Capital One Review: Savings, Checking, CD Rates, Money Market, and IRA Accounts

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Reviewed By

Updated on Tuesday, September 1, 2020

Capital One savings accounts

Capital One 360 Performance Savings®

A savings account with a slightly lower APY compared with that at other online options, and no ATM access.

APY

Minimum Balance to Earn APY

0.65%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: No access to ATMs

Capital One’s 360 Performance Savings account is designed to help you earn a high interest rate while giving you some liquidity. Interest earned is compounded and deposited into your account monthly.

Unfortunately, you don’t get an ATM card with a savings account. As with all savings accounts, Federal Reserve’s Regulation D mandates certain types of telephone and electronic withdrawals, including transfers from savings accounts up to 6 per statement cycle. You can only make transactions online, via mobile app, by calling customer service or by visiting a branch. If you want to write checks and/or have ATM access, you can open a Capital One 360 Checking account, which easily links to your savings account.

You are not allowed to overdraw this account, and outgoing wires cost $30. This account does seem somewhat restrictive but it is a high-yielding account with a strong annual percentage yield (APY), so features like ATM access and overdraft protection can easily be managed with a linked checking account.

How to get a Capital One 360 Performance Savings account

You can open this account online or in a branch or Capital One Cafe with a Taxpayer Identification Number. (Capital One Cafes are located in major cities, offering co-working space with Wi-Fi, ATMs and banking services; Capital One customers get 50% off beverages.) To open an account online, go to the Capital One website and fill out an online application. You’ll be prompted to enter personal details such as your address, Social Security Number and home address. Afterward, you’ll need to link a personal checking account from Capital One or another U.S. financial institution. After you verify the linked account and fund your Capital One account, you’re good to go.

Capital One Kids Savings Account

Helps those under 18 learn about saving with an account that offers automatic savings plans and the ability to earn a surprisingly competitive APY.

APY

Minimum Balance to Earn APY

0.50%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: No access to ATMs

The Capital One Kids Savings Account is meant to help children learn about earning interest and the benefits of a bank account, especially one that isn’t touched as often as a checking account. Any adult who is a parent or legal guardian of the minor can open an account for someone under the age of 18.

As an adult, the account needs to be in both your name and the name of the minor. Therefore, both you and the child will be joint account holders. You’ll also need to link the account to a personal checking account at another U.S. chartered bank. This linked account is the only way to make deposits and withdrawals.

Once you sign up for an account, you and the minor will have separate logins and PINs. The minor on the account can sign in to check his or her balance, but the adult needs to be the one to make deposits or withdrawals. Adults also have the option to make automatic deposits into the account. Since it is a savings account, Federal Regulation D mandates certain types of telephone and electronic withdrawals, including transfers from savings accounts up to 6 per statement cycle, including transfers between Capital One accounts.

How to get Capital One’s Kids Savings Account

You can open this account online, or in a branch or Capital One Cafe with a Taxpayer Identification Number. You’ll need to provide personal details for both you and the minor such as name, address and Social Security Number. You’ll then need to link a personal, non-business checking account from Capital One or an external bank. Once you verify you’re the owner of the external account, you can then fund the minor’s Capital One account.

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How Capital One’s savings accounts compare

Capital One’s savings accounts can be a good fit or a pass, depending on your individual needs. Their rates are competitive with those from other institutions listed on our round-up of the best savings accounts. Moreover, the minimum required balances to open and earn APYs are low, so for those who simply want to park their money and watch it grow, these accounts could be a good choice.

Capital One checking accounts

Capital One 360 Checking®

Convenient access to your funds, although APYs are not among the best.

APY

Minimum Balance to Earn APY

0.10%

Less than $50k

0.10%

$50k - $99,999.99

0.10%

$100k +

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: None for Capital One or Allpoint ATMs with no foreign transaction fees. If you use an out-of-network ATM, surcharge fees may be charged by its owner.
  • ATM fee refund: None
  • Overdraft fee: Capital One 360 Checking provides four options on overdrafts. You can choose auto-decline for transactions that would overdraw your account or you can link your savings account to cover the overdrawn amount. There’s also the Next Day Grace option, which gives you one business day to replace the overdrawn amount before charging a $35 fee. Finally, there is an overdraft line of credit option, which offers you an opportunity to withdraw money from that account while paying an APR (variable 12.75% APR at time of publishing) on the amount borrowed.

Capital One’s checking account is for those who want an account with no fees and no minimum deposit requirement. With this account, you get a 360 Checking MasterCard® debit card, mobile banking, online bill pay and your first checkbook for free. The account will not be considered as open until it has been funded.

The bank’s mobile app includes P2P payments functionality from Zelle, which lets you easily send money to friends and family even if they don’t have a Capital One account. You also get access to over 38,000 Capital One and Allpoint ATMs for free. While you won’t get reimbursed for any fees charged by out-of-network ATMs, Capital One won’t charge you anything on its side.

How to get a Capital One 360 Checking account

To open an account, fill out an application online or in a branch or Capital One Cafe with a Taxpayer Identification Number. You’ll be asked to provide details such as your name, Social Security Number and employment information. After agreeing to receive only paperless statements and linking a bank account, just fund your new checking account and you’re all set.

Capital One MONEY teen checking account

Helps your teens manage money independently by giving them access to a joint account that earns APY and has no monthly fees.

APY

Minimum Balance to Earn APY

0.10%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: None for Capital One or Allpoint ATMs with no foreign transaction fees. If you use an out-of-network ATM, surcharge fees may be charged by its owner.
  • ATM fee refund: None
  • Overdraft fee: Transaction will be denied, but if for some reason it is approved, you must cover the overdrawn amount immediately

The MONEY checking account is designed to help those over 8 learn how to manage their own money. You’ll essentially be a joint account owner with your child or minor, and have access to the same features, but you won’t receive a debit card. The teen however will receive a Mastercard debit card. Unlike in the Kids Savings account, you do not need to be the parent or legal guardian of the teen as long as they are over 12 years old.

The MONEY account functions as a joint account, meaning that both the account owners own whatever amount is in the account. There is some leeway if one of the account holders wants to block certain transactions, but it’s at the discretion of the bank.

Your teen will be able to make transactions such as depositing checks via the mobile app, checking their balance and making withdrawals. However, there are no check-writing or bill-pay options. You can monitor account activity by logging in online or signing up to receive text and email alerts. Once the teen turns 18, they have the option to move their money over to a 360 Checking account.

How to get the Capital One MONEY account

To be eligible for a Capital One MONEY account, one owner needs to be at least 18 years old. The adult on the account needs to either link a Capital 360 Checking account or an external one.

To open an account, head over to the Capital One website to fill out an application. You and your teen will be asked to provide personal details such as your address, Social Security numbers and employment information. You’ll also need to comply with certain disclosures, including agreeing to only receive paperless statements. Afterward, you’ll need to link to the adult’s account and verify that you are the owner. Once this account is funded, you and your teen can start making transactions.

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How Capital One’s checking accounts compare

Capital One’s checking accounts do not really match up to the best options listed in our round-up of the top accounts available. The teen MONEY account is a nice option in that it has ATM access, earns an APY and allows for joint ownership. A lot of other accounts that offer joint ownership offer the lowest possible APY, but Capital One’s offering seems to want to rise above those types of accounts, and could be a good choice for those between the ages of 8 and 18.

Unlike in other online banking options, you don’t get third-party ATM fee reimbursements. If you intend on using your debit card often and there aren’t any Allpoint or Capital One ATMs around, you may want to look elsewhere.

Capital One CD accounts

Competitive APYs on certificates of deposit (CDs), with the big advantage of no minimum deposit amounts.

Term

APY

Minimum Deposit to Open

6 months

0.20%

None

9 months

0.25%

None

12 months

0.30%

None

18 months

0.35%

None

24 months

0.40%

None

30 months

0.45%

None

36 months

0.50%

None

48 months

0.55%

None

60 months

0.60%

None

  • Minimum amount to open account: None
  • Maximum amount: $1,000,000
  • Early withdrawal penalty, which depend on the original term of the CD, are:
    • 12 months or shorter: three months’ interest
    • Longer than 12 months: six months’ interest

Capital One CDs are best for those looking for a conservative and relatively safe investment option. Once you open and fund an account, your rate is guaranteed until maturity. If rates change, Capital One will offer the highest interest rate up to ten calendar days within the funding period. Deposits are also FDIC-insured up to the legal limit.

Interest earned in the CD is accrued daily and compounded monthly. You can either keep the interest in your CD, or have it deposited to another Capital One account or an external one. Interest disbursements can be credited monthly or yearly. When your account matures, you have a 10-day grace period to make a decision on what to do with your money. Otherwise, Capital One will automatically renew it for the same period as the original term.

How to get a Capital One CD

You can open a Capital One CD online or in a branch or Capital One Cafe with a Taxpayer Identification Number. To open a CD online, go to the bank’s website and fill out an online application. You’ll need to provide personal details such as your address, employment information and Social Security Number. Afterward, you’ll need to link another account, verify you’re the owner and fund your CD, which won’t be considered as open until it is funded.

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How Capital One’s CDs compare

Capital One offers some pretty good rates compared with other banks in our round-up of the top CDs available. What makes its CD stand out is there is no minimum deposit amount. Most other competitors require one, which may not be an issue if you plan on putting a significant amount of money into a CD. Still, there are CDs with better APYs and no minimum deposit requirement. The maximum deposit is high as well for those with access to large amounts of capital.

If you intend on keeping your money in a CD until maturity, you don’t need to worry about early withdrawal penalties. However, if there’s a possibility of you doing so (like if you find a better rate elsewhere), Capital One offers forgiving penalties for early withdrawal. Many competitors have penalties of up to 365 days of interest for longer terms, compared with just six months’ interest with Capital One.

Capital One IRA accounts

Capital One 360 IRA Savings®

An easy-to-open, no-fee investment option — with less-than-competitive returns.

APY

Minimum Balance to Earn APY

0.65%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: No access to ATMs

The 360 IRA Savings account is a tax-advantaged account to help you save for retirement, and Capital One offers both traditional and Roth IRA savings accounts. You can make deposits to and withdrawals from (called distributions) this account only online, and any distributions are subject to IRS penalties and taxes. You may, however, transfer money from 360 IRA Savings to 360 IRA CDs. In 2020, you may contribute no more than $6,000 to all of your traditional or Roth IRA accounts, or $7,000 if you’re age 50 or older.

This account is best for savers looking for a very conservative investment while earning an APY, but it will not keep up with inflation in the long term. Unless you’ll be drawing on your retirement funds within the next year, you’re better off putting your money in one of Capital One’s IRA CDs, which offer better rates starting at 12-month terms.

How to get a Capital One IRA Savings account

You can apply for an account online, and it’s considered open once you fund the account and complete the bank’s verification process. Unlike for other Capital One banking products, Taxpayer Identification Numbers are not accepted as proof.

Capital One 360 IRA CD®

A great, conservative investment with no minimum deposit.

Term

APY

Minimum Deposit to Open

6 months

0.20%

None

9 months

0.25%

None

12 months

0.30%

None

18 months

0.35%

None

24 months

0.40%

None

30 months

0.45%

None

36 months

0.50%

None

48 months

0.55%

None

60 months

0.60%

None

  • Minimum amount to open account: $0
  • Early withdrawal penalty, which depend on the original term of the CD, are:
    • 12 months or shorter: three months’ interest
    • Longer than 12 months: six months’ interest

What stands out most about Capital One’s 360 IRA CDs is the fact that there’s no minimum deposit requirement. This makes saving for retirement more accessible to people who want to get started but don’t have much cash on hand.

Interest is compounded and credited monthly. You cannot make partial withdrawals of your principal, and the APY assumes you leave the interest in your account to compound. If you do withdraw the principal early, you must pay a penalty, and if you take a distribution from your IRA CD, you may be subject to penalties and taxes.

Upon maturity of your IRA CD, you have a 10-day grace period to redeem your deposit or change the amount or term, before it automatically renews.

How to get a Capital One 360 IRA CD

You can open a Roth or traditional IRA CD by applying online. When you open a 360 IRA CD, you also get a 360 IRA Savings account, so you have a vehicle to put your money after your CD matures but before you want to take a distribution. You open the account by linking a personal checking account to your 360 IRA Savings account and transferring money to the IRA CDs you wish to open.

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How Capital One’s IRA CDs compare

While there are other IRA CDs offering higher APYs listed on our site, it’s rare that the accounts with the top rates require no minimum opening deposit.

Starting with the 12-month IRA CD, Capital One offers a higher rate of return than the IRA savings account, so unless you need your retirement funds soon, it makes sense to put conservative IRA investments into one of these CDs. You can get better returns on investments elsewhere, but IRA CDs offer guaranteed returns. Capital One offers a very accessible product for conservative investors.

Overall review of Capital One’s banking products

Capital One’s banking products offer above-average rates, no minimum deposit amounts and virtually no fees. The bank also offers free checks, mobile banking and a user-friendly website, making it a great option. When you’re looking for the best rates on any given product, keep Capital One in the mix.

What makes this online bank noteworthy is its low barrier to entry, as well as its options for both kids and teens. Capital One’s MONEY account, in particular, offers the ability to give teenagers more independence over their money while still giving parents a way to oversee their finances. The Kids Savings account is also a great choice since it gives children a separate online login and the opportunity to check their balance. Other online banks have limited options in this area.

If you want to keep most of your finances in one place and the ability to earn good rates, Capital One is a great choice. Although some of its accounts may not offer the same features and competitive rates like its competitors, there’s a reason why so many people bank with Capital One.

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