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Updated on Wednesday, January 27, 2016
Online savings accounts leave traditional banks in the dust when it comes to paying out interest. Your neighborhood bank probably offers less than 0.10% APY while holding your cash. In comparison, an online savings account like Capital One 360 Savings gives you 0.75% APY. Why earn minimal interest if there’s an opportunity to make more? Here’s all you need to know about 360 Savings.
The Capital One 360 Savings Account Overview
The 360 Savings account has no monthly fee. There’s also no minimum deposit required to open an account. The account is FDIC insured, so you won’t have to worry about money disappearing if something happens to Capital One 360. The insurance covers your funds up to $250,000, like any other traditional bank.
To manage your funds, Capital One 360 offers 24/7 online and mobile account access. If you want to speak with a live agent, you can connect with them by phone 7 days a week from 8 a.m. to 8 p.m.
Local Capital One branches can handle certain 360 Savings services like disputing transactions, changing contact information or printing tax statements.
Depositing Funds into Capital One 360 Savings
There are five ways to deposit money into your 360 Savings account. You can deposit checks using remote deposit, meaning you take a photo of your check and then upload it to your account using a computer or the mobile app. You can also set up direct deposit into the account if you want to put part of your salary into savings. Capital One 360 accepts physical checks if you mail them in. Your last two options are transferring funds into 360 Savings from another account using the online account management or over the phone.
Funds deposited are held for 5 business days. For verification reasons, your very first deposit will be held for 10 business days.
Withdrawing Funds from Capital One 360 Savings
The fastest way to withdraw money from your 360 Savings account is by transferring it to a connected 360 Checking account. When you do an internal transfer, the money clears instantaneously. Since 360 Checking accounts come with a debit card, you can head to an ATM after making a transfer to withdraw cash right away.
If you have a checking account with another bank or a regular Capital One account, you can still get access to your money pretty quickly. Online or over-the-phone transfers clear in 2 business days.
Like any other savings account, 360 Savings limits you to 6 withdrawals per statement period because of federal law. If you go over 6 withdrawals in a month multiple times, you risk having your account shut down.
Fees and Gotchas
The 360 Savings account is light on fees. Capital One 360 considers a lack of fine print one of its major selling points. The only two fees noted in the account disclosure are for wire transfers and statement copies. If you request a wire transfer (and it’s approved), you may be charged a $40 fee. If you need duplicate copies of your statement, you may be charged a $5 fee per statement.
Pros and Cons
The 360 Savings account has high interest and no fine print – both great benefits. Capital One 360 doesn’t nickel-and-dime you, which is another plus. There’s no minimum balance to open a 360 Savings account, or a 360 Checking account, for that matter. You can easily open two 360 accounts (savings and checking) to take advantage of quick internal transfers.
As for the negatives, the APY on the 360 Savings account isn’t the highest available in the competitive world of online savings accounts. But what the 360 Savings account lacks in interest, it makes up for in the convenience of managing your money.
Alternatives to the Capital One 360 Savings Account
The Barclays Online Savings Account offers 1.65% APY with no minimum deposit necessary to open the account. However, you need to keep at least $1 in the account to keep it open. There are no maintenance fees. You can deposit money to the account with mobile check deposit or set up direct deposit from your employer. You can also mail in checks. Withdrawing from your Barclays account to an external account can take 2 to 3 business days.
Who Will Benefit the Most from the 360 Savings Account
The convenience of withdrawing money quickly and the lack of fees are key benefits of the 360 Savings account. You can get higher interest elsewhere, but this account is still a good choice if you want to be able to tap into your savings quickly.