If you’re searching for a full-service bank that offers competitive rates and no monthly fees, Capital One is an excellent choice. Not only does it provide access to a vast network of no-fee ATMs and branch locations in certain states, but it also ranks among the top 10 banks in the United States in terms of assets.
This Bank offers customers the flexibility to access their accounts online from virtually anywhere, despite having only a few physical branches in some states. Moreover, it provides high rates on savings and CD accounts, as well as a checking account that pays interest and doesn’t require a minimum balance or charge monthly fees. Overdraft fees are also not a concern with this bank.
About Capital One
The banking division of Capital One Financial Corp. provides a range of financial products and services, including checking accounts, savings accounts, and certificates of deposit. The company was originally established in 1988 as a unit of Signet Bank by Richard Fairbank and Nigel Morris. In 1994, this became an independent company, offering credit cards. Over time, this has expanded its offerings, acquiring ING Direct in 2012 and rebranding it as Capital One 360.
Capital One is an attractive option for consumers looking for a full-service bank with access to a wide network of no-fee ATMs and physical branches. Currently, this bank operates around 300 branches in several states, including Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington, D.C
Capital One savings overview
Capital One’s 360 Performance Savings account is an excellent option for savers looking to earn a competitive yield without worrying about maintaining a minimum balance. This account allows users to set savings goals and create automatic savings plans, which is a helpful feature for individuals looking to budget and save.
One of the advantages of this savings account is the ability to link it to a there 360 checking account. This feature makes it easy to transfer funds between accounts and manage your finances more efficiently. Additionally, the 360 Performance Savings account is FDIC-insured, which means that your funds are protected up to the maximum allowed by law.
Overall, the 360 Performance Savings account from Capital One is an excellent choice for individuals who want to save for the future and earn competitive interest rates without worrying about minimum balance requirements.
Pros
- This is an exceptional choice for those seeking convenient banking options. With more than 70,000 ATMs available at no charge, accessing your funds has never been more straightforward. In addition, the bank offers competitive rates for both savings and CD accounts.
- One of the benefits of banking with this is that there are no minimum balance requirements for both checking and savings accounts. This feature allows you to bank on your terms, without worrying about maintaining a minimum balance.
- The mobile app provided by Capital One is also highly regarded by both iPhone and Android users. It’s user-friendly, and it provides quick and straightforward access to your account information, balances, and transaction history. With the mobile app, you can also make deposits and transfer funds with ease.
- there are no monthly service fees associated with this account, which is an advantage for savers who want to avoid additional charges.
- Secondly, the Capital One mobile app makes it easy to manage your account on the go. You can use the app to make mobile deposits, check your account balance, and set up an automated savings plan. The automated savings plan is a helpful feature that allows you to set aside a specific amount of money from your checking account each month, without having to think about it.
- Finally, there is no minimum balance requirement to open or maintain a 360 Performance Savings account. This feature is beneficial for savers who may not have a lot of money to set aside for savings or who want to start small and build over time.
Cons
- It’s worth noting that Bank’s physical bank branches are only available in a select few states, so if you prefer in-person banking services, this could be a limitation. However, the bank’s online banking services are available to customers nationwide, so you can still manage your accounts remotely.
- Additionally, in September 2019, Capital One stopped offering new money market accounts. This means that if you’re looking to open a money market account, you’ll need to explore other banking options. However, the bank still offers other types of deposit accounts, such as checking and savings accounts, with competitive interest rates and minimal fees
- this savings account does not come with a debit card or an ATM card. This means that you will not be able to withdraw funds from your savings account using an ATM. If you need to access your funds quickly, you may need to transfer them to a linked checking account first.
- while the interest rates offered by the 360 Performance Savings account are competitive, they may not be the highest available. Other online banks may offer higher rates, so it’s worth shopping around to find the best savings account for your needs.
| Fee | Charged? | |
| Overdraft fee | None | |
| Non-sufficient funds fee | None | |
| Account maintenance fees | None | |
| Out-of-network ATM fee | None | |
| Excessive transaction fee | None |
360 CDs
Capital One offers a variety of CD options with terms ranging from six months to five years, providing flexibility for customers to choose a term that suits their savings goals. With an interest rate that can reach up to 5.00% APY, Capital One’s CD rates are highly competitive compared to other options available in the market. Additionally, there is no minimum deposit requirement, making it accessible to a wide range of savers.
It’s important to note that withdrawing funds from a CD before the end of its term will result in a penalty, which varies depending on the length of the term. CDs with 12-month terms or less incur a penalty of three months’ interest, while those with longer terms levy a penalty of six months’ interest. However, customers with 360 CDs have the flexibility to choose how interest is paid, either monthly or annually, and can transfer interest to another Capital One account or a linked bank account.
While the interest rates offered by Capital One’s CDs are competitive, it’s worth noting that higher rates may be available at other online banks. It’s always a good idea to compare rates and terms from different financial institutions to find the best option for your individual needs.
| Capital One 360 CD Rates | |
| TERM | APY |
| 6 Month | 3.30% |
| 9 Months | 3.30% |
| 11 Month | 5.00% |
| 12 Month | 4.15% |
| 18 Month | 4.25% |
| 24 Month | 4.30% |
| 30 Month | 4.30% |
| 36 Month | 4.30% |
| 48 Month | 4.20% |
| 60 Month | 4.10% |
How does Capital One compare to other banks?
Capital One vs. Chase Bank
Both Chase and Capital One are major banks that provide both in-person and digital account services. However, while Capital One has around 300 branches located in select states, Chase operates over 4,700 branches across almost every state. Capital One’s 360 Performance Savings Account offers an interest rate that is more than 300 times higher than Chase’s Savings account. Capital One’s CD rates are also higher than Chase’s, including the higher relationship CD rates that Chase offers to customers with a checking account. Capital One’s 360 Checking account earns interest, while Chase’s Total Checking account does not. Chase charges a nonsufficient funds fee, while Capital One no longer charges this fee. Capital One also does not charge for overdrafts, and Chase only charges if an account is overdrawn by more than $50.
Bank Experience
While has fewer physical branches than some of its competitors, the bank makes up for it with its cutting-edge digital banking features. For example, Capital One was the first bank in the U.S. to offer an Alexa skill, enabling customers to check their account balances with voice commands.
The web interface and mobile app are also highly rated on both Android and iOS platforms. Mobile users can take advantage of Zelle to send and receive money, and the Add Cash in Store feature lets customers deposit cash at participating CVS stores through a cashier.
In addition to its around 300 branch locations in select states, Capital One operates over 50 Cafes, where customers can open accounts, deposit checks, and cash, and attend various events. The cafes also offer food and drinks for purchase, with Capital One cardholders receiving half-off handcrafted beverages.
Account holders can take advantage of free financial coaching sessions, while the Early Paycheck feature can be a helpful option for those on tight budgets or who get paid once a month. Capital One customers also have access to more than 70,000 ATMs through the bank’s owned-and-operated machines and the Allpoint and MoneyPass networks.
Methodology
This statement highlights the commitment of Investopedia to provide objective and thorough evaluations of banks to assist consumers in making informed decisions. The review process involves analyzing over 20 data points, such as the range of products offered, interest rates, fees, and accessibility, across more than 80 banks. The goal is to present a complete and unbiased picture of each bank, enabling users to select the best option for their banking and savings requirements.
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