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Capital One is a full-service bank that offers competitive rates and toll-free accounts to meet most banking needs. Although it has Capital One branches and cafes in some locations (which are in the process of reopening), Capital One is primarily considered an online bank.
Best known for its popular credit cards (you’ve seen the ads), Capital One entered the banking world when it bought ING Direct in 2012 and renamed its services to Capital One 360 Banking.
In addition to popular banking options for consumers, Capital One offers credit cards and auto loans, as well as business and commercial solutions.
This review will focus specifically on the personal banking solutions offered by Capital One. Account details and Annual Percentage Returns (APY) are current as of February 21, 2021.
For verification purposes, Capital One offers 360 checking accounts. One account comes with a 360 Checking MasterCard debit card and your first checkbook is free. There are also no fees associated with 360 chequing accounts: 360 chequing accounts do not have a minimum opening deposit or standing balance requirements.
Another useful feature is the three overdraft options they offer:
- Automatic denial
- Free savings transfer
- Tomorrow’s grace
If that’s not enough, Capital One’s checking accounts are also currently earning 0.10% APY for all account balances. Customers can also set up online bill payment with their Capital One checking account.
360 Performance Savings from Capital One is a high yield savings account that earns 0.40% APY.
As with other Capital One accounts, there is no minimum opening deposit or minimum balance requirement.
This no-charge savings account is a great place to keep your emergency fund. It’s also a great choice for meeting other savings goals, like a family vacation or college savings. Customers can set up direct deposit to maximize their savings efforts. A 360 Performance Savings account is the perfect complement to a 360 Checking account.
Another banking option through Capital One is a certificate of deposit, or CD. If you have funds that you don’t need to access right away, opening a CD is a great way to grow your savings over time. CDs are available with terms ranging from six months to five years. The prices vary according to the length of the mandates. Here are the current conditions and prices of CDs available through Capital One.
Prior to the rate cut that occurred during the coronavirus pandemic, there had been a sweet spot for earning potential: 12-month and 18-month CD options were paying higher rates than some Capital One CD’s at higher. long term. Now, however, the APYs increase the more you are willing to commit your money. Capital One does not offer the best CD prices on the market.
Capital One CDs do not have a minimum opening balance. Interest accrues daily on CDs and compounds and is credited monthly. Customers can choose how they receive interest payments: monthly, annually, or at the end of the term. Disbursements can also be transferred to other Capital One accounts or external bank accounts.
There are penalties for early withdrawal of your CD funds. For CDs 12 months and less, the penalty is three months interest. CDs older than 12 months have a six month interest penalty. There are no partial withdrawals available with Capital One CDs.
Capital One also has retirement accounts. The 360 IRA Savings Account is designed for retirement savings, not as an everyday savings account. The account offers 0.40% APY and is available as a traditional or Roth IRA. The IRA savings account is a tax-advantaged account. There is no minimum opening deposit requirement and no minimum balance to maintain. Capital One does not charge any fees on 360 IRA savings accounts.
Another retirement option to consider is opening a CD 360 IRA through Capital One. It requires no minimum opening deposit and offers the same terms and APYs as traditional Capital One CDs, described above.
CD Capital One IRAs come with tax advantages. When you open an IRA CD with Capital One, you also get an IRA savings account to associate with. This allows you to transfer your CD IRA funds directly to your IRA savings account when they mature.
MONEY Chequing Account for Teens
Parents looking for great banking options for their children should check out Capital One’s MONEY Teen Checking account. This is a joint account that allows teens and parents to access online and through the mobile app. It also comes with a free debit card, which can be used for purchases and at ATMs across the country.
Although it’s called a teenage checking account, it is accessible to all children eight years of age and older. It has no monthly fees and has no minimum opening deposit or minimum balance requirements. MONEY Teens checking accounts also earn interest at 0.10% APY.
Once teens are 18, they can open a 360 checking account and transfer the funds from their teen checking account.
Children’s savings account
Another option for children is the savings account for children. Accounts can be opened in the name of a parent or in the name of both parent and child. They can also be linked to other Capital One accounts to enable transfers.
While parents and children can access children’s savings accounts, only parents can perform more important banking tasks, such as money transfers. Withdrawals, which include internal transfers, are limited to six per month.
Children’s savings accounts earn 0.30% APY, have no monthly fees, no minimum opening deposit requirement, and no minimum balance. To help kids learn to save, Capital One offers features like automatic savings plans and financial goal setting. Kids and parents can use the mobile app or online access to track goal progress along the way. Children’s savings accounts are automatically converted to 360 savings accounts once a child turns 18.
Access on the move
The Capital One mobile app is highly rated, earning 4.8 stars (out of 5) on the App Store and 4.6 (out of 5) stars on Google Play. It is truly an all-in-one mobile banking solution. Beyond access to all your Capital One accounts, it offers a multitude of tools designed to facilitate banking transactions on the go. Some of the tools include:
- Mobile check deposit
- Personalized alerts and notifications
- Expense tracking
- Access to account statements
- Debit Card Lock Security
- Free credit score via CreditWise
- Zelle payment network
- Track rewards (credit cards)
Another way to stay connected on the go is to use Eno, your Capital One assistant. Eno assists clients by providing alerts and account information. It works behind the scenes to detect suspicious activity on accounts. Eno also provides virtual card numbers to secure online purchases. Alerts are available by SMS, notifications and emails.
- Competitive savings rates
- APY earn on current account
- No monthly fees
- No minimum opening deposit
- No minimum balance required
- Mobile check deposit
- Large ATM network
- CD prices are average
- Limited local branches
How Capital One Stacks Up
People looking for an all-in-one personal banking solution should consider Capital One 360 Banking. It offers versatile accounts to meet most needs, including children’s accounts, individual retirement accounts, and CDs to pair with its savings and chequing offerings, Capital One. Deposit account options also make Capital One a top choice for family banking services, building long-term relationships with customers.
Although it has branches in some states, access is mostly online and through the mobile app at this time. Capital One Cafés are a unique customer experience available in some cities. They are basically Peet’s cafes combined with a relaxing banking environment, where people can do daily banking and get “financial coaching”. It’s hard to imagine, however, that these cafes become a regular sight in small towns. (As of March 16, 2020, all Capital One cafes have been temporarily closed, due to concerns over the Covid-19 crisis. As of October, cafes start to reopen in some locations.)
If you live or work near a Capital One branch or café and love the ability to bank in person or online, Capital One is a solid banking choice. If you like the personal touch of a local bank branch, most people will have to look to other banks instead.
When choosing a bank, it is important to take note of what is important to you and find a solution that matches those needs.
Frequently Asked Questions (FAQ)
Is Capital One FDIC insured?
Yes, all Capital One accounts are FDIC insured (FDIC # 33954) up to $ 250,000 per depositor, for each category of account ownership.
Is Capital One Bank safe?
Capital One uses several security measures to ensure the security of customer accounts and personal information. These include SSL encryption, fraud protection, debit card lock features and more. Capital One had a security breach in 2019 involving credit card accounts. The problem was resolved quickly.
Does Capital One offer money market accounts?
No, no money market account is available through Capital One.
How do Capital One Cafés work?
It’s like a cafe where you can also do your banking. Cafés offer a different kind of in-person banking experience in a more comfortable environment, where people can have coffee, use the free Wi-Fi, do their physical banking transactions and also talk with “financial coaches” who can help. to answer questions. make decisions about their finances.