Capital One 360 Savings Account 2019 Review
Capital One is one of the largest banks in the U.S., serving customers across the country with FDIC-insured personal and business banking products, including credit cards and savings accounts. The Capital One 360 Savings Account is a fee-free, online savings account that offers features and benefits, such as:
- Interest on deposits.
- Competitive APY.
- No monthly maintenance or service fees.
- No minimum balance fee.
- $0 opening deposit requirement.
- $0 minimum balance requirement.
- Online and mobile banking access.
- FDIC insurance, up to $250,000.
Reading this review of the Capital One 360 Savings Account can help you understand what it has to offer if you're looking for a new place to grow your savings.
Capital One Interest Rates
Some online and brick-and-mortar banks pay tiered rates on savings accounts or other interest-bearing accounts. The higher your balance, the higher the annual percentage yield you can earn.
Capital One takes a different approach. Savers who open a 360 Savings Account earn the same APY across all balances.
Compared to what you may find at a traditional bank, that rate is well above the national average of 0.09%. On the other hand, this rate is at the lower end of the spectrum for online banks.
Comparing the APY is important before you open an account if earning the best interest rate possible is your goal. Keep in mind, however, that it's just one thing to look for with a bank account. Low fees are another.
Monthly Savings Account Fees
Monthly fees can work against you as you pursue your savings goals.
Say you're earning a small amount of interest each month -- $5 as an example. At the same time, you're paying a $10 monthly service fee.
It doesn't require a math degree to understand that your savings account is cost you money, instead of helping your money to grow.
The 360 Savings Account from Capital One allows you to avoid high fees. This account charges no:
- Monthly service or maintenance fee.
- Minimum balance fee.
- Hidden fees of any kind.
That's similar to what you'll find with other high-yield savings accounts. Online banks tend to be better equipped to keep fees to a minimum, as they have lower operating costs than their brick-and-mortar competitors.
Monthly fees for savings accounts are more common at traditional banks. These fees often range from $5 to $10 per month.
The upside is that you may have ways to avoid the fee, such as maintaining a minimum daily balance or scheduling a direct deposit into your account each month.
If you'd rather not deal with those kinds of hassles, then the Capital One 360 Savings Account or another online savings account can help meet that need.
Other Savings Account Fees
While the 360 Savings Account is mostly fee-free, there are a couple of fees to know about.
First, Capital One charges a $30 fee for outgoing domestic wire transfers from your account. Unless you're frequently transferring money from savings to another bank, this fee is likely to be less common for you.
The next fee to know is a $5 statement copy fee if you require paper copies of any statements for the previous two years. You can easily avoid this fee by logging into your account online and downloading statements to print.
Capital One doesn't charge fees for depositing foreign checks into your account. But you should know that the paying bank may charge a fee to process the check payment.
You may be curious about excessive withdrawal fees. These fees can apply when you make more than six withdrawals or transfers from your account per month. (Not including withdrawals made in person at a Capital One location, via ATM, by mail or messenger.)
The good news is, Capital One doesn't charge an excess withdrawal fee. But, the bank can close your account or transfer it into another account that's not subject to excess withdrawal limits.
In other words, if you make a habit of using your savings account like a checking account, Capital One could change it to a checking account.
Additional Savings Account Features and Benefits
This account has a couple of additional features to know about, including:
- Automatic savings plans.
- Free account transfers.
- Top-rated mobile app.
Automatic savings plans
Having a savings goal to work toward is a motivator to stick with your plan. Capital One makes that easier with automated savings.
You can establish a savings target with the online My Savings Goals tool. Then, you create an automatic transfer from another linked bank account to your savings account according to your preferred schedule.
It's a simple way to grow your savings on autopilot. The My Savings Goal tool helps you keep track of your progress as you save.
Free account transfers
There are multiple ways to add money to your account, including free bank to bank transfers. You can link a checking or savings account at Capital One or another bank to your 360 Savings Account to move money quickly and conveniently.
Other ways to add money to your account include:
- Direct deposit from your paycheck.
- Mobile check deposit through the Capital One app.
- Wire transfer.
You can make withdrawals using an online transfer or wire transfer. These accounts don't offer a debit card or ATM card. For that, you'll need to open a Capital One checking account.
Top-rated mobile app
Capital One's mobile app allows you to stay connected to your savings account where you are. You can use the mobile app to:
- Check your balance.
- Open a new savings account.
- Set up or change your automatic savings plan.
- View your savings goals.
- Deposit money to your account using mobile check deposit.
Are There Other Ways to Save With Capital One?
Yes, there are. Capital One also offers money market accounts and certificates of deposit for savers.
360 Money Market Account
The 360 Money Market Account is a high-yield account designed for savers. This account earns a 2.00% APY on balances of $10,000 or more. Balances below that amount earn a 0.85% APY.
Like the 360 Savings Account, the money market account has no monthly fees or service fees. There is no minimum balance requirement and no minimum balance to open.
Some money market accounts offer check-writing or debit card privileges. This one does not. For that, Capital One recommends looking into its checking account options.
Capital One offers several CD accounts for savers. High-yield CD accounts feature terms of 12, 24 and 60 months.
There is no minimum balance required to open one of these CDs and they're all FDIC-insured. Additional CD terms are available ranging from 6 months to 48 months if you're interested in building a CD ladder.
Capital One does charge a penalty for withdrawing money from a CD before its maturity date. For 12 month CD accounts or less, the penalty is 3 months' worth of interest. For longer CD terms, the penalty is 6 months of interest.
You can also open an IRA CD with Capital One. IRA CDs are designed for retirement savings.
You can open a traditional or Roth IRA CD, with $0 to start. Both accounts earn interest, with an APY ranging from 0.60% to 2.30%, depending on the CD term. Terms range from 6 to 60 months.
How to Open a Capital One 360 Savings Account
You can open a savings account (or CD/money market account) with Capital One online. You can speed up the process a little if you already have a Capital One credit card, loan or bank account.
If you're brand-new to Capital One, you'll need to offer some key information to get started. That includes:
- Your name.
- Social security number.
- Bank account details for funding your account.
- Preferred minimum opening deposit.
Remember, you can open a 360 Savings Account with $0 and fund it later if necessary. There's no penalty for doing so.
You can open a joint account with someone else or an individual account. If you're opening a joint account, they'll need to enter their name, address and social security number details as well.
The process takes just a few minutes to complete. Once your account is open, Capital One will give you your account and routing number to start making deposits or set up an automatic savings transfer.
Final Verdict: Should You Open a Capital One Savings Account?
The 360 Savings Account could be a good option if you want a fee-free way to save money with interest. If you already have credit cards or a checking account at Capital One, opening an account can allow you to keep all your finances in one place.
On the other hand, if getting the best rate on savings matters to you, consider looking into Capital One's CD accounts or money market account instead. They also carry no fees and can yield a better APY.
Just keep in mind that you'll need $10,000 or more to get the best rate with a money market account. And consider how long you'll need to lock your money into a CD to get a great rate.
The other option is to look at online savings accounts elsewhere. There are banks that can offer zero fees and better interest rates on savings, so it's important to consider every option.