Capital One 360 savings account review

The Capital One 360 Performance Savings account, commonly called Capital One 360 Savings, is a high-yield savings account with no monthly fees and no minimum balance required. Capital One makes it easy to get started, allowing you to open a new account online in about five minutes. And with the well-reviewed Capital One mobile app, you can easily manage your account on the go.

In this post, we’ll cover the details of having a Capital One 360 Savings account, including the pros and cons — and how it compares to similar accounts. Plus, we’ll help you decide if this is the right account for you.

Capital One 360 Savings Account Fast Facts

  • Annual fee: none
  • Minimum balance: none
  • Current APY: 1.50% (as of 30 April 2020)
  • Pros
    • Comparatively high yields
    • No monthly fee
    • No minimums
    • Easy to get started
    • Mobile app access
  • Cons
    • No ATM cards
    • Comparatively few local branches

Capital One Savings Account Benefits

There are lots of benefits to having a Capital One savings account. Here are some of the highlights:

High Yields

A 1.50% APY is a respectable interest rate for a savings account. This interest rate is even more enticing when you generally carry a fairly low balance. Unlike many accounts that offer tiered rates depending on how much money you keep in your account, Capital One offers the same 1.750% APY on all balances. So even if you only have $90 in your account, you’ll still earn that 1.50% APY rate.

No Minimum Balance Requirements or Monthly Fees

With the Capital One 360 Savings account, you don’t have to worry about carrying a minimum balance. And you won’t be charged a monthly maintenance fee to keep your account open. This no-minimum, no-fee structure has become fairly standard in the competitive world of online banking, but it is still an improvement over traditional bank accounts, many of which still charge monthly fees and/or require you to maintain a minimum balance.

Easy to Get Started

Capital One makes it easy to start saving. You can open your new account online in about five minutes. If you happen to live in one of the eight states with full-service branches, you can also visit one of these branches in person to open your account.

Mobile App

The highly-rated Capital One mobile app makes it easy to automate your savings plan, transfer money between accounts, make mobile deposits, and track your savings progress.

Capital One Savings Account Downsides

Of course, no savings account is perfect. Here are a couple of potential downside for the Capital One 360 savings account.

No ATM cards

While some online savings accounts offer ATM cards so you can easily access your money from any ATM, Capital One does not. To access your money, you need to transfer your money to another account. If you have a Capital One checking account, your transferred funds will be available immediately. But if you’re transferring funds to a checking account with another bank, it can take a couple business days.

While this semi-restricted access can be a negative, it could also be a positive. After all, this is a savings account, not a checking account. And the harder it is to access your savings, the less likely you are to spend that money!

Comparatively few local branches

While I love the innovative Capital One Cafes (with their free Wifi, full coffee and snack bars, and personal assistance), there just aren’t enough of them. Capital One currently has local branches in only eight states, most of which are on the East Coast.

Having said that, how often would you go to the local bank branch when Capital One makes it so easy to bank online?

How Does Capital One 360 Compare to Other Savings Accounts?

You have several good options when choosing a high-yield savings account. Many accounts make the same no-fee, no-minimum offer as the Capital One 360 Savings account. Here’s a quick look at some of the most comparable online savings accounts (as of 30 April 2020):

How Does the Capital One 360 savings rate compare to other savings accounts?

In terms of interest earned, the Capital One savings interest rate compares favorably to other similar savings accounts.

Other online savings accounts, like Ally and Discover, are currently offering rates between 1.40% and 1.55%. These are close to the Capital One 360 Savings rate of 1.50%.

While CIT Bank proudly offers up to 1.55% APY, you have to clear a hurdle to earn this rate. You must either maintain a balance of $25,000+ or make at least one monthly deposit of $100 or more. If you fail to meet one of these requirements, your savings rate will fall to 1.09%.

Of course, when you compare the Capital One saving interest rate to traditional bank accounts, Capital One comes out well ahead. Wells Fargo currently offers a maximum of 0.08%, and Bank of America rates max out at 0.06% (using Los Angeles local rates for comparison).

Is the Capital One 360 Savings account right for you?

The Capital One 360 Savings account is a solid option for the average person. It’s easy to open and use, offers uncomplicated terms, and comes with one of the best interest rates available for a savings account with no monthly fees or minimum required balances.

If you’re a sophisticated investor, it might make more sense for you to keep your savings account with the bank that handles your investments (Ally Invest, for example) so you can easily move money between your investment accounts. But for most of us, the Capital One 360 Savings account is a perfectly suitable high-yield savings account.

Source: getrichslowly.org