Capital One made a splash in the nineties with unprecedented mass advertising for credit cards — so we’re sure you’ve heard of the company.
You might not know, though, that it’s jumped on the online banking bandwagon over the past few years and has come out strong with digital-first banking services that rival competitors in traditional banks. It’s also continuing to improve its advantages. In December 2021, Capital One became the first of the nation’s biggest banks to eliminate all overdraft fees and by doing so gives up $150 million in annual revenue.
The Capital One 360 suite of bank accounts offers mobile-friendly, fee-free banking, with the added convenience of a smattering of physical locations around the country.
In our Capital One bank review, we’ll explore account options, fees, interest rates and other perks and drawbacks of the bank to help you determine whether it’s the right place for your money.
Capital One Checking Accounts
Features of Checking Accounts
MONEY Teen Checking
Teens and kids 8+
Capital One 360 Checking Account
Make deposits at CVS stores
70,000 fee-free ATMs
Peer-to-peer payment with Zelle
The biggest selling point for a Capital One 360 Checking account is the lack of fees. That’s common for an online account but rare for traditional institutions — two worlds Capital One straddles comfortably. You pay no monthly maintenance fee and face no minimum balance requirements, and you get access to a network of 70,000 fee-free Allpoint and MoneyPass ATMs.
As a Capital One customer you get additional perks that are common for online banks: Get your paycheck up to two days early if you’re paid by direct deposit and earn 0.10% annual percentage yield (APY) on your balance.
A couple of features you miss out on with other online-only accounts: You can deposit cash over the counter at CVS locations, up to $999 per day and five transactions per month, and you can transfer money to friends with any bank account that works with Zelle.
A 360 account gives you options for overdraft protection, including:
Auto-Decline: No overdraft protection and no fees. Transactions are declined.
Free Savings Transfer: Connect your 360 Savings account to automatically pull the overdrawn amount from your savings into your checking account with no fee.
No Fee Overdraft: Allow a transaction to overdraft your account, and pay no fee. You may need to bring your account balance positive before additional transactions are approved.
Capital One MONEY Teen Checking
Link external accounts
Parental controls and visibility
The MONEY Checking account is designed for teenagers and kids ages 8 and older. It works much like a joint checking account, except that adults don’t get a debit card. Instead, you get access to the account as a joint account holder, so you can see transactions, get alerts, lock and unlock the debit card, and connect external accounts to add and remove money.
The mobile app lets you help your kids manage money by setting up savings goals and offering rewards. You can also set a recurring allowance or just add money to their account any time from a connected Capital One or other bank account.
Kids get a debit card in their name and get full access and control on the account. Through the app, they can check their balance, set goals, allocate money for spending or saving, deposit checks, set up direct deposit and receive text alerts.
Capital One Savings Accounts
Capital One offers two online savings accounts: the 360 Performance Savings for adults and the Kids Savings Account for kids and teens.
Features of Savings Accounts
360 Performance Savings
Kids Savings Account
Savers under 18
Capital One 360 Performance Savings
No monthly fee
No minimum deposit or balance
Capital One’s signature online savings account is pretty straightforward: no fees, no minimum balance or deposit, and a higher-than-average interest rate.
Earn 3.30% APY on all account balances, automate your savings with regular transfers from your Capital One 360 Checking or external checking account, and opt into Free Savings Transfer to use the savings account as free overdraft protection for a 360 Checking account.
Capital One Kids Savings Account
No fees or minimum balance
Parental approval required for withdrawal
Capital One Credit Cards
Its credit card selection is broad, with 30 cards available. Cards offer travel, cash back and other rewards, low or no intro APR, no annual fee, and options for all credit score levels. Some popular cards include:
Venture Rewards: Earn airline miles for flights, rental cars and travels booked through Capital One Travel for a $95 annual fee.
Quicksilver Rewards: Earn 1.5% cash back on every purchase, with a 0% intro APR for the first 15 months and no annual fee.
Savor: Earn 4% cash back for eating out and entertainment, plus other cash back rewards, with Savor Rewards for a $95 annual fee; or earn 3% cash back on dining and other rewards for no annual fee with SavorOne.
Capital One 360 CDs
As a savings account alternative (or add-on), Capital One sells Certificates of Deposit (CDs) it calls the 360 CD. There’s no minimum deposit to open a CD account, and CDs come with a guaranteed rate of return.
You can buy a CD for a term between six months and five years, and the APY goes up the longer the term.
Capital One 360 CD Rates
You can receive interest payments from your CD at the end of the term (which would have the greatest yield) or monthly or yearly.
Capital One also offers auto loans, plus business banking and lending, but no home loans or personal loans.
Capital One Bank Fees
Capital One bank accounts are all mostly fee-free. You pay no monthly maintenance fees (with no minimum balance requirement) and no fees at Allpoint or MoneyPass ATMs for any checking or savings accounts. The bank offers flexible overdraft protection options with no overdraft fees, and you pay no foreign transaction fees and get your first book of 50 checks for free.
The accounts charge typical fees for some extras, including:
Cashier’s check: $10 in person, $20 online with expedited delivery.
Order paper checks: $7 for 50, $11 for 100; first checkbook is free.
Outgoing domestic wire transfer: $30.
Capital One Bank Customer Experience
The Capital One bank customer experience is increasingly an online banking experience as the company continues to close branches and focus on its online and mobile products.
The company has tons of physical branches around New York City, and Capital One Cafes are scattered around major cities around the country. Other than that, your access to your account and customer service are limited to the app, website, ATMs and over-the-counter deposits at CVS.
Capital One Mobile
As a mostly online bank, Capital One offers an app that’s more robust and user friendly than what you’d expect from a typical legacy financial institution. It feels much more like a challenger bank than a traditional one.
You can manage all your Capital One bank accounts, loans and credit cards through the Capital One Mobile app for Android and iOS.
The app lets you see your bank balances, credit and debit card transactions and credit score (through CreditWise), plus send and receive money through Zelle and set up bill pay.
Through the app, you also get help keeping an eye on your money with Capital One’s virtual “financial assistant,” Eno.
Eno sends alerts of potentially suspicious spending on your account to help you spot and stop fraud, tracks your spending, and alerts you to ending free trials and recurring charges. And it’s a friendly chat bot you can use to ask basic questions about your account.
If you live near a Capital One bank branch or Cafe, you can stop in during business hours to speak with a customer service rep called an “Ambassador” to get answers to questions about your account.
If you’re not near a physical location (or just prefer to do your banking from your couch), you can find answers through the Support Center (i.e. FAQs) or by chatting with Eno through the app. Or you can get in touch with Capital One customer service online, via Twitter, over the phone or… by mail.
Capital One Pros and Cons
Evaluate Capital One pros and cons to determine whether banking with the company is right for you.
Fee-free checking and savings accounts.
High-yield savings account and CDs.
Cash deposit options and free ATMs.
Flexible overdraft protection options.
Banking for kids and teens with parental oversight.
Manage checking, savings, credit cards and auto loans in one place.
Business banking and lending options.
User-friendly mobile experience.
Mostly online-only account access.
Physical locations only in major cities.
No home loans or personal loans.
No investment accounts.
No money market accounts.
Frequently Asked Questions (FAQs) About Capital One
Here are our answers to some frequently asked questions about banking with Capital One.
What makes a good bank is different for everyone, depending on financial situation, goals and values. Capital One 360 accounts are well-liked because they’re fee-free and convenient to open and use through a mobile app, and interest rates are well above average. Capital One falls in line with most big banks for lack of focus on philanthropy and sustainability, though the company has a track record of ethical business and community support and is ranked among many lists of “best workplaces.”
Yes, Capital One Bank is a member of the FDIC, and it manages Capital One 360 checking and savings accounts, as well as Kids Savings accounts and MONEY Teen Checking accounts.
Capital One Financial Corporation is a bank holding company that owns Capital One Bank and other subsidiaries that manage banking, loans and credit cards for customers in the U.S., Canada and the U.K. Capital One 360 is the company’s line of banking products that include checking and savings accounts for adults and kids. If you have a Capital One 360 bank account and Capital One credit cards or loans, you can manage them all in one place under your account in the Capital One Mobile app.
Capital One bank accounts come with the same protections you get from any other online or brick-and-mortar banks. Your money is FDIC-insured up to $250,000, and the company uses encryption technology and data security features to protect your personal and financial information online. The company announced a security breach in 2019 and offered free credit monitoring to anyone affected, and all customers have access to transaction monitoring and fraud alerts.
For banking, Capital One charges almost no fees. Neither checking nor savings accounts come with monthly maintenance fees or minimum balances, it charges no overdraft protection fees and you have access to a broad network of fee-free ATMs. Some Capital One rewards credit cards come with annual fees, so do the math before signing up to determine whether they’re worth it for you.
As of September 2022, Capital One’s 360 Checking account pays 0.10% APY, and the 360 Performance Savings account pays 3.30% APY. 360 CDs pay between 3.30% and 4.40% APY, depending on their term.
Dana Miranda is a Certified Educator in Personal Finance® and founder of Healthy Rich, a platform for inclusive, budget-free financial education. She’s written about work and money for publications including Forbes, The New York Times, CNBC, NextAdvisor, Insider and a column for Inc. Magazine. Freelancer Veronica Matthews contributed to this report.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.