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Capital One Bank Review: A Hybrid Bank With High APYs
By: Kailey Hagen
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Capital One Bank has a good variety of accounts with competitive rates and no monthly maintenance fees or minimum balance requirements. It offers top-notch checking accounts, savings accounts, CDs, and more. Capital One Bank's rates and fees are similar to those of online banks, but it also has physical branches and ATMs for those who like to bank in person. Read our Capital One Bank review to find out why this institution, which straddles an interesting line between brick-and-mortar and online banks, has earned praise from its customers.
Best For: Account variety and high APYs
Capital One
Rating image, 4.5 out of 5 stars.
4.5 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Bottom Line
Capital One Bank offers all of the key features you'd expect to find with an online bank -- high APYs, no maintenance fees, and no minimum deposit requirements -- as well as some you don't. The bank has a reputation for great customer service and in some states, those who are more comfortable managing their money in person can visit its physical branches.
Pros
- High APYs
- Branches in some states
- Variety of accounts
- Great customer service
Cons
- Some CD rates are low
Capital One Bank's savings accounts review
Capital One offers four savings accounts, which are discussed in detail below.
Capital One 360 Performance Savings
The Capital One 360 Performance Savings account will appeal to the majority of people. It has a reasonably high APY with no monthly maintenance fees. Another plus: There are no minimum balance requirements to open the account or earn interest.
The majority of Capital One customers will do all of their banking online via its mobile apps and online accounts. For those who prefer to bank in person, it also has a number of ATMs and Capital One branches in several states.
Capital One Kids Savings account
The Capital One Kids Savings account is designed for children under 18. Parents can set up either an account in their child's name alone or a joint account. The Kids Savings account has a fairly high APY, though the rates are not quite as high as the 360 Performance Savings account. Additionally, there are no account minimums or monthly fees.
This account enables you or your child to set up savings goals to help establish good financial habits. You can also set up automatic transfers from your account to theirs. Additionally, your child's account automatically switches to a Capital One 360 Performance Savings account when they turn 18.
Capital One 360 IRA Savings
The Capital One 360 IRA Savings account is essentially the same as the 360 Performance Savings account except it exists in your IRA. That means you can't withdraw your funds without penalty before 59 1/2. It's available in traditional and Roth varieties, so you can choose the one that provides you the greatest tax advantage.
Capital One Business Advantage Savings
The Capital One Business Advantage Savings account is aimed at small business owners. It has a waivable monthly fee. Its APY, while still well above average, isn't quite as high as those on its personal savings accounts. This makes it a bit more like a brick-and-mortar account than Capital One's other savings accounts.
Compare savings accounts
Interested in how Capital One's savings accounts stack up to its competitors? Check out our list of the best saving accounts or compare side-by-side some select picks below.
Rates as
of Oct. 15, 2020
Capital One Bank's CD accounts
Capital One offers three types of certificates of deposit (CDs) -- 360 CDs, 360 IRA CDs, and Small Business CDs.
Capital One 360 CDs
Capital One 360 CDs have no minimum balance. Terms range from six months to five years. Rates are pretty competitive, particularly on some of its longer-term CDs. Since rates are locked in for the whole CD term, this could be a good choice when rates are falling.
Capital One is unusual in letting its account holders decide when they'd like to receive the interest they've earned. You can get your interest paid monthly, which is typical of most CDs. But you can also choose to receive it annually or at the end of your CD term.
| 6 Month APY | 1 Year APY | 1.5 Year APY | 2 Year APY | 3 Year APY | 4 Year APY | 5 Year APY |
|---|---|---|---|---|---|---|
| 0.20% | 0.20% | 0.25% | 0.25% | 0.30% | 0.35% | 0.40% |
Capital One 360 IRA CDs
Capital One's 360 IRA CDs are the same as its 360 CDs, except they're held in an IRA. They earn the same rates and they also have no minimum deposits. However, you cannot withdraw your funds before 59 1/2 -- even if the CD term is up. The bank will automatically put your funds, plus interest, into a new IRA CD with a similar term. You may choose to place your CDs in a traditional or Roth IRA.
Capital One Small Business CDs
Capital One offers business CDs with reasonable minimum deposits and terms that range from one to five years. However, some of its offers are not available in certain parts of the U.S. If you want to learn more about the business CDs available in your area, you'll have to contact Capital One directly.
Compare CD rates
Looking to find a CD with a high APY? You'll find one on our list of the best CD rates.
Rates as of Oct. 15, 2020
Lender
Account
1 yr. apy
2 yr. apy
3 yr. apy
4 yr. apy
5 yr. apy
Min. deposit
Early Withdrawal Penalty
Next Steps
Marcus by Goldman Sachs High Yield CD
0.65%
0.65%
0.65%
0.65%
0.70%
$500
Yes
Capital One Bank's checking accounts review
Capital One offers four checking accounts. Its two personal accounts are the Capital One 360 Checking account and the MONEY account. There's also the Spark Business Basic Checking account and the Spark Business Unlimited Checking for small business owners.
Capital One 360 Checking
The Capital One 360 Checking account is its personal checking account for adult customers. It pays a small amount of interest and gives you access to over 40,000 fee-free ATMs nationwide as well as Capital One's network of branches. You can also manage your money online. Like its other accounts, there's no fees or minimum balance requirements to open or maintain your Capital One 360 Checking account.
Capital One MONEY
The Capital One MONEY account is designed for children between the ages of eight and 18. It includes a modest interest rate and a fee-free debit card for the child. Parents and guardians can monitor their child's activity, but they do not receive a debit card of their own. There are no fees or minimum balance to keep their account open.
Capital One Spark Business Basic Checking
The Capital One Spark Business Basic Checking account is best for small businesses who receive a modest number of cash deposits and don't want to pay a per-transaction fee. There are limits on cash deposits, but you can have an unlimited number of transactions per month. Most small business owners should be able to waive the monthly fee fairly easily. This account includes a debit card as well as online and mobile account access.
Capital One Spark Business Unlimited Checking
The Capital One Spark Business Unlimited Checking is the better fit for larger businesses with high cash and transaction volumes. There's no monthly limit on cash transactions and you get next-day funds accessibility. You can also tack on two Capital One Spark Business Basic Checking accounts if you'd like. That way, you can divide money between different departments or keep it separated for different purposes.
Capital One Banks customer service and experience
Capital One Bank's customers seem pretty happy with its service, on average. The bank has an A rating with the Better Business Bureau and it also received a 4 out of 5 in the latest J.D. Power Direct Banking Satisfaction Study. Banks aren't typically known for their stellar customer reviews, so strong ratings like these shouldn't be underestimated.
It helps that Capital One is a sort of hybrid between traditional brick-and-mortar banks and online banks. It offers advanced tools that enable most people to bank entirely online but also has branch locations for those who want in-person support.
Capital One Bank's relationship benefits
Capital One Bank offers high APYs and no monthly maintenance fees to all of its customers. It doesn't require them to sign up for multiple accounts in order to earn these perks, as many brick-and-mortar banks do.
The bank occasionally offers sign-up bonuses to new customers who open an account within a certain time frame and complete qualifying activities. If you're not in a hurry to open a new account, it might be worth waiting for one of these.
Alternatives to Capital One Bank
If Capital One Bank doesn't have what you're looking for, one of these other banks might.
American Express National Bank
American Express credit cards are well-known, and it's has recently branched out into banking. It only offers a single savings account and a few CDs, but its APYs are pretty competitive. Like Capital One, American Express doesn't charge maintenance fees or require its customers to maintain a certain minimum balance. But if you're interested in checking accounts, you'll have to look elsewhere.
CIT Bank
CIT Bank is an online bank with a wide range of offerings. These include checking accounts, savings accounts, money market accounts, and a variety of CDs. The CIT Savings Builder account is especially impressive. All of its accounts earn some type of interest and have no monthly maintenance fees. If customer service is important to you, be aware that CIT Bank hasn't received the high praise as Capital One Bank in customer satisfaction surveys. But this may not bother you if you normally manage your money through your online account.
Is Capital One Bank right for you?
Capital One Bank is a good fit for you if:
- You don't want to worry about fees or minimum balances.
- You like having the option to visit a branch when you need to.
- Customer service is important to you.
Other Capital One products
In addition to the banking products mentioned above, Capital One Bank also offers the following:
Capital One credit cards
Capital One offers the following credit cards:
- Capital One® Platinum Credit Card: This card is designed for individuals with fair credit, but it has a high APR.
- Capital One® Venture® Rewards Credit Card: You can earn unlimited 2x miles on every purchase with this credit card which comes with a $95 annual fee.
- Capital One® VentureOne® Rewards Credit Card: Another travel card, this one offers unlimited 1.25 miles on every purchase with no caps and no annual fee.
- Capital One® Quicksilver® Cash Rewards Credit Card: This cash back card offers unlimited 1.5% cash back on every purchase with no annual fee.
- Capital One® Savor® Cash Rewards Credit Card: Ideal for foodies, the $95 annual fee will get you 4% back on dining and entertainment, 2% back at grocery stores, and 1% back on all other purchases.
- Capital One® SavorOne® Cash Rewards Credit Card: This no-annual-fee card offers 3% cash back on dining and restaurants, 2% back at grocery stores, and 1% back on other purchases.
- Capital One® QuicksilverOne® Cash Rewards Credit Card: This card is similar to the Quicksilver® Cash Rewards Credit Card, except it's designed for those with fair credit and charges an annual fee.
- Journey® Student Rewards from Capital One®: This card targets college students and offers 1% back on all purchases with a boost for on-time payments.
- Capital One® Secured Mastercard®: This is a pretty affordable secured credit card with no annual fee. You will automatically be considered for a credit limit increase after six months.
- Capital One® Walmart Rewards™ Mastercard®: Frequent Walmart shoppers will enjoy the 5% back on Walmart online purchases, 2% back on in-store purchases, 2% back on restaurant and travel purchases, and 1% back on everything else.
- Capital One® Spark® Cash for Business: This business credit card offers unlimited 2% cash back.
- Capital One® Spark® Miles for Business: A better option for businesses that travel often, this card offers unlimited 2x miles on every purchase, plus 5x miles on travel bookings through Capital One Travel.
- Capital One® Spark® Cash Select for Business: This card offers unlimited 1.5% cash back to business owners.
- Capital One® Spark® Miles Select for Business: You can earn unlimited 1.5x miles when you use this card for your business expenses.
- Capital One® Spark® Classic for Business: Business owners with fair credit should check out this business credit card.
- Capital One® BuyPower Business Card™: This card gives you 5% earnings at GM dealerships, 3% earnings on dining, gas, and office supplies, and 1% back on everything else.
- Capital One® BuyPower Card®: This card offers 5% earnings on your first $5,000 spent each year, and an unlimited 2% on all purchases after that.
- Cabela's CLUB® Mastercard: If you frequent Cabela's you'll appreciate this card, which offers 2% back in CLUB points on all Cabela's and Bass Pro Shops purchases and 1% back in CLUB points on other purchases.
- Bass Pro Shops® CLUB Card: This is essentially the same as the Cabela's CLUB® Mastercard, except it's branded with the Bass Pro Shops logo.
Capital One loans
Capital One offers the following types of loans to its customers:
- Capital One auto loans: Capital One provides new and used auto financing, and you can get pre-qualified online.
- Business equipment and vehicle loans: You can borrow from Capital One if you need to purchase new vehicles or equipment for your small business.
- Real estate term loans: Use one of Capital One's real estate term loans to purchase new office space or renovate your existing commercial property.
- Business installment loans: These loans are essentially like personal loans for small business owners.
SBA 7(a) & 504 loans: These are also business installment loans, but they offer higher borrowing limits and longer repayment terms.
About the Author
Kailey has been writing about banks, credit cards, loans, and all things personal finance since 2012. She also writes for The Ascent's parent company, The Motley Fool. Her work has appeared on USA Today, CNN Money, Fox Business, and MSN Money. She's a graduate of the University of Wisconsin and happily lives in the woods of northern Wisconsin where she grew up.
