Capital One is the online banking arm of Capital One. Known for its extensive credit card offerings, Capital One purchased online bank ING Direct in 2012 and changed the name to Capital One.

Primarily, Capital One is a full-service online bank, although there are limited branches in select U.S. states. Our in-depth review focuses on checking and savings accounts, as well as services to help you determine if it's a good fit for your banking needs.

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Pros

  • Competitive interest rates

  • Mobile banking options

  • No monthly maintenance fees

Cons

  • Average rates on longer-term CDs

  • Savings rates are never the highest

  • Few local branches

Pros Explained

  • Competitive interest rates: Performance Savings account consistently offers a high annual percentage yield (APY).
  • Mobile banking options: The mobile app is one of the best in the banking world. On top of the typical mobile features, it also includes free credit score access and a card locking feature.
  • No monthly maintenance fees: There are no monthly maintenance fees for savings and checking accounts.

Cons Explained

  • Average rates on longer-term CDs: Rates on longer-term certificates of deposit (CDs) are lower than its competitors.
  • Savings rates are never the highest: While Capital One Performance Savings account has high rates, they are never the highest on the market.
  • Few local branches: Branches are few and far between; 400-plus locations mostly focused in Washington D.C., La., Md., N.J., N.Y., Texas, and Va. 

Who Is Capital One Best For?

Capital One should appeal to consumers looking for a full-service, online bank. It may be a good fit for customers who want to:

  • Earn a competitive APY through an online savings account
  • Not pay monthly maintenance fees
  • Do the majority of their banking online
  • Access accounts and credit score from their phone

What Does Capital One Offer?

As a full-service online bank, Capital One offers:

  • Savings accounts
  • Checking accounts
  • CDs
  • Credit cards

360 Performance Savings

Performance Savings is Capital One 360's high-yield savings account. It yields a 1.50% APR, which is higher than what many online banks offer, but not the highest available. Interest is earned regardless of your balance.

Performance Savings accounts come with:

  • No minimum balance requirements
  • No monthly maintenance fees 

360 IRA Savings

The 360 IRA Savings is a tax-advantaged account designed specifically for retirement savings. The bank offers a traditional and Roth IRA version, which earn a 0.80% APY and have no minimums or monthly maintenance fees.

An IRA savings account is not for short-term savings goals, like emergency funds or vacations.

Kids Savings Account

Parents who want to open a savings account for their children should check out Capital One's Kids Savings account. Perfect for kids of all ages, this account also has no monthly maintenance fees or minimum balance requirements. It yields a 0.50% APR.

As a custodial account, both parents and children can access a Kids Savings account, although transfers require logging in under the parent's account. Once a child turns 18, the account is automatically converted into a 360 Savings account. 

Capital One 360 Savings Accounts
Account Name  Min Opening Deposit Monthly Fee APY
360 Performance Savings $0 $0 1.50%
360 IRA Savings $0 $0 0.80%
Kids Saving $0 $0 0.50%
as of May 1, 2020

360 Checking

Capital One 360 also has an interest-bearing checking account—360 Checking—which currently earns a 0.20% APR. Features include:

  • First checkbook free
  • No monthly maintenance fees
  • No minimum balance requirements
  • 360 Checking Mastercard debit card
  • Access to 39,000 fee-free Capital One and Allpoint ATMs

MONEY Teen Checking

The bank's other checking account is geared toward teenagers, although children ages eight and up are eligible to open one. MONEY Teen Checking accounts come with debit card access, but no check-writing privileges. Both teens and parents can access the account. Parents can also track account activity through text alerts and email notifications. 

When teens turn 18, they have the option to open a 360 Checking account and transfer the funds over from their MONEY account.

Capital One 360 Checking Accounts
Account Name Min Opening Deposit Monthly Fee APY
360 Checking  $0 $0 0.20%
MONEY Teen Checking  $0 $0 0.20%
as of May 1, 2020

360 CDs

CDs are available for a variety of terms ranging from six months to five years. Interest tops out at 1.50% APY, which is low compared to the best CD rates available right now. There is no minimum deposit required.

There is a penalty if you decided to withdraw funds, other than the interest earned, before the end of your CD term. CDs for 12-month terms or less come with a penalty of three month's interest and those with longer terms levy a penalty of six month's interest. Customers with 360 CDs choose how interest is paid, either monthly or annually. Interest is transferred to another Capital One account or another linked bank account. 

Capital One 360 CD Rates
TERM APY
6 Month 0.60%
9 Month 0.80%
12 Month 1.30%
18 Month 1.30%
24 Month 1.35%
30 Month 1.35%
36 Month 1.35%
48 Month 1.40%
60 Month 1.40%
as of May 13, 2020

360 IRA CDs

Another CD option offered is Capital One 360 IRA CDs. These CDs come with guaranteed returns, no minimums, and earn up to a 1.40% APR. Term lengths are similar to standard CD accounts. 

A 360 IRA Savings account is automatically set up when a 360 IRA CD is opened. An IRA Savings account gives customers a way to make contributions, set up rollovers and transfers, and disperse interest earned from their 360 IRA CD. Once an IRA CD reaches maturity, its funds can be transferred to an IRA Savings account.

Capital One 360 IRA CD Rates
Term APY
6 Month 0.60%
9 Month 0.80%
12 Month 1.30%
18 Month 1.30%
24 Month 1.35%
30 Month 1.35%
36 Month 1.35%
48 Month 1.40%
60 Month 1.40%
as of May 13, 2020

Credit Cards

Capital One offers a wide range of credit cards including travel rewards cards, cash back cards, a student card, a secured card, and several business credit cards. Here are some of the cards available:

Travel Credit Cards

Cashback Credit Cards

Student Credit Card

Secured Credit Card

Business Credit Cards

Other Financial Products Offered by Capital One

On top of personal banking products, Capital One also has a wide array of other accounts and services including:

  • Auto loans
  • Business accounts and services
  • Commercial banking solutions

Capital One Bank Customer Service

Customer service is available in a variety of ways, including:

Customers can also track their accounts through a mobile banking app, which includes mobile deposit and bill pay features as well as access to your credit score and a card locking feature.  The app has outstanding reviews, currently, a 4.7-out-of-5 on both the App Store and Google Play, and is ranked 13th overall in the Finance category for iOS apps.

How to Bank With Capital One

Capital One bank accounts are opened online through the Capital One website. Customers can use an existing Capital One login or create a new one. You'll need to input personal information like:

  • Name
  • Date of birth
  • Mailing address
  • Email address
  • Phone number
  • Employment and salary information
  • Social Security number

Verdict

Capital One is a great banking option for individuals comfortable doing most of their banking online. There are enough account options to appeal to a wide range of people. With few local branches, most banking is either done through an online account or Capital One’s mobile app.

It’s not the right bank for you if you enjoy stopping in at your local branch for in-person banking service. While Capital One doesn’t offer the highest rates compared to other banks, its rates are consistently high overall.

Methodology

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of banks. We collected over 20 data points across more than 80 banks including products available, interest rates, fees, and accessibility to ensure that our content helps users make the right decision for their savings and banking needs.