Capital One Bank Review 2020

Published February 2020 by Mary Wisniewski

AT A GLANCE
4.7

Bankrate Score

bank-logo

Digital Leader

No Minimum Balance

No monthly fees

This bank is ideal for people looking for a full-service online bank, with a wide network of no-fee ATMs and some access to physical branches. People looking for the highest available rates on savings products may want to look elsewhere.

  • CDs
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    4.5
  • Checking
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    4.7
  • Savings
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    4.9
  • MORE HIGH-YIELD OPTIONS

    Overall

    4.7

    Bankrate Score

    Capital One Bank is one of the most popular online banks in the country, and in some regions, it also gives customers access to bank branches.

    What we like

    • Capital One is a hybrid financial institution that provides online banking services and — if you live in the northeast, mid-Atlantic, Louisiana, Texas — some branch access. There are also cafes in select locations.

    • There are no monthly fees or minimum balance requirements for checking, and no minimum balances for savings accounts.

    • No-fee access to more than 39,000 ATMs.

    • Its mobile bank app scores high.

    What we don't

    • For a big bank, it pays competitive rates on deposits. But rates are low compared with the best nationally available APYs.

    • Overdraft fees are $35 per transaction for customers who sign up for its overdraft protection program and fail to replace overdrawn amounts in a timely fashion.

    • If you live outside of the northeast, mid-Atlantic, Louisiana or Texas, there is no access to bank branches.

    CD rates

    4.5

    Bankrate Score

    In addition to savings and checking  accounts, Capital One 360 offers a full spectrum of CDs with different terms. Rates are competitive, and there’s no minimum deposit.

    Interest accrues daily and compounds monthly for all CDs. Customers can have up to 50 CDs open at once.

    Early withdrawal penalties vary based on the length of the term and are standard compared with the policies at other banks. For CDs with terms of 12 months or fewer, the penalty for withdrawing early is three months of interest. For CDs with terms longer than 12 months, the penalty for withdrawing early is six months of interest.

    What we like

    • No minimum deposit required to open a CD.

    • Pays competitive rates.

    • Account holders can receive interest disbursements monthly or annually based on personal preference.

    What we don't

    • Interest compounds monthly rather than daily.

    • Other online banks pay higher yields.

    Checking accounts

    4.7

    Bankrate Score

    The 360 Checking account is a competitive interest-bearing account offering tiered rates where those with larger balances earn more. The account is free to keep and open and includes the ability to make mobile deposits, pay bills online. It offers also a first checkbook for free. 360 Checking customers have three free options to deal with overdraft protection including auto-declines, free savings transfers and an overdraft line of credit.

    What we like

    • Customers can earn interest for all balances.

    • $0 monthly fee and minimum balance.

    • Three fee-free options to avoid overdraft charges.

    What we don't

    • Customers don’t have access to many branches.

    Savings accounts

    4.9

    Bankrate Score

    The 360 Savings account offers five times the national average for all balances and doesn’t have a minimum balance requirement. So this account is for all levels of savers. Capital One 360 offers a savings account that’s available online and through mobile devices. Users can set savings goals and automatic savings plans (with funds transferred from a Capital One 360 checking account) for additional budgeting utility.

    What we like

    • No monthly services fees on the 360 Savings account.

    • The app allows you to make mobile deposits and set up an automated savings plan.

    • It offers an APY five times more than the national average.

    What we don't

    • All account holders earn five times the national average on the 360 Savings account. So there is not a tiered option to earn more interest if you deposit more money.

    • There are higher APY options at other online banks.

    • Savings account doesn’t have an option for an ATM card.

    Bank experience

    At Capital One, you’ll have fewer branches to visit, but you’ll have something more relevant: cutting-edge digital bank features. For example, Capital One was the first bank in the U.S. to launch a skill for Amazon’s Alexa so that you can use your voice to find out information, such as your bank account balance.

    The bank’s web interface and mobile app are also very well regarded and get high marks in Android and iOS app stores. Customers who need assistance can call the bank or visit a branch or cafe.

    Capital One offers physical branch locations in select states. There are also Capital One Cafes that allow customers to open accounts, drink coffee, deposit cash and checks and socialize. Account holders can attend various events and take advantage of free financial coaching sessions.

    About Capital One

    The online banking unit of Capital One Financial Corp offers checking, savings and certificates of deposit. Richard Fairbank and Nigel Morris started building Capital One (then as a unit of Signet Bank) in 1988. In 1994, Capital One spun off under its name, offering credit cards. In 2012, Capital One acquired ING Direct and rebranded the well-regarded online lender as Capital One 360.

    Mary Wisniewski Twitter Created with Sketch. @MARYMWISNIEWSKI

    Mary Wisniewski Twitter Created with Sketch. @MARYMWISNIEWSKI

    Mary Wisniewski is a banking editor for Bankrate and occasionally writes on a variety of fintech and banking subjects. Previously, she covered fintech for American Banker and edited op-eds for the publication's BankThink section. She was also a blogger and editor at Bank Innovation and served as a fashion editor for National Jeweler, where she reported on fashion shows and jewelry news. Mary grew up in the Michigan suburbs and now lives in Los Angeles with a maltipoo, a record player and an espresso machine.