Online Banking – Forbes Advisor

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Capital One is a full-service bank that offers competitive rates and no-fee accounts to meet most banking needs. Although it has Capital One branches and cafes in some locations, Capital One is primarily considered an online bank.

Primarily known for its popular credit cards (you’ve seen the ads), Capital One entered the banking world when it bought ING Direct in 2012 and rebranded its services as Capital One 360 ​​Banking.

In addition to banking options popular with consumers, Capital One offers credit cards and auto loans, as well as business and commerce solutions.

This review will focus specifically on the personal banking solutions offered by Capital One. Account details and annual percentage returns (APY) are current as of August 23, 2022.

Account Basics

Verification

For checking purposes, Capital One offers 360 checking accounts. An account comes with a 360 Checking MasterCard debit card and your first checkbook is free. There are few fees associated with 360 Chequing Accounts: 360 Chequing Accounts have no minimum opening deposit or ongoing balance requirements.

Another useful feature is the three overdraft options they offer:

  • Automatic denial
  • Free savings transfer
  • Tomorrow’s Grace

If that’s not enough, Capital One checking accounts also currently earn 0.10% APY on all account balances. Customers can also set up online bill payment with their Capital One checking account.

Savings

Capital One’s 360 Performance Savings is a high-yield savings account that earns 1.70% APY.

As with other Capital One accounts, there is no minimum opening deposit or minimum balance requirement.

This no-fee savings account is a great place to keep your emergency fund. It’s also a great choice for meeting other savings goals, like a family vacation or saving for college. Customers can set up automatic transfers to maximize their savings efforts. A 360 Performance Savings Account is a good complement to a 360 Current Account.

CD

Another banking option through Capital One is a certificate of deposit, or CD. If you have funds that you don’t need to access immediately, opening a CD is a great way to grow your savings over time. CDs are available with terms ranging from six months to five years. Rates vary according to the duration of the mandates. Here are the current terms and prices for CDs available through Capital One.

APYs increase the more you are willing to commit your money. Capital One offers some of the best CD rates on the market.

Capital One CDs do not have a minimum opening balance. Interest accrues daily on CDs and compounds and is credited monthly. Clients can choose the method of interest payment: monthly, annually or at the end of the term. Disbursements can also be transferred to other Capital One accounts or external bank accounts.

There are penalties for early withdrawal of funds from your CD. For CDs 12 months or less, the penalty is three months interest. CDs older than 12 months have a six month interest penalty. There are no partial withdrawals available with Capital One CDs.

MONEY Teen Chequing Account

Parents looking for great banking options for their kids should check out Capital One’s MONEY Teen Chequing Account. This is a joint account that allows teens and parents access online and through the mobile app. It also comes with a free debit card, which can be used for purchases and at ATMs across the country.

Although this is a checking account for teens, it is available to all children 8 years and older. It has no monthly fees and has no minimum opening deposit or minimum balance requirements. MONEY Teen checking accounts also earn interest with 0.10% APY.

Once teens turn 18, they can open a 360 checking account and transfer the funds from their teen checking account.

Children’s savings account

Another option for children is the Children’s Savings Account. Accounts can be opened in a parent’s name or in both parent’s and child’s names. A savings account can also be linked to other Capital One accounts to enable transfers.

While parents and children can access Kids Savings accounts, only parents can perform more important banking tasks, such as transfers. Withdrawals, which include internal transfers, are limited to six per month.

Children’s savings accounts earn 0.30% APY, have no monthly fees, no minimum opening deposit requirements and no minimum balance. To help kids learn to save, Capital One offers features like automatic savings plans and financial goal setting. Kids and parents can use the mobile app or online access to track goal progress along the way. Child Savings Accounts are automatically converted to Savings 360 Accounts once the child turns 18.

Access on the go

The Capital One mobile app is highly rated, earning 4.9 stars (out of 5) on the App Store and 4.6 stars (out of 5) on Google Play. It is truly an all-in-one mobile banking solution. Beyond access to all your Capital One accounts, it offers a host of tools designed to make banking on the go easier. Some of the tools include:

  • Mobile Check Deposit
  • Custom alerts and notifications
  • Expense tracking
  • Access account statements
  • Debit card lock security
  • Free credit score via CreditWise
  • Zelle payment network
  • Rewards tracking (credit cards)

Another way to stay connected on the go is to use Eno, your Capital One assistant. Eno supports customers by providing alerts and account information. It works behind the scenes to spot suspicious account activity. Eno also provides virtual card numbers to make shopping online safer. Alerts are available via SMS, notifications and emails.

Advantages

  • Competitive savings rates
  • APY gain on current account
  • No monthly fees
  • No minimum opening deposit
  • No minimum balance required
  • Mobile check deposit
  • Large network of ATMs

The inconvenients

  • CD prices are average
  • Limited local branches

How Capital One Compares

People looking for an all-in-one personal banking solution should consider Capital One 360 ​​Banking. It offers versatile accounts to meet most needs, including children’s accounts, individual retirement accounts and CDs to pair with its savings and checking offerings, Capital One. Deposit account options also make Capital One a top choice for family banking, creating long-term bonds with customers.

Although it has branches in some states, access is mostly online and through the mobile app at the moment. Capital One coffees are a unique customer experience available in some cities. It’s basically Peet’s cafes combined with a relaxing banking environmentwhere people can do their day-to-day banking and benefit from “financial coaching”. But it’s hard to imagine these cafes becoming a regular sight in small towns.

If you live or work near a Capital One branch or cafe and like the option of banking in person or online, Capital One is a solid banking choice. If you like the personal touch of a local bank branch, most people will have to look to other banks instead.

When choosing a bank, it’s important to take note of what’s important to you and find a solution that meets those needs.

Frequently Asked Questions (FAQ)

Is Capital One FDIC insured?

Yes, all Capital One accounts are FDIC insured (FDIC Certificate #33954) up to $250,000 per depositor, for each class of account ownership.

Is Capital One Bank safe?

Capital One uses several security measures to ensure the safety of customer accounts and personal information. These include SSL encryption, fraud protection, debit card locking features and more. Capital One had a security breach in 2019 involving credit card accounts. The problem was resolved quickly.

Does Capital One offer money market accounts?

No, no money market account is available through Capital One.

How do Capital One Cafés work?

It’s like a cafe where you can also do your banking. Cafes offer a different type of in-person banking experience in a more comfortable environment, where people can grab a coffee, use free Wi-Fi, do their in-person banking, and also talk with “money coaches” who can help. to answer questions. to make decisions about their finances.


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