Capital One 360 Review: Pros and Cons

Capital One 360 checking and savings accounts are free to open and offer higher-than-average APY rates. Does this popular web bank live up to its claims? Find out if it's right for you.

Capital One 360 provides multiple banking products, allowing you to satisfy all your banking needs in one place if you choose.

They offer savings, checking, CDs, and money market accounts. Your deposits have the protection of the FDIC and your information is encrypted for your safety.

Capital One 360 is an online-only bank, though. They claim this means less overhead, which they pass on to the customer with higher interest rates, no monthly fees, and better service.

If you're considering opening a personal checking or savings account, you must check out these promotions.

Keep reading to see our take on Capital One 360 and their offerings.

Deposit Rates

Capital One 360 offers a nice range of banking services that satisfy basic checking and savings needs:

• 360 Checking
  
• 360 Savings
  
• 360 Money Market
  
• 360 CDs
  
• 360 IRA Savings
  
• 360 IRA CDs

360 Checking

© CreditDonkey

Capital One 360 Checking account has no minimum deposit, no minimum ongoing balance, and no service fees. It offers a better interest rate compared to other online banks.

Other features include:

• Access your money fee-free at more than 70,000 Capital One or Allpoint ATMs.
  
• No foreign transaction fee when you use your debit card abroad.
  
• Online bill pay, with option for automatic payments.
  
• Deposit checks from anywhere by snapping a photo on your phone.
  
• Free first set of checks.

The biggest perk of this checking account are the overdraft options. Instead of automatically charging you for overdrafts, the 360 Checking gives you options. You can choose one of the following choices:

• Auto decline charges you don't have the funds to cover
  
• Link a Capital One 360 Savings account to cover the charges
  
• Use their one business day grace period to add funds before being charged $35
  
• Use their Overdraft Line of Credit, where Capital One will cover the overdrawn amount for you. You'll be charged interest until you pay back the funds.

Compare Checking Accounts

Member FDIC

Bank of America Advantage Banking - $300 Bonus Offer

Learn More

Expires 1/31/2025

• The $300 bonus offer is an online only offer and must be opened through the Bank of America promotional page.
• The offer is for new checking customers only.
• Offer expires 01/31/2025.
• To qualify, open a new eligible Bank of America Advantage Banking account through the promotional page and set up and receive Qualifying Direct Deposits* totaling $2,000 or more into that new eligible account within 90 days of account opening. Bank of America Advantage SafeBalance Banking® for Family Banking accounts are not eligible for this offer.
• Once all requirements are met, Bank of America will attempt to pay bonus within 60 days.
• Additional terms and conditions apply. See offer page for more details.
• *A Qualifying Direct Deposit is a direct deposit of regular monthly income – such as your salary, pension or Social Security benefits, which are made by your employer or other payer – using account and routing numbers that you provide to them.
• Bank of America, N.A. Member FDIC.

Member FDIC

BMO Smart Advantage Checking Account and BMO Smart Money Checking Account - Earn $300 Cash Bonus*

$300 Cash Bonus* when you have $4,000 in direct deposits within 90 days of opening between 11/1/24 – 2/3/25. *Conditions Apply. Available in the U.S. BMO Bank N.A. Member FDIC

Get Deal

Expires 2/3/2025

Member FDIC

U.S. Bank Smartly® Checking - Up to $450 Bonus

Earn up to $450 when you open a new U.S. Bank Smartly® Checking account and complete qualifying activities. Subject to certain terms and limitations. Offer valid through December 30, 2024. Member FDIC.

Earn up to $450 with a new Bank Smartly Checking account. Complete the following within 90 days of account opening:

• Enroll in online banking or the U.S. Bank Mobile App
• Make two or more direct deposits(s) totaling $2,000 to $4,999.99 to earn $250, $5,000 to $7,999.99 to earn $350 or $8,000 or more to earn $450.

Fund your new account within 30 days to start qualifying activities. Offer may not be available if you are an existing U.S. Bank customer or live outside of the U.S. Bank footprint.

Learn More

Expires 12/30/2024

MONEY Teen Checking

The MONEY checking account is specifically for teenagers to help them learn money management. You and your teen will be joint account holders. Teens can make their own money decisions. You'll have your own username and log-in and can see what they're up to.

With this checking account, teens can:

• Get a debit card in their own name
  
• Earn a little bit of interest
  
• Make mobile check deposits
  
• Transfer money
  
• Set up direct deposits
  
• Get text alerts and emails

There is no minimum deposit requirement, no account opening fee, and no service fees. When your teen turns 18, he/she can roll over this account into a 360 Checking account.

360 Savings

© CreditDonkey

Capital One 360's Saving account doesn't offer as high of an interest rate as competitor online banks. But if you want the convenience of checking and savings under one bank, it's not a shabby choice. There are no service fees and no minimum deposit.

Tech-savvy savers will enjoy Capital One 360's mobile app. It's easy to transfer money between Capital One and other bank accounts. They even offer mobile check deposit options.

Compare Savings Accounts

High-Yield Savings Premier - 4.46% APY

Learn More

• No account activity or maintenance fees
• $500 minimum opening deposit
• FDIC insured

The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank's discretion. Refer to product's website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Member FDIC

Member FDIC

Discover® Online Savings - $200 Cash Bonus

To qualify for Bonus: Apply for your first Discover Online Savings Account, enter Offer Code CY924 at application, deposit into your Account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Qualifying deposit(s) may consist of multiple deposits and must post to Account within 45 days of account open date. Maximum bonus eligibility is $200.

What to know: Offer not valid for existing or prior Discover savings customers, including co-branded, or affinity accounts. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of the account qualifying for the bonus. Bonus is subject to tax reporting. Offer ends 03/13/2025, 11:59 PM ET. Offer may be modified or withdrawn without notice. Due to new customer funding limits, you may wish to initiate fund transfers at your other institution. For information on funding your Account, see FAQs on Discover.com/Bank. See advertiser website for full details.

Get Deal

Expires 3/13/2025

Member FDIC

CIT Bank Platinum Savings - 4.35% APY

Learn More

• 4.35% APY with a balance of $5,000 or more
• 0.25% APY with a balance of less than $5,000
• $100 minimum opening deposit
• No monthly maintenance fee
• Member FDIC

Kids Savings

Capital One's Kids Savings Account help children get into the habit of savings. This is a joint account between you and your child. Kids can sign in and view their balance, but you're the only one with the authority to move money in and out of the account.

The Kids Savings Account offers a very decent APY rate, so children can watch their money grow. There is no monthly service fee and no minimum balance.

360 Money Market

The Capital One 360 Money Market has no minimum deposit and no fees. You can set up automatic savings plans or deposit your money manually.

There are two interest tiers depending on your balance. If you have $10,000 or more, you'll receive a better rate with the Money Market than with the Savings account.

Note that the 360 Money Market doesn't offer check writing. You can only transfer funds online between Capital One accounts or to external accounts.

360 CDs

Capital One 360 offers CD terms from 6 months to 5 years. If you don't need to access your money for at least a year, the 12-month CD offers a much higher rate than the Savings account.

There is no minimum deposit. Make sure you choose your term wisely. Withdrawing your money before maturity would result in penalties. While you can't add funds to the account once you open it, Capital One does allow you to open up to 50 CDs at any given time.

360 IRA Savings

The 360 IRA Savings account offers the same APY as the Savings. You can choose between Traditional and Roth IRAs. IRA accounts have tax benefits.

This type of account is meant for retirement savings. The returns are lower than what you could get with brokerage IRA account. So this is best for those who want stability (for example, older people who don't want to risk their investments).

360 IRA CDs

You can also choose an IRA CD, which also has tax benefits. If you open a 360 IRA CD, you'll also automatically get a 360 Savings account. You can use it to make contributions, receive interest disbursements, or rollover funds. When your IRA CD matures, you can transfer it to your IRA Savings.

Reasons We Like Capital One 360

© CreditDonkey

• There are no monthly fees on deposit accounts. Maintenance fees can quickly eat at your profits, which is why the no-fee standards at Capital One 360 are so favorable. This allows you to meet your savings goals faster without worrying about paying service fees.

• You can have as many as 25 savings accounts . If you have multiple savings goals, you can open as many as 25 savings accounts with Capital One 360. This makes it easier to stay organized and reach your goals faster.

• There is no minimum required balance on deposit products. You can open accounts with as little as $1 if you wish. While you do benefit from larger balances with a Money Market account, all other accounts offer the same interest and no fees, no matter the balance.

• You have around-the-clock access to your account. You can access your account on your computer or even your mobile device any time of day or night.

• You don't pay overdraft fees on your checking account. This is worth mentioning again. Many checking accounts charge $35 per overdraft. Capital One 360 gives you options and even second chances.

• You can make mobile deposits. As long as you have a smartphone, you can make mobile deposits in a matter of minutes. All you need is the Capital One app and access to a camera.

• You can transfer money to friends and family. Using Zelle® within your Capital One mobile app, you can send money to anyone, even if they don't bank with Capital One.

• You can get in-person help in select cities. Many online only banks don't offer in-person support. Capital One 360 currently has 27 Capital One "Cafes" throughout the country to support you.

• You can get phone support 7 days a week. Capital One 360 offers customer support from 8 AM to 11 PM, 7 days a week, to help you when you need it.

Reasons You May Want to Look Elsewhere

• Less money flexibility. Capital One's Money Market account doesn't come with check writing privileges or an ATM card. Some other competitor banks offer these features with their money market accounts so you have more flexibility in how you access your money. Only the 360 Checking gives you the freedom to access your money whenever you want.

• You may experience long hold times on deposited checks. Online banking does provide its challenges, which includes held funds. Capital One 360 often holds your funds for up to five business days if the deposit exceeds $5,000.

• You cannot assign beneficiaries. Capital One 360 does not allow you to designate a beneficiary on their bank accounts. So if you died, your account will go to probate court. This will be more of a hassle for your loved ones to settle your account. Capital One 360 also does not allow payable-on-death (POD) or transfer-on-death (TOD). These disadvantages could be a major turn-off point.

• You may wait awhile to talk to a customer service representative. The hold times when you call Capital One have been known to be rather lengthy, which can be frustrating, especially when dealing with your money.

• You can't open an account at their branch. Because they are an online only bank, you can only open their 360 accounts online. If you are local to one of their cafes, you can get support, but account openings are strictly an online process.

• You want a business savings account. Capital One 360 is an online only bank for consumers. If you want an account for your business, you should visit a Capital One branch to open a Business Savings account. This can be helpful whether you need a rainy day fund or have plans to grow your business.

How It Compares

Ally: Ally is another full-service online bank with a range of products. Ally's Savings rate is higher, but Capital One 360's Money Market rate is the best if you have $10,000 to save. If you want more flexibility for your CDs, Ally may be the better choice. It offers higher rates for short-term CDs. And it has several CD options to choose from, including a No Penalty and Raise Your Rate CD.

Synchrony Bank: Synchrony Bank offers one of the best rates for their Savings account. And it also comes with an ATM card for easy withdrawals, so you may prefer that if you want more flexibility. But it has no checking option.

Marcus by Goldman Sachs: If you are in the market strictly for CDs, Marcus by Goldman Sachs offers high-yield products with many options. They do not, however, offer checking account programs. They are more of an investment/savings vehicle.

Bottom Line: Is Capital One 360 Good?

Capital One 360 is a viable option for those who want the higher interest rates of an online bank without all of the fees. You'll have to have some patience when waiting to access your funds or when you need phone support, though.

If you can independently manage your finances and are tech-savvy, however, this could be a bank that will help you avoid the pesky fees that brick-and-mortar banks tend to charge.