April 11, 2018

Capital One 360 Review: Pros and Cons

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Online banks can save you serious coin on unnecessary banking fees. Capital One 360 is yet another company offering higher APYs and minimal customer service. Should you use them for your banking needs?

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Capital One 360 provides multiple banking products, allowing you to satisfy all your banking needs in one place if you so choose. They offer savings, checking, CDs, and money market accounts. Your deposits have the protection of the FDIC and your information is encrypted for your safety.

Capital One 360 is an online-only bank, though. They claim this means less overhead, which they pass on to the customer with higher interest rates and better service.

Keep reading to see our take on Capital One 360 and their offerings.

Services Offered

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360 CDs

Capital One 360 offers CD terms starting at just 6 months. Because this is a "set it and forget it" type account, you should choose your term wisely. Withdrawing your money before maturity could result in penalties.

You'll know exactly how much you'll get in return at maturity, as the interest rate never changes from the day you deposit your money. Choose a term between 6 and 60 months and watch your money grow. While you can't add funds to the account once you open it, Capital One does allow you to open up to 50 CDs at any given time.

360 Money Market

The Capital One 360 Money Market does not require a minimum deposit and doesn't charge any fees. You can set up automatic savings plans or deposit your money manually. The Capital One 360 mobile app makes it easy to transfer money between Capital One and other bank accounts. They even offer mobile check deposit options.

The largest benefit of the 360 Money Market occurs when you have a balance of $10,000 or more, though. This is when you'll receive the highest interest rate and benefit the most from the money market account.

    Capital One 360 Money Market - $25

    Get $25 if you make an initial deposit of $250 - $9,999.99. The bonus will be automatically deposited into your account upon opening. The bonus will start earning interest right away, but you cannot withdraw for 30 days. Only available for new Capital One 360 customers.

    Capital One 360 Money Market - $100

    Get $100 if you make an initial deposit of $10,000 or more. The bonus will be automatically deposited into your account upon opening. The bonus will start earning interest right away, but you cannot withdraw for 30 days. Only available for new Capital One 360 customers.

360 Savings

Tech-savvy savers will enjoy Capital One 360's mobile app. It makes it easy to make automatic deposits from the comfort of your own home. You don't need a minimum balance to obtain the highest interest rate either - all balances receive the same rate.

With no maintenance fees and the ability to set up an automatic savings plan, Capital One 360 Savings is a great option for those who don't mind banking online. All deposits are FDIC insured up to the maximum allowed limit for any bank, and you have 24/7 access to your account with their app.

    Capital One 360 Saving - $25 offer

    Get $25 when you open an account with an initial deposit of at least $250. The $25 bonus will be automatically deposited into your account upon opening. The bonus will start earning interest right away, but you cannot withdraw for 30 days. Only available for new Capital One 360 customers.

360 Checking

The Capital One 360 Checking account is fee-free and doesn't require a minimum balance. This means no minimum deposit or minimum ongoing balance. With access to your money at more than 39,000 ATMs also fee-free, it's easy to see why people choose this checking account option.

In addition to the fee-free account, you'll have access to a variety of overdraft options, helping you avoid even more fees. The 360 Checking account allows you to decline charges you don't have the funds to cover. If you want to allow overdrafts, you can choose one of the following options to cover them:

  • Link a Capital One 360 savings account to cover the charges
  • Use their one business day grace period to add funds before being charged $35
  • Use their Overdraft Line of Credit, which charges you interest only if you go over on your checking account and use the funds

    Capital One 360 Checking - $25 offer

    Get $25 when you open an account with an initial deposit of at least $250 AND do one of the following: make 3 debit card purchases or Person2Person payments within 45 days of account opening. The $25 bonus will be deposited into your account on Day 50. Only available for new Capital One 360 customers.

Reasons We Like Capital One 360

  • You won't pay maintenance fees on deposit accounts. Maintenance fees can quickly eat at your profits, which is why the no-fee standards at Capital One 360 are so favorable. This allows you to meet your savings goals faster without the worry of covering the costs associated with the account.

  • You can have as many as 25 savings accounts without paying any fees. If you have multiple savings goals, you can open as many as 25 savings accounts with Capital One 360. This makes it easier to stay organized and reach your goals faster.

  • There is no minimum required balance on deposit products. You can open accounts with as little as $1 if you wish. While you do benefit from larger balances with a Money Market account, all other accounts offer the same interest and no fees, no matter the balance.

  • You have around-the-clock access to your account. You can access your account on your computer or even your mobile device any time of day or night.

  • You don't pay overdraft fees on your checking account. We discussed this above, but it's worth mentioning again. Many checking accounts charge $35 per overdraft. Capital One 360 gives you options and even second chances.

  • You can make mobile deposits. As long as you have a smartphone, you can make mobile deposits in a matter of minutes. All you need is the Capital One app and access to a camera.

  • You can transfer money to friends and family. Using Zelle within your Capital One mobile app, you can send money to anyone, even if they don't bank with Capital One.

  • You can get in-person help in select cities. Many online only banks don't offer in-person support. Capital One 360 currently has 27 Capital One "Cafes" throughout the country to support you.

  • You can get phone support 7 days a week. Capital One 360 offers customer support from 8 AM to 8 PM, 7 days a week, to help you when you need it.

Reasons You May Want to Look Elsewhere

  • You may experience long hold times on deposited checks. Online banking does provide its challenges, which includes held funds. Capital One 360 often holds your funds for up to five business days if the deposit exceeds $500.

  • You may wait a while talk to a customer service representative. The hold times when you call Capital One have been known to be rather lengthy, which can be frustrating, especially when dealing with your money.

  • You can't open an account at their branch. Because they are an online only bank, you can only open their 360 accounts online. If you are local to one of their cafes, you can get support, but account openings are strictly an online process.

Contacting Customer Service:
You can reach Capital One customer service at 1-877-514-2265 between the hours of 8 AM and 8 PM, 7 days a week.

If you already have a Capital One 360 account, you can also utilize their live chat option after logging into your account.

How It Compares

Ally: If your intention is to earn interest on your checking account funds, Ally may serve you better, as they don't tier their interest rate offerings. You get the same interest rate whether you save $1 or $10,000. Ally also offers free access to any ATM in the US, whereas Capital One gives you free access to their 39,000 "partner ATMs."

    Ally Bank

    Ally Bank: Online Savings Account

    1.45% APY on all balance tiers. $0 minimum opening deposit. No fees to open or maintain account. No minimum daily balance requirement.
    • Consistently Competitive Rates
    • 24/7 Customer Care
    • Ally Bank, Member FDIC

Synchrony Bank: If you are looking to save for retirement, Synchrony Bank may have a few more viable options, including their IRA CD and IRA Money Market options. They also have a healthcare credit program that provides 0% interest for up to 24 months, depending on how much you must borrow.

    Synchrony Bank

    Synchrony Bank: High Yield Savings

    1.55% APY. $0 minimum opening deposit. No minimum balance requirement. No fees to open or maintain account.
    • Great Rates + Safety = Peace of Mind
    • Member FDIC

Marcus by Goldman Sachs: If you are in the market strictly for CDs, Marcus by Goldman Sachs offers high-yield products with many options. They do not, however, offer checking account programs. They are more of an investment/savings vehicle.

Bottom Line

Capital One 360 is a viable option for those who want the higher interest rates of an online bank without all of the fees. You'll have to have some patience when waiting to access your funds or when you need phone support, though.

If you can independently manage your finances and are tech-savvy, however, this could be a bank that will help you avoid the pesky fees that brick-and-mortar banks tend to charge.

Disclaimer: Opinions expressed here are those of the author's alone. Please support CreditDonkey on our mission to help you make savvy financial decisions. Our free online service is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content.

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