:

  • 0.20% APY on balances up to $49,999
  • 0.75% for balances of $50,000 to $99,999
  • 1% 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: 5.0/5.0

The upsides:

Decent interest. Capital One 360’s savings interest rate is 1.00% APY, more than 10 times the national average.

Goal setting. The account really shines with its 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.

A downside:

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

How does Capital One compare?

Capital One

360 Savings®

NerdWallet Rating

APY

1.00%

Monthly Fees

$0

Bonus features

No Monthly Fee

Competitive APY

Mobile-friendly

Goldman Sachs Bank USA

Online Savings

NerdWallet Rating

at Goldman Sachs Bank USA,

Member, FDIC

APY

1.90%

Monthly Fees

$0

Bonus features

No Monthly Fee

Competitive APY

Synchrony Bank

High Yield Savings Account

NerdWallet Rating

at Synchrony Bank,

Member, FDIC

APY

1.85%

Monthly Fees

$0

Bonus features

No Monthly Fee

Competitive APY

Not for you? Read more bank reviews

CDs: 5.0/5.0

The upsides:

Strong interest rates. Capital One 360’s CDs are competitive. Rates range from 0.60% APY to 3.00%. There’s also a wide range of terms, from six months to five years.

  • 2.50% APY for one-year term
  • 2.70% APY for a three-year term
  • 3.00% 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. You can find out how the bank’s CDs stack up to others with our tool.

A downside:

Savings rates beat short-term CD rates. Terms of nine months or less earn yields that are smaller 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 4.6 out of 5 stars.

Customer service channels. Reps are available by phone, chat and Twitter seven days a week, including evening hours. The bank also has about 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:

Few buildings. 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 approve an overdraft transaction without a transfer. Then you have one business day to make a deposit large enough to bring your account up to a positive balance.

The downsides:

Overdraft fees. Under the Next Day Grace program, if you don’t make a large enough deposit within one business day, the bank charges a whopping $35 overdraft fee per item, up to four items a day. These are what you’d expect to see at national banks.

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 mobile banks 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, customer 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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