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With so many different banks to choose from, the choice of where to park your funds and take out your credit cards can be overwhelming.
Should you open an account at a major national branch down the street, join a credit union, or opt for an online-only bank?
Today, we’re going to walk you through everything that Capital One has to offer so you can decide if their services are right for you.
Capital One Bank: An Overview
Capital One Bank is the consumer banking of Capital One Financial Corporation.
Capital One provides checking accounts, savings accounts, credit cards, auto loans, and corporate loans to millions of customers across the U.S., Canada, and the U.K.
Capital One is the 10th-largest banking institution in the U.S. and has over $373 billion in assets.
The company is headquartered in McLean, Virginia and employs over 48,000 people. It also has a noteworthy presence in the U.K. and Canada.
With over 650 physical branches and more than 50,000 ATMs located in the U.S. alone, it’s safe to say that Capital One has a significant presence.
What Services Does Capital One 360 Offer?
Capital One offers the following services:
Capital One 360 Checking
Capital One’s checking account is called 360 Checking. There are no fees to use the account—unlike many of the major national banks (such as Chase and Bank of America).
What’s more, there is a $0 minimum balance required to open the account (and keep it open, for that matter).
Even if your account drops to $0, you still aren’t charged any fees—which is somewhat of an outlier, as most banks hit you when you drop below a certain threshold.
Capital One 360 Savings
Capital One’s savings account offering is called 360 Performance Savings. Account-holders can earn an impressive 1.9% annual percentage yield (APY) by simply keeping their money in this high-yield savings account.
You don’t need to maintain a minimum balance to keep a 360 Performance Savings account open, and there are absolutely no fees, either. Of course, their savings account is also FDIC-insured.
MONEY Teen Checking Account
As the name suggests, Capital One’s MONEY account is designed for—you guessed it—teens.
However, children ages eight years old and up are eligible to participate—so long a parent or legal guardian is a joint account holder. When the account holder turns 18, the MONEY account automatically graduates to a 360 Checking account.
Once again, there are no fees or minimum balances to keep a MONEY account open—as it should be!
With a Capital One 360 CD account, investors can earn a solid 2.30% APY on one year online deposits.
So, if you’re a fan of no-risk investing, and would like to stretch your earnings further than you could get in a savings account, the 360 CD could be a good option for you.
In case you’re unfamiliar with certificates of deposit, here’s a brief refresher. Essentially, CDs are savings accounts that tend to offer higher interest rates because they have fixed withdrawal dates (e.g., two or three years from today).
You can’t touch the money until the maturity date. But in exchange for that, you tend to earn more on your money.
Looking at the numbers, a $10,000 investment is guaranteed to yield a return of $229 in the 12 month CD account.
360 IRA Savings Account
This account is designed for long-term retirement savings. When the account is opened, investors are given a choice between opening a Traditional IRA or a Roth IRA.
The 360 IRA Savings Account offers a 1% APY, which isn’t stunning but also isn’t the worst when compared to rates you can find elsewhere.
And at the same time, you will have the peace of mind that comes with knowing your deposits are tax-advantaged and FDIC-insured.
360 IRA CD Account
They also don’t have to pay any fees and their funds are FDIC-insured. When you open a 360 IRA CD Account, you’ll automatically be given a 360 IRA Savings account as well.
Kids Savings Account
The Capital One Kids Savings Account is the perfect way for kids to start earning a 1% APY from cash that might otherwise be found in their piggy banks.
There are no fees to maintain the account and no minimum balance, either.
Capital One Auto Navigator
Some might find it surprising that Capital One is the second-largest auto financer in the U.S.
The company owns an impressive 5% of the total auto financing market share.
The ease-of-use of Capital One’s Auto Financing portal surely plays a factor in their success in this market.
Credit Cards Galore
As we previously mentioned, Capital One earns the bulk of its revenue from credit cards. With that in mind, it should come as no surprise that the company has a wide range of credit card offerings.
As of the time of this writing, Capital One currently offers 19 different credit cards that serve customers with all types of credit scores and purchasing habits.
If you want to earn travel rewards from your credit card purchases, you should check out the Capital One Venture Rewards Card, which offers 2x miles on every transaction and a 50,000-mile sign-up bonus.
If cash-back is your thing, the Capital One Quicksilver Card offers 1.5x cash back on all purchases and a $150 sign-up bonus.
Further, the Capital One Savor Rewards Card offers 4% cash back on dining and entertainment (a leader in this area at the time of this writing), 2% cash back on groceries and 1% cashback on everything else.
Is Capital One a Good Bank?
Yes, Capital One is a good bank. Their checking and savings accounts are both no-fee and super easy to sign up for and manage online. What’s more, their savings account interest rate is 5x the national average.
However, their consumer banking division only accounts for around 14% of its total revenue. A staggering 75% of Capital One’s revenue comes from credit cards (more on that later).
What is a 360 Capital One account?
A 360 Capital One account refers to either the 360 Checking account or 360 Performance Savings account that we outlined above. Both types of accounts can be created with no minimum balance and have no monthly fees.
Is Capital One 360 a good savings account?
Yes, the Capital One 360 Performance Savings a good savings account.
In fact, thanks to its no-fee structure, no minimum balance requirement, and high 1.9% APY, I would go so far as to say that 360 Performance Savings is one of the best savings accounts on the market today.
Do you get paid early with Capital One 360?
If you’re asking this question, you might be confusing Capital One’s 360 Checking or 360 Performance Savings accounts (which don’t pay you anything) with their cash back or credit card rewards (which offer rewards and cashback on qualified purchases).
When it comes to redeeming the cash back you’ve accumulated on your Capital One Savor Credit Card or Capital One Quicksilver Credit Card, for example, you’re free to do so at any time. Simply log in to your account and select how much cashback you would like applied to your next statement. You can choose to use a portion or all of your cashback to reduce a future statement.
You also might be asking this question because you’re wondering whether to set up direct deposits with Capital One. Funds are generally available the next business day, so long as you deposit them before 9 p.m. the previous day.
Capital One Pros & Cons
- Top-Notch Mobile Apps
- Solid Interest Rates
- Ease of Online Use
- No Fees or Minimum Balance Requirements
- International Presence
Top-Notch Mobile Apps: Capital One’s mobile apps are consistently well-rated by consumers. The iOS app is rated at 4.5 stars out of 5 and is ranked at #7 out of all finance apps on the App Store. What’s more, J.D. Power and Associates have ranked Capital One’s Mobile App as the number- one banking app in the U.S. two years in a row.
Solid Interest Rates: The 1.9% APY offered on the 360 Performance Savings account is very good. The company also offers 2.3% on 12-month CDs, which isn’t too shabby either.
Ease of Online Use: If you like to bank online, Capital One has made it extremely easy to sign up for new accounts and services. With features such as mobile deposits, digital payments, and online bill payment, most customers will never have to visit a physical branch. At the same time, they’re there if you need them (unlike online-only banks). You can also very easily sign up for investment products and auto financing.
No Fees or Minimum Balance Requirements: I am a huge fan of the fact that Capital One does not try to nickel and dime its customers with monthly account maintenance fees or transaction fees. This is probably due to the fact that Capital One earns the bulk of its revenue from credit cards.
International Presence: Capital One has several branches in Canada and London. This might not seem like a big deal, but this presence allows for millions of people living outside the U.S. to access Capital One’s robust credit card portfolio.
- Limited Reach
- Credit Card Heavy
- Limited Investment Account ROI
Limited Reach: While Capital One has over 600 branches in the U.S., this is just a small fraction compared to Chase’s 5,000+ branches, or Wells Fargo’s 6,000+. So, if you need to deposit cash or prefer to have a face-to-face relationship with your bank, you may be out of luck if you live in many areas in the U.S.
Credit Card Heavy: With so much revenue coming in from credit cards, I can’t help but wonder how many Capital One customers might be falling into debt as a result of irresponsible credit card usage. Since you’re reading this blog, you understand that credit cards can be a valuable tool on the road to financial independence. However, without discipline, they can also be a slippery slope. If you aren’t prepared with a proper emergency fund, an unexpected turn of life events can quickly cause you to fall behind on your payments and cost you potentially thousands of dollars over the long term in high-interest fees.
Limited Investment Account ROI: Simply put, the 1.9% to 2.3% APY offered by the 360 Performance account and CD accounts will not help you retire early. While those accounts might be ideal for an emergency cash fund, in my opinion, they appear to be designed for risk-averse investors who might not know that they can earn much more by investing their funds elsewhere.
So, Is Capital One 360 Right for You?
If you like online banking and want to earn a top interest rate on your savings account, Capital One is definitely worth your consideration.
Further, their credit card portfolio is ideal for responsible spenders who can earn cash back and travel rewards from their cards. You could argue that they have it all and decide to have your checking account, savings account, and credit cards all in one convenient location.
Only you know what’s best for your unique financial circumstances. Do your due diligence and make the choice that works best for you, and start moving with confidence down the path that leads to financial independence. Good luck!
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