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Capital One Bank Review: A Hybrid Bank With High APYs

Review Updated
Kailey Hagen
Steven Porrello
By: Kailey Hagen and Steven Porrello

Our Banking Experts

Nathan Alderman
Check IconFact Checked Nathan Alderman
Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.

Capital One combines the limited fees and high APYs of an online bank with the excellent customer service of a brick-and-mortar institution. It offers a competitive variety of banking products to complement its well-known slate of credit cards. Read our full review to learn about everything Capital One has to offer.

Offer image for
Member FDIC.

Capital One

Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. 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. 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.
= Best
= Excellent
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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, its mobile app consistently receives high marks from users, and its CD products are top notch.

Pros
  • High APYs
  • Branches in some states
  • Variety of accounts
  • Great customer service
Cons
  • Some CD rates are low

Savings accounts

Capital One offers three 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.

Ratings Methodology
Rates as of Jun 19, 2024

Capital One 360 Performance Savings

Member FDIC.
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. 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. 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.
= Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. 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. 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.
= Best
= Excellent
= Good
= Fair
= Poor
APY
4.25% Rate info Circle with letter I in it. See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
Min. To Earn APY
$0
  • Competitive APY
  • Branch access (if you live near one)
  • No account fees
  • Comfort of a well-known brand and reputation
  • 24/7 customer support
  • FDIC insured
  • No ATM access

Capital One 360 Performance Savings checks all the boxes we look for in a high-yield savings account. But it also offers branch locations and Capital One Cafes where customers can seek in-person support (if you live near one). This makes it a great fit for those who want to reap the rewards of online banking but aren't quite ready to cut ties with brick-and-mortar banks.

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 decently high APY for a kid's savings account, but not nearly as high as the Capital One 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 Business Savings

The Capital One Business Savings account is aimed at small business owners. It has a waivable monthly fee, which is $3 unless you maintain a balance of at least $300. Its APY is quite low compared to its personal savings accounts, but you can lock in a promotional rate for your account's first 12 months. This makes it a bit more like a brick-and-mortar account than Capital One's other savings accounts.

Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
up to 4.60%
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!
5.36%
Rate info Circle with letter I in it. 5.36% annual percentage yield (APY) is accurate as of 5/10/2024 and subject to change at the Bank’s discretion. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Min. to earn: $500 to open, $0.01 for max APY
N/A
4.75%
Rate info Circle with letter I in it. Our Disclosure: Annual Percentage Yields (APY) is subject to change at any time without notice. Offer applies to personal accounts only. Fees may reduce earnings. For High Yield Savings accounts, the rate may change after the account is opened. Visit synchronybank.com for current rates, terms and account requirements. Member FDIC
Min. to earn: $0
N/A
4.25%
Rate info Circle with letter I in it. 4.25% annual percentage yield as of June 19, 2024
Min. to earn: $1
N/A

Certificates of deposit

Capital One offers two types of certificates of deposit (CDs) -- 360 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 short-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.

Capital One Small Business CDs

Capital One offers business CDs with reasonable minimum deposits and a variety of terms. 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 June 7, 2024
Bank & CD Offer APY Term Min. Deposit Next Steps
APY: 4.70% Term: 1 Year Min. Deposit:  $2,500
APY: 5.05% Term: 1 Year Min. Deposit:  $1
APY: 5.15% Term: 9 Months Min. Deposit:  $1
Member FDIC.
APY: 4.75% Term: 1 Year Min. Deposit:  $500

Checking accounts

Capital One offers four checking accounts. Its two personal accounts are the Capital One 360 Checking account and the Capital One MONEY Teen Checking Account. There's also the Spark Business Basic Checking account and the Spark Business Enhanced 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 70,000 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 are no fees or minimum balance requirements to open or maintain your Capital One 360 Checking account.

Capital One MONEY Teen Checking Account

The Capital One MONEY Teen Checking 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 the account open.

Capital One Spark Business Basic Checking

The Capital One Spark Business Basic Checking account is best for small business owners who receive a modest number of cash deposits and don't want to pay a per-transaction fee. You can deposit up to $5,000 at no charge, then pay $1 for every $1,000 you deposit after. Transactions are unlimited, and you can waive the $15 monthly service fee if your prior 30- or 90-day balance averages $2,000 or more. This account includes a debit card as well as online and mobile account access.

Capital One Spark Business Enhanced Checking

The Capital One Spark Business Enhanced Checking is the better fit for larger businesses with less than $40,000 in cash deposits each month. The $35 monthly fee is waived if your prior 30- or 90-day balance averages $25,000 or more, and you can tack on two Basic Checking accounts with no monthly fee. That way, you can divide money between different departments or keep it separated for different purposes.

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 the top score in the latest J.D. Power National 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.

Relationship benefits

Capital One 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 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 has recently branched out into banking. American Express® National Bank offers a single savings account, a checking account, and a few CDs, and its APYs are pretty competitive. Like Capital One, American Express® National Bank doesn't charge maintenance fees or require its customers to maintain a certain minimum balance.

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 Connect 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 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.

KEEP READING: How to Open a Capital One Bank Account

Our bank and credit union methodology

Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

Learn more about how The Motley Fool Ascent rates bank accounts.

FAQs

  • Yes, Capital One is a safe bank. With roughly $470 billion in total assets, Capital One is the ninth largest bank in the U.S. In addition, the FDIC insures up to $250,000 per depositor at Capital One, making it safe to deposit sums under that amount.

  • Capital One is mostly an online bank, though it does have a few branches and Capital One Cafes.

Our Banking Experts