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

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Capital One CD rates

Capital One 360 CDSM rates

Comparable rates to its leading competitors and with no minimum deposit amount.

Term

APY

6 month

0.60%

9 month

0.80%

12 month

2.00%

18 month

1.90%

24 month

1.80%

30 month

1.70%

36 month

1.65%

48 month

1.65%

60 month

1.60%

  • Minimum opening deposit: None
  • Early withdrawal penalty: Three months’ interest for CDs with terms of 12 months or shorter and six months’ interest for terms longer than 12 months

Capital One 360 CDs are best for those looking for a conservative investment option. Once you open and fund an account, your rate is guaranteed until maturity. If rates change, they will offer the highest interest rate up to 10 calendar days within the funding period. Deposits are also FDIC insured up to $250,000 per depositor.

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 if the CD term is 12 months or longer. When your account matures, you have a 10-day grace period to make a decision. Otherwise, they will automatically renew it for the same period as the original term.

As with any CD, if you do make a withdrawal before maturity, you’ll face an early withdrawal penalty, listed above.

You can open a Capital One 360 CDSM online, through Capital One’s mobile app, in a Capital One cafe, or in one of their branches. To do so, go to their website and fill out an online application. You’ll need to provide personal details such as your address, employment information and Social Security number. You’ll also need to agree to receive paperless statements. Otherwise, you’ll have to call the bank after opening the account if you want paper statements sent to your home. Afterward, you’ll need to link another account, verify you’re the owner and fund your CD.

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How Capital One’s CD rates compare

Capital One has some of the best CD rates available. What makes its CD stand out even more is that there is no minimum deposit amount and the early withdrawal penalties are one of the lowest.

Capital One’s Money Market account

Capital One 360 Money Market®

One of the highest savings rates offered with access to an ATM card.

APY

Account Balance

0.85%

Less than $10,000

2.00%

$10,000+

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: $0 at a Capital One ATM, but withdrawals are limited to $1,000 per day
  • ATM fee refund: $0
  • Overdraft fee: Your transaction will be denied

Those after a savings account with high rates will want to consider Capital One’s 360 Money Market® account. Like the savings account, there are no minimums and fees for the money market account, but it offers a higher rate if you can maintain a daily minimum balance of $10,000 or more.

Just like the savings account, you do not get check-writing capabilities. You do however, get access to an ATM card to make ATM transactions. You can also transfer between linked accounts online, go on their mobile app or by calling the bank. Per federal regulations, you’re also limited to six withdrawals every month, including transfers between Capital One accounts.

You can open a Capital One 360 Money Market® account online, on the bank’s mobile app, at a cafe, or in one of their branches. To apply online, head over to their online application form and fill out your personal details such as your name, address and Social Security. From there, you’ll need to link an external account, or if you have a Capital One account, it’ll automatically be linked. Then it’s just a matter of making your initial deposit.

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How Capital One’s 360 Money Market® account compares

Capital One’s 360 Money Market® account is one of the best money market accounts available. While the higher APY is tied to a higher balance amount, you don’t need to maintain a certain balance amount in order to avoid fees. Much like Capital One’s other accounts, their money market account is fee-free. Another unique aspect of this account is that Capital One will provide a 360 Money Market Card that you’re able to use at ATMs. Just keep in mind that you’ll be limited to withdrawing $1,000 per day and that by Federal law, you can only withdraw from this account six times per statement cycle.

Capital One’s savings account

Capital One 360 Savings®

Slightly lower rates compared with other online options and no ATM access.

APY

Minimum Balance Amount

1.00%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fees: No access to ATMs
  • ATM fee refunds: None
  • Overdraft fees: This account doesn’t allow overdrafts

Capital One’s 360 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. If you intend to keep a balance of $10,000 or more on a regular basis, you may want to consider Capital One’s 360 Money Market® account, which offers a higher APY and many of the same features.

Unfortunately, you don’t get an ATM card with a savings account. As it is with all savings accounts, you’re limited to six withdrawals a month, per federal regulations. You can make transactions online, at a branch, via their mobile app or by calling customer service. If you want to write checks and/or have ATM access, you can link your savings account to your Capital One 360 Checking account.

You can open an account online, on your phone, or at one of their branches or cafes. To apply online, go to their 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.

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Capital One Kids Savings Account

Help your child learn about saving with an account that offers automatic savings plans and the ability to earn interest.

APY

Minimum Balance Amount

0.60%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fees: No access to ATMs
  • ATM fee refunds: No access to ATMs
  • Overdraft fees: This account doesn’t allow overdrafts

The Capital One Kids Savings Account is meant to help children learn about earning interest and the benefits of using a bank account. Parents and legal guardians can open an account with a child under the age of 18. You can open this account either in the child’s name, your own name or both. No matter which option you choose, you and the child will be joint account holders. The parent or legal guardian can fund the account from an external link or an existing Capital One 360 account.

Once you sign up for an account, you and your child will have separate logins and PINs. Your child can sign in to check their balance, but the adult needs to be the one to make deposits or withdrawals. Adults also have at the option to make automatic deposits into the account. Since it is a savings account, you are limited to six withdrawals per calendar month, including transfers between accounts.

To open an account, you can to do so online via their application form, in a Capital One cafe, in a branch or by calling 1-888-464-7868. You’ll need to provide personal details for both you and your child such as name, address and Social Security number. You’ll then need to link a personal checking account, either from Capital One or an external one. Once you verify you’re the owner of the external account, you can then fund your child’s Capital One account.

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How Capital One’s savings accounts compare

Capital One’s saving account is great if you don’t have a lot of money to deposit into a savings account, but other online savings accounts have higher rates.

Capital One checking accounts

Capital One 360 Checking

Convenient access to funds with a competitive interest rate.

APY

Account Balance

0.20%

Less than $50,000

0.20%

$50,000 - $99,999.99

0.20%

$100,000+

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fees: $0 at a Capital One ATM
  • ATM fee refunds: None
  • Overdraft fees: Capital One 360 Checking provides a few options. 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 Grace option, which gives you one business day to replace the overdrawn amount before charging a $35 fee. The overdraft line of credit offers you an opportunity to withdraw money from that account and pay interest (the rate is variable – please check with Capital One for the current rate) for 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. Subsequent checkbooks cost $5.

Their mobile app has Zelle, which lets you easily send money to other people, 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, they won’t charge you anything on its side.

To open an account, you can apply online by filling out an application or by going to a Capital One cafe or branch. You can also apply via your mobile phone. 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.

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Capital One MONEY Teen Checking Account

Help your teen manage money independently by giving them access to a joint account.

APY

Minimum Balance Amount

0.20%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fees: $0
  • ATM fee refunds: None
  • Overdraft fees: Transaction will be denied

The MONEY account is designed to help teenagers learn how to manage their own money. You’ll essentially be a joint account owner with your child, and have access to the same features, but you won’t receive a debit card. Your teen will be able to make transactions such as depositing checks via the mobile app, check their balance and make 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 your teen turns 18, they have the option to move their money over to a 360 Checking account. To be eligible for a Capital One MONEY account, the account owner must be the teen’s parent or legal guardian. The parent or legal guardian can fund the account from an external link or an existing Capital One 360 account.

You can open a Capital One 360 MONEY account online, through Capital One’s mobile app, in a Capital One cafe, or in one of their branches. 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 an account and verify you are the owner. Once the account is funded, you and your teen can start making transactions.

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How Capital One’s checking account compares

Capital One’s checking account rates are tiered, which means the highest APY is tied to the highest balance amount. If you’re able to keep a high balance in a checking account, you’ll be able to earn some of the best rates for a checking account. Keep in mind, however, that being able to earn interest on a checking account is not the important feature, it’s more of a bonus. What you’ll want to pay more attention to are the fees that may be associated with the account. Capital One doesn’t charge any monthly fees and using an ATM is free as long as you use a Capital One or AllPoint ATM.

Capital One IRA accounts

Capital One 360 IRA CD®

A great, conservative investment with no minimum deposit.

Term

APY

6 month

0.60%

9 month

0.80%

12 month

2.00%

18 month

1.90%

24 month

1.80%

30 month

1.70%

36 month

1.65%

48 month

1.65%

60 month

1.60%

  • Minimum opening deposit: $0
  • Early withdrawal penalty: Three months’ interest for CDs with terms of 12 months or shorter and six months’ interest for terms longer than 12 months

The thing that stands out most about Capital One’s 360 IRA CD®s, relative to other products with tax benefits, 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 (listed above), 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.

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 somewhere 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 CD rates compares

Capital One has some of the best IRA CD rates. Not only do they have great rates, but they also don’t require a minimum amount to open the account – which is rare. 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 very soon, it makes sense to put conservative IRA investments into one of these CDs.

Capital One 360 IRA Savings®

An easy-to-open, no-fee investment option with benefits, FDIC protection, no minimum deposit, and low returns.

APY

Minimum Balance Amount

0.80%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: There is no ATM access to 360 IRA Savings®

The 360 IRA Savings® account is a tax-advantaged account to help you save for retirement, and is offered as both traditional and Roth IRA savings accounts. You can only make deposits to and withdrawals from (called distributions) this account online, and any early distributions are subject to IRS penalties and taxes. You may, however, transfer money from 360 IRA Savings® to 360 IRA CD®s. In 2017 and 2018, you may contribute no more than $5,500 to all of your traditional or Roth IRA accounts ($6,500 if you’re 50 years or older). In 2019, limits will be raised allowing you to contribute up to $6,000 to all of your traditional or Roth IRA accounts ($7,000 if you’re 50 years or older).

This account is best for savers looking for a very conservative investment — while you get a return on the money you deposit, 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 CD®s, which offer better rates starting at 12-month terms.

You can apply for a Capital One IRA Savings® account online, and it’s considered open once you fund the account and complete the bank’s verification process.

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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 from your first checkbook, 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 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 kids a separate online login and the opportunity to check their balance. Other online banks have limited options in this area.

If you’re looking to keep most of your finances in one place and the ability to earn good rates, this bank is a great choice. Although some of their accounts may not offer the same features and high rates like some other banks, there’s a reason why so many bank with Capital One.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Sarah Li Cain
Sarah Li Cain |

Sarah Li Cain is a writer at MagnifyMoney. You can email Sarah Li here

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