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