TwuToday

Business_news Capital One 360 pays competitive rates on savings accounts, checking accounts, and CDs, with no required opening deposit

Business_news

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, but our reporting and recommendations are always independent and objective.

  • Capital One has branch locations in eight US states and Washington DC. Capital One 360 is its online operation.
  • You can open ahigh-yield savings account,checking account, orCDwith Capital One 360.
  • You’ll earn competitive rates on all your Capital One 360 accounts, and the bank doesn’t require initial deposits.
  • Capital One 360 pays 0.10% on all checking account balances and offers checking and savings accounts specifically for minors.
  • See business Insider’s picks for the best high-yield savings accounts »

Capital One has branch locations in nine states and dozens ofCapital One Cafésnationwide. Capital One 360 is the company’s online operation, and you can either bank completely online or visit a nearby branch or Café. Capital One offers a high-yield savings account, checking account, and CDs, with competitive rates and no initial deposits.

You may like Capital One 360 if you:

  • Are looking for competitive savings and CD rates
  • Travel frequently
  • Are comfortable banking digitally, or
  • Want a hybrid online/brick-and-mortar banking experience and live near a branch
  • Plan to open a separate account for your child

You probably shouldn’t bank with Capital One 360 if you:

  • Want to open a money market account
  • Want to open a no-penalty or jumbo CD
  • Aren’t comfortable banking digitally, or
  • Want a hybrid online/brick-and-mortar banking experience and don’t live near a branch


Chevron icon
It indicates an expandable section or menu, or sometimes previous / next navigation options.

  • Details
  • Pros & Cons

    • No opening deposit or minimum account balance
    • No monthly maintenance fees
    • Compounded interest to maximize your earnings
    Pros
    • Competitive APY
    • No opening deposit or minimum account balance
    • No monthly service fee
    • Easy to save for various goals
    • 24/7 live chat
    Cons
    • Limited physical branch locations
    • Limited customer service phone hours

    TheCapital One 360 Performance Savingsaccount pays one of the top rates in the industry. You can find a higher rate at a couple other big-name banks, but it’s definitely one of the best out there. Your child can earn 0.50% APY with a kids savings account, and the rate will jump up to the regular APY of 1.30% once they turn 18.

    Capital One also doesn’t require an initial deposit or minimum account balance, and it doesn’t charge a monthly service fee.

    Capital One 360 Performance Savingsmakes it easy to save for various goals. Set a savings goal and your target amount, then schedule recurring transfers from yourCapital One 360 Checkingaccount until you’ve saved the full amount.

    See business Insider’s picks for the best high-yield savings accounts»

  • Details
  • Pros & Cons

    • Your money earns money with compounded interest
    • No opening deposit or minimum account balance
    • No monthly maintenance fees
    • Over 39,000 ATMs nationwide
    • No out-of-network ATM fee reimbursements
    Pros
    • 0.10% APY on all account balances
    • No opening deposit or minimum account balance
    • No monthly service fee
    • No foreign transaction fee
    • Range of overdraft protection options
    Cons
    • Limited physical branch locations
    • Limited phone access to customer service
    • Doesn’t reimburse out-of-network ATM fees

    Few banks offer competitive rates on checking account balances, but Capital One does.Capital One 360 Checkingpays 0.10% on all balances — not bad, especially considering the national average is 0.04%,according to the FDIC, but there are a few banks that pay more.

    You have free access to over 39,000 ATMs nationwide in the Capital One and AllPoint networks. Capital One doesn’t charge a fee to use out-of-networks ATMs, but it also doesn’t reimburse you if the ATM provider charges you an out-of-network fee. You can find plenty of banks that refund at least a few dollars a month in out-of-network ATM fees.

    Capital One doesn’t charge foreign transaction fees, and it provides several overdraft protection options, making this a great option for people who are looking for a low-fee bank.

    See business Insider’s picks for the best checking accounts »

  • Details
  • Pros & Cons

    • Terms ranging from 6 months to 5 years
    • No opening deposit or minimum account balance
    • No monthly maintenance fees
    • Standard early withdrawal penalties
    • Compounding interest to maximize your earnings
    Pros
    • Competitive APY
    • No opening deposit or minimum account balance
    • Standard early withdrawal penalties
    • No monthly service fee
    • 24/7 live chat
    Cons
    • No jumbo or no-penalty CDs
    • Limited physical branch locations
    • Limited phone access to customer service

    Capital One 360 CDscome with term lengths ranging from six months to five years.Capital One 360 CDspay competitive rates, but you can find higher at other institutions. Capital One does set itself apart by not requiring an initial deposit to open a CD — most banks ask for at least $500.

    If you withdraw funds before your CD matures, Capital One charges between three and six months interest as an early withdrawal penalty. This is on the average to below-average end of the spectrum; some banks charge much more than six months interest if you withdraw early from their longer-term CDs.

    Capital One doesn’t offer as many types of CDs as some banks do. For example, you can’t open a no-penalty CD or jumbo CD with Capital One. Your only option is a regular term CD.

    See business Insider’s picks for the best CD rates »

    Capital One has hundreds of branch locations across eight states (Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia), as well as Washington DC. It also has dozens of Capital One Cafés, where you can grab Peet’s Coffee®, speak with a money coach, and open a bank account.

    Capital One 360 is Capital One’s online operation. You can have a hybrid in-person/online banking experience if you live near a branch or Café, or you can bank completely online with Capital One 360.

    Capital One’s website is easy to navigate, and its mobile app has received 4.7 out of 5 stars in both the Apple and Google Play stores.

    Once you set up an online account, you can chat 24/7 with a live customer service representative. If you want to speak with an agent on the phone, you can call between 8: 00 a.m. and 11: 00 p.m. ET.

    Capital One 360 offers checking accounts, savings accounts, and CDs. You have the option to open a separate checking and banking account for your child under age 18. A minor will earn 0.10% on their checking account balance, just like you do, and 0.50% on their savings account balance. 

    Between Capital One ATMs and partner AllPoint ATMs, you have access to over 39,000 ATMs nationwide. The bank doesn’t charge a fee if you use an out-of-network ATM, but it doesn’t reimburse any out-of-network fees charged by an ATM provider.

    Your Capital One bank account isFDIC insured for up to $250,000, or up to $500,000 for a joint account.

     Capital One 360AllyHSBC Direct
    Bank accountsChecking, savings, CDs, kids checking, teen savingsChecking, savings, CDs, money market accountChecking, savings, CDs
    Opening deposits$0$0$1 for checking and savings; $1,000 for CDs
    Monthly fees$0$0$0
    ATM accessNetwork; no out-of-network fee reimbursementsNetwork; $10/month in out-of-network ATM reimbursementsNetwork; no out-of-network ATM reimbursements
    Customer service24/7 live chat; call 8 a.m. to 11 p.m. ET24/7 live chat and phone access24/7 live chat; call 7 a.m. to 12 a.m. ET

    Capital One 360 vs. Ally

    You can open a high-yield savings account, checking account, or CD with Ally or Capital One. Ally offers money market accounts and a wider range of CD types than Capital One, but Capital One provides checking and savings accounts specifically for minors.

    Neither bank requires initial deposits for any accounts, and neither charges monthly fees. Both have an ATM network, but unlike Capital One, Ally reimburses up to $10 per month for out-of-network ATM fees.

    If you want access to physical branch locations, Capital One could be the better choice — provided you live near a branch. Ally is an online-only bank, so there are no branch locations.

    Ally also charges a 1% foreign transaction fee, so if you’re a frequent international traveler, you may prefer Capital One.

    Read business Insider’s complete Ally Bank review »

    Capital One 360 vs. HSBC Direct

    Capital One 360 and HSBC Direct have a lot of similarities: They’re both online operations but have a limited number of physical branches; both have an ATM network but don’t reimburse out-of-network fees; you can open a high-yield savings account, checking account, or CD with both banks.

    There are a few key differences, though. Capital One offers more term length options for CDs, as well as checking and savings accounts specifically for minors.

    You’ll also need at least $1,000 to open a CD with HSBC Direct, whereas Capital One doesn’t require an initial deposit. If you prefer to bank on your phone, Capital One’s mobile app has received better reviews than HSBC’s app.

    If you want a combination of in-person and online banking, your choice between Capital One and HSBC may come down to which bank has a branch location near you.

    Read business Insider’s HSBC Direct Savings review »

    The information related to the following cards has been collected by business Insider and has not been reviewed by the issuer: Chase Freedom Unlimited®, Chase Freedom®, Chase Slate®, Ink business Preferred® credit Card
    Ink business Cash℠ credit Card, Ink business Unlimited℠ credit Card, Southwest Rapid Rewards® Premier business credit Card, Southwest Rapid Rewards® Performance business credit Card, IHG® Rewards Club Traveler credit Card, United ClubSM Infinite Card, United℠ business Card, British Airways Visa Signature® Card, The World Of Hyatt credit Card, Citi Diamond Preferred Card, Citi Rewards+ Card, Citi Rewards+ student Card, CitiBusiness AAdvantage Platinum Select World Mastercard, Citi AAdvantage Executive World Elite™ Mastercard, American Airlines AAdvantage MileUp Card, Citi Secured Mastercard, Costco Anywhere Visa Business Card by Citi, Citi Prestige Credit Card, Citi Premier Card, Citi Simplicity® Card

    Take control of your money.SmartAsset’s free tool matches you with a financial planner in your area in 5 minutes.Learn more »

    Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

    More:

    Capital One
    Capital One 360
    Capital One 360 Performance Savings
    Capital One 360 Checking


    Chevron icon
    It indicates an expandable section or menu, or sometimes previous / next navigation options.


    Read More