Capital One Bank Review: Is Capital One a Good Bank?
Most banks always impose ridiculous rules and offer only good returns to account holders who deposit large sums. There’ll be little or no considerable facilities for people who have basic accounts or little deposit.
So people always feel startled while shopping for the bank. Though there’re hundreds of banks offering financial services in the US, only a few banks fit best both individual and business needs.
Among such, Capital One is the best for banking with high-interest rates and strong physical presence, and online tools. It offers several banking services including credit cards, auto loans, and many business and commercial solutions.
The most popular feature in this bank is Capital One 360. What is it and what more benefits are in Capital One; let’s know more about Capital One with Capital One bank review.
Table of Contents
- Capital One Bank Review: Topic Overview
- What is Capital One?
- How do Capital One Checking Account and Savings Accounts work?
- What are the Features of Capital One Banking?
- How much does Capital One Cost?
- Who is Capital One Best For?
- Capital One Pros and Cons
- Capital One Compare to other Banks
- Capital One vs. Chime
- Conclusion: Is Capital One a Good Bank?
- Capital One FAQs
Capital One Bank Review: Topic Overview
Understanding how bank accounts work can be overwhelming at first glance but we’re here to help break it down so that anyone can understand it!
Check out our comprehensive review of Capital One Bank’s services below: -What are the benefits? -How does it compare against other banks? -What are the Pros and Cons -Who is it best for?
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What is Capital One?
Capital One is a banking institution specializing in banking, savings accounts, credit cards, and auto loans. Headquartered in Virginia, the bank mostly operates its banking services in the US.
Founded in 1994, the bank includes 900 physical branches including 30 cafe-style locations and 2000 ATMs and 40,000 ATMs in the Allpoint locations. Fortune has ranked Capital One at 99th on the list of Fortune’s 500 and Fortune’s 100 Best Companies to Work For.
Capital One mostly conducts its businesses in the US, Candana, and UK. With a market share of 5%, the bank has been the second-largest auto finance company in the US after Ally Financial.
The bank has 3 divisions such as credit cards, consumer banking, and commercial banking and the company’s major part of income came from credit cards in 2018. This financial institution has consistently owned the highly positive reviews through Glassdoor’s Best Places To Work reports.
Besides the reputation of being the largest bank in the US, Capital One is also considered the online bank with available mobile apps and website access for customers.
How do Capital One Checking Account and Savings Accounts work?
Capital One offers a wide range of banking services that include online banking and brick-and-mortar facilities. Customers can join the bank for a savings account, checking account, certificates of deposit (CDs), and credit cards.
There are multiple account checking and savings accounts available in Capital One. Let’s discover these all separately with detailed explanations that help you get an idea that fits your needs best.
360 Checking Account
The Capital One 360 Checking account is a considerable version of a free online checking account. It doesn’t need any requirement to qualify for fee waivers, which makes Capital One different from other large banks with physical branches.
Unlike others, the bank also offers APY in the checking account so customers can earn some amount of interest as a bonus on their deposited balance. Let’s know what other facilities they can get from this account.
- Fair 0.10% APY on all balance ranges
- Includes no monthly service fees
- No need to have a minimum deposit to open an account or keep a balance after opening the account
- Offers online bill payment facility
- Incudes mobile check deposit service
- Provides debit cards for customers to spend and for cash withdrawals
- Allows access to 70,000+ fee-free ATMs including the Allpoint and MoneyPass channels
Money Teen Checking Account
Capital One also provides banking services to kids and teens to control their money while spending on day-to-day life. This account allows parents to create a joint account with their child 8 years or older.
Once the teens turn 18, they can open a 360 checking account and transfer their funds over from the previous Money Account. Below will be the benefits or features of a Money Checking Account.
- Offers air 0.10% APY
- Includes zero monthly fees, and requires no minimum deposit to open an account, or no need to keep a minimum balance
- Has debit card issued automatically
- Adults or parents can monitor the account through text alerts or online access including mobile app or website
- Allows $500 to withdraw and purchase from the account
- Doesn’t include paper checks or online bill pay facilities
360 Performance Savings Account
The 360 Performance Savings account is considered a high-yield savings account, which pays a competitive rate. You can earn a decent amount of interest rate while dodging fees.
Though it isn’t the highest interest rate, the percentages that come are consistently good enough. It is sure that you can earn interest regardless of how much balance you have in this account.
This account includes the following features:
- Pays 0.40% APY
- No monthly maintenance fees
- No minimum deposit to open
- No ongoing minimum balance requirement
- Mobile check deposit
- An automated savings plan option
- No debit cards, ATM cards, or check-writing capabilities
Kids Savings Account
Parents can create a Kids Savings account for their kids and teens below age 18 and teach them about finance including saving benefits and compound interest.
When the teens turn 18, they can shift their account to a 360 performance savings account. Let’s know what miners can get in this account.
- Fair 0.30% APY
- No minimum required to open or ongoing balance requirements
- Mobile check deposit
- View-only access for kids to monitor their accounts
- Adult login required to transfer funds
- Converts to a 360 Savings account once the child turns 18
What are the Features of Capital One Banking?
Capital One offers a pack of facilities and features to assist the customers to solve their financial daily and business needs. Some of its banking products or services include retail banking, credit cards, loans, and savings.
So let’s discover some of the considerable features that help you decide whether Capital One fits your banking needs.
High-Yield Interest Rate
Unlike other large banks, Capital One offers a relatively higher amount of interest so that customers can leverage much out of it. In saving accounts, the bank provides 0.30 % APY for Kids and Teens while 0.40% for adults in the respective two separate accounts.
Most banks don’t offer interest on checking accounts but Capital One has some relief for these accounts. It offers 0.10 % APY on its respective checking accounts.
Capital One Mobile App and Website
Capital One is already considered an online bank due to its wide access to online tools. Customers can create, make transactions and conduct other banking activities in this bank online.
The bank has a mobile app and website through which customers can leverage the banking facilities without visiting the physical branches. This helps customers who don’t have Capital One bank branches.
Multiple Options for Accounts
Capital One bank has multiple options for both checking and savings accounts so that customers can deal with their needs without creating an extra account. Separating the accounts, the bank provides the calculated services that fit best for customers so that they need not worry about the unnecessary add-ons if they don’t put them in use.
You can have two options in the checking and savings accounts and three options in the CD accounts.
Useful for Both Elders and Minors
Large banks always avoid the facilities for minors below age 18 as minors don’t have a large sum on their account so that the banks receive little balance to invest. But, Capital One also focuses on the services for kids and teens so that they can learn to control their money at a young age.
Fee-Free Account and ATM
The Capital One online bank offers a free checking account with no minimum balance requirement. There are also no monthly fees, no ATM fees at other banks, and unlimited check writing. Customers can open an account with very little initial cash to get started.
Capital One customers also have free access to nearly 30,000 ATMs nationwide through the AllPoint ATM network.
How much does Capital One Cost?
As Capital One is overtly based on digital access and operates through a smartphone app and website, it doesn’t charge. You can create an account and keep your money on Capital One for free and you need not worry about maintaining large sum to waive the monthly service fee.
You can check the details below;
Capital One Checking Accounts
|Capital One Bank Checking Accounts||Monthly Fees||Waiver Criteria||Minimum Deposit Amount|
|360 Checking Account||$0||N/A||$0|
|Money Teen Checking Account||$0||N/A||$0|
Capital One Savings Accounts
|Capital One Bank Savings Accounts||Monthly Fees||Waiver Criteria||Minimum Deposit Amount|
|360 Performance Savings Account||$0||N/A||$0|
|Kids Savings Account||$0||N/A||$0|
|360 CDs (12 months)||$0||N/A||$0|
|360 CDs (24 months)||$0||N/A||$0|
|360 CDs (60 months)||$0||N/A||$0|
Who is Capital One Best For?
Capital One is a full-service, online bank that appeals to customers who want to earn a competitive and high-interest rate through an online savings account. Customers need not pay the bank for monthly maintenance fees.
This bank is also perfect for those who do most of their banking online. Account-holders on Capital One can access accounts and credit scores from their own phone through the app or website.
Based on these services, the following will be the prospective customers of Capital One:
Capital One allows parents to create minors above age 8 and teach them savings and spending sensibly. MONEY teen checking account and Kids Savings Account are planned for kids and teens at Capital One.
These accounts are free of charge and account holders need not pay monthly maintenance fees but they can get regular APY on their balance. There is a free debit card available for teens that they can use at ATM to withdraw funds for their spending.
After creating accounts for their children, parents can load and transfer money on the accounts of kids and teens. Also, they can monitor the activities of the account that minors use and if they spend unnecessary money, parents can lock the children’s debit cards.
This helps both parents and children to prepare for the hard time or future plans such as study, home purchase, wedding, and traveling expenditure. They can set some financial goals for their children and watch their children grow with their money in their online account.
Capital One offers competitive interest rates without any fee or commission. 360 Performance Savings account at Capital One pays the customers 0.40% APY that the bank condemns is five times than other banks or the national average.
Looking for free checking
One of the great benefits of Capital One bank is that you need not pay a monthly service fee, which benefits the low-income earners. Customers can be happier knowing that monthly free service isn’t available only in the savings accounts but checking accounts too.
Even checking accounts don’t require a minimum balance in the account so if you need money that you have saved in the account, you are free to withdraw; there’ll be no fee charged.
Capital One Pros and Cons
Capital One is a great banking choice for people who earn low income and wants a high-interest rate. Besides, it also provides great banking services including credit cards, personal loans, home loans, and fee-free accounts.
With such benefits, there’re some limitations of Capital One bank. Let’s know both advantages and disadvantages of this bank below;
▶ No fees or Charge Free Accounts
As the bank is based on an online service, it doesn't charge for creating an account and keeping the money on it. You need not pay a monthly maintenance fee until you need some extra services.
Getting a cashier’s check at a Capital One location, Ordering a stop payment on a paper check, or getting a statement copy are some of the additional activities that may charge fees. Overdraft service also charges some funds but the bank also offers some ways to avoid overdraft fees.
Capital One has 900 physical bank branches in Washington, D.C., and in 8 states and outside the US, the bank is also available in Canada and United Kingdom. . Besides, the bank provides the withdrawal fund service through 40,000+ Capital One and Allpoint ATMs.
Apart from the physical presence, Capital One is also available online through mobile banking app and a website. This helps customers conduct the banking activities just through their smartphone and PC without visiting the bank branches.
No minimum balances or deposit requirements. Capital One doesn’t require minimum deposits to open checking or savings accounts, though you’ll be asked to fund at least one penny within 60 days of opening an account. Once your account is open, it doesn’t require keeping a minimum balance.
Capital One offers a way to skip customers avoid overdraft charges on checking accounts. You can decline transactions that will show your account as a negative balance.
When your account pays for an overdraft transaction, you have 1 business day to deposit the money to turn the balance into positive before the bank charge a $35 fee. You can skip overdrafts by fixing the automatic transfers option from your linked savings account.
Besides, you need $0 to create an account and no required minimum balance on an account at Capital One.