Capital One 360 Bank Review
The consumer banking landscape looks much different today than in years past. One of the biggest shifts, for instance, is the influx of online banks and the features they provide. Capital One 360 is one such bank, offering consumers an excellent option for all of their checking, savings, and CD needs.
So, how does Capital One 360 measure up against other online banks, and even when compared to your typical brick-and-mortar bank? Let’s take a look at the products and services they provide, what you can expect as a customer, and whether this online bank is the right place for your money.
Who Is Capital One 360?
You have probably heard of (and seen) Capital One Bank over the years. But while their “360” banking arm is part of the same company, it’s not the exact same thing.
Back in 2012, Capital One Bank acquired ING Direct, an established online bank providing various savings products to consumers. The new subsidiary company was rebranded as Capital One 360, and became an online extension of Capital One Bank.
Capital One 360 offers entirely online account services. This includes full-service checking accounts, easy-to-manage savings accounts, and flexible CDs. To help customers manage funds, they have developed a highly-rated mobile app and also offer in-branch services at select locations. Customer service is available 7 days a week, and you have 24/7 online and mobile app access to your accounts.
While all online banks offer a variety of savings accounts, not all offer options for checking. Capital One 360 gives consumers the opportunity to choose both, and they make managing your checking account online a breeze.
Checking accounts include a free MasterCard debit card as well as an initial batch of checks.
You’ll earn interest each month on your checking account balance. The rate you earn depends on the balance you carry, but even the lowest tier is considerably higher than the national average… four times higher, in fact.
As of this writing (October 16, 2021), the interest rates on Capital One 360 checking accounts are currently 0.10% with no minimum balance.
Considering that the average interest rate on checking accounts is 0.01% right now, it’s easy to see why Capital One 360 checking accounts are so appealing.
To quote the bank, you shouldn’t have to “pay money to use your money.” That’s why their checking accounts are entirely fee-free, from start to finish.
There are no monthly account maintenance fees, no fees for transferring funds, and you’re able to withdraw funds from their large network of over 39,000 ATMs nationwide. If you travel out of the country, you’ll enjoy no foreign transaction fees, and there are also no fees for the online bill-pay service.
The only time you could encounter fees with a Capital One 360 checking account would be if you utilize certain optional features. For instance, if you take advantage of overdraft protection, there is a fee per overdrawn transaction. There are also fees for outgoing wire transfers and, say, overnighting you a new card or checks. Again, though, these services are optional, so it’s easy to enjoy an entirely fee-free 360 checking account.
Withdrawals and Deposits
No matter where you are, you can easily deposit or withdraw funds from your Capital One 360 checking account.
Deposits can be made in Capital One Bank branches or at Capital One ATMs, via cash or check. Checks can also be deposited from home with the Capital One 360 mobile app. Funds can be wire transferred in or, if you have other accounts connected to your 360 checking account, you can easily transfer online or through the mobile app.
Withdrawals are just as simple. You can transfer out via the mobile app or online platform to any of your connected accounts. You can also easily initiate outgoing wires to external accounts. You’ll be provided with checks and a MasterCard debit card for everyday spending, and you can also pull cash from any ATM. Capital One has a network of over 39,000 ATMs around the country, which are free for 360 checking customers to use.
Lastly, you can use Zelle, a peer-to-peer money service, to send or request funds from others through the Capital One 360 app. All you need is the other party’s phone number, and you can initiate transfers of up to $1,000 in either direction.
How to Open a Checking Account
If you’re interested in opening a Capital One 360 checking account, the process is very easy. You’ll simply need to go online to apply, and you can have your new account up and running in minutes. Want human interaction instead? You can also open your new 360 account at a Capital One location near you.
There is no minimum deposit required to open or maintain your account.
To begin, visit Capital One 360’s Open an Account page. Or, you can hop into one of your local Capital One Bank branches to open an account in person.
Capital One savings accounts are easy-to-use, fee-free, and offer above-average interest rates on your balance held. They automatically link up with your 360 checking account for quick transfers between the two, and you can easily view them at any time online or through the mobile app.
Each customer can open as many as 25 savings accounts, allowing you to easily save for various goals. For example, you could have one account for vacation savings, one for your new car’s down payment, another for Christmas shopping, etc. Plus, with the 360 Automatic Savings Plan, you can automate these goals to ensure they’re met.
While the 360 Checking accounts have a tiered interest system, the 360 Savings account seek to make the process simpler. No matter your balance—whether it’s $0.10 or $100,000—you will earn 0.40% APY on the money you hold there (as of this writing, October 16, 2021).
This is well above the national average of 0.06% APY, but it’s not the highest you could find. There are other online banks that offer nearly double that, though many of them either don’t offer checking accounts, don’t have mobile apps, or both. Either way, a 0.40% interest rate is nothing to scoff at, and will allow your savings to net a very decent return with zero risk on deposits below the FDIC limit.
If you have a balance greater than $10,000 in savings, though, you may want to consider a Money Market Account (MMA), which we will talk about below. This will net you an even greater return on your larger savings balance.
As with the checking account above, 360 Savings accounts are entirely fee-free. There are no minimum deposits or balances to maintain, so there are no fees for dropping below these thresholds. There are also no monthly account fees no fees for transfers in or out.
You could be subject to fees (or account closure) if you make more than six withdrawals from your savings account in a given cycle, but this is a federal law… not just a Capital One 360 rule.
Withdrawals and Deposits
It’s easy to access your savings 24/7, no matter where you are.
Deposits can be made by cash or check at either Capital One Bank locations or their network ATMs. Checks can be deposited online through the mobile app, and transfers can be made from connected accounts either online or in the app.
If you need to withdraw money from your 360 Savings account, it’s just as easy. You can easily transfer funds to the account of your choosing, online or via the mobile app. You can also make with withdrawals through ATMs or at Capital One locations nationwide. If you need to send funds via wire, there is an additional fee ($30). However, they are easy to set up online, over the phone, or in-person at a local branch.
How to Open a Savings Account
When you’re ready to open a 360 Savings account, you can do it 24 hours a day, 7 days a week. Either hop online and visit the Capital One 360 Open an Account page, or drop by a local Capital One branch during business hours.
There is no minimum deposit required to open an account.
Money Market Accounts (MMAs)
Money market accounts, or MMAs, are similar in many ways to savings accounts. However, there are a few key differences. Since Capital One 360 offers both types of accounts, here’s a rundown of MMAs—you’re allowed to open as many as 25 savings accounts between the two types, so you may decide that you need one (or a few!) of each.
Money market accounts are different from savings accounts mainly because they typically offer accountholders checks. Rather than withdrawing funds from a savings account to use the money, you can simply write a check directly from your MMA account when you need to spend the cash.
The other difference, as far as Capital One is concerned? The 360 Money Market accounts have lower interest rates than the 360 Savings accounts. You should at least give 360 MMAs a look.
Whether you’re depositing less than $10,000 or more, you’re better off with a 360 Savings account. There, your money will earn 0.40% APY no matter the balance.
Here’s how the interest rates break down for 360 MMAs:
- $0 to $9,999.99 — rate: 0.2996% APY
- $10,000 or more — rate: 0.2996% APY
That’s less interest than you’d earn by putting that money in a 360 Savings account. You will, however, get the same benefits and flexibility. Consider a 360 savings account for maximum return.
As with the 360 Checking and 360 Savings accounts, the 360 Money Market is also fee-free. There are no minimum deposit amounts (except that you’ll need $10,000+ in order to earn that higher interest rate) and no minimum balance to hold. There are also no monthly maintenance fees, and no fees to transfer funds.
As with the other accounts, there are fees for things like outgoing wire transfers, but those are optional. The account itself is entirely free.
Deposits and Withdrawals
Just like the 360 Savings, you have plenty of options for adding cash to, and withdrawing cash from, your 360 Money Market account.
To fund your 360 MMA, you can either use your linked 360 Checking or 360 Savings account and make an instant transfer via web or mobile app. You can transfer in from an external account. If you have an Automatic Savings Plan set up, you can use that to add to your MMA regularly. Or, you can always make a cash or check deposit in a Capital One Bank branch.
When you’re ready to withdraw funds, it’s just as easy. Transfer between your linked accounts online or through the app, or transfer out to external accounts. You can write checks directly from your 360 MMA or make a withdrawal at a local branch.
Or, you can require an incoming or outgoing wire transfer from the external account of your choice. Just note that additional fees may apply.
How to Open a Money Market Account (MMA)
When you’re ready to open a 360 Money Market account, you can do so 24 hours a day. All you need to do is visit the 360 Open an Account page and follow the steps to establish and fund your new MMA.
Want a more personal touch? Visit a Capital One Bank branch during business hours to open your new account with a representative, face-to-face.
Certificates of Deposit (CDs)
If you know that you’ll be tucking your savings away for a longer period of time—and want to earn even more interest—a CD is the perfect product. Capital One 360 offers CDs of various terms to fit your needs, no matter your savings plan.
Opening a CD will lock your money away, so you do lose the flexibility that comes with a savings account. If you know for certain that you won’t need to touch the money anytime soon, though, you’ll be handsomely rewarded with even higher rates on your money.
Capital One 360 CDs are FDIC insured up to $250,000 and rates are guaranteed. Plus, you can open as many as 50 CDs at once, allowing you to set various savings goals or create a lucrative CD ladder that suits your needs.
As with all CDs, the longer you lock your money away, the higher the interest rate you’re offered. The 360 CDs are no different, giving you incrementally higher rates for longer terms. Just make sure you’re positive that you won’t need the money before the end of the CD term.
Here’s a breakdown of the rates currently being offered by Capital One 360 for CDs (current as of this writing, October 16, 2018):
- 6 month term: 0.10% APY
- 9 month term: 0.10% APY
- 12 month term: 0.20% APY
- 18 month term: 0.25% APY
- 24 month term: 0.25% APY
- 30 month term: 0.25% APY
- 36 month term: 0.60% APY
- 48 month term: 0.65% APY
- 60 month term: 0.80% APY
As you can tell, it makes a lot more sense to lock that money away for a full year or more, rather than just a 6- or 9-month period.
Early Withdrawal Penalties
There are no fees for opening a CD. However, if you need to pull money from one before it matures, you will be subject to early withdrawal penalties. Depending on the original length of the CD term and when you withdrew funds, this could easily wind up costing you money or, at the very least, eating up any interest you may have earned.
Capital One 360 has a very basic penalty structure for CDs:
- If your original term was 12 months or less, the penalty is 3 months of interest.
- If your original term was greater than 12 months, the penalty is 6 months of interest.
How to Open a 360 CD
Whenever you are ready to open a 360 CD (or 50), you can easily do so online by visiting the Open an Account page. You can also open and fund your CD in a local Capital One Bank branch, if you need/want that in-person touch.
The Capital One 360 mobile app is very highly rated, and with good reason. In fact, it currently has a 4.7 (out of 5 stars) rating in the App Store and a 4.6 (out of 5 stars) rating on Google Play. I use the app for my own banking, and would absolutely rate it just as high.
From the app, you can access all of your 360 accounts with one touch, easily seeing exactly where you stand at any given time. You can use the app to make transfers between accounts, deposit checks on the go, lock your MasterCard debit card if it’s lost or stolen, and establish online bill-pay preferences.
If you need to send money to friends or family, you can do so through the app using Zelle, an instant person-to-person service that only requires a cell phone number.
Oh, and if you’re interested in tracking your credit score for free (because why wouldn’t you be?), Capital One also offers CreditWise. This free service offers you a monthly snapshot of your credit report changes, your credit score, and the factors affected said score. You can easily see where you need to place your focus and what has had the biggest impact on your overall creditworthiness. And it’s entirely free, right there within the Capital One app.
The app sounds great, right? Well, it should: it was rated Highest in Customer Satisfaction among Mobile Banking Apps by JD Power and Associates. That’s quite the accolade, especially for an app that will make managing your free online accounts even easier.
Is Capital One 360 Right for You?
If you’re interested in an online bank that offers a little bit of everything—from full-service checking accounts to flexible savings accounts, high-yield money market accounts, flexible CDs, and more—you can’t go wrong with Capital One 360. Opening an account is easy, either online or in a local branch, and there are no minimum deposits or balances to maintain.
Accounts are free, without any monthly maintenance fees, transfer fees, or even fees for ATMs (when you use any of the 39,000+ network machines nationwide). They offer an exceptional mobile app for managing your account 24 hours a day, but you can also pop in to visit a bank branch if you want to talk about your account in-person.
The interest rates offered aren’t the absolutely highest available. However, they are well above average, and they are some of the highest rates you’ll find from a free online bank offering so many different products.
If you’d like to learn more about Capital One 360, or open an account of your own, click here.