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Capital One 360: Online banking with minimal fees

Money Rates Columnist.

Capital One 360 has become a popular choice among savers, with competitive interest rates and low fees. This review takes a look at several features, including the latest offers and perks. Most notably, the bank is now featuring an attractive money market account with an annual percentage yield of 1 percent (as of September 13, 2016) with balances $10,000 or more. Sweetening the pot, the Capital One 360 Money Market account does not have maintenance fees.

Capital One 360 Review: History

When the announcement came in 2012 that Capital One had purchased ING DIRECT, the world's largest direct online bank, it set off alarms for many of ING's customers. Since 2000, ING had pioneered a direct-banking model that savers had come to love. Some worried that an acquisition might alter ING's unique approach to banking, in particular its emphasis on minimal fees on checking accounts and high interest rates on savings accounts. February 2013 marked the formal change from ING DIRECT to Capital One 360. To the relief of many savers, most of the best features on the popular ING deposit accounts remained intact immediately after the switch, including its:

  • Customer service team. Capital One 360 representatives initially retained the ING customer service team.
  • Minimal checking account fees. The 360 Checking Account carries no monthly maintenance fee and no overdraft fees. While Capital One 360 will still charge you interest on overdrawn balances, even that seems reasonable considering this is one of the few interest-bearing checking accounts still around.

If you were acquainted with the ING DIRECT line-up of products, Capital One 360's deposit offerings will seem similar:

  • 360 Savings Account: Competitive interest, no fees and no minimums. Free transfers and FDIC insurance up to $250,000 are also part of the package.
  • 360 Checking Account: Interest-bearing checking accounts are a rarity today - particularly ones that also charge no maintenance fees and require no minimums. Making deposits remains as simple as it was with ING, with check deposits via computer or the Capital One 360 mobile app and electronic transfers at your fingertips.
  • Money Market Accounts (MMA): A flexible choice for savers, MMA accounts are a popular option. Opening an MMA online usually takes about 5-10 minutes. If you want to fund your account right away, have a check ready. Account options include individual, joint or living trust.
  • Certificates of deposit (CDs): For those who prefer a little commitment in their savings, terms are available from six months to five years.
  • Kids Savings Account: Children can create their own Saver ID, while still keeping an adult in charge of the major transactions.
  • MONEY Teen Checking Account: Again, this account shares most of its features with the 360 Checking Account, but it also includes some helpful features for parents, such as text alerts whenever their teens makes a transaction.

Capital One 360 also offers home loans, investment products and business and retirement accounts, making it one of the more direct banks with comprehensive products and services.

Offers and perks

360 Money Market

Customers of the online bank's money market accounts can take advantage of an annual percentage yield of 1 percent (as of September 13, 2016) if they have balances $10,000 or more. This is a greater APY compared to the 0.13 percent national money market account rate for accounts $10,000 and higher, according to Informa Research Services, and the 0.08 percent national rate for non-jumbo MMA accounts reported by the FDIC. In addition to the high interest rates provided, the 360 Money Market account does not have maintenance fees and deposits up to $250,000 per depositor are protected under FDIC insurance coverage.

360 Savings Account

The 360 Savings Account earns 0.75 percent APY (as of September 13, 2016) with no minimum deposit and no monthly maintenance fees. Interest is compounded and credited monthly on this account; however, an interesting feature is their automatic savings plan which lets you transfer funds from your checking account as frequently as you like. You can also open multiple accounts and track your savings goals.

A tradition of innovation

When ING DIRECT USA launched more than a decade ago, the concept of an online-only bank was foreign to most consumers. But by offering its customers features that traditional banks couldn't, it sparked a revolution in online banking that has spawned countless competitors and redefined how customers interact with banks. Capital One appears to have wisely noted the success of ING's deposit products, as it appears to have no immediate intention of altering many of the things that brought customers to its direct-banking model in the first place.

Note: "Capital One 360" has been renamed and is now branded as "Capital One."

dan 29 May 2013 at 4:10 am

Happy with this bank. Great checking account and it gave a free $50 bucks for signing up and making 3 purchases. Not to mention they have one of the biggest ATM networks around. I can practically use any deli atm anywhere and not have to pay a fee. If times get hard one week I can overdraw $100 and pay it back the next week and only be charged .31 cents which is amazing. The only downside if I have to purchase checks but you gotta do that with most banks on top of all their fees.

DOS 27 May 2013 at 4:01 pm

I was an ING customer for many years and was a bit dismayed at first to find they had been bought by Capitol One. However, the transition has been flawless - I have had no issues with moving funds from my "regular" bank to Capitol One - in either direction. Good Job!

Christina 21 May 2013 at 3:07 am

This bank does not do wire transfer. They only provide cashier checks and the cashier check has a 5 day hold. Other than that may be a good bank

HyperActive 9 May 2013 at 7:23 pm

https://home.capitalone360.com/referafriend?save=ZP2dn5yo1FThat link (Found from the post below) worked great! I sent in my deposit of $250 for the savings and received my $25 bonus instantly. After i received the debit card for my checking account I opened through them I made my 3 purchased. Next day I received an email saying I have met all the requirements for my $50 bonus and that it would be deposited on such and such date. That date has not passed yet but I have no doubt that I will receive it. Thanks 360! Very easy $75 bonus.

Letha 29 April 2013 at 11:54 pm

Great Bank. Awesome if you need an account for your child or teen. The capital one 360 accounts will teach them responsibility and you can give them their "allowance" through their account. The parent also has full control over the account.They are also offering a bonus for these accounts along with their regular checking account.https://home.capitalone360.com/referafriend?save=ZP2dn5yo1FIs a current link to these promotions. No min balance required except for the "Savings" promotion

DGS 15 April 2013 at 11:18 pm

This is a great bank. I have had no problems with the transition like others have spoke of. Their customer service is top notch and everything about them is great! They also offer a great bonus.https://home.capitalone360.com/referafriend?save=ZP2dn5yo1F

Kyle 15 April 2013 at 3:31 pm

So far, I do not have any complaints about Capital One 360. I signed up a couple years ago, back when it was still under ING. I have had to call their customer service a few times, but every time I have they went over the top to make sure things went well. You actually get to speak to someone here in the U.S. - not someone halfway across the world. In any company these days, that's hard to come by. Their interest rates used to be better, but they're still great. Overdrafts (if you need them) are just a percentage, so you won't get nailed with a huge fee if you pay it back right away. If you want to open an account, or take a look at the different accounts they have, here's a link to their site:If anyone is looking to open a Capital One 360 account, here's a link to their site:https://home.capitalone360.com/referafriend?save=9fzgBUjvXZ

LBB 1 March 2013 at 12:09 am

Yes, Capital One 360 has had more than their fair share of "hiccups" already. I loved ING Direct, but now I'm looking for somewhere else to go.For example - Today, they sent me an email to advertise their "mortgage solutions". I have my mortgage elsewhere, but decided to check it out. After going through their entire questionnaire, I was told they have no "mortgage solution" for me because they don't finance this type of property. (Their words, not mine.)My home is a condo - not a condotel, nor anything commercial. It is a 3/3 condo in a 45-unit building. It is my primary (and only) residence. It is worth $300,000+, and I have about 50% equity. Yeah, I can see why they would shy away from a property like that!

CJ 21 February 2013 at 2:54 am

Capital One 360 is not ING Direct with a different name and color scheme. System conversion left my mortgage loan account in disarray. Charged 12% interest in error on a 4% loan. Payments inexplicably blocked and/or reversed. Four weeks after conversion (and faulty payment processing), I am still waiting for a refund of overcharged interest. Capital One employees minimize problems as "hiccups" and "display errors." Stay away from Capital One 360.