Headquartered in McLean, Va., Capital One spun off from Signet Bank in October 1994. Originally a credit card company, Capital One has expanded into full-fledged banking, offering everything from business and commercial products to personal checking and savings accounts and CDs.
Through its Capital One 360 division, the company’s personal banking accounts are characterized by their low required minimums and fees. The company offers a well-rated mobile app, extensive fee-free ATM access and Capital One cafés, where you can grab a cup of Peet’s coffee while doing your in-person banking. Here’s an overview of the bank’s deposit accounts.
Capital One’s 360 Performance Savings account is a simple, straightforward savings account that comes with some added features. The account has no fees and no minimums, yet it still pays an APY many times the national average, currently 0.40%. Customers have access to the Capital One mobile app and digital savings tools (which include automated transfers), but there is, notably, no ATM access allowed with this account.
Overdrafts are not allowed with this account, which may be a plus or a minus depending on what type of customer you are. Meanwhile, outgoing wire transfers incur a fee of $30. In addition, according to Federal Reserve Regulation D, you are limited to six transfers from savings accounts per statement cycle, although there are no limits on transfers into your own account. Capital One has currently suspended this regulation, although it may be reimposed at any time.
The Capital One Kids Savings account functions almost identically to the 360 Performance Savings account, but with a few minor differences. For example, while the account offers access to the Capital One mobile app, there are parental controls available. The app can be used to automate savings deposits to the account, make mobile deposits or set up and track savings goals.
The account is limited to kids under the age of 18 who have a parent or legal guardian available to open an account on their behalf. The adult who opens the account must link the Kids Savings account to their own personal checking account at another institution. To fund the account, you must make an electronic transfer from your linked checking account or send a personal check.
Like the 360 Performance Savings account, this account has no fees or minimums and pays a decent interest rate, although the APY for this account is 0.30% as opposed to the 360 Performance Savings account’s 1.70%. Withdrawals are limited to six per month, including internal transfers. However, there is no ATM access with this account; parents must log in under their own username to make transfers out of the account.
All-in-all, the account offers kids the opportunity to learn about how savings accounts work, mostly within the same parameters as the 360 Performance Savings account. In fact, when account holders reach the age of 18, this account will automatically turn into a 360 Savings account.
The Capital One 360 Checking account is a good option for those looking for an account with no minimum deposit requirement and no fees. Unlike many of its no-fee competitors, this account also pays a 0.10% APY on all balances.
For a free checking account, the level of available services on this account are impressive. For starters, you can use your Capital One debit card to access over 70,000 fee-free ATMs across the country, including those in the MoneyPass and AllPoint ATMs. Customers can also access peer-to-peer payment capability via Zelle. The first 50 checks for any account are free.
Capital One doesn’t provide rebates for out-of-network ATM fees charged by third parties, but it also doesn’t assess any fees itself. Overdrafts are allowed with this account, subject to a $35 fee — however, there is a Next-Day Grace option which allows account holders one day to bring their account current and avoid the $35 overdraft fee. Outgoing domestic wire transfers incur a $30 fee.
The MONEY checking account is designed for kids at least 8 years of age. As with the Kids Savings account, an adult is required to sign on to the account and link a checking account, and parental controls are available. However, this account does offer ATM access, with the same network of fee-free ATMs as the adult accounts at Capital One.
The account is designed to teach teens — and even those as young as 8 — the basics of having their own banking account. Minors can use the account’s mobile app to perform a wide variety of basic banking tasks, from checking their balances and setting savings goals to depositing checks, setting up remote deposit and getting text alerts and notifications. However, there is no physical check writing available with this account.
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Capital One CDs offer terms between six months and 60 months, with a total of nine different terms available. Rates range from a low of a 1.50% APY for the 6-month CD to a high of 3.25% APY, available on the 60-month CD. All Capital One CDs have a $0 minimum investment. Interest is accrued daily and compounded monthly; you can choose to pay out your interest monthly, annually or at the end of the CD term. In addition, all CDs carry FDIC insurance, though there are no jumbo or no-penalty CDs available.
Early withdrawal penalties apply to Capital One CDs. The early withdrawal penalty for terms up to and including 12 months is three months of interest. For CD terms longer than 12 months, the penalty for withdrawing early is six months of interest. CDs automatically renew into new CDs with the same term, though there is a 10-day grace period in which the CD can be redeemed.
Capital One combines branches, cafés and an online experience to serve its customers. Although the bank’s annual report doesn’t disclose the number of physical locations it has, it does note that it utilizes “2.3 million square feet of bank branches and cafés,” mainly in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and California.
You can open any type of account on the bank’s website, in addition to performing all account maintenance transactions. The mobile app has great functionality, allowing most account management tasks including bill pay, rewards redemption, remote deposit and P2P payment via Zelle. The app also receives high ratings from users — 4.7 stars on Google Play and 4.8 stars on the App Store (at time of writing).
The bank has a vast network of fee-free ATMs, including over 70,000 across the MoneyPass, Allpoint and Capital One networks, though not all accounts offer ATM access, as described above. Automated customer service is available 24/7 at 800-655-BANK (2265), with customer service bankers available 7 days a week, from 8 a.m. to 11 p.m. EST.
All-in-all, the bank offers a modest range of personal deposit accounts that have no fees or minimums and pay decent APYs. The mobile app allows customers to handle most of their transactions remotely, extending the bank’s reach beyond its primary seven-state coverage area.