Capital One Review
Capital One is a large full-service U.S. bank, with assets of nearly $400 billion, more than 750 branches across the country, and a wide network of no-fee ATMs. The online banking unit of Capital One offers a full range of banking services, including checking and savings accounts, credit cards, and Certificates of Deposits.
We’ve dug into what to expect when banking with Capital One to help you determine if it could be a good fit for you.
Capital One is a bit of a pioneer when it comes to online banking. It was the first bank in the U.S. to launch a skill for Amazon’s Alexa so that you can use your voice to check your bank account balance and more. Capital One’s web interface and mobile app, available on the App Store and Google Play, are both well regarded. With their app, customers can also use Zelle to send and receive money and payments.
Standard Banking Products
Capital One offers a wide range of savings and checking accounts to suit the various needs of its customers. One of its more popular savings accounts is called Performance Savings. It’s Capital One's high-yield savings account with an interest rate of 0.40%. Other features of the Performance Savings account include no minimum balance requirements and no monthly maintenance fees. Plus, interest is earned regardless of the balance in the account.
Another popular savings account is Capital One’s 360 IRA Savings account, which is a tax-advantaged account designed for retirement savings. The bank offers a traditional and Roth IRA version of the 360 IRA Savings account and provides an interest rate of 0.40%. As with many of Capital One’s other savings account, the 360 IRA Savings does not require any minimum account balance and there is no monthly maintenance fee.
In terms of checking accounts, Capital One has an interest-bearing account known as the 360 Checking account, which pays an interest rate of 0.10%. The checking account also features a free checkbook, no monthly fees, no minimum balance requirements, a Mastercard debit card, and access to Capital One’s ATM network.
Capital One also has a checking account aimed at teenagers. The Teen Checking account comes with debit card access, but no check-writing privileges. Both teens and parents can access the account, and parents can track their teen’s account activity through text alerts and email notifications.
Capital One offers several credit cards that provide customers with travel rewards and cashback. The bank also has a student credit card, a secured card, and several credit cards for business use. Popular options include the Spark Cash credit card, Spark Miles credit card, and Venture Rewards credit card.
Certificates of Deposit
Certificates of Deposit (CDs) are available from Capital One with a variety of terms, ranging from six months to five years. The top interest rate on CDs is 0.40%, and there is no minimum deposit required on CDs. However, there is a penalty if clients decide to withdraw funds before the end of the CD term. CDs for 12-month terms or less come with a penalty of three month's interest and those with longer terms have a penalty of six month's interest. Customers with 360 CDs choose how interest is paid, either monthly or annually. Interest is transferred to another Capital One account or another linked bank account.
A unique CD offering from Capital One is the 360 IRA CD. This CD comes with guaranteed returns, no minimums, and earns an interest rate of 0.40%. Term lengths are similar to standard CD accounts. Also, a 360 IRA Savings account is automatically opened when a 360 IRA CD is set-up. An IRA Savings account gives customers a way to make contributions, set up rollovers and transfers, and disperse interest earned from their 360 IRA CD. Once an IRA CD reaches maturity, its funds can be transferred to the savings account.
Beyond the services already mentioned, Capital One offers its customers a wide array of other accounts and products, including mortgages, automotive loans, business accounts, and commercial banking solutions. A complete list of all Capital One products and services can be found on the bank’s website.
Customer service at Capital One has received praise in online reviews. The bank assists customers around the clock by telephone. Clients can also visit one of more than 750 branches around the U.S. or any “Capital One Café,” where they can get a coffee and do banking at the same time. It should be noted though that Capital One branches are only located in select U.S. states. However, customers can access about 2,000 Capital One ATMs throughout the continental United States.
Fees and Charges
While Capital One does have a reputation for not charging monthly fees on many of its savings and checking accounts, there are select charges that apply to its many banking services, including overdraft fees. The bank charges a $35 overdraft fee per transaction, up to four items a day. That said, Capital One does offer a feature called Next Day Grace, which gives customers one business day to make a deposit large enough to bring their account up to a positive balance. If a positive balance is achieved within one day, the overdraft fees are waived.
Pros and Cons of Capital One
- No monthly maintenance fees for checking and savings accounts
- Online and digital banking features that are among the best in the industry
- Bank accounts and credit cards geared toward teenagers
- Relatively low interest earned on deposits
- Small network of physical branch locations
The Bottom Line
Capital One could be a great option for those who want to do most of their banking online and want to avoid paying monthly fees on their checking and savings accounts. While Capital One doesn’t offer the highest interest rates on deposits, it has few fees to worry about. It’s an online banking option worth considering.