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 a great option for you.
Capital One 360 is the online arm of Capital One, a bank 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 several 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 Account
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 = 0.10%
- $50,0000 – $99,999.99 = 0.10%
- Over $100,000 = 0.10%
Not only are the interest rates competitive, but Capital One 360 offers various perks just for opening an online account. For example, there is no minimum deposit, no monthly maintenance fee, and no 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 signing up for an account online. There are no ATM fees or foreign transaction fees.
And unlike some online banks, a Capital One 360 checking account gives customers free access to over 70,000 Capital One, MoneyPass, and Allpoint ATMs. You can find ATMs at select Target, Walgreens, and CVS stores. That means you get all the benefits of an online checking account, but still have in-person access to your funds. However, you will be charged $2 or more if you use an out-of-network ATM.
Plus, you can set up direct deposits for your paycheck and direct debit to pay your bills right from your phone. And Capital One has several overdraft protection plans to choose from to help prevent you from paying overdraft fees.
Capital One 360 Savings Account
Capital One 360 offers multiple savings accounts to choose from, including a general savings account, money market account, IRA savings, and more. All of these accounts come with competitive interest rates, no 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 account has an annual percentage yield (APY) of 0.40%, which is much better than the national average of 0.09%.
Similar to the checking account, you can deposit checks, check balances, and pay bills 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.
Savings Accounts for Kids
If you’re looking for a way for your child to start saving money, the Kid’s Savings account is a good choice. This online savings account comes with no monthly fees, a rate of 0.30% APY, and savings goals they can track.
You can link their 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 various 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 = 0.10% APY
- 9 months = 0.10% APY
- 12 months = 0.20% APY
- 18 months = 0.25% APY
- 24 months = 0.25% APY
- 30 months = 0.25% APY
- 36 months = 0.60% APY
- 48 months = 0.65% APY
- 60 months = 0.80% APY
With general interest rates and zero market risk, a Capital One 360 CD is a good option for anyone who 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
The Capital One mobile app and website are relatively easy to navigate, and setting up a new account is just as easy. You will need to provide standard information like your name, address, birthdate, and Social Security Number.
You’ll also need to provide an existing checking account to link to your Capital One bank account. And if you open your new account, your funds may not be immediately available.
Capital One offers various online checking and savings accounts and CDs for its customers. Capital One is an excellent option for anyone who 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 monthly maintenance fees like you’ll find with traditional banks. You can apply online or contact Capital One to open a new account today.