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Capital One Bank
Posted On September 10, 2020
Capital One, formed in 1994, is one of the 10 largest U.S. banks by assets. You can work with Capital One entirely online, but the bank has over 400 branches in six states, including Capital One Cafés in major cities, which are unique spaces with Wi-Fi and discounted coffee. Associates and money coaches are also there to help you manage your finances.
PROS AND CONS
Competitive rates on savings and CDs
Highly-rated app makes it easy to manage accounts
Broad range of credit cards with a variety of perks
Not the highest-yield online bank
Limited branch footprint might not work for everyone
2019 data breach
Who Is Capital One Bank Best For?
Capital One is a well-established bank, and it’s hard to go wrong opening an account here. The bank may be especially attractive to those who want to:
Bank primarily online
Earn interest at a competitive rate
Open a free checking account that pays a small amount of interest
Choose a credit card with rewards or low fees
Bank in-person in select major cities
Help children open an account and start learning about money
What Does Capital One Bank Offer?
Capital One has a broad range of banking services, including online banking and brick-and-mortar services.
Certificates of deposit (CDs)
360 Performance Savings Account
The 360 Performance Savings account is a high-yield savings account that pays a competitive rate.1
Pays 0.65% APY
No monthly maintenance fees
No minimum deposit to open
No ongoing minimum balance requirement
Mobile check deposit
An automated savings plan option
No debit cards, ATM cards, or check-writing capabilities
The 360 Performance Savings account is competitive with online bank accounts, and earns a decent rate while dodging fees. Although you won’t earn the highest interest rate possible at Capital One, the percentages are consistently good. Depending on how much you have in your account, this rate might be adequate, eliminating the need to chase rates as banks adjust their offers. As well, there are no debit or ATM cards. In general, a savings account may not be your best option for everyday spending.
Under Regulation D, banks were required to limit monthly withdrawals from savings accounts to a maximum of six. However, in April 2020, the Federal Reserve issued an interim final rule that allows banks to suspend enforcement of that limit. While the Federal Reserve issued this suspension, that doesn’t mean banks will, too. Getting cash at a branch doesn’t count against your limit, but you may still be charged a fee or have your account closed if you exceed your bank’s monthly withdrawal limit. Additionally, this is a temporary suspension and the Federal Reserve will decide at a future date whether to eliminate Regulation D indefinitely. Check with your bank to understand your monthly withdrawal limit.
Kids Savings Account
The Kids Savings Account allows a parent or legal guardian to open a linked account with a minor under age 18, and start teaching them about money, like the benefits of saving and compound interest.2
Pays 0.50% APY
No minimum required to open or ongoing balance requirements
Mobile check deposit
View-only access for kids to monitor their accounts
Adult login required to transfer funds
Converts to a 360 Savings account once the child turns 18
The rate is lower than Capital One’s 360 Performance Account, which also allows you to add minors as joint account holders. As a result, there’s not much reason to use the Kids Savings Account.
360 Checking Account
The 360 Checking account is Capital One’s version of a free online checking account. There’s no need to qualify for fee waivers, which is notable for a large bank with physical branches. As a bonus, you earn a small amount of interest on your balance.3
Pays 0.10% APY
No monthly maintenance charges
No minimum to open or ongoing balance requirement
Online bill pay
Mobile check deposit
Debit card for spending and cash withdrawals
Over 55,000 fee-free ATMs available, including Allpoint ATMs
No foreign transaction fee when using your debit card abroad
Free overdraft transfers from a linked savings account (optional)
Need to use an ATM that’s not in the network? Capital One does not charge you for using another bank’s ATM, which is great. Keep in mind, though, that the ATM owner may add charges to your transaction.
Capital One allows you to temporarily lock your debit card, which reduces the risk of fraud. Scheduled transfers and bill payments continue uninterrupted, but thieves have a harder time using your card information.
MONEY Teen Checking Account
MONEY Teen Checking allows you to open a joint checking account with your child age 8 years and older. This provides additional autonomy to kids, allowing them to spend from the account as they go through day-to-day life.4
Pays 0.10% APY
No monthly fees, minimum opening deposit, or ongoing minimums
Automatically issued debit card
Adults can monitor via text alerts, mobile app, or online access
$500 limit for withdrawals and purchases
No checks or online bill pay available
If you’re ready to let children take control of their spending and receive income via direct deposit into their own checking account, this account may be a solution. Once children reach age 18, they can switch to a 360 Checking account with more features.
Certificates of Deposit (CDs)
With no minimum deposit requirement, Capital One’s 360 CDs are accessible to all. Terms range from six months to five years, and rates are accurate as of August 21, 2020.5
Capital One 360 CD Rates
You may face early withdrawal penalties if you cash out of a CD early, but that’s not unique to Capital One. Most banks impose these charges, and the details vary from bank to bank. Specifics for Capital One are as follows:
For terms of 12 months or less, you’ll pay three months of interest
For terms longer than 12 months, you’ll pay six months of interest
Capital One has almost 20 credit cards to choose from. Whether you want cash back, seek travel rewards, or need a card that matches your credit score, you can filter cards with Capital One’s search tool. Travel Rewards
Capital One Venture Rewards
Capital One VentureOne Rewards
Cash-Back Credit Cards
Capital One Quicksilver Cash Rewards
Capital One QuicksilverOne Cash Rewards
Journey Student Rewards from Capital One
Capital One Savor Rewards
Capital One SavorOne Rewards
Capital One Walmart Rewards Mastercard
Capital One Spark Cash for Business
Capital One Spark Miles for Business
Capital One Spark Classic for Business
Spark Cash Select from Capital One
Spark Miles Select from Capital One
BuyPower Business Card
Capital One Secured Mastercard
Capital One Platinum
Cabela’s CLUB Card
Bass Pro Shops CLUB Card
Other Financial Products From Capital One Bank
Capital One has a broad array of banking services, but the bank keeps the product line relatively simple for both consumers and businesses.
Business bank accounts
Capital One does not offer home loans or personal loans.
Capital One Bank Customer Service
Capital One has earned impressive marks for customer service across several business lines:
Second place in the J.D. Power 2020 U.S. Banking Mobile App Satisfaction Study6
Ranked in sixth place in the J.D. Power 2020 Credit Card Satisfaction Study7
Customer service is available by phone from 8 a.m. to 11 p.m. Eastern, seven days per week.8
Capital One’s Cafés offer a place to recharge, with workspaces, Wi-Fi, and discounted Peet’s Coffee for Capital One debit and credit card holders. Free workshops and three, one-hour money coaching sessions can help customers manage their personal finances.