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Capital One 360 pays high interest rates on savings.
Capital One 360; Alyssa Powell/Business Insider
The bottom line: Capital One 360 is an overall strong bank. You’ll earn competitive interest rates on online savings accounts and CDs.
Find the right savings account for you
Overall bank rating
FeatureInsider rating (out of 5)Savings4.5Checking4.5CD4.5Trustworthiness4Total score4.5
Pros and cons
ProsCons
Strong digital banking platform
Good for travel
Competitive savings rates
Separate accounts for children
Receive paychecks up to 2 days sooner with early direct deposit
No money market accountsMight have to deal with out-of-network ATM fees
Savings
Capital One doesn’t require an initial deposit or minimum account balance, and it doesn’t charge a monthly service fee.
The Capital One 360 Performance Savings account pays one of the top rates in the industry. You can find a higher rate at a couple other big-name banks, but it’s definitely one of the best out there. Your child can earn 0.40% APY with a kids savings account, and the rate will jump up to the regular interest rate once they turn 18.
Capital One 360 Performance Savings makes it easy to save for various goals. Set a savings goal and your target amount, then schedule recurring transfers from your Capital One 360 Checking account until you’ve saved the full amount.
Checking
Capital One doesn’t charge foreign transaction fees, making it a great option for regular travelers. There are no monthly fees, and the bank provides several overdraft protection options. The account also has an early direct deposit feature so you can receive paychecks up to two days early.
CD
Capital One 360 CDs come with term lengths ranging from six months to five years. Capital One does set itself apart by not requiring an initial deposit to open a CD — most banks ask for at least $500.
Capital One doesn’t offer as many types of CDs as some banks do. For example, you can’t open a no-penalty CD or jumbo CD with Capital One. Your only option is a regular term CD.
How Capital One 360 works
Capital One has hundreds of branch locations across Louisiana, Maryland, New Jersey, New York, Texas, Virginia, as well as Washington DC. It also has dozens of Capital One Cafés, where you can grab Peet’s Coffee®, speak with a money coach, and open a bank account.
Capital One 360 is Capital One’s online operation. You can have a hybrid in-person/online banking experience if you live near a branch or Café, or you can bank completely online with Capital One 360.
Capital One’s website is easy to navigate, and its mobile app has received 4.9 out of 5 stars in the Apple store and 4.6 out of 5 stars in the Google Play store.
Once you set up an online account, you can chat 24/7 with a live customer service representative. If you want to speak with an agent on the phone, you can call between 8 a.m. and 11 p.m. ET.
Between Capital One ATMs and partner ATMs, you have access to over 70,000 ATMs nationwide. The bank doesn’t charge a fee if you use an out-of-network ATM, but it doesn’t reimburse any out-of-network fees charged by an ATM provider.
Your Capital One bank account is FDIC insured for up to $250,000, or up to $500,000 for a joint account.
Capital One 360 trustworthiness and BBB rating
The Better Business Bureau gives Capital One 360 doesn’t have a rating because it’s profile is being updated. A good BBB rating signifies a company responds effectively to customer complaints, has honest advertising practices, and is transparent in how it handles business.
The company does have a recent controversy, though. Capital One paid $80 million after the Office of the Comptroller of the Currency stated that the bank was partially responsible for a 2019 data breach in which a hacker accessed over 100 million credit card applications. The OCC said Capital One’s security was inefficient at the time.
Capital One 360 vs. Ally
Ally will be the strongest option if you’d like to open a money market account, because Capital One 360 doesn’t have one.
For savings accounts, it could be a close toss-up between the two banks. Ally and Capital One have a similar structure to their savings accounts.
If you’re looking to open a checking account, Capital One might be more appealing. Capital One offers more ways to access your account. Capital One has physical locations in some states and a bigger ATM network.
Capital One 360 vs. Discover
Discover Bank requires at least $2,500 to open a money market account and Capital One 360 doesn’t have one.
You also might like Discover if you’re looking for a rewards checking account. With the Discover Cashback Debit Account, you’ll earn 1% cash back on up to $3,000 of debit card purchases each month.
For CDs, it’ll be a toss-up between Discover Bank and Capital One. Both banks offer similar rates so it could ultimately come down to how much you have to open a CD.
Frequently asked questions (FAQ)
Can I deposit cash into my Capital One 360 account?
You can deposit cash to a Capital One checking account by using the bank’s mobile app or going to a Capital One ATM. If you use the bank’s mobile app, you’ll need to visit a CVS location.
Does Capital One 360 charge ATM fees?
Capital One won’t charge you an ATM fee if you use a Capital One, MoneyPass, or Allpoint ATM. However, if you use a bank ATM that’s not in one of these networks, you might have to pay a $2 fee.