Many people like the idea of online banking but are nervous about banking with a lender they’ve never heard of. If this sounds like you, then Capital One 360 could be the right option for you.
Capital One 360 is the online arm of Capital One, a bank that is popular for its credit card options and auto loans. But, it’s also a good choice for anyone looking for solid online banking options. The bank offers free checking, savings, and CDS as well as a number of helpful online tools.
Plus, when you bank with Capital One you gain access to thousands of convenient, no-fee ATM locations. This guide will review the bank’s checking accounts, savings accounts, and CDs as well as how to get started.
Capital One 360 Checking
According to the FDIC, the average national interest rate for a checking account is 0.06%. Here is a breakdown of how Capital One pays out interest on its checking accounts:
- $0 – $49,999.99 = 0.20%
- $50,0000 – $99,999.99 = 0.75%
- Over $100,000 = 1.00%
Not only are the interest rates competitive but Capital One 360 offers a variety of perks just for opening the account. There is no minimum deposit or minimum balance required to open the account and you receive free online and mobile checking. You will also receive a 360 Checking MasterCard® Debit Card which will arrive in 1-3 business days after you sign up for an account.
And unlike some online banks, a Capital One 360 checking account gives customers free access to over 39,000 Capital One and Allpoint ATMs. That means you get all the benefits of online banking but still have in-person access to your funds.
Plus, you can deposit checks and pay bills right from your phone. And Capital One has several overdraft protection plans to choose from.
Capital One 360 offers a variety of savings products including a general savings account, money market account, IRA savings, and more. All of these accounts come with competitive interest rates, zero monthly fees, and flexible terms.
It’s hard to find a general savings account that offers anything better than average returns but Capital One 360 savings does just that. The rate is 1.00% APY, which is much better than the national average of 0.09%.
Similar to the checking account, you’ll receive online banking and can deposit checks right from your phone. And the bank account is FDIC-insured so you’ll have peace of mind knowing your money is secure.
You’ll also receive free account transfers, a goal-setting feature that will help you save and manage your money, and an automatic savings plan.
Money Market Accounts
If you have more than $10,000 in savings, you’ll want to switch to Capital One 360’s money market account. A money market account comes with no fees, access to ATMs nationwide, and free mobile banking.
This account boasts a competitive rate of 2.00% APY. You can still open a money market account if you have less than $10,000 but your rate will be 0.85%.
The Capital One 360 IRA savings account is a tax-advantaged way for you to start saving for retirement. You start earning interest right away and your account is FDIC-insured. The rate is 1.00% APY and there is no minimum fee to get started.
Keep in mind, this account is for long-term savings. So if you want the ability to withdraw your money you should look into the savings or money market accounts.
Savings Accounts for Kids
If you’re looking for a way for your child to start saving money, the Capital One savings account for kids is a good choice. This online savings account comes with zero fees, a rate of 1.00% APY, and savings goals they can track.
You can link their savings account to yours and set up automatic transfers to their account. This is a great way to give kids some guided independence so they can learn how to start saving their money.
Certificates of Deposit (CDs)
Capital One knows that not everyone can leave their money on a CD for five years. That’s why the bank offers a variety of CD options with terms lengths starting at six months and ending at 60 months.
Here is an overview of the bank’s CD terms and rates:
- 6 months = 0.60% APY
- 9 months = 0.80% APY
- 12 months = 2.40% APY
- 18 months = 2.55% APY
- 24 months = 2.20% APY
- 30 months = 2.20% APY
- 36 months = 2.25% APY
- 48 months = 2.25% APY
- 60 months = 2.30% APY
With general interest rates and zero market risk, a 360 CD is a good option for anyone that wants a hands-off option for saving money. But like most CDs, you will be penalized if you withdraw your money early. So if you think this is a possibility, you’re probably better off opening a 360 savings account.
How to Get Started With Capital One 360
Capital One’s website is fairly easy to navigate and setting up a new account is just as easy. You will need to be able to provide standard information like your name, address, birth date, and Social Security Number.
You’ll also need to provide an existing checking account to link your Capital One account to. And if you open your new account, your funds may not be immediately available.
Capital One offers a variety of online checking accounts, savings accounts, and CDs for its customers. Capital One is a great option for anyone that wants to work with an established online bank that provides great customer service and convenient online banking.
The interest rates are much higher than what you’ll find with a traditional brick-and-mortar bank. And best of all, there are no account maintenance fees like you’ll find with traditional banks. You can apply online or contact Capital One to open a new account today.