Capital One Bank

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
  • COMPANY OVERVIEW

Pros

  • 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

Cons

  • 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.

Accounts

  • Savings accounts
  • Checking accounts
  • Certificates of deposit (CDs)
  • Credit cards

Savings Accounts

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.

Checking Accounts 

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

TermAPY
6-Month0.25%
9-Month0.30%
12-Month0.50%
18-Month0.50%
24-Month0.75%
30-Month0.75%
36-Month0.80%
48-Month0.90%
60-Month1.00%

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

Credit Cards

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

Business 

  • 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

Improving Credit

  • Capital One Secured Mastercard
  • Capital One Platinum

Other

  • BuyPower Card
  • 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.

  • Car loans
  • IRA Savings
  • IRA CDs
  • Business loans
  • 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.

One Comment

Add a Comment

Your email address will not be published. Required fields are marked *